packages (financial analysis)

Packages Pakistan Ltd

INTRODUCTION TO PAPER & BOARD

Definition of Paper & Board :

When the weight of one square meter of sheet exceeds 130 grams, it is

termed as Board or Paper Board. Substance lower than 130 grams per

square meter is called Paper.

Board is basically used in the manufacture of cartons where creasing is also

required. It provides necessary strength to the cartons, which are most

commonly used in packaging of cigarettes, toiletries and detergents, tea

pharmaceutical products, food and other consumer items.

History of Paper & Board in Pakistan:

In the early Pakistan though the country mainly depended on agriculture and

the manufacturing industry was in a primitive stage, yet the need for

packaging consumer’s material was there, the native production of consumer

products was little and the consumers material used to come in already

packed from abroad. In the early fifties during the initial stages of

industrialization, consumer goods industries sprang up and the need for

packaging material was satisfied through imports. At the time, such industries

as tea, food, pharmaceuticals, shoes, matches, textiles, and cigarettes were

importing packaging material to the turn of Rs. 5 million per year. Packaging

industry came into existence as a natural and logical link in the industrial

development of Pakistan. Between the periods 1950 to 1955, Pakistan

Industrial Development Corporation established basic industries for

manufacturing paper and board viz. Karnaphulli Paper Mills, Chandraghona,

Adamjee Paper & Board Mills, Nowshera, and Sethi Straw Board Mills.

Rahwali went into production in about 1955 when government went ahead

and placed restrictions on the import of Packaging material. This on the one

hand not only saved foreign exchange and on the other encouraged the

development of Packaging industry. The first unit went into production in

1957, followed by a number of additional units, bringing the total over a dozen

in West Pakistan. Since 1967, four additional Paper and board mills have

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gone into production at Charsadda, Lahore and Gharo. In the early days,

packaging was an industry in which Pakistan had no previous experience or

trained people.

In view of the growing demand for paper and board the small size projects,

economically viable were set up in almost all the big cities. In order to further

develop the production of this sector and with a view to reduce the import

liability, few more projects were set up in 1972-77. Although the industry has

been passing through a crisis, interest has been shown lately by several new

investors to set up paper and board units. Plans have also been made to set

up a newsprint mill in the country.

Per Capita Consumption Of Paper & Board In

Pakistan:

Per capita consumption of paper and board is regarded as one of the

yardsticks to measure a nation’s prosperity. Compared to the USA, Sweden

and Canada where an individual on an average consumes 200 to 250

kilograms of paper & board per year, the per capita consumption in Pakistan

is hardly three kilograms.

The apparent consumption of paper and board has shown a steady increase

over the past years and is expected to grow at a faster pace over the coming

years because of the increased Industrial and commercial activity in the

country.

(Source: Company’s Brochure)

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INTRODUCTION TO PACKAGING

Definition Of Packaging:

Packaging is the use of containers and components with the addition of

labeling to protect, identify, merchandise and facilitate the use of products.

Protection and identification of product is being the overwhelming factors in

this process. This obviously facilitates the use of a product of a particular

brand.

Packaging History:

At first, packaging was any readily available natural such as skins, bark,

leaves and woven twigs. They worked marginally well because drying,

smoking, salting or fermentation generally preserved food. Non-foods were

mostly sturdy in construction.

However, obvious deficiencies in these materials led very quickly to

development of textile, wood and ceramic containers. These materials were

an improvement, but still did not effectively protect food from insects, rodents

and diseases that plague mankind, nor did they guard some nonfood products

from the two main ravages of moisture and air – rot and rust.

The next step in packaging, one of the most important advances ever made

by man, did not occur until early in the nineteenth century. It was the heat

sterilization of perishable foods in metal and glass containers. It took another

hundred years before frozen foods were developed, making the nutrition,

taste and convenience of fresh foods in economical paperboard packages

available year–round to a significantly large population.

A world conflict forty five years ago spurred the creation of still newer

packaging and distribution techniques capable of preserving foods,

medicines, clothing and military machines and parts in climatic extremes

ranging from steamy jungle heat to searing alpine cold. Thin metal foils and

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plastic films, sheets and coatings were the key innovations that made these

developments possible.

Since the mid – 1970s, increasing cost of distribution – initiated by a steep

rise in fuel prices – created an ongoing revolution in packaging structure

aimed at reducing the volume and weight of both unit-of-use and shipping

containers.

In short, the industrial countries of the world have made more progress in the

packaging, storage and distribution of goods in the last 100 years than in all of

the previous time since man first walked the earth. The progress also appears

to be accelerating.

This development of sophisticated packaging that protects products from both

physical and environmental changes has enabled advanced societies to

locate food-growing and product-manufacturing facilities where they are most

practical from the standpoints of climate, raw material availability, labor supply

and power.

Packaging Development:

3000 B.C:

Egyptians believed to be using cast and/or blown glass and jars, and a

papyrus form of paper for packaging.

C. 1500:

Cork stoppers broadly used to close bottles.

1841:

First metal tube extruded in tin by John Goffe Rand, American portrait painter.

1871:

First U.S. patents for corrugated paperboard to A.L.Jones.

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1884:

Milk bottle developed

1897:

First major use of paperboard boxes of National Biscuit Company

1911:

A machine designed to make a continuous film called “Cellophane” from

“Cellulose” and “Diaphene”, the French word for transparent.

1913:

First use of toil for wrapping LifeSavers, candy bars, and chewing gum.

1938:

Nylon, used to make toothbrush bristles, introduced by DuPont, subsequently

used in packaging as a film and as molded parts in aerosol valves.

1947:

Continental Can Company produces first commercial aerosol cans.

1959:

Aluminum used for beverage cans.

Oriented shrink films introduced individual wrapping and bundling of product

packages and pallet loads of goods.

1972:

Oregon became the first state to restrict packaging by banning use of non-

returnable bottles for soft drinks. One half dozen states have since followed

suit, generally requiring cash deposit on one - ways.

1973:

Universal Product Code (UPC), bar code in addition to visually readable label

symbols on grocery products, introduced to enable product and source

identification via laser scanning and price and inventory data via computerized

cash registers.

(Source: Introduction to Packaging by Stephen Eliot)

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The Need for Packaging:

Efficient packaging is a necessity for almost every type of product, whether it

is mined, grown, hunted, extracted or manufactured. It is an essential link

between the product maker and his customers, and unless performed

correctly the reputation of the product will suffer and the good will of the

producer will be lost. All the skill, quality and reliability built into the product

during development and production will be wasted unless care is taken to see

that it reaches the ultimate user in the correct condition. Properly designed

packaging is the main way of ensuring safe delivery to the final user in good

condition at an economic cost.

Thus, the packaging functions require specialized knowledge and skills, in

addition to the specific machinery and facilities, to produce a package which

will provide most, if not all, of a number of basic requirements:

“Containment, protection and preservation,

communication, suitability for the packaging line (i.e.

machineability), convenience in shape, size and weight for

handling and storage, adaptation for the use of the product

it contains, and environmentally friendly in respect of

manufacture, use and disposal.”

More over, these basics must be provided at one or all the levels of packaging

usually employed, viz. the primary packaging, the secondary packaging or

shipping containers and the tertiary packaging or the unit load.

Now I would like to discuss the basic needs of the packaging in a little more

detail.

Containment:

Obviously, the packaging must hold all the contents and keep them secure

during the period between the end of the packaging line and the time when

the last of the contents have been finally utilized.

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Protection and preservation:

Briefly, the packaging must protect the product from both the mechanical and

climatic hazards of the environment through which the package will pass

during distribution and use.

Communication:

All retail packaging must obviously communicate, for not only do they have to

identify the contents and meet the legal requirements, but also often they

must assist in selling them. The unit load and/or the shipping container must

inform the carrier about the destination, provide any instructions about the

handling and storage of the goods and perhaps inform the user as to the

method of opening the package and assembling the contents as well.

Machine ability:

The great majority of modern retail packages and many transport packages

are today erected, filled, closed and collated on machinery operating at speed

of 1,000 units or more per minute. They must therefore perform without too

many stoppages or the process will be wasteful of material and uneconomic.

Even when the numbers concerned are small and the items are specialized,

the need for a good performance in filling and closing operations is still

important.

Convenience and use:

The most common impression of convenience in items of retail packaging is

that of providing easy opening, dispensing and/or after use. Both the shipping

containers as well as the retail package must provide convenience at all

stages from the packaging line, through warehousing and distribution, as well

as satisfying the needs of the user of the product.

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TYPES OF PACKAGING:

There are three main categories in which “Packaging” can be divided;

SHIPPING CONTAINERS :

Shipping containers in packaging trade signify cartons made from

corrugated board.

FLEXIBLE PACKAGING :

This includes packs made from flexible material like Plastic films,

Aluminum foil and Paper or combination of these.

FOLDING PACKS :

This includes Duplex board and Box board packs to carry individual or

set of products like, Cigarettes, Match boxes, Tea, Detergents etc.

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MARKET:

The demand for Packaging stems from the following major sectors of industry

in the country:

Shipping Containers Folding Pack Flexible

Packing

Textile, Air conditioner Cigarettes Shopper Bags

Cigarette, Washing Pharmaceutical Food Products

Machine. Matches Garments

Soap, Cooking Ranges Tea Cigarettes

Shoes, Water Heater Toilet Soaps Biscuits

Pharmaceutical, Gas Biscuits Pharmaceutical

Heaters. Detergents Tooth Pastes

Food, Packed Milk Cosmetics Cosmetics

Juices / Squashes, Bulbs Fertilizer

Hosiery, Ready Made Auto Parts Chemicals

Garments

Radio, T.V. Hosiery Toilet Soap

Ceiling Fans Hosiery

Refrigerator

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INTRODUCTION TO PACKAGES LIMITED

Rapid growth of industrial economy bases on different factors Packaging is

one of them. Packages Limited was born out of a dream to set up in Pakistan

industries of excellence based on local raw material and talent. Packages

Limited is a leading packaging manufacturing company of Pakistan. It is the

sole largest industry in Pakistan serving about the 35% needs of the country.

Syed Baber Ali Shah, who was the first managing director of Packages

Limited, went to Sweden in 1954 to negotiate the contract with Akerland &

Rausing of Sweden. Akerland & Rausing had been the leading paper

converters in Europe. In Pakistan, there was no previous experience of a

packaging industry. Therefore, Pakistanis needed technical collaboration with

their Swedish partners. In the beginning, the first problem was the selection of

site. Finally, Lahore was selected due to the following reasons:

Easy availability of workers.

Easy availability of raw material.

Easy transportation all over the country.

So, Ali family provided the capital, land, labor, management and local experts

while their partners provided technology, machinery, experts and also training

to Pakistanis. Syed Baber Ali was the first Managing Director.

Mr. Syed Mratib Ali Shah laid the foundation stone on The 26th of March

1956. The construction was started from the Solid Board Department and by

the end of October, 1956 the main shed of the factory was completed. At the

same time the Swedish engineers with the help of Pakistani staff installed

machinery. Packages Limited started operating in May 1957 with a paid up

capital of Rs. 4.94 million as a joint venture between the Ali group and

Akerlund & Rausing of Sweden. In the beginning 22 Swedish experts

came to Pakistan to run the factory and to train the Pakistani staff. In 1958

production of packaging cartons for different industries was started. Usually,

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the packaging cartons are for Soaps, Confectionery, Biscuits, Cigarettes, Tea,

Pharmaceutical products and many other products.

Over the years, the Company continued to enhance its facilities to meet the

growing demand of packaging products. Additional capital was raised from

sponsors, International Finance Corporation and from the public in making the

total paid up capital to Rs. 31 million in 1965.

As a first step, Packages commissioned its own paper mill in 1968 having

production capacity of 24000 tones of paper & paper board based on waste

paper, agricultural waste, wheat straw and kahi grass. As the demand

continued to grow, it led the Company to expand and the end of 1995

increased its annual capacity to 50000 tones of paper & board and

corresponding converting ability.

Since 1982, Packages Limited has a joint venture in Tetra Pak Pakistan

Limited with Tetra Pak International to manufacture paper for liquid food

packaging and to sell Tetra Pak packaging equipment. After Tetra Pak in

Tetra shape, it also introduced brick shape packing. Both shapes are very

popular among liquid preservation industries. The main industries covered by

Packages Limited are:

Soap Industry

Shoe Industry

Tissue Industry

Tea Industry

Tobacco Industry

Food Industry

Sweets & Confectioneries

In Tetra Pak Pakistan Limited Packages Limited has 45% shares, 6% shares

owned by Syed Baber Ali Shah and 49% shares owned by Tetra Pak

International.

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Since 1957, Packages has been producing inks for its own consumption. In

1993, the Company agreed to form a joint venture with equity participation

from Coates Lorilleux, world’s second largest printing ink manufacturer to

produce inks for Packages Limited and the general market. Packages Limited

own ink manufacturing facilities now transferred to the new company,

“Coates Lorilleux Pakistan Limited”. In July 1994, Coates Lorilleux

Pakistan limited, in which Packages Limited has 55% ownership, commenced

production and sale of printing inks.

Also in 1993, a joint venture agreement was signed with “Mitsubishi

Corporation of Japan” for the manufacture of polypropylene films at the

industrial estate in Hattar, NWFP. This project, Tri-Pack Films Limited,

commenced production in June 1995 with equity participation by Packages

Limited 33%, Mitsubishi Corporation 27%, Altawfeek Company for investing

Funds, Saudi Arabia, 11% and public 29%.

In 1995, an agreement was signed with UHDE of Germany to setup a plant

for the manufacture of Hydrogen Peroxide (H2O2), an environmentally friendly

bleaching chemical, with an annual capacity of 12500 tones, near Lahore,

Punjab. This project Oxypak Limited was a separate company, which was

projected to commence production during 1997-98.

In 1996, a joint venture agreement was signed with Print care (Ceylon)

Limited for the production of flexible packaging in Sri Lanka. This project

Packages Limited Lanka (private) Limited commenced production in 1998.

Packages Limited owns 62% of this company.

In 1999-2000 Packages Limited has successfully completed the expansion of

the flexible packaging line by installation of new rotogravure printing machine

and the expansion of the carton line by a new Lemanic rotogravure inline

printing and cutting creasing machine. The machines are in production since

December 1999.

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The Company is at an advanced stage of implementing SAP, an Enterprise

Resource Planning System, which through a common database allows the

Company to be fully integrated and be live in respect of all its business

information. This will enable the Company to serve its customers better.

The Rubber Division working under the Research Development & Control

Department is also selling its products in the local market as well as selling to

the Defense Authorities apart from providing services to its own departments.

Another important service department of the Packages Limited is its “Power

Plant”. In 1967 they set up 6 MW power plant, but to ensure a continuous

and dependable supply of power for its production lines, Packages has also

established its own 10 MW power plant in 1991, the cost of which was 180

million rupees. Packages Limited saves a lot of money in this regard. For

example, if they get power from WAPDA, then WAPDA charge more than 6

rupees per unit but the expenses of its own production is almost one rupees

per unit.

In the field of consumer products, Packages Limited has shown tremendous

potential and commendable talent. Consumer Product Division provides 12%

share of the Packages total sales. The consumer products of the company

are “Rose Petal” Tissues. The production of Rose Petal was the first

introduction of tissue paper industry in Pakistan. Through Packages has

introduced so many brands of tissues. Rose Petal is now the market leader of

tissue paper industry in Pakistan. Rose Petal has more than 75% share of

tissue paper industry in Pakistan. Other consumer products are Paper Cups,

Paper Plates, Paper Napkins, Paper Hot Cups and Wet tissues of Rose Petal

have been introduced in the market in 1992.

(Source: Annual Report 2000 & company’s brochures)

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PACKAGES TODAY

Now Packages Limited is exporting its managerial skills & technical expertise

to the third world countries like,

Indonesia

Tanzania

Kuwait

Saudi Arabia

Nigeria

Zambia

Somalia &

Russia.

It has also started the export of tissues to

Iran

Bangla Desh

Srilanka

Indonesia

United Arab Emirates &

Maldives.

Packages Limited has a large workshop. This workshop is capable of making,

repairing and replacing the damaged parts. The Research Development &

Control Department (RD & C) was also established to ensure the quality and

standard of the products.

Starting with a work force of 500 workers, now Packages limited is having

2782 employees (at present). In this regard, a separate Personnel

Department is there, to look after the problems of the workers. Today

Packages Limited is considered to be a leader in the Packaging field in Asia.

Packages Limited has completed the balancing, modernization, replacement

and expansion program, which began in 1994. This has enabled the company

to minimize capacity constraints and improve quality to meet local and foreign

competition as well as improve its environmental protection facilities.

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ISO Certificate

The Packages Limited is a quality conscious organization. Whatever they

produce, their emphasis remains always on the quality. For this reason, they

have employed quality seeking management. Similarly, they always try to get

the latest technology. The reason being that this company has become one

of those small numbers of companies of Pakistan who have got the certificate

for quality in five departments:

Flexible Department

Carton Line

Corrugated Division

Consumer Product Division

Paper & Board mill

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COMPANY PROFILE

Board of Directors:

Asadullah Khawaja

Istaqbal Mehdi

Khalid Yacob

Kirsten Rausing

Rafi Iqbal Ahmed

Samee-ul-Hasan

Saulat Said

Seppo Hietanen

Syed Haider Ali

Syed Wajid Ali

(Chairman & Chief Executive)

Advisor:

Syed Babar Ali

Company Secretary:

Adi J. Cawasji

Auditors:

A.F. Ferguson & Co.

Legal Advisors:

Hassan & Hassan – Lahore

Orr, Dignam & Co. – Karachi

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Bankers:

ABN Amro Bank

American Express Bank Limited

ANZ Gridlays Bank Limited

Bank of America, N.T & S.A.

Citibank N.A.

Credit Agricole Indosuez

The Global French Bank

Deutsche Bank A.G.

Emirates Bank International P.J.S.C.

Faysal Bank Limited

Habib Bank Limited

Mashreq Bank

Muslim Commercial Bank Limited

Societe Generale

The French & International Bank

Standard Chartered Bank

United Bank Limited

Head Office & Works:

Shahrah-e-Rommi, P.O. Amer Sidhu, Lahore-54760, Pakistan

PABX : 5811541-46, 5811191-94

Cable : PACKAGES LAHORE

Telex : 44866 PKGS PK

Fax : (042)5811195, 5820147

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Registered Office & Regional Sales Office:

1st Floor, Hilal-e-Ahmer House, Khayaban-e-Iqbal Main Clifton Road,

Karachi-75600, Pakistan

PABX : 5863941-42, 587047-49

Cable : PACKAGES KARACHI

Fax : (021) 5860251

Regional Sales Office:

2nd floor, G.D Arcade, 73-E, Fazal-ul-Haq Road, Blue Area Islamabad-

44000, Pakistan

Mobile : (0300) 503650

PABX : 2276765, 227678

Fax : (051) 2829411

Zonal Sales Offices:

1st Floor, 61 khan plaza Qasim Road, Multan Cantt.-60000 Pakistan

Tel & Fax: (061) 587370

1st Floor, Room No. 7 Glamour Centre Mission Road, Sukkur-65200

Pakistan

Tel & Fax: (071) 26581

(source: Annual Report 2000 Packages Limited)

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OBJECTIVES OF PACKAGES LIMITED

Objectives are the ends towards which activity is aimed. They represent not

only the end point of planning but also the end towards which organizing,

staffing, leading and controlling are aimed. Packages Limited works with the

objective of increase in sales, profit, and expansion programs. At the time of

establishment the Packages Limited start to work with the objective,

“To Secure a Relatively Safe and Cheap Local Source Of Paper, Board

And Plastic Film Packaging”

The objectives for which the company is established are:

1. To carry on all or any of the business of manufacturing and

printing of cartons, packages, specialized containers for various

commodities, utensils and other articles, printers, lithographers, type

founders, stereotypes, electrotypes, photographic printers, photo-

lithographers, chrome-lithographers, engravers, die sinkers, book

binders, designers, paper and ink manufacturer and dealers in or

manufacturers of any other articles or things of a character similar or

analogous to the foregoing or any of them or connected therewith;

manufacturers importers, exporters, and dealers in raw materials,

articles and things required for purpose of manufacture and printing of

cartons, packages, specialized containers for various commodities,

utensils and other marketable commodities, and to establish and

maintain showrooms for this purpose; and of distributors, suppliers and

sellers of the said articles and contractors for supplying them.

2. To carry on all or any of the business of manufacturers of and

dealers in paper and board of all kinds and Tetra Paper for making

Tetra Pak of any type, description and dimensions, straw board, plain

and corrugated duplex board, chip board, card board, box board,

veneer board, mill board, wall and ceiling paper, grease proof paper

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and articles made of paper, pulp, paper board specialists and board in

all their branches.

3. To carry on business as producers and processors of and

dealers in poultry, dairy produce of all kinds and other liquids of every

description and to carry on business as cow and buffalo keepers and

as manufacturers of all kinds of condensed milk, cream, butter, cheese

and other milk products.

4. To carry on the business of planters, growers, cultivators,

farmers and dealers in corn, hay and straw, and other produce of the

soil likely to be used in the manufacturing of paper and to improve

protect against fire and wind and other elements of nature and to treat,

prepare, render marketable, buy, sell or dispose of otherwise such

corn, hay and straw and other produce.

5. To carry on the business of stationers, printers, publishers,

fancy goods dealers, bill posters and advertising contractors.

6. To carry on the business of manufacturers of and dealers in

chemicals of all kinds, paints, varnishes, printing inks and all other

things which can be conveniently manufactured or dealt in either

wholesale or retail and either as principals or agents.

7. To import and export, buy, sell and trade in manufacture and mill

supplies, engines, fire engines, trucks, vehicles, machine tools,

machine shops and electric supplies and appliances foundry and

factory supplies and hardware of all kinds and chemical substances

useful for the Company.

8. To purchase and provide machinery and equipment for the

purposes here in before as well as here in after set out and to

manufacture or assemble such machinery.

9. To manufacture, purchase, warehouse, export, store, process,

import, sell and generally to deal in all materials, articles, substance

and things required for or incidental to the manufacture, preparation,

adaptation, treatment, use or working of the foregoing or the packing,

storing, carrying or the disposition thereof or any of them or connected

therewith.

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10. To carry on any other business, whether manufacturing or

otherwise, which may seem to the company capable of being

conveniently carried on in connection with the above or calculated

directly or indirectly to enhance the value of or render profitable to the

company’s property or rights.

11. To acquire and undertake the whole or any part of the business,

property and liabilities of any person or company on any business

which the company is authorized to carry on, or possessed of property

suitable for the purpose of this company.

12. To establish laboratories, and research and development

centers to perform such research and development, as the company

may deem advisable or feasible.

13. To train personnel and workers, both in Pakistan and abroad,

to obtain technical proficiency in various specialties connected with the

paper, board and packaging industries or other business of the

company.

14. To apply for purchase or otherwise acquire any patents,

brevets invention, licenses, concessions, and the like, conferring any

exclusive or non-exclusive or limited right to use, or any secret or other

information as to any invention which may seem capable of being used

for any of the purposes of the Company, or the acquisition of which

may seem calculated directly or indirectly to benefit the Company, and

to use, exercise, develop, or grant licenses in respect of, or otherwise

turn to account the property, rights or information so acquired.

15. To enter into the partnership or into any arrangement for sharing

profits, union of interest, cooperation, joint venture or reciprocal

concessions, with any person or company carrying on, or engaged in

any business or transaction which this company is authorized to carry

on or engage in, or any business or transaction capable to benefit this

company: and to lend money to, guarantee the contracts of, or

otherwise assist any such person or company and to take or otherwise

acquire shares and securities of any such company, and to sell, hold,

reissue with or without guarantee, or otherwise deal with the same.

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16. To take, or otherwise acquire, and hold shares in any other

company having objects altogether or in part similar to those of this

company, or carrying on any business capable of being conducted so

as directly to benefit this company.

17. To enter into an arrangement with any government, state or

authority, central or provincial, railway, municipal, local or otherwise,

that may seem conductive to the company’s objects, or any of them

and to obtain from any such government, state or authority any rights,

privileges and concessions.

18. To establish and support or aid in the establishment and

support of associations, funds, trusts, and conveniences calculated to

benefit employees of the company or the dependents or connections of

such persons, and to grant pensions and to make payments towards

insurance.

19. To promote any company or companies for the purpose of

acquiring all or any of the property, rights and liabilities of this

company, or for any purpose which may seem directly or indirectly to

benefit this company.

20. To amalgamate with any other company having objects

altogether or in part similar to those of this company.

21. To sell or dispose of the undertaking of the company or any part

thereof or such consideration as the company think fit, and in particular

for shares, debentures, or securities of any other company having

objects altogether or in part similar to those of this company.

22. Generally to purchase, taken lease or in exchange hire or

otherwise acquire, any movable or immovable property, and any rights

or privileges which the company may think necessary or convenient for

the purposes of its business, and particular any land, buildings,

machinery, plant and stock in trade.

23. To construct, improve, maintain, develop, work, manage, carry

out, or control any manufacturing, warehouse, shops, stores and other

works and convenience, which may seem calculated directly or

indirectly in advance the company’s interest.

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24. To construct, maintain and alter any building, or works

necessary or convenient for the purpose of the company.

25. To sell, improve, manage, develop, exchange, enfranchise,

mortgage, lease, dispose of account, or otherwise deal with, all or any

part of the property and rights of the company.

26. To invest and deal with the money of the company not

immediately required in such manner as may from time to time be

determined.

27. To lend money to such persons or companies and on such

terms as may seem expedient and in particular to customers and

others having dealings with the company and to give dealing with the

company and to give guarantee or become security for any such

persons, firms or companies.

28. To borrow or raise or secure the payment of money in such

manner as the company shall think fit and in particular by the issue of

debentures, or debentures stock, perpetual or otherwise charged upon

all or any of the Company’s property both present and future including

its uncalled capital, and to purchase or pay off any such securities.

29. To adopt such means of making known the products of the

company as may seem expedient, and in particularly advertising in the

press, by circulars by purchase and exhibition of works of art or

interests, by publication of books and periodicals, and by granting

prizes, rewards and donations.

30. To underwrite the shares, stocks or securities of any other

company and to pay underwriting commission and brokerage on any

shares, stocks or securities issued by the company.

31. To subscribe or contribute or otherwise to assist or to guarantee

money to charitable, benevolent, religious, scientific, technical,

national, public, political or any other institutions, objects or purposes

or for any exhibition.

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32. To receive money on deposit or loan upon such terms as the

company may approve, and to guarantee the obligations and contracts

of customers and others.

33. To remunerate the directors, officials and servants of the

company or any person or firm or company rendering services to the

company out of or in proportion to the returns of profits of the company

or otherwise as the company may think proper, either by cash payment

or by allotment to him or them of shares or securities of the company

credited as paid up in full or part or otherwise as may be thought

expedient.

34. To undertake and execute any trust the undertaking where of

may seem desirable, and either gratuitously or otherwise.

35. To obtain any provisional order or act or legislature for enabling

the company to carry any of its objects into effect, or effecting any

modification of the company’s constitution, or for any other purpose

which may seem expedient and to oppose any proceeding or

application which may seem calculated, directly or indirectly to

prejudice the company’s interests.

36. To capitalize such portion of the profits of the company as in not

distributed among shareholders of the company in the form of

dividends and as the directors of the company may think fit and to

issue bonus shares, as fully paid up, in favor of the shareholders of the

company.

37. To act as managing agents for any other person, firm or

company as may be deemed convenient and upon such terms as may

be agreed.

38. To appoint such person, firm or company as may be deemed

expedient to be managing agents, securities managers, branch

managers or district representative of the company upon such terms as

the company may determine.

39. To do all such other things as are incidental or conducive to the

attainment of the above objects.

24


40. To develop and build local skills and competence in a

sophisticated industry in order to make the country self sufficient in its

need for packaging.

(Source: Introduction to Packages Limited)

25


MISSION STATEMENT:

To be leader in the market Packages serves by providing quality products and superior services to their customers while leaning from their feedback

to set even higher standards for out products.

To be a company that continuously enhances it superior technological competence to provide

innovative solutions to customer needs.

To be a company that attracts and retains outstanding people by creating a culture that

fosters openness and innovation promotes individual growth and rewards initiative and

performance.

To be a company which combines its people, technology, management system and market

opportunities to achieve profitable while providing fair returns to its investors.

To be a company that endeavors to set the highest standards in corporate ethics in serving the society.

(Management)

26


QUALITY POLICY

We at Packages Limited are committed to

producing quality products, which conform to our

customers’ requirements and strengthen our

position as a quality-managed company. Our pledge

is to provide the market with the best quality

products at competitive prices through a customer-

driven and service-oriented, dynamic management

team. To meet this obligation, the Company will

continue updating of employee skills by training,

acquisition of new technology, and regular re-

evaluation of its quality control and assurance

systems. Appropriate resources of the Company will

be directed towards achieving the quality goals

through employees’ participation.

(Management)

27


ENVIRONMENT, HEALTH AND SAFETY

(EH&S) POLICY

The management of Packages Limited realizes that we live in a

world where resources are finite and the eco-system has a limited

capacity to absorb the load mankind is placing on it. That is why it is

our belief that we must do everything practically possible to lessen

the load we place on the environment and make every effort so that

sustainable development becomes the reality. Packages Limited has

formulated its environment, health and safety (EH&S) Policy to

address these issues in a more effective way. It is very clear to us

that these objectives cannot be realized by the efforts of the

management alone. While the general directions are to be provided

by the management, the help of all the employees will be required

to transform these ambitions into reality. It is expected that all

employees will do their best to implement the policy in its true

spirit.

28


EH&S POLICY STATEMENTPackages Limited shall:

1. Minimize its environmental impacts, as is economically and

practically possible.

2. Save raw materials including energy and water, and avoid

waste.

3. Ensure that all its present and future activities are

conducted safely, without endangering the health of its

employees, its customers and the public.

4. Develop plans and procedures and provide resources to

successfully implement this policy and for dealing

effectively with any emergency.

5. Provide environmental, health and safety training to all

employees and other relevant persons to enable them to

carry out their duties safely without causing harm to them

selves, to other individuals and to the environment.

6. Ensure that all its activities comply with national

environmental, health and safety regulations.

This policy shall be reviewed as and when required for the

betterment of the same.

(Management.)

A DISCUSSION ON HUMAN RESOURCE

MANAGEMENT & PERSONNEL MANAGEMENT

29


Regardless of the size or type of the business, any organization’s most

important asset is its Human Resources. Human Resources

management strives to achieve organizational goals and goals of the

employees through effective personnel programs, policies and procedures.

Personnel management program varies from organization to

organization. If there is good performance of personnel department, then the

employees of the company will be motivated and satisfied. The department

manages and mobilized the human resources. There are several personnel

functions, such as:

Job Analysis & Design

Recruitment & Selection

Performance Appraisal

Training & Development

Compensation & Health

Employee Relations

Negotiation With Union

Maintaining Discipline

Welfare Programs For Employees

Grievance Handling

Packages Limited possesses a well-organized and systematically operated

Personnel Department. The success and effectiveness of this

department’s policy and programs can be judged from the fact that no major

problem has come to surface in the recent years.

There are 2782 workers at Packages Limited at present. In 1957, when it

came into production there were no more than 500 workers employed. The

retirement age is 58 years for employees. Personnel (Industrial Relations)

30


Manager heads the Personnel Department. Under his supervision five

sections or wings of the Personnel Department work:

Legal Wing

Personnel Staff Wing

Personnel Wing

Welfare Wing

Establishment Wing

1. LEGAL WING:

In every organization, personnel function includes the legal aspect of human

resource management. As long as organizations exist, the disciplinary

problems tend to occur. The Legal Wing looks after all the legal aspects and

issues concerned with labor and personnel. This wing handles all legal issues

of labor. Senior personnel officer heads it. Its main concerns are:

Misconduct

Civil and Criminal Cases

Revenue Cases

The Legal Wing, internally as well as externally, and with all other industries

deals all legal problems of Packages Limited. It can also hire the services of

outside lawyers. It also handles disputes between the labor and management

and settles controversial issues. This wing also conducts the case of

organization related to Income Tax. Two types of ordinances find their

application here:

Industrial Relations Ordinance

Standard Order Ordinance

The Industrial Relations Ordinance gives power to employee against the

employer. Usually it helps in solving the disputes, strikes, slow production,

elections and other problems of labor unions. The Standard Order Ordinance

31


gives power to employer against the employee and it enables to conduct

inquiry according to civil law about leaves, disobey, misconduct, dishonesty,

negligence, theft etc. Packages Limited has a computerized system. When a

complaint is received from any department a "Show Cause Notice" is given

and the worker is required to submit his reply within 2 days. If the reply is not

received then a letter of inquiry is issued. If the worker fails to plead his case

effectively, then, in accordance with the advice of the inquiry committee, the

Personnel Manager has the right to terminate the worker's services or take

some other action against him.

2. PERSONNEL STAFF WING:

This wing includes the personal staff of the Personnel Manager. The job of the

clerk is to carry out all the orders and information given out by the Personnel

Manager.

Recruitment Policy:

Packages Limited prefers fresh graduates than experienced once, except for

high managerial posts where experience is must. The management believes

in developing the employees according to the requirements of the

organization.

Employee Grades:

There are different grades for workers. These are:

Grade-1 G-1

Grade-2 G-2

Grade-3 G-3

Grade-4 G-4

Grade-5 G-5

Grade G-5 is for supervisors and G-1 is lowest grade in the organization.

Packages Limited has four different executives grades. These are:

32


Executive-1 E-1

Executive-2 E-2

Executive-3 E-3

Junior Executive J.E

E-1 is the most senior in executive group and J.E is the most junior in this

group. There are three Managers grade in Packages. These are:

Manager-1 M-1

Manager-2 M-2

Manager-3 M-3

In this group M-3 is most senior and M-1 is joiner. The retirement age is 58

years and extension is not granted. If the employee is needed he or she is

hired on contract basis.

3. PERSONNEL WING:

The personnel wing performs two main functions:

1) It looks after all the sports activities at Packages Limited.

2) It looks after the disputes between the management and the workers

if they arise.

There is a sports hall, cricket ground, a football ground, a hockey ground and

a volleyball court at Packages Limited. The Sports Complex comprises of two

courts for Squash and Two Badminton courts. In sports complex there are two

table tennis tables, Carom Board and Chess. Annual sports are held every

year and prizes are distributed to the winners. The Personnel Wing holds all

these activities.

33


4. WELFARE WING:

The function of Welfare Wing is to look after all the welfare activities and

facilities on the factory premises. This wing controls the Fair price shop, the

Canteen and all the Messes. The evolution of this wing was the result of the

management’s thought that it is a big deal to feed and clean a big factory. It is

directly under the Personnel Manager.

Mess:

In Packages Limited, they believe that, the primary conditions for good health

is nutritious food which is prepared under the most hygienic conditions in the

company and served at highly subsidized rates. There are four types of mess

in Packages Limited Lahore:

VIP’s Mess

Officer’s Mess

Supervisor’s Mess

Worker’s Mess

The food is provided at very less cost to employees in these messes. Charges

of different messes in Packages Limited from each employee is:

> Officer’s Mess 180 rupees/month

> Supervisor’s Mess 60 rupees/month

> Worker’s Mess 60 rupees/month

Officer’s Mess is for executive grade employees, supervisor’s Mess is for

supervisors, worker’s Mess is for labor class and VIP Mess is for guests and

VIPs.

Fair Price Shop:

This wing supervises the Fair Price Shop, from where employees can get all

the things of daily use at lower rates than market. All consumers’ products

manufactured by Packages Limited are sold over here at 20% discount.

34


Sanitation Wing:

The job of this wing is to clean the factory area. There are two supervisors

and 35 sweepers.

5. ESTABLISHMENT WING:

The Establishment Wing performs the following functions:

Maintaining Personnel Records

Recruitment

Maintaining Personnel Strength

Maintaining Leave Record of All Workers

Keep Check on all the Staff

This wing consists of one senior personnel officer, two assistant personnel

officers and, section in charge and 13 timekeepers.

Time Office:

The most important section of the Establishment Wing is the “Time Office”. All

employees and workers of the Packages Limited are enrolled here. In the

Time Office, employees’ records from appointments till retirement are kept,

like transfer, promotion, leaves etc. All appointments are made only when

there is a new vacancy or need for replacement. There is an “Appointment

Register” in which details like name, father’s name, and appointment date,

address, department etc. are entered. This register also tells about the

appointments made in a year and strength of all the departments.

Along with the Appointment Register, there is another register known as

“Strength Register”. It shows the number of workers employed. All entries

regarding the wages, allowances etc. are kept in it. All new workers are

appointed on probation for one year. Three probation reports are given during

this period.

35


This wing also maintains the personnel records. The record is being used to,

calculate wages and salaries, make work plans for employees and evaluate

their performance. There are two types of employees in the organization:

Employees who are paid on monthly basis.

Employees who are paid on hourly basis.

Now in Packages Limited computers make all the records of employees. A

card exists, for noting the time spent on job by workers, which are paid on

hourly basis.

The card notes time of starting and finishing by punching machines. These

cards are collected by Production Department, and then they come to Time

Office, where they are kept in record. Then the Time Office calculates the

wages of hourly workers. In Packages there are three shifts:

First Shift 06.30 a.m. To 03.00 p.m.

Second Shift 02.55 p.m. To 11.25 p.m.

Third Shift 11.20 p.m. To 06.25 a.m.

This Wing also supervises the activities of Gate. For making their employees

punctual, the employees who come late are stopped at the gate and they are

allowed to enter after the approval of the related divisional manager. There is

a gate pass system in Packages Limited. People who want to go out-side the

organization in duty hours; they have to submit a "Gate Pass" signed by their

head of department. The time of leaving the organization and coming back to

the organization is written at gate pass. The record goes to Time Office.

There is a casual leave of 10 days and medical leave of 16 days on the basis

of medical certificate issued by the company's medical officer. The hourly staff

is allowed 14 days of annual leave. However, for one-day medical leave no

medical certificate is required. Strict disciplinary action is taken if an employee

remains absent without prior notification.

36


An advisory note is issued for more than three absents. Packages Limited

also gives bonuses for extra work. For each hour of overtime, the hourly wage

is doubled. For monthly paid workers there is an attendance register. They

can get leaves also. If an employee is absent for more than ten days without

leave then he is issued a "Charge Sheet".

RECRUITMENT AND SELECTION CRITERIA:

Packages Limited has designed a sound but easy method of recruitment.

When any department needs an employee, it sends its requirement to the

Human Resource Department, which in turn advertises the vacancy in the

leading newspapers and asks for the qualified people. In case of the posts

requiring some years of experience, only interview method is used to select

the best candidate.

Recruitment Of Workers:

Minimum qualification for the post of the workers is Matriculation 2nd Division

with science subjects. The workers should not be more than 21 years old and

must be medically fit. These are employed as "Apprentice Trainee". If the

performance of the worker is satisfactory during the probation period, he is

hired. Normally workers get promotion after two years on the recommendation

of their supervisors. This post is not advertised.

Recruitment Of Diploma Holders:

Diploma holders in Electrical, Mechanical and Instrument Engineering are

also employed. They are given a training of six months. They are employed

for supervisory jobs.

Recruitment Of Executives:

1. Job Identification: When any department needs an employee, it sends its requirement to the Human Resource Department.

2. Recruiting & Hiring: For recruiting and hiring some factors are taken into consideration. These factors are as follow:

Nature of the job.

Time required to fill the vacancy.

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i. If there is time to fill the vacancy, advertisements are given in the newspapers.

ii. If the vacancy has to fill immediately, the Human Resource Department contacts the authorized institutions, universities etc.

Budget constraints.

Process:

The recruiting and hiring process starts from the applications submitted by the degree holders. They provide their CVs along with the applications. These applications and CVs are screened out on the basis of:

I. Merit

II. Institute

III. Experience etc.

After this, approximately 50% of the applicants are selected for the further process. Then the H.R Department lists out the salient features of the CVs (only the accepted CVs).

Then the H.R. Manager takes a test. This test is based on:

I. English comprehension

II. Basic mathematics

III. Data sufficiency

IV. IQ

V. Some questions about the particular job, for which the applicants have applied.

After taking the test, the top 10, 20 or 30 applicants (according to the job requirement) are chosen for the first interview. At this stage the selection of applicants also depends on the H.R. Manager and the departmental head. Normally 30% of the applicants, who have given the test, are selected for interview.

Through telephone calls or letters, the selected applicants are informed about the date and time of the interview. Normally two interviews are taken

H.R. Manager and the departmental head take first interview. In this interview they observe,

38


I. Alertness

II. Confidence

III. Leadership skills

IV. Relevant knowledge

V. Social acceptance

VI. Interests

VII. Communication skills

VIII. First impression

IX. Maturity

According to these observational factors rating or grading is made. Normally 5% rating in each factor is acceptable. Then successful candidates are called for final interview.

Final interview is taken by:

I. General Manager

II. Deputy General Manager

III. Human Resource Manager

IV. Departmental Head (sometimes)

Previous traits or factors are once again examined.

After the final interview, the selected applicants are sent for medical test and then the Industrial Relations Manager issues them the appointment letters.

3. Training & development:

Appointed persons are trained for one year, the are given the title “Management Trainee”

In the Industrial Marketing, the trainees are called “Sales Executives” and after one they are given the designation of “Assistant Manager Sales”.

The trainee is given a brief view (orientation) of the company, various processes, rules & regulations etc. this orientation may be from two weeks to two months.

After the orientation program, the participants may ask to submit short report or presentation.

39


After the 6 months training, the trainee goes to H.R. Manager and tells him what he has learnt in this program.

Some external courses may be offered not only to the existing employees but also to the new trainees. These courses are held in,

I. LUMS

II. PIM

III. Intek Solution

Recently Packages has jointly entered into a diploma program with LUMS. It is 18 weeks program called Diploma in Business Administration. Two sessions of this program has passed out till now.

4. Performance & Appraisal:

Performance & appraisal are two sides of a coin. Immediate officer appraises performance.

For the appraisal of the performance, there is a Performa, which is filled by immediate officer.

This Performa is named as (PPE) Performance Planning & Evaluation.

There are seven sections in this form. The particulars of the candidates are written on the top of the form.

1) Performance Plan:

In this section, some standards and targets along with time frame are given. The target given in Packages Limited is known as “SMART”.

S= Specific

M= Measure able

A= Attainable

R= Realistic

T= Time frame

2) Performance Evaluation:

In this section, the net results of the standards & targets given in section # 1 is evaluated or checked. Whether the person can achieve the targets in the required time frame or not.

3) Competency Dimension:

40


In this section, different behavioral indicators, in accordance with the performance are checked. These indicators are as follows:

Communication Skills

Work Organization

Result Orientation

Team Player

Customer Consciousness

Self-Confidence

Leadership Qualities

Development Orientation

Strategic Visioning

Business Knowledge

Critical Reasoning

Human resource Development

4) Performance Evaluation Results:

In this section, there are two parts.

Part A Section # 2 score (%)

Part B Section # 3 score (%)

Total score of Part A and Part B are calculated here.

5) Strengths & Limitations:

In this section, the strengths and limitations of the trainee or subordinate is written. This is all up to the immediate officer.

6) Performance Improvement Plan:

In this section, the immediate manager gives some suggestions and recommendations.

7) Comments:

Both the employee/ subordinate and the manager give their comments. Employee comments may be how ha found the work place? Who supported him? And the manager gives the comments according to his observation. In the last they put their signatures with date.

41


OTHER FACILITIES AND BENEFITS PROVIDED BE

PACKAGES LIMITED

Health & Safety:

To safeguard the health and safety of the employees Welfare Wing takes care

to the medical facilities provided to employees. In this regard, periodic check

ups, inoculations, and family planning programs are arranged. A dispensary

with qualified doctors is working for this purpose in the factory premises.

The health of the employee at the time of recruitment has to be sound and fit

persons are employed who are medically examined at the time of

appointment.

Bonus:

All the employees get handsome bonus every year, which varies from grade

to grade.

Employees Old Age Benefit:

Packages Limited has two different types of pension schemes. One is for

management staff and other is for workers. In management staff pension

scheme, Packages contributes 13% and the employee contributes 4.5% of

wages. Investment is made in Government securities by this amount.

Retirement age is 58 years. The employee gets 100% pension up to his life.

In workers pension scheme the Packages contributes 5% of the wages, which

ensures a reasonable pension on retirement. After employee’s death, his

widow gets 50% of pension amount. After wife death the children can take

20% of pension until they are less than 21 years.

House Rent:

Employees can get house rent at the rate of 30% of their basic salary. More

than 50% of the employees own their own house.

42


Adult Education:

All illiterate workers have the facility of adult education. Qualified teachers

teach adult education classes. Workers are paid for the time they spent in the

classes as these studies are during the working hours. Books and other

educational materials are provided free.

Ali Industrial Technical Institute:

For solving the problems of technical staff for Packages Limited, there is an

independent training institute established by the “Ali Group” with the cost of

Rs. 5 million. The institution's annual output is 230 students in different fields.

In this school preference is given to the children of employees of Packages at

the time of admission. Scholarship of Rs. 150 per month is given to all

students.

Haj Scheme:

The Packages Limited sends every year three employees from Grade V and

one person from J.E and the above categories for Haj Pilgrimage on its own

expenses. Draws are taken out for this purpose. Any worker who wants to go

on Haj on his own expanses is given one month paid leave.

Personal Cleanliness:

Every worker is provided with a cake of soap each month for personal

hygiene. All the workers are given uniforms. The factory provides the washing

facilities and maintenance. Lockers, change rooms and showers are

available to all the employees. Each worker gets two free uniforms and one

pair of shoes annually and also has the locker facility.

Overtime:

Over time facility is available for all the workers.

Service Awards:

The Company gives a wall clock to an employee who completes his 20 years

of service in Packages Limited. Company also gives a valuable wristwatch to

employee who completes 25 years service.

43


Recreational Facility:

The management also encourages recreational activities. Employees in

groups are encouraged to go on excursion trips and the Company pays the

transportation and other miscellaneous expenses. Employees can also use

the rest house owned by Packages Limited in Murree.

Group Insurance:

Company’s policy is to have its employees safe and sound financially. So

Group Insurance facility is available to all employees. The amount paid to

employees on account of group insurance differs as follows:

WORKERS Rs. 30,000

J.E Rs. 45,000

E-3 Rs. 55,000

E-2 Rs. 65,000

E-1 Rs. 75,000

Above E – 1 Rs. 85,000

Attendance Award:

Among the workers up to Grade V, who shows a good record of attendance

throughout the year, is provided monetary rewards and certificates.

Conveyance Allowance:

Conveyance facility is given to the workers in the form of the Conveyance

Allowance. Employees are provided adequate allowance for the maintenance

of their vehicles. Some employees are enjoying the company's transport

facilities. For the outdoor activities employees are provided enough fund to

bear their expenses. A beautiful parking facility is also available.

Mosque:

One beautiful mosque is in the factory premises so that everybody can offer

his prayers, and I observed that, considerably large number of employees

uses this facility.

44


On job training:

Packages Limited attached a great deal of importance to the training

programs of the employees to help them to increase their skills and expertise.

This helps to increase the efficiency of the employees.

Library:

There is a library of moderate size in Packages Limited. This library works

under the Research, Development & Control Department. Many employees

during the lunch break spent their time in it. All Newspapers are available

here.

Social Security:

Social Security Scheme is applicable to all the workers of the company who

are drawing up to Rs. 1800. In case of injured employees, the company

ensures full payment to the worker by paying the balance, in advance in

addition to benefits given by the social security.

(This discussion is comprised of my observation, my notes and along with all these things the

material provided by Madam Asma Executive H.R.M)

45


MANAGERIAL POLICIES

The major managerial policies/style as adopted by Packages Limited

are as follows:

1. The prices of the Company’s products are same for all areas

of Pakistan.

2. In case of consumer products, the company pays freight and

octroi.

3. Prices can be changes by the company without any prior

notice.

4. The Company accepts only large orders of high monetary

value.

5. An order, which has once been confirmed by the customer,

can only be canceled at the will of the company and not the

customer.

6. In case of consumer product, agreement with customer is

made once and for all.

7. No discounts are offered to the customers.

8. Goods are sold against 100% advance payment.

9. The Company does not pay freight when its industrial products

are shipped to the customer.

10. Punctuality is strongly emphasized.

11. All the designed and original work done in preparing the

package of any product will remain the property of the

Company.

12. Procurement is made directly from the producers so that

the middleman’s profit is eliminated.

13. Once the goods are in transit, they become the property of

the customer.

46


14. Customer can only claim for defective goods if they exceed

2% of the total order and the claim is made within two weeks

after the delivery.

15. For routine purchases, multiple suppliers are maintained to

reduce dependency on any one particular supplier.

16. A variation of 10 % in the quantity of the order delivered is

a norm variation and the customer has to accept the order as

such and pay for the surplus.

17. Any alteration in the approved sample shall be charged

extra.

18. Workers are encouraged to produce more through a well-

organized incentive system.

19. Selection of executives is done strictly selected on merit

and no approach is entertained in this regard.

20. Investment is made in those projects, outside the line of the

company, which can later improve the sales of the Company.

21. In all the production processes both quality and quantity

are taken emphasized.

22. Workers are encouraged to reduce the wastes and costs.

23. Only those workers are recruited who have some

relationship with thecurrent employees of the Company.

24. Smooth relationship between supervisors and the

subordinates is emphasized.

25. Company makes capital investment equal to the

depreciation every year.

26. Swiftness in the performance of duties is encouraged.

(Management)

(Source: company’s old brochure)

A DISCUSSION ON QUALITY STANDARDS IN PACKAGES LIMITED

47


BASIC FUNCTIONS OF (EH&S) DEPARTMENT:

Overall Maintenance

Internal Auditing

Customer Complaints

Team Work Managing

Training of 7- Statistical Tools

To get and maintain ISO 9000 & ISO 14000.

ISO 9000 SERIES:

ISO 9000 Series basically concerns with Total Quality Management (TQM) concept and also with Kaizen (Japanese term) meaning, continuous improvement.

WHAT IS TQM:

As discussed with a senior executive of this department, the TQM is not a tool for good business but a philosophy. It is based on;

Continuous Improvement

Ultimate Customer Focus

Systematic Approach for Management

This starts from the concept of Quality Control (QC) and then goes to Quality Assurance and finally to the TQM.

QUALITY:

Standards are not quality. If we see it by the customer point of view than; if the customer is satisfied with the products & services of the company, it is a quality.

Now a days there is another concept Quality Delight, means, not only to satisfy customers but also to delight the customers, is the quality.

QUALITY CONTROL (QC):

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All the methods or factors that are used for the supervision and Implementation of the necessities of quality are known as quality control. These methods or factors are checked and implemented professionally. Department for QC are as follows:

Production

Design

Marketing

Sales

Commercial Department

Delivery and Dispatching

There are two strategies for Quality Control,

By Inspection

By Precautionary Measures.

There are certain factors of Quality Control, which are as follow:

Product’s design

Production

Good Services

Better price

Purchased Raw Material

QUALITY ASSURANCE (QA):

The factors that provide evidence that the quality control process is going on the right track, with the right people in the company.

In QC the raw material is checked and then the process of production starts. But in QA, not only the material is checked but also the processes of production are checked. In other words it is the next stage of Quality Control.

Every employee in the company should be well trained; there should be such a system.

The analytical capabilities of every person should increase.

Instead of individual thinking there should be group thinking.

49


Thee should be a quality standard to compare the quality of the products and services.

Technology should be improved on continual basis.

QUALITY CIRCLES:

There comes another concept as quality circles. In Japan this concept started 50 years ago. In this concept; foremen, supervisors and workers of every department/workshop form a group and every week for one or two hours, they sit together and discuss some new things to improve the production. Managers of that particular department should provide better environment to the quality circles to encourage their efforts. This refers to the concept of Continuous Improvement (kaizen).

ISO CERTIFICATION

There are standards made by International Standardization Organization (ISO). This organization established in 1947. The purpose is to set standards in almost all fields of products & services. This organization has made more than 13000 standards and for standards they have defined many systems. There are 20 clauses in ISO compendium and to get certification, these clauses should be use as standards.

To certify, it is checked that:

There is any system.

The system is actually applied.

The applied system is effective.

To get certification, following steps can be used:

Write down the system in a documented form.

Justify what you do.

Start doing what you have written.

Provide evidence of every process.

Review your system (internal audit).

Packages Limited got certification from the largest organization SGS Yarsley International Certification Services Limited. In 1995, the design and

50


manufacturing of Flexible Line was certified. At this time Packages Limited have five certifications,

1. Flexible Line

2. Carton Line

3. Corrugated Division

4. Consumer Product Division (CPD)

5. Paper & Board Mill.

After every six months on internal audit is done and after every three years

SGS re-audit and renews the certifications. All the five certifications of ISO

9001, are gained by the efforts of EH&S Department. This department is

responsible for all the systems, working in Packages Limited. Recently the

executives of this department are working on getting the ISO 14000

certification. This is basically concerned with the by-products, quality and

influence if machines, chemicals etc inside as well as outside the

organization.

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TWENTY ELEMENTS OF ISO

1. Management Responsibility.

2. Quality system principles.

3. Design control.

4. Document control.

5. Purchasing.

6. Purchased supplied products.

7. Product identification and traceability.

8. Process control.

9. Test equipment.

10.Test status.

11.Control of non-confirming products.

12.Correcting and preventive action.

13.Handling, storage, packing and delivery.

14.Quality records.

15. Internal quality audits.

16.Training

17.After sales services.

18.Statistical techniques.

19.Contract review.

20. Inspection & testing

(Source: Training Principles by Packages Limited)

52


STRATEGIC BUSINESS UNITS OF PACKAGES

LIMITED:

Paper & Board Mill

Packaging Division

Carton Line

Flexible Line and Poly & Paper Conversion

Corrugated Division

Consumer Product Division

Coates Lorilleux (Ink Factory)

Tetra Pak Pakistan

Basic Colors for Printing:

1. Yellow

2. Cyan (Blue)

3. Magenta (Red)

4. Black

Printing Modes in Packaging Division:

Carton Line (Offset Printing)

Flexible Line (Flexographic & Rotogravure Printing)

Corrugated Division (Flexographic Printing)

53


PRE PRESS PLANNING DEPARTMENT

As we know that if we want to increase our efficiency, we should plan with

excellence. All efficiency of Production Department depends on the working of

Planning Department. The Planning Department has the following functions:

COORDINATION BETWEEN MARKETING & PRODUCTION

DEPARTMENT:

First of all, it coordinates between Marketing Department and Production

Department. It means they calculate the capacity and the availability of

machines and give this information to Marketing Department so that they can

accept orders from customers. Similarly it informs the Production Department

about the requirements of the Marketing Department. The availability of the

machines is notified through “ Loading Charts”.

For the maximum utilization of the machines and the time, the Planning

Department prepares Loading Charts. The Marketing Department is informed

about the time when the job will be completed and the goods will be delivered.

The time to be spent on printing, cutting, folding, gluing and packing is

summed up.

REMOVING THE LANGUAGE DIFFERENCE:

There is a language difference between Marketing & Production Departments.

Marketing Department uses terms like cartons, boxes, poly bags etc., where

as the Production Departments understands specifications, materials, sizes

etc. It is the responsibility of the Planning Department to overcome this

language barrier and make both the departments understanding each other.

MAKING A BALANCE BETWEEN PRODUCTION & SALES:

Planning Department makes a balance between sales & production. It gives

targets to both the departments to achieve neither more nor less. If production

is more and sales are less then Marketing Department is pressurized to

increase the sales.

54


CREATING LINK WITH PAPER & BOARD MILL:

Planning Department has also a link with the Paper & Board Mill. What kind of

paper the customer requires, is known by the Marketing Department and what

type of paper they can use in printing, only Planning Department knows both

the things. So it orders the required things and if it is not possible to produce

such type of paper in their own mill then Planning Department has two

options. They can import such type of paper, as the customer needs. Second

option is that they can propose to the Marketing Department to use any

alternative. In this way, Planning Department works as a nervous system from

order placement to sales.

LOADING SHEET:

Planning Department also prepare Loading Sheets. Loading Sheets are

prepared for each job and are sent to the computer. The computer gives all

necessary data about the quality of paper to be used, the weight-age, other

materials required etc., so that the Production Department may make all

necessary arrangements in advance.

MAKING SHORT-TERM & LONG-TERM PLANS:

Planning Department makes short-term as well as long-term Plans. They

project the state of the company in local and international market after five

years. They also plan for the “Diversification” and “Close Down” stages.

Planning Department plans for the future development.

OPTIMUM UTILIZATION OF AVAILABLE RESOURCES:

This department makes the optimum utilization of available resources, i.e. (5

Ms)

Material

Machines

Measurement

Methods

Manpower

55


PRODUCTION DEPARTMENT

Planning and Production are the most important departments in Packages

Limited. Production department controls all the operations under the factory.

Planning department is responsible to plan and organize the allocation of jobs

to various lines or divisions in a way that their maximum capacity is utilized

and that the delivery is given to the customer by the given date.

Production Manager is the head of Production department and is responsible

for the production function. There is also one Planning Manager, which is

under the Production manager. The Production Manager looks after the

production while the Planning Manager supervises the Planning Section. The

heads of the following departments are directly answerable to Production

Manager and they have to present their special problems to him for advice

and help:

Carton Line

Corrugated Division.

Flexible Packaging Division

Poly & Paper Conversion Department.

Art Department.

Camera Department.

Coating Department.

Cutting & Creasing Department.

Lamination Department.

Folding and Gluing Department.

Dispatch Department.

Quality Control Department.

Coates Lorilleux (Ink Factory).

56


The Production Planning and Control unit is also directly under the Production

Manager and acts as the brain cell for him. Production Department prepares

internal planning of the whole Paper & Board division. It takes into account the

total capacity of the machinery, and the manpower. It also arranges the

resources to attain maximum utilization. The other goal is to reduce the

wastage of resources. The Planning Department acts as a coordinator

between the Marketing and Production Departments. This is very important in

the sense that if there is no communication between the Marketing and

Production Departments, a lot of confusion will be created.

PRODUCTION PROCEDURE:

The sales staff is in direct touch with the customers. After the business has

been finalized, an Internal Sales Order (ISO) is sent direct to the Production,

Planning and Control Department for checking and planning out the

production schedule. The Planning Officer and his staff communicate and

correspond directly with sales staff. Sales staff also deals with Art

Department in the initial stages of the business negotiations. Art Department

prepares comprehensive, color schemes and alternate suggestions for the

approval for the customer. The direct link of the Art Department ceases after

the customer has approved the comprehensive. First of all the sales executive

gives the customer design and made job reference to the Planning

Department where Planning Assistant for Art & Camera sends the job to Art

Department for finalizing the ultimate shape of the product’s design. They also

prepare mechanical for the Offset and Flexographic jobs. The job then moves

to Camera department, where the staff prepares the printing negatives

followed by Production Department who prepare the printing plates. The

plates will either go to proof press or for mass production to Offset presses.

The order received by the customer to Marketing Department may be:

New job

Amended old job

Repeating job

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In order to develop a new job, to create a new product or to give special

suggestions to the customer, sales staff takes help from Development

Manager. Development Manger is in touch with all the facilities available at

the factory and develops the projects until it is fit for mass production. The

new job is first sent to Art and Camera Department for the Art & design to be

printed. In case of repeat order, the Production Department will receive the

ISO with the sample and the job will be sent to the Planning Department.

Planning Department issues a Job Card, as soon as the Job Card is made

out, Paper & Board stores arrange material. The immediate requirement is

indicated in the Job Card, which has to be available in stocks, while the long-

range requirements are stocked up. Production Manager has to foresee the

future requirements. In case of new development, special materials are to be

ordered. When substantial orders are expected in a particular line then raw

materials will have to be ordered. For example, if there is trend of packing

polyethylene bags then polyethylene Granules will have to be bought ahead

of time.

After Offset Department and Poly & Paper Conversion Department (PC) the

job run through Cutting and Creasing, Folding and Gluing and is sent out

through Dispatch Department. The jobs emanating from Paper Converting &

Offset Department go directly to the Dispatch Department. One important

function of the Dispatch Department is to prepare Dispatch Notes for the

goods sent out whether by trucks or by railway.

58


PAPER & BOARD MILL

The basic need of packaging industry is the paper and board. If an industry is

producing its own paper and board, it is very convenient for it. One of main

features of Packages Limited is that it has its own Paper & Board Mill. At first,

the Packages Limited used to buy paper and board from market. Then in

1968 it set up its own Paper & Board Mill with the capacity of 24000 tones per

year to manufacture various kind of board, flutings, Kraft liners and Poster

Papers conversion into different kinds of cartons and wrappers for the

Packaging Division. The aim of Paper & Board Mill is to produce enough

paper and board for the needs of Packages Limited.

Different types of paper produced by Paper & Board Mill are:

Off-set Printing Paper

Twist Proof Paper

Tissue Paper

Calendar Paper

Writing & Printing Paper

Duplicating Paper

Imitation Art Paper

M.G. Brown Paper

CURRENT CAPACITY OF PAPER & BOARD MILL:

Today Packages Limited has four Paper Machines with installed capacity of

70,000 tones per annum. Used capacity of these machines is 66,000 tones

per annum. The average production of one day is 180-190 tones. It also has

the straw pulp and liquid packaging board facility, which established in 1992.

With this, they have continued supply and better control on the inputs, which

has improved the quality and customer service from the company.

59


There are 600 employees in Paper & Board Mill. In Packages Limited 94-95%

of the total pulp used, is produced in its own Paper & Board Mill. Remaining 5-

6% pulp of total requirements is imported.

Paper & Board Mill work under the Planning Department. Marketing

Department projects it prospective sales for the coming year. These

projections are then sent to Planning Department, which plans the production

schedule for the Mill. In the Paper & Board Mill, this whole year plan is broken

into monthly plans. The Mill staff then, finds out financial needs and these

needs are passed to the Finance Department. Following are the three

sections of Paper & Board Mill:

Pulp Section

Paper Section

Utilities Section

1. PULP SECTION:

The function of Pulp Section is to prepare Pulp from raw materials:

Wood-Based Non-Wood

> Eucalyptus > Jantar

> Poplar > Dhenjan

> Pine- wood > Kenaf

> Cotton Stalk

> Reed

> Kahi

> Rice Straw

> Wheat Straw

The Pulp Section has four departments, through which the raw materials pass

and pulp is produced.

60


Straw Preparation Department

Cooking House

Bleaching Department

Beater House

Raw material is purchased by the Commercial Department.

1) Straw Preparation Department:

Wheat straw is available in wheat harvesting season only, therefore, the

management of Mill has to buy according to its requirement and store it. From

the storage yard, wheat straw and Kahi are transported by means of trolleys

to the Cutter Department. Wheat straw is bought in cut from while Kahi needs

to be cut. So Kahi is fed to a cutter machine, which cuts it into small parts.

The raw materials are then cleaned on two separate lines. Washer and

centrifugal machine are also used for clearing the dust and other particles

from the raw materials. All the raw material for the production of Pulp is

prepared in this department.

2) COOKING HOUSE:

This cut and clean raw material is delivered to the Cooking Department,

where It is mixed with water and cooking liquor. The mixture of raw materials,

water and cooking liquor is fed to rotary digesters (Huge Tanks) and cooked.

In this process the fibers get separated from the binding material. This

process is known as Delingnification. Straw and kahi are either cooked

together or in separate digesters.

3) BLEACHING DEPARTMENT:

In this department Pulp comes for Bleaching from the Cooking Department. If

required, this Pulp could be bleached. Here this material is washed and

screened and the uncooked fiber is separated in order to get refined Pulp.

61


4) Beater House:

Beater House is very important department in Paper & Board Mill. Here the

paper is given the final properties that we want to have in the paper some of

the additions, made in this department are:

Addition of imported Wood Pulp.

Addition of sizing agents.

All other additions regarding any other properties that we want in the

Paper.

2. PAPER SECTION:

In the Paper Section, we deal with the Paper machines used to make paper

and board from the pulp produced by the Pulp Section. Paper & Board Mill

has four machines:

PM-1

PM-2

PM-3

PM-4

PM-1:

PM-1 is bought in 1966 from “SANO IRON WORKS, JAPAN”. It had a

capacity of 50 tones per day. It was rebuild in 1981 with “GERMAN

TECHNOLOGY”. In 1983 item modified for size press coating and in 1981 its

steam part was modified with German Technology. This is a multiple board-

making machine. It can make 3-ply board. Its width of paper sheet is 2.7

meters, and grammage range is 120-490 grams.

CAPACITY:

Its installed capacity is 120 tones per day and maximum capacity achieved by

this machine is 147 tones per day.

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The types of paper & board produced by PM-1:

White Duplex Board

Corrugating Medium Paper

Tetra Duplex Board (TDB)

White Bleached Board

White Card Board

Kraft Line Board (KLB)

Chip Board

PM-2:

This machine was bought in 1984 “BELL”, Switzerland. It can only make up

to two-ply board. Its paper width is 1.83 meters, and grammage range is 120-

275 grams.

CAPACITY:

It had a capacity of 50 tonnes per day. Packages Limited modified it to

increase its (installed) capacity to 70- 75 tonnes per day in 1992. Maximum

capacity achieved here is 90 tones per day.


Off-Set Printing Paper

Wrapping Paper

Craft Paper

Tetra Duplex Board

Brown Craft Paper

63


PM-3:

It is a “MG YANKEE” machine bought in 1966 from “Switzerland”. It was

modified in 1982 for the manufacturing of tissue paper and again modified in

1988. This machine can make only single ply.

CAPACITY:

Its installed production capacity is 10-12 tones per day. Maximum capacity

achieved here is 15 tones per day.


Glazed Paper

Wrapping Paper

Corrugated Medium Paper (CMP)

Poster Paper

Gumming Kraft Paper

PM-4:

It is the most new Paper machine, which the Packages Limited has added in

its line of Paper Machines. PM-4 was installed in 1992 by the technical staff of

Packages Limited. It has the capacity to produce 15 tons of paper per day. It

is an imported “ITALIAN” machine for manufacturing the tissue paper.

3. UTILITIES SECTION:

Utilities Section is the third department of Paper & Board Mill. Under this

section two main sub-sections work, they are:

Quality Control

Dispatch Section

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1) Quality Control:

Various tests, e.g. water and oil absorption test, bursting strength test, are

done in this section to ensured the desire quality of the paper and board. This

section is also responsible for keeping the Mill working. Its major jobs are:

Replacement

Maintenance

New Installations

2) Dispatch Section:

This section has three main functions:

Storage of Paper

Finishing of Paper

Dispatching Paper & Board

(Source: Deputy Mill Manager Usman Hameed & incharge Pulp Section M. Saleem)

(Source: company’s brochure 1995)

65


CARTON LINE

Sow the Quality

This is the largest printing section of Packages Limited. This department has

the largest share in the total Packages Limited sales, which is about 55%.

There are 12 printing machines in this section, which are used for printing on

duplex board. There are two Varnishing machines and one laminator

machine. This printing facility is available from two to six colors. These

machines use oil-based ink. Normally they print Cigarettes cartons, Biscuits,

Shoes boxes, tissue cartons and Tea boxes.

PRINTING MODE:

In the Carton Line the printing Mode is offset.

Offset printing is the art of printing from a flat surface. In this method, first the

Plate (cylinder) takes ink and coats on the Blanket (cylinder) but the reflection

is reverse (off) on the Blanket. Further sheet (white duplex board) passes in

between two cylinders, Blanket and Impression. Now on the sheet printing is

straight (set).

Each Offset machine has different cylinders i.e., six-color machine has six

cylinders, and five-color machine has five cylinders and so on. Each cylinder

is used for the printing of a specific color. The cylinder takes the ink from the

ink pan and prints it on the paperboard running on the other cylinder. The

paper goes forward and then another cylinder prints another color and so on,

until the sheet is printed according to the right format. The Duplex board is

used in this form of printing. The weight of board is 240 to 490 grams.

66

Ink Plate Blanket

Sheet


PROCESS FLOW:

DESCRIPTION:

67

Sheet Feeding

Offset Printing

Cutting & Creasing

Separation

Folding & Gluing

Bundling

Dispatching

Flats/Unit cartons

Bundling


In Carton Lime the sheets for printing, come from Paper & Board Mill.

These sheets are first coated so as printing can be done.

In Carton Line, Offset printing is done. As I have earlier discussed there

are twelve machines for the purpose of printing. If the requirement of job is

six colored, it is sent to the six-colored printing machine.

When the sheets have printed, these are sent to another section where

cutting & creasing is done.

After the cutting and creasing, the flaps or unit cartons are separated

from the main sheet

After this if the customer wants these flaps to be folded & glued. Then

these flaps are sent to folding & gluing section. Otherwise bundles are

made and sent to the dispatch section.

OFFSET PROOF:

In Carton Line there is a section known as Offset Proof. In section, the

sample (proof) of the required job is taken before the bulk production. This is

done just to verify that after printing and cutting & creasing the flaps or unit

cartons are same as required be the customer.

CONSTRUCTION OF CARTONS:

1. Straight Tuck-in: e.g. Magic Depoxi Steel carton

2. Reverse Tuck-in: same as Straight Tuck-in but reverse in flaps.

3. Crash Bottom: Tuck-in on one side and on the other side crash

bottom.

4. 4-Point Glued: e.g. Wall’s Solo.

5. 6-Point glued: e.g. Packs of Nirala Sweets.

6. Quick Lock Tuck-in Top: Tuck-in on one side and Crash Bottom on

other side.

7. Full Seal: e.g. Rafhan’s custered glued from both side.

8. Hinglet Carton: e.g. cigarette cartons.

68


9. 4-Point Glued and Tuck-in Top: e.g. packs of Ding Dong

Bubblegum.

10.Top & Bottom: e.g. shoes cartons

i. Self-Lock Carton

ii. Glued Carton

iii. Stitched Carton

EQUIPMENT:

One 1-color printing machine

HEIDEL BERG

Six 2-color printing machines

PLANETA

ULTRA MAN V

Three 5-color printing machines

ROLAND 800

ULTRA MAN V GS

One 6-color printing machines

ULTRA MAN VII-G

TWO LACQUER

MAJOR CLIENTS:

Lever Brothers

Nestle

Pakistan Tobacco Co.

Procter & Gamble

CONSUMER AREA:

Tea Cartons

Detergents

Soaps

69


Shoe Cartons

Food Cartons

Cigarette Industry

Biscuit

Match Industry

(www.packages.com.pk\)

LEMANIC 82H MACHINE:

This machine can work equal to five departments. This is the latest machine,

not only in Packages but also in Pakistan for the finest printing. Printing mode

used in LEMANIC is rotogravure. This machine comes under the Carton Line

but the difference is this, printing method is rotogravure and instead of sheets,

complete reel is used.

Process Flow:

DESCRIPTION:

> The process starts from the reel stand unit. White duplex board reel is

attached to the reel stand. From the reel stand the reel automatically starts

passing through the next section. In this section at a time two reels are

70

Duplex board Reel

Reel Stand Festooning

In feed Unit

Printing Units

Embossing cylinder

Dispatched

Bundling Cutting & Creasing


connected to reel stand. One reel starts processing and other one is on stand

by. The joint of these reels may be automatic or manual. The process of one

is completed in 20 minutes.

> In the next unit, Festooning, mainly two works are done:

It makes the alignment of the reel

It makes the paper tight according to the given speed.

> The next unit, in feed, feeds the board to the next unit for further process,

which is printing.

> There are six printing units; the necessary printing units are used according

to requirement of job. The printing method is Rotogravure. Seventh unit is for

varnishing. Two types of varnishing is done:

Water Base varnishing.

Solvent Base varnishing

The purpose of varnishing is to protect the board from water and oil effects

and also to make shine on it.

> In the next unit, quality of printing is checked. The machine is totally

computerized and without any manual work it can check the quality and if

there is any deviation, it can warn the supervisor.

> In the section unit, cutting & creasing is done. Dyes are used for this

purpose and machine works automatically.

> The operator instructs this unit, and after a certain limit the bundles of flaps

are collected by the machine and are sent to the last section.

> In the last unit dispatching is done manually.

71


FLEXIBLE LINE

No quality, No life.

In the Flexible Line there are two departments:

Poly & Paper Converting Department

Flexible Packaging Department

1) POLY & PAPER CONVERTING DEPARTMENT (PC):

Poly & Paper Converting Department was established in 1971. This

department is second major department in Packages Limited. It converts poly

and paper into packing material. By Flexographic & Rotogravure Printing we

can get paper or bags in reel forms. It only uses paper and other poly

materials. No board is used in this department. Printing in the Poly & Paper

Converting department is done in several forms:

Printing & Conversion of Paper

Preparing & Printing Polyethylene bags

Preparing Aluminum Foils

Preparing Gum Tapes

Paper Cups & Plates

Fine printing is get from Rotogravure printing which is expensive than

Flexographic method. The operations are carried out on various machines.

Operations include printing, polyethylene extrusion, cutting, creasing, slitting,

bag making, waxing etc. The Paper Conversion Department has the following

machines. This department split into four sections.

CAPACITY:

Out of four Flexo-graphic machines, one six-color printing and the rest are

four color-printing machines. Hence, In Flexo-graphic printing, Packages

Limited has the facility to print from two to six colors. In PC Department there

72


is 30 thousand meter per shift production. There are six Slitting machines,

which are used for several kinds of slitting. In Flexographic printing water-

based ink is used. The machine gets ink from one side and prints it on the

other side. All printing machines are imported from Sweden and Germany.

The management and operators believe that German machines are very good

and their production is also more. The production of six color machines while

using Polyethylene is from 1500 to 1700 meters of Polyethylene per hour.

Four color printing machine prints about 2400 meters of paper per hour. Total

production of these machines per shift is 30000 meters.

In the Poly Lamination Section, Poly Lamination is done on

paper’s surface to make the surface seasonable and shiny.

For Flexographic printing, two things are used:

i. Stereo: The design of required job is made on it. It is

pasted over a cylinder.

ii. Sleeve: The purpose of sleeve is same as the stereo. It is

pasted over a plastic roll.

PC PROOF:

In this section, after making the stereo/sleeve, the sample (proof) of the job is

taken before the bulk production. Just to verify that work is according to the

job requirement.

CONSTRUCTION OF PC DEPARTMENT:

Single side sealed

Double side sealed

Triple side sealed

Wrapper form

Reel form

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2) FLEXIBLE PACKAGING DEPARTMENT (FP):

As the demand for sophisticated packaging grew, Packages Limited

established Flexible Packaging Department in 1986 that is fully equipped to

manufacture high quality packaging. Molded from synthetic materials, rubber

plates are used in Flexographic. It uses the Rotogravure printing technique.

This Rotogravure printing is best for food items, for this type of packaging

98% material is imported; as a result it is the most expensive printing

technique.

This printing is more expensive than stereotype printing. Metallic Cylinder is

used in order to get fine printing. This cylinder picks the six color solvent

based ink. The material’s surface should be 100% glossy and smoother. It

processes films whether they are paper, poly or aluminum foil based, are

laminated by containing two or more layers so as to give the required barrier

properties against moisture, gases and odors. It produces packaging for soap

and confectionery industry. The printing is done in very attractive colors and

designs.

1) POLYETHYLENE SECTION:

Packages Limited manufactures and prints high density Polyethylene from 12

grams to 60 grams. And in case of low density Polyethylene it is 20 to 150

grams. In the Poly Section Polythene is made.

Process Flow:

74

Polygrains Extruders Melting

Air pressure

Cutting Oxidizing

Poly


DESCRIPTION:

Poly grains are the raw material for poly making. These poly grains are put

into a machine named Extruder. Extruder is of two types:

1) Single cylinder

2) Five cylinders

Extruder has a main unit. The poly grains from cylinders come to this main

unit, where these are melted. After melting air pressure is made and filled in

melted poly grains, in this same unit. Due to the air pressure the poly comes

out in the form of balloon. Further oxidizing is done. It is a process by which

blue rays are passed from the poly, so that the poly can be printable. Further

poly is cut into two separate sheets and is rolled separately. Poly is of two

types:

1) Low Density Poly

2) High Density Poly

Low and high poly is due to the poly grains used as raw material.

2) FLEXIBLE PRINTING DEPARTMENT:

Flexible Line is the department, which handles the printing of flexible

materials. The department has latest machinery to perform day-to-day

operations. For printing two modes are used:

FLEXOGRAPHIC PRINTING:

Flexographic printing is on paper, poly – coated paper and Polyethylene film

is done for the soap, cigarette, tea, food, dairy ice cream, and confectionery

industries. Polyethylene film is manufactured from imported granules, which

are extruded into film. The film is printed in range of up to six colors on

Flexographic machines and can print film, paper, Aluminum foil, or a

combination of these making a large variety of materials available for

customers to choose from.

75


ROTOGRAVURE PRINTING:

To meet the growing needs of sophisticated quality packaging, Packages

Limited established a flexible packaging department in 1986. Here, different

plastic films, Aluminum foil and paper are combined to produce laminates of

two or more layers for providing barrier properties against moisture, gasses

and odors. High barrier laminates preserves the quality of food products and

obstruct bacteria entry. Food packaging is made with good barrier properties

for consumer convenience.

The rotogravure machines in this section are versatile to print these films and

their combinations in up to 8 colors. In rotogravure printing, minute details can

be reproduced accurately, making such printing particularly attractive for food

packaging.

Process Flow:

MACHINES FOR PRINTING:

The department has:

76

Unprinted Reel

Unprinted Film

Unprinted Paper

Machine Printed material

Rotogravure printing

Flexographic printing

Prepared Reel/Bags

Slitting & Folding

Vexing

Lamination


> Two kinds of printing machines: (Roto & Cerutti)

6 – color printing machine

8 – color printing machine

> Two kinds of laminating machines

Solnentless laminator

Dry/Wet bond laminator

> One vexing machine

MACHINES FOR SLITTING & REWINDING:

Three rewinding machines

Five slitting machines

Five slitting & separating machines

CONSTRUCTION OF FLEXIBLE LINE:

Reel Form: e.g. poly bags Krunch Golden Crisp

Sleeve Form: e.g. seal packing of Nestle Pure Life

Wrapper Form: e.g. packing of Wall’s Cornetto

77


CORRUGATED DIVISIONFor large-scale packaging, Packages Limited has been manufacturing

“Corrugated Cartons” since 1971. These cartons are produced in different

sizes and are used for transporting consumer products from manufacturer to

retail outlets. The share of Corrugated Department in Packages Limited total

sales is almost 20%, which is second after the Carton Line. Corrugated

cartons are of great value for the export of fresh fruits, garments and shoes. A

wide variety of gums tapes for sealing corrugated cartons are also

manufactured

I have visited Corrugated Department where various types of corrugated

cartons are manufactured. They vary according to customer demand, size;

raw materials used, color and rate.

The production process was completed in two halls. Paper needed for this

purpose was also prepared within the factory premises at the Paper & Board

Mill. Then this paper was first processed through the corrugated machine,

which transforms the paper into single wall and double wall as required and

mentioned earlier. Afterwards, the corrugated are processed through the

Flexo machine where they are shaped according to the requirement of the

customer, for example, into a rectangular or square shape. A gluing unit is

also attached with the Flexo machine, which sticks the cartons on specific

places. Some time stitching is required which is done at another machine.

78


Process Flow of Making Corruwall (CWCs) Sheets:

79

Reel / Liner

Flute Plant

C Flute

Dispatching

Bundling

Corowall Sheets

Cutting & Creasing

Heating & Gluing

Double Baker

B Flute


MACHINE FOR MAKING CORRUWALL SHEETS:

The machine used for making or preparing Corruwall sheets, is named

as UCHIDA (it is the company name). It has imported from Germany. It

has six units. These six units are as follow:

1st Unit (C Flute)

2nd Unit (B Flute)

3rd Unit (Double Baker/Facer)

Heating Section

Slitter & Scorer Section

Auto Down Slugger Section

TYPES OF CORRUGATED SHEETS:

> Single Wall

> C – flute

> B – flute

Double Wall

> B+C flute

Single Facer

> E – flute

PRINTING MODE:

Flexographic printing

MACHINES FOR PRINTING:

There are three machines for the purpose of printing.

Two 2 color machines

One 3 color machine

CAPACITY OF PRINTING MACHINE:

The printing machines used in Corrugated Division have the capacity of printing 250 Corruwall cartons per minute.

80


CONSTRUCTION OF CONTAINERS:

* Regulated Slotted Containers (RSC)

* Glued Containers

* Stitched Containers

* DI – Cut Containers

MAJOR CONSUMER AREAS:

Sports Product

Textile Industry

Food & Beverages

Yarn and Poly Products

Match Industry

Fruit Cartons

MAJOR CLIENTS:

Pepsi Cola, Pakistan Mineral Water

Pakistan Tobacco Company

Lever Brothers

Nestle

Rupali Group

Murree Brewery

Kunjah Textile Mills

(www.package.com.pk\)

81


SOME OTHER DEPARTMENTS INVOLVED IN

PRODUCTION

COATING DEPARTMENT:

When paper & board is manufactured in Paper & Board Mill, its both surfaces

are coarse. For printing purposes, it must have smooth finish. For smooth

finish, it is send to the Coating Department, where it is processed to a smooth,

shining, extra white upper layer or both sides. Color coating of paper and

board is also available.

CUTTING & CREASING DEPARTMENT (CC):

After printing, job comes in the Cutting & Creasing Department. As the name

implies, this department cuts or creases as the requirement of the job. For this

purpose, special dyes are used which are made for the specific job. It has

very sharp cutting blades that do the cutting. The die is attached to a machine

called “CUTTING & CREASING” machine.

LAMINATION DEPARTMENT:

This department has two machines, which laminates the paper on single side

or double side. This lamination process is started after printing, as the

customer requirements.

FOLDING & GLUING DEPARTMENT (FG):

After cutting & creasing, the job comes to Folding and Gluing Department.

The machine folds and glues the sides of the sheet to form cartons/boxes.

Care is taken that the folds are correct and the sharp and right amount of the

glue is applied where required. Last examination of quality control is

conducted in this department. From this department, the job is packed in

boxes and sent to dispatch department.

DISPATCH DEPARTMENT:

This department is responsible for the dispatch of finished goods to the

customer and also takes deliveries of products to Packages Limited from the

82


trucks or railway station. The various functions performed by Dispatch

Department are like that they receive finished goods in this department, they

record these goods, they arrange the goods according to the delivery

schedule given in the job card, they also have to arrange trucks from trucking

companies for dispatching these goods. Also they have to load and prepared

dispatch notes. They have to keep the record of dispatch figures with receipt

records.

QUALITY CONTROL DEPARTMENT:

This department examines the quality of products producing by Production

Department. They make tests about the quality of printing, grammage of

paper or board and compare them with customer specifications and prepare

reports about results.

TECHNICAL DEPARTMENT:

This department is responsible for the repair and maintenance of machines

and construction of building and roads in the factory. There are 130

employees in this department. It works in two shifts. In case of emergency

third shift is carried out. It provides the necessary spare parts and machinery

to different departments. Technical Department is responsible for making

tools and spare parts. Some time it works for other industries. It normally

accepts the orders of Roll Grinders. These orders are accepted only on cash

basis.

83


ART DEPARTMENT

There is an Art Department in Packages Limited in which efficient and

talented artists develop the packaging designs for different products of their

clients. Art department works under the Planning Department. All the new

jobs, which are sent to the Planning Department from the Marketing

Department, are then directed to the Art Department. This department makes

the designs for the product. Art Department gives the attention to the advice

of the Marketing Department and of the customer. There are two sections in

this department:

Comprehensive Section.

Mechanical Section.

1. COMPREHENSIVE SECTION:

The section works in this way, that the Marketing Department of the

organization receives order from the customer for developing the design for

packaging of a product. Marketing Department provides this necessary

information to the Art Department. The Art Section then prepares a

comprehensive, which is the visual of the required design. Blank samples are

prepared which have to be approved by the customer. Some times

suggestions are given to the customers for the improvement of the design. All

the designs are made on computers. Then hard copy of these designs is

made through the use of Colored Laser Printer.

2. MECHANICAL SECTION:

If client accepts the design, then the design is prepared in black and white.

There should be co-ordination between the art designers and mechanical

artists for developing good designs. A job card is issued in the Art Section

with complete information as required by the artist for the making of

mechanical design. The following are the details, which are necessary for

issuing a job card:

84


Name of the customer

Description of the job

Printing method

Printing mode

Ink codes

Material and substance

The mechanical is then sent to the Planning Department and is checked

according to the limitations of the printing, cutting, etc. processes. Then

sample is sent to the Marketing Department for the customer approval. If the

customer suggests some change, then these changes are made and the

whole process of checking is repeated. After the final approval of the

customer, it is sent to the Camera Department for making negatives. Art

Department uses “MACINTOSH” computers and other design equipment.

Mostly for the new customer, they do not provide the facility for making the

whole design. They ask customer either to provide them the design by

himself or if he wants some changes in a design, which somebody else has

prepared for him, then Art Department takes the already prepared design.

They scan it and then make some changes in that design by the help of

computers. Then this changed design becomes a mechanical for the new

customer.

85


RESEARCH, DEVELOPMENT & CONTROL

DEPARTMENT

To keep up with new demands Packages Limited has a Research,

Development and Control Department. This Department is considered as one

of the most important department. The Research, Development & Control

Department works in close collaboration with the Production Department. It

helps the Production Department to maintain a standard of the products being

produced. All the new materials are tested according to the certain

specifications. It also has a lot of interaction with the Marketing Department.

Research, Development and Control Department has well equipped

laboratories and pilot machines, which are used to test various chemicals, raw

materials and machines. It enables Packages Limited to provide better quality

and latest packaging to the consumer industry enabling it to introduce new

product lines and develop new materials. The Research development and

Control Department has three major areas for his research:

> Research

> Development

> Control

1. RESEARCH:

This section is directly answerable to the Production Manager. In Research,

work is done with the new ideas, the experiment is divided into parts and on

each part attention is focused and conclusions or suggestions are given.

Packages Limited, tries to get as many information and technology which is

possible and beneficial to the organization. All such information is collected

for research.

2. DEVELOPMENT:

Development is a continuous process in any organization. A lot of

development is the result of feasibility studies, study of new production

86


methods and new products. Packages Limited has a paper & Board Mill, so it

uses largest number of chemicals. The "Environment Protection Agency" has

set some standards for reducing pollution. The Research Development &

Control Department developed new way of reducing pollution and always tries

to meet EPA standards.

3. CONTROL:

Packages Limited Research, Development and Control Department ensure

the quality standards off all the products produced in the factory.

Quality is synonymous with Packages Limited. Every package made by

Packages Limited guarantees the use of quality materials and processing.

This is all due to the strict Quality Control standards, observed at every stage

of the production, from raw materials to dispatch Department. The Research

Development and Control Department makes stringent requirements on

quality control, which help in working consistently towards attaining better

results for customers. The incoming raw materials and end products leaving

the factory are constantly checked to make sure the items produced meet the

expected standards. To ensure constant quality and improvement this

department managed by qualified scientists.

87


COATES LORILLEUX (INK FACTORY)

To keep up the trend of self-sufficiency, Packages limited has set up its own

Ink Factory in 1957. Initially, Packages Limited used to import all the ink used

in various printing process. But due to increase in demand and to keep

quality control, Packages Limited has set up its own Ink Factory. This factory

is very economical and also supplies good inks for printing to Packages

Limited. Raw materials for inks are purchased but inks are prepared in its ink

factory. This factory has the following sections. There are three sections of ink

factory:

1) STORE:

This section is responsible for the arranging raw material for inks.

2) LABORATORY:

This section formulates different kinds of ink and develops new shapes of ink.

It is responsible for the development of new shades of ink and formulates

different kinds of ink.

3) PRODUCTION:

With the help of Planning Department, this section is responsible to make ink

for the specific jobs. Ink Factory not only fulfills its own requirement but also

sells printing ink in the market. With the increase in demand and popularity of

"ROSE" brand ink, Packages Limited has made an Ink Division and they

intend to develop it into a separate independent department. In 1993, the

company agreed to form a joint venture with equity participation from

"COATES LORILLEUX", world’s second largest printing ink manufacturer to

produce ink for Packages Limited and the general market. Packages Limited

own ink manufacturing facilities now transferred to the new company,

"COATES LORILLEUX PAKISTAN LIMITED" in which Packages Limited

have 55% Ownership.

(Source: company’s brochures)

88


TETRA PAK

Tetra Pak was established in 1982 as a joint venture between Packages

Limited and Tetra Pak Development S.A. of Lausanne, Switzerland. The

shares of Tetra Pak Pakistan are distributed as follow:

49% Shares Owned By Swedish Group.

45% Shares Owned By Packages Limited.

6% Shares Owned By Syed Babar Ali.

Tetra Pak produces packaging material in premises leased from Packages

Limited. The Company operates from its office in Gulberg. That office is

responsible for the Management, Marketing, Sales, and Technical Services.

The head office of Tetra Pak is in Switzerland. A factory produces packaging

material for Tetra Standard Aseptic and Tetra Brik Aseptic. Tetra Pak has a

growth rate of 15%. The Production Plant works at Packages Limited. This

building is acquired from Packages Limited on lease. There are 130

employees in the factory. Tetra Pack factory works in three shifts. Tetra Pak

deals with the packaging and sale of liquid foods such as milk, juices etc.

The Tetra Packing milk can stay fresh up to three months without any

refrigeration. The factory started its production in January 1983 with the

capacity of 16 million packs per year. But now it has a maximum production

capacity of 900 million packs per year. In the year 1993 Tetra Pak sold 750

millions packs. The material used in the production of tetra packing is:

Paper

Aluminum

Plastic Coating

Wax

The Paper, which is used in tetra packing, is manufactured at Packages

Limited. The Aluminum Foil is imported. Now in Tetra Pak daily production is

200,000 meters.

89


OBJECTIVES OF TETRA PAK

By providing quality packaging systems for rational and

hygienic distribution of edibles to customers in order to

most effectively contribute to mutual success.

Treatment applies to customers, suppliers, employees and

community.

Our quality slandered and to participate in the further

development towards higher quality and more economical

production.

Technical and professional excellence through

provisions of the best training facilities for employees as

well as for customers.

The evaluation of effective packaging system to meet the

needs of mankind.

(Management)

90


Quality Policy

“Customer Satisfaction - Our

Success”

Through our total Quality philosophy, we are all committed

to quality in everything we supply and do to fulfill our

Company Purpose.

We will give our customers satisfaction by

meeting their requirements in products and services and

thereby assure the future of the Company, our staff and

their families.

We strive for continuous improvements in our daily quality

work and recognize that Training and Feedback on our

performance is integral part of this improvement process.

(Management)

(Source: Introduction to Tetra Pak)

91


MARKETING DEPARTMENT

“Customers forget what they have bought or good what they bought

was. But they never forget how they were treated”.

(Lynda R. Paulson)

We are living in an age of Marketing. It’s a famous adage; “You don't sell

what you make rather you make what you can sell”. Today in any

organization, Marketing Department is of paramount importance. Because it

plays a link between the consumer and the manufacturer. The function of the

Marketing Department is to ensure that consumers receive what they need. If

marketing department works effectively and efficiently, the whole organization

is on a smooth run. The Marketing Department plays a key role in the

operations of the organization. The Marketing Department of the Packages

Limited is headed by the Marketing Manager who is responsible for all the

marketing operations in all three offices in Lahore, Karachi & Islamabad.

Packages Limited has a very effective Marketing Department, which is acting

a vital role in the working of the company. This department is responsible for

the sale of industrial & consumer products. Planning Division of the

Production Department works closely with the Marketing Department to

ensure the meeting of established targets. Packages Limited has divided into

the four regions i.e. Lahore, Karachi, Multan and Islamabad. Area Marketing

Managers, who are third in the line of authority, direct under the Deputy

Marketing Manager, are the heads of these regions. Marketing Manager also

looks after the Consumer Products Division. Each region is responsible for the

sales of its area. A team assists all Area Marketing Managers, consisting of

Regional Sales Managers, Assistant Sales Manger and Sales executives.

There are two Regional Sales Managers under the Area Marketing Manager.

One for industrial sales and one for the consumer products. Then there are

Regional Sales Managers and Sales Executives. The Deputy General

Manager who is also among the Board of Directors of Packages Limited is

often consulted by the Marketing Manager for important managerial decisions

concerning Marketing Department. The job of Area Marketing Manager is just

92


like a Supervisor. He checks the performance of each officer. He, some times,

visits the customers and asks them whether they are satisfied with the

services of the officer concerned. The Regional Sales Manager acts as a

coordinator between the Sales Executives and the Area Manager. Each Sales

Executive is allocated a certain number of customers. The respective

Executive will deal with these customers and solve their problems. In case of

some trouble, the Area Manager does involve and tries to settle things. His

advice is especially taken while developing, launching and pricing of new

products or amending the prices of existing products and so on. There are two

divisions of marketing department in Packages Limited:

The Industrial Marketing Division

The Consumer Product Division

The performance of marketing activities of the Company has increased due to

this segmentation of division. Following are the important factors that differ

between these two divisions:

Distribution channels are different.

Target market is different.

They both have their own competitors.

Marketing policies are different for each division.

93


1) INDUSTRIAL PRODUCTS DIVISION:-

The industrial marketing has emerged to be a strong tool to enhance the sales

of those companies making products that are used in the production of other

goods and services. Industrial Marketing is the need of the manufacturing

firms. In this regard the Industrial Marketing Division of the Packages Limited

assumes the key importance. Industrial Product Division is responsible for the

industrial goods. This division is concerned with the packaging needs of

various industries. The industrial products, which it markets, are numerous.

The major products come in the category of packaging products. These

include:

Products available in Offset Printing

Products available in Flexo graphic Printing

Products available in Rotogravure Printing

Corrugated Products

Packages Limited produces good quality packaging material. Packages

Limited has 25% market share in packaging industry; as a result they are the

single largest packaging unit of Pakistan. There are lots of small

manufacturers, which are much cheaper, but their quality is not of that par but

due to low prices they are there. Major competitors are:

Almas (Pvt.) Limited Karachi

Pak Paper Products

Pap Board Printers Rawalpindi

Metatax Press Karachi

Security Paper

Industrial Packaging Karachi

National Packages Karachi

94


Friends Packages Karachi

Uni Flex Printing Services Karachi

Rainbow Packages Limited Lahore

Orient Board (Pvt.) Limited

Toufique printers Lahore

Market Share Of Packages Limited In Packaging

Industry:

Market Share Of Packages Limited In 2000 In

Packaging Industry (Percentage)

Packages Limited 25%

Others 75%

95

Packages' Market Share

0%

20%

40%

60%

80%

Packages Limited Others


But there is no any competitor, who has more than 10% market share. The

Packages Limited has an edge over competitors in different factors:

Packages has own Paper & Board Mill

Modern Machines & equipment

Printing quality of products

Provides help in designing

Almost 91% of the sales of Packages Limited comprise of Industrial Products.

Packages Limited is the marketing leader of the packaging industry of

Pakistan. Packages Limited produces the wide range of packaging material in

the country. It manufactures materials, which cover paper & board, corrugated

board, plastic packing. The major industries whose packaging requirements

are being fulfilled by Packages limited are as follows:

Cigarette Industry

Tea Industry

Shoe Industry

Match Boxes Industry

Toffee and Candy Industry

Food Industry

Soaps & Detergents Industry

Biscuit Industry

Pharmaceutical Industry

Chemical Industry

Tooth Paste Industry

Garments Industry

96


Marketing Philosophy:

The marketing philosophy of Packages Limited in general and Industrial

products in particular, moves around the policy to provide strength in,

Service

Quality

Dependability

In simple words, providing good services to the customers. Also along with

good quality and services. The dependability means, the customers should

have trust in Packages. By making strength in quality, goods and services and

being trustworthy, gaining the market share is the philosophy of Packages

Limited.

Another marketing philosophy is not only to satisfy the existing customers but

also by doing this to attract new customers.

Methods of Marketing:

Face-to-face meetings

Telemarketing

Through E-mail

Through Fax

Group meetings

Prospecting for New customer:

According to my discussion with the Senior Sales Manager, Ms. Humaira

Shazia, that how they do prospecting for new customers. She told that first we

see our production lines i.e.

Carton Line

Flexible Line

Corrugated division

97


In which division or line we need new customers and the existing customers

are not fulfilling our requirements of that particular line. Then we select our

target market. The selection of target market may be through market surveys.

From that target market we select the potential customers, means the

customers with which we can do business. Then these prospected customers

are sent free counter samples. The customers use these samples and if the

samples are matched with their standards. They contact with the Industrial

Marketing Department for further negotiations. For their standards and

satisfaction, the strength in quality, services and trustworthy are the base.

Functions of Sales Executive:

1. Customers’ identification

2. Customers’ services

3. Customers’ satisfaction

4. Development of new jobs

5. Having an eye on competitors’ activities

6. Market knowledge

7. Collection of payments

8. Maintenance of time

9. Training development of trainees and internees.

Top Three Customers of Industrial Marketing Division:

1. Pakistan Tobacco company PTC

2. Lever Brothers (Pvt) Limited

3. Nestle Milkpak Limited

98


Type of Orders:

Packages Limited receives two types of orders from the customer:

New Orders

Repeated Order

For new orders, Sales Executive will go to the new client and will try to sell

their products to him. The Packages Limited has a limitation, that it can not

take small orders from customers because the factory over head costs are too

much which can not be justified in small orders of less monetary value. If the

customer agrees to buy from Packages Limited, then it is the job of the Sales

Executive to coordinate with the customer. First priority is to listen to the ideas

of new customer and if they are feasible then, work is started. If the

customer's ideas are not worth of use, then the Sales Executives use their

own expertise and design a suitable package for the customer with the help of

Art Department. If the customers are satisfied with the quality, delivery and

price of the packaging material provided by Packages, then they will make

repeat purchases. Normally companies consult themselves with Sales

Executives by making a Phone call or by sending a fax. When Sales

Executive will get order again from his client he will again repeat process of

issuance of ISO.

WORKING OF THE INDUSTRIAL MARKETING

DEPARTMENT:

The basic job of Marketing Department is to make sales and to satisfy the

customer's needs.

Allocation Of Customers:

At Packages Limited every sales Executive and Sales Managers are allocated

customers and they are held responsible for dealing with them. Every Sales

99


Executive has a complete record of his customers and pays regular visits thus

remaining in regular contact with them. On average a Sales Executive has to

deal with more than 10 customers.

Daily Meeting:

In the Marketing Department, a meeting of all the Sales Managers and

Executives is held every morning. The Area Marketing Manager heads this

meeting. Each Sales Officer explains the current situation of his customers

and the development in the new prospects, if any. The Sales Officers also

inform the Area Marketing Manager about what they did the previous day.

They are then guided as to what should do, and are assigned certain duties

regarding the mode of action they are to adopt. Sales people also provide

current information about market. The sales people are also responsible for

getting the payment from the customers. In the daily morning meeting, they

have to show that how much payment they have got from their customers and

how much amount is still outstanding with their customers. The Area

Marketing Manager sees that which sales person is lagging behind in

receiving the payments and then guides him to speed up his efforts for getting

the payments from the customers.

In this morning meeting, the daily dispatch report is also discussed. The Area

Marketing Manager discusses with each Sales person, the status of the order

delivery of his customers. If the orders are not executing according to the

schedule given by the planning department, then the Area Marketing

Manager, himself contacts with the planning department and asks them to

speed up the delivery process of the late orders.

Developing New Customers:

Every organization aims to satisfy its present customer and at the same time

tries to increase the number of its current customers. But with Packages

Limited the task is slightly easier, since it is the largest packaging concern in

Pakistan and off course the most reputed one. In order to find out the potential

100


customers, it is the duty of every Sales person to remain well informed about

the market and grab every opportunity as and when it arises if it seems

profitable. Hence, the sales persons are required to carry out an active search

for potential customers and have to make sure that they miss no opportunity

to strike a deal that can be profitable to the organization. As a matter of fact, it

is the job of sales force to track new opportunities for the organization.

Although it is not an easy task, but the good repute of Packages Limited about

its quality oriented production serves as a promotional tool and helps the

Sales staff. Sometimes, some prospective customers directly contact the

organization. The reason is the highly strong market position of Packages

Limited.

Procedure for getting a new order from the customer:

Like any marketing department, the marketing people here too are supposed

to attract the new customers and get the business from them. Fortunately, the

Packages Limited has very loyal customers, who have been purchasing from

them for a long time. So we can say that, more or less, the Packages Limited

has fixed number of customers. That’s why, except Area Marketing Manager,

every sales person has assigned certain number of customers. The sales

Executive has to make all the dealings with his allotted customers. But this

does not mean that in Packages Limited, attention is not given to the new

customers. The point is that the old and loyal customers have become the

permanent customers of the company. The other thing is that the company is

operating at full capacity in case of carton and corrugated divisions. Only in

flexible line they are below their capacity. So, mostly, they focus their attention

to attract the customers in the flexible line. If a new customer comes, then he

may be assigned to any sales Executive.

Now there is a certain procedure through which the new order from either a

new customer or the old customer is executed and final product is dispatched

to the customer. The flow chart of this process is given below:

101


Process Flow:

DESCRIPTION:

Process flow in Industrial Marketing Department is as follows:

First of all there is contact between the customer and the sales

department. The contact may be in two ways:

Customer contacts the marketing department

102

Industrial Marketing dept.

Art Department

Black & white

mechanical

Approval

Color Print

Sample Proof

Approval

approval

Approval

approval

ISO Issuance

Planning

dept. for

Confirmation of ISO

Order Confirmation

Customer

Customer’s order


Sales executive contacts the customer.

Now if the customer has any idea, he gives “specification” about the

required product i.e. size, material, design etc. and also tells about the

approximate order.

The marketing department sends the specification to the Art

Department to convert the idea into a shape. If the customer has no

idea then it is the work of Art Department to make a design.

The Art Department makes blank sample to the concerned sales

executive. The sales executive also gets pre-costing report and then

sends the blank sample along with quotation to the customer. The

blank sample is sent to the customer to get approval of four things:

Size

Material used

Structure of packaging

Construction

At the same time, the quotation is also given to the customer. On quotation,

the following information is given:

>The price of the product according to the size and quantity

>Terms of payment

>The expected lead time

>The material to be used to manufacture the product

The printing mode

Then the customer approves the blank sample and also agrees to the

quotation.

Then the marketing department sends a color print to the customer for

approval of:

Text on the packaging

103


Space coverage

Color combinations

Color usage

After the approval of color print, a sample proof is sent to the

customer. This sample proof is an original product according to the

requirement of customer. Till now the main work was done by Art

Department.

After the approval of sample proof, the marketing department issues

Internal Sale Order (ISO), One copy of ISO is sent to Planning

Department for the confirmation of:

ISO number

Product quality

Product quantity

Date of issuance

Time duration

Printing mode

Dispatch date

The planning department confirms the ISO, and bulk Production starts.

After getting the confirmation from planning department, the

marketing department sends order confirmation to the customer and

by the process between the customer and the marketing department

completes.

Documentation flow in Industrial Products Division

From Document to

104

ProductionSales Information


DESCRIPTION:

Before the documentation flow, the customer has made the contact with the Industrial Marketing Department.

The sales manager/executive gets information from the customer and decides whether the order can be done or not.

If it can be done, then the pre-costing department prepares the pre-costing report and sends to executive.

105

Pre costing

Sales

Customer

Sales

Planning

Sales

Dispatch

Sales

Sales executive

Customer

Planning

Sales

Sales &

production

Planning

Production

Planning

Sales

Customer

Accounts

Accounts

Dispatch

Sales

Customer

Customer

Pre costing report

Quotation

Purchase Order

Order confirmation

ISO

ISO Confirmation

Job Card

ISO amendment

Transfer note

Dispatch note

Credit note

Debit note


From this pre-costing report the sales executive fills a quotation form and sends to the customers.

From this quotation, the customer gives, the purchase order, if he is agreed with the quotation.

Now if the purchase order is according to the standards and requirements of Packages, the sales executive sends the order confirmation to the customer.

Now the sales/industrial marketing department issues an Internal Sale Order (ISO). One copy is sent to the planning department.

The planning department issues the ISO confirmation slip to the Industrial Marketing Department.

Then the planning department issues Job Card. One copy is sent to the production department and the other one is sent to marketing department.

Now if there is any amendment in the purchase order, required by the customer, the I.M.Department makes an amendment form and sends to the planning department so as before production this amendment can be made.

After the completion of job, a transfer note is made by the production, which is sent to Dispatch section.

The Dispatch Section issues the dispatch note to the marketing department to confirm the completion of job.

The Account Department issues invoices, means debit and credit notes to the customer.

The receipt of payments from the customer is the duty of marketing department.

By this process the documentation flow of Industrial Marketing Department has completed. (Documents are available in Appendix)

Repeat Orders:

Packages Limited, as a policy matter always prefers repeat sales. It does not

look forward very eagerly to one time order. Most of the business is of

repeated nature. Thus getting repeat orders is also one of the important jobs

of a Sales Officer. A repeat order can be taken through a telephone call a

written letter or a visit. In repeat orders, it is not necessary that the whole

106


process discussed above be repeated in the same sequence. As in repeat

orders, the customer’s requirements are already with the company, so

customer only places his order and gives the order confirmation, and the

marketing department will issue the ISO and the remaining process will be

same as discussed earlier. The steps before ISO issuance are skipped in this

case. But if the customer wants some changes in the previous order, then the

whole process will have to be repeated.

107


Packing material manufactured in Packaging

DivisionCORRUGATED

CARTONS

Cartons produced in variety of sizes, are used for

transporting consumer products from manufacturers retail

outlets. Mostly corrugated cartons are used for export of

fresh fruit, garments, shoes and textiles.

PRINTING

INKS

Roto, Flexo, offset, water base, heat resistant, for printing of

polythene, OPP. PVC, polyester, solvent base ink, lacquers,

additives.

GUM TAPES A wide variety of gum tapes for sealing corrugated cartons.

LAMINATE

BAGS

For Snacks, Tea, Shampoo

WRAPPERS Paper wrappers/ laminate wrappers for toffee, candy, soap,

ice cream, bubble gum etc.

LABELS Labels For Bottles/Inks

BAGS Tea bags, printed poly bags, poly coated bags

FILMS Shrink wrap poly film, syringe packing film

MISCELLANE

OUS

Sachet for shampoo, coffee etc, cone for ice cream, stands

alone pouches for PVC sleeves, and packages for every

purpose.

108


Pricing Policy For Industrial Products:

Since Packages Limited industrial products vary in nature to a great extent, so

there is no fixed price for any product. In Packages, prices charged are quite

high due to their good quality and standard. The Marketing Department

determines prices for each of the products separately. There are some

standards regarding prices of different packaging designs, but they vary

according to the factors listed below:

Material used for the package

Printing on the package

Size of the package

Quantity ordered

Prospects of repeat sales

Art work charges

Terms of agreement

Number of color to be used in printing

Time of completion

Price Determination:

The prices are usually negotiated between the buyer and the sales personnel.

The Sales Executives get the estimates of the costs to be incurred on the

customer’s order, from the Costing Section, a part of the Marketing

department. The business with the customer is also kept in mind, i.e. whether

he is a new customer or the permanent one of the company. The prices for

the industrial products are determined on the "Cost Plus PROFIT" basis, i.e.

Cost + Profit = Price

In order to determine the price to be charged for an order the company simply

adds desired profit to its estimated cost of production. In price determination

the first aim is to cover the cost. After this a reasonable amount is charged in

the term of profit. There are certain factors, which affect this profit margin.

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Distribution Policy For Products:

Packages Limited, being basically industrial products manufacturing concern,

its distribution system consists of direct selling from producer (manufacturer)

to the consumer (the company ordering for the packaging material). No

middleman is involved. Company's sales force either directly goes to the final

customer or gets order from them or the customer himself contacts with the

company. The company believes that direct marketing is quite cheap for

industrial goods. The reason, which they quote, is that we have enough sales

force all over the country and which can cover the industry more

economically. Normally new orders are obtained by the Sales Executives.

Packages Limited does not have any distribution or whole sellers in its

distribution network. The company advises its customers to take their

packaging material from the Factory Premises. Either the buyer's transport

comes to the premises or the company arranges to send the products to the

customer. In any case no freight charges are borne by the Packages Limited.

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2) CONSUMER PRODUCT DIVISION

(CPD):

Since the inception of Packages Limited, it dealt only with industrial goods. In

1981, company entered into new era and starting dealing in consumer goods

as well. Initially, it was decided that the industrial sales division would also

look after the affairs of consumer products. In 1985, the distribution function of

the consumer products was handed over to TETRA PAK. But in1986,

Packages limited got back the distribution facility from TETRA PAK and

established a new division with the name of consumer product division

(commonly known as CPD). Since then CPD is responsible for the consumer

products. This Division is totally separated from Industrial Products Division

and follows its own policies. It makes its sales plan freely. Over all, CPD

manages 43 different tissue paper products, which include tissue paper rolls,

facial tissues, wet tissues, tissues for particular organization.

This department has one CPD manager, 160 workers and 10 supervisors.

Tissue Paper at Packages Limited is manufactured at Paper & Board Mill in

reel form. In the production hall, the tissue reels are cut into individual tissues

and then packed. The "ROSE PETAL" line of products includes facial tissues,

toilet rolls, kitchen rolls, paper napkins, paper cups & plates. Apart from

ROSE PETAL, Packages Limited is producing tissues for various companies

like UTILITIES STORES etc. The other brand in tissues is “TULIP

TISSUES”. Lately, they have started selling imported tissues under the brand

name of "COTTENELLE". The raw material that is tissue paper is imported

from Scotland. What they do is cutting, packing & selling. This division

performs the activity of selling products to the ultimate consumer. The

Marketing Manager supervises this Consumer Product Division.

Packages limited started producing consumer products with the introduction

of Rose Petal (Facial Tissues) in April 1981, formally rose petal started

production in 1986. With the passage of time consumer products family

increased. A brief history of all the consumer products is given below:

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1. Luxury pack of Rose Petal (Facial Tissues) in 1981.

2. Tissues of pink color were introduced in 1982.

3. Toilet rolls in 1983.

4. Economy size pack pf Rose Petal (Facial tissues) was introduced in

1984.

5. Multicolor tissues were also introduced in 1984.

6. Production of table napkins started in 1985.

7. In the end if 1985, the distribution is handed over to Tetra Pak.

8. In February 1986, Packages Limited took the distribution back.

9. Multi purpose rolls were introduced was introduced in October 1986.

10. In November 1986, facial tissues were offered in pocket pack.

11. The production plates and cups were started in 1987.

12. Perfumed tissues were launched in 1987.

13. In 1988, Feminex was launched.

14. In 1989, wet tissues were introduced.

15. In 1990, Feminex stickon was manufactured.

16. In 1992, they manufactured a special kind of wet tissue, which is used

to clean the glasses of spectacle. But the commercial production is still

not started.

17. In 1993, CPD introduced imported tissues with the name of cottenelle.

18. In 2001, CPD introduced Rose Petal Feminex

(Source: company’s brochure)

CPD is responsible from production to the distribution of all these products.

Each sales officer is a product or brand manager and deals with the particular

product assigned to him. Before the establishment of CPD, product used to

take 12-15 days before reaching to the customer who had placed the order.

After its establishment this problem was removed and CPD people were able

to establish a distribution system, which covers the whole country. Before the

introduction of Flying tissues, Packages Limited has the sole monopoly over

the tissue market in the country. But right after its introduction, it gave a tough

time to the Rose Petal family. Although CPD people do not accept that Flying

is giving them a tough time. But after its introduction they improved their

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quality by making tissues on a new machine, which is far better than a

previous one.

PHILOSOPHY:

There was no local production of tissues to meet the population requirements

and at that time the tissues were imported from abroad to fulfill the demand.

Tissues were imported only through the personal baggage and they were only

target the elite class. So the packages ltd has decided to start the production

of tissues to meet the requirement of population and at low price to target the

whole market that it can be in the reach of medium and low-income classes.

MISSION STATEMENT OF CPD:

Rose Petal is going on the road of progress very successfully and according

to the marketing department of the company, they want to get “maximum

share by maximum sales”. They are trying to cover every noted inefficiencies

in the main departments of its. Along with they are also very conscious about

the quality, and are doing very hard job to give best quality. Sales people are

working on classic marketing idea “find as gap and fill it”.

GOALS:

Goals of rose petal are to expand and increase the consumer demand of

tissues and to break the cultural barriers like replace towels and handkerchief

with tissues. It was thought earlier that the tissues are for upper class but they

target the whole market including the all-social classes. In the presence of

imported and local tissues they have to create the demand of their brand so

they provide their tissues at reasonable price and good quality.

OBJECTIVES:

First objective is to increase the pie that is market share, to increase the pie

they concentrate on quality and cultural change and price.

TYPE OF BUSINESS:

Rose Petal is consumer product that was the first consumer product

introduced by Packages Ltd. They produce:

Tissues

Paper Plates

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Paper Cups &

Feminex.

MARKET SHARE OF PACKAGES LIMITED IN TISSUE

MARKET:

Consumer Products Division is responsible from the production to the

distribution of all these products. After its establishment CPD established a

distribution system, which covers the whole country. Now Consumer Products

Division has around 166 distributors, which covers the whole country. There is

not any major competitor of the company in tissue sector. Though flying tissue

has been there in the market for the last 7-8 years, but still the Packages

Limited is the market leader and has (75 to 80)% market share. Their

distribution covers the entire country while Flying is only limited to big cities.

Packages Limited has the monopoly in case of paper cups and plates and

enjoys more than 80% of market share.

MARKETING STRATEGY:

Goals indicate what a business unit wants to achieve, strategy answers how

to get these goals. Every business has a strategy for achieving its goals.

The marketing strategy can be presented in a list form as follow,

Target market

Positioning

Product line

Price

Distribution network

Sales force

Service

Advertising

Sales promotion

Research & development

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Marketing research

In order to make good “marketing strategy” the management of Packages

limited takes the keen interest in following factors:

1. What will be the target market?

2. How they will position their product?

3. What will be their product lines?

4. How they will set their products’ prices?

5. What will be their distribution network?

6. How much sales staff is required?

7. What will be the qualification and experience of their sales

force?

8. How much advertising expenditure is required?

9. What will be the budget of sales promotion program?

10.What will be the budget of research & development?

11.The senior management settles the budget of marketing

research?

12.How they will decide on the marketing program internationally?

13.What will be the marketing strategies in product life-cycle?

14.What will be the marketing information system (MIS)?

15.What will be the marketing control system?

The marketing strategy statement consists of three parts. The first part

describes the target market, the planned product positioning, the sales,

market share, and profit goals. The second part of the marketing strategy

statement outlines the product planned price, distribution, and the marketing

budget. The third part of the marketing strategy statement describes the

planned long –run sales, profit goals, and marketing-mix strategy.

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Michael porter has considered marketing strategy into following three generic

types that provide a good starting point for strategic thinking.

1. Overall cost leadership

2. Differentiation

3. Focus

The management of Packages has adopted the “Differentiation” marketing

strategy. Here the business concentrates on achieving superior performance

in an important customer benefit area value by a large part of the market. It

strives to be the service leader, the quality leader, the style leader, the

technology leader and so on. The firm cultivates those strengths that give it a

competitive advantage in many benefits. Since the firm seeking quality

leadership so it makes or buys the best components, put them together

expertly, inspect them carefully and so on.

MARKETING BUDGET:

They have allocated Rs. 4 crores for their marketing purpose which include all

promotional activities.

MARKET SEGMENTATION:

Packages Ltd has defined and identified its target market for its consumer

products. Target market for facial tissues include all the geographical areas,

all the psychographics, Demographics because Rose Petal is trying to target

each and every person in the society. They have such a wide product line,

which satisfy the needs and wants of each and every individual. Price ranges

from Rs. 5/- to Rs. 60/-. They have the packs of different sizes in different

quantities and for different purposes. So, they always try to target each and

every individual and that means they are using the aggregation segmentation

strategy.

MARKETING RESEARCH:

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A.C. Neilson Aftab Associates does marketing research for Rose Petal. Apart

from research they send their employees on recreational tours that they can

bring new ideas from abroad.

ANALYSIS:

(PAST, CURRENT AND FUTURE POSITION)

The growth rate is 10-12% per annum, they have this estimated target for

future market share. While in past and in present they have the same

percentages.

MARKET POSITIONING STRATEGY:

In terms of price and competitors:

It is cheaper than imported tissues but expensive than local brands. So, they

position their brand at higher price than their local competitors and cheaper

than imported competitors.

They are making Rose Petal and Tulip Tissues where rose petal is sold at

higher prices for higher income level consumers and tulip is sold at lower

prices to cater the demand of lower income level consumers and in this way

they increase the market share and the number of consumers.

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MAJOR FACIAL TISSUES PRODUCTS OFFERED BY CPD

The line of consumer products of facial tissues offered by consumer product

division is as:

1. Perfumed facial tissues.

2. Classic perfumed tissues.

3. Tulip viva perfumed tissues.

4. Rose Petal fresh wipes.

5. Multicolor tissues.

6. Luxury tissues.

7. Supreme tissues.

8. Tulip tissues.

9. Tulip handy pack tissues.

10.RP panda pocket pack.

11.Tulip pocket pack.

12.Pop up table napkins.

13.Rose Petal papers towel.

14.Rose Petal toilet roll.

15.Rose Petal twins toilet roll.

16.Tulip toilet roll.

17.Tulip twin toilet roll.

18.Double horse toilet roll.

19.Rose Petal Feminex

(Source: Company’s Brochures)

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BRANDING STRATEGY:

BRANDING:

Every company tries to establish its brand in order to maintain a brand loyalty.

A good brand name is the goodwill of the company. Again, the selection of the

brand name is the responsibility of the marketing people. Packages Limited

has the policy of separate family names for each of its product line. For

example, in case of facial tissues, the family brand name is Rose Petal, Tulip

etc. in the promotional campaign; the brand name is used, which in fact

covers the whole family. The brand name of Rose Petal is used in advertising

campaign while it has many sub brands like perfumed, plane, multicolor etc.

Rose Petal brands are very succeeded in the market has a good image. This

is brand image, which helps the company to achieve its objectives and Rose

Petal is doing the something and achieving their desired objectives. Packages

Limited itself also helps Rose Petal to create a quality image in the mindset of

their customers and make it symbol of quality in the market.

SPECIAL ORDERS:

Rose Petal also get some type of special orders of tissues from the market

and fulfill the needs of these special order customers by providing them

desired features. These special customers are like the big organizations like

PIA, PC hotel, PIZZA HUT, MACDONALD’S, KFC and pharmaceutical

companies etc. these customers demand different type of modifications in

packaging, style, colors like Sometimes quality and also certain other features

of the different product of tissues. As some pharmaceutical companies

demand wet tissues with certain special colognes. Some organizations

demand to print of their logo on the tissue paper, packaging like PIZZA HUT

or KFC etc. some organizations wanted to print their own design on the

packaging material as PIA placed special orders of luxury size tissues with

packaging of PIA colors green and white although trademark and logo of

Rose Petal is also placed on the packaging. Special orders are provided in

bulk not small in numbers. They have certain limitations in which they

produce. Special orders are placed only for big organizations or certain

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events. Special orders are almost the 5 to 10% of their total production and

they have no problem to manage these. Marketing people also provide their

services to different big organizations in respect of packaging and order size

and certain other facilities. If the customer wants to make some alterations in

the approved design, then he has to pay for all those expenses, which the

company has made on the previously approved samples.

BRAND NAME:

The brand name is “ROSE PETAL”. But they have two other brands, named:

TULIP

DOUBLE HORSE (ONLY IN NWFP)

BRAND MARK:

Brand mark is “ROSE PETAL”.

TRADEMARK:

They are using the name “ROSE PETAL” as their trademark.

BRAND EQUITY:

The brand name rose petal adds value to the product. As the brand name

rose petal is showing the resemblance of softness of rose so it shows that the

product has the same characteristics as the petal of rose.

SLOGAN/LOGOS:

Rose Petal has adopted the following slogan i.e.” SOFTER AND STRONGER

TISSUES”. They are using WWF logo on their product PANDA, but they are

paying royalty to WWF per year.

(Source: company’s brochures)

PACKAGING STRATEGY:

Packaging is an essential part of any product and particularly for consumer

products. Fortunately, Packages Limited has a separate packaging

department, which is responsible for developing package for new products or

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to modify the existing package. The marketing people spell out the guiding

principles and then the Packaging department design and prepare the

package in the light of these guidelines. Sometimes, the packaging for special

orders is done according to the requirements of the customer or client and

certain modifications are made in design or styles etc. for example, PIA wants

print of his logo on the packaging box. Pearl continental hotel wants to print of

PC on the tissues, which are using by their customers. These are the some

examples of special orders satisfied by the CPD. they made economical and

adequate packaging of tissues for the convenience of all type of consumers.

LABELING:

They use brand label strategy as they use brand name ROSE PETAL only, on

package but they mention the quantity of tissues in a package like 150 * 2 ply

tissues etc.

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PRICING STRATEGY:

The basic formulae for price determination of Rose Petal products is:

COST + PROFIT = PRICE

The first aim is to cover the cost. After this a reasonable amount is charged in

the name of profit. There are certain factors, which affect this profit margin,

which might be internal as well external. These are:

a) Quantity of the order.

b) Type of material.

c) Number of colors to be used in printing.

d) Time of competition.

e) Future prospects.

f) Nature of the market and demand.

g) Economy.

h) Organizational interests.

i) Marketing objectives.

j) Marketing mix strategy.

k) Consumer purchasing power

l) Competitors’ products prices

Packages Limited selects the medium price-high quality pricing strategy as

Packages never compromises on quality of the products. There are four

pricing objectives:

1. Survival (cut price)

2. Maximum current profit

3. Maximum current revenue

4. Maximum sales growth

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Packages adopts the “Maximum Sales Growth” pricing objective. There are

four pricing methods:

1. Mark-up pricing

2. Target return pricing

3. Perceived value pricing

4. Growing rate pricing

Packages adopts “mark-up pricing” method. Sometimes Packages sells its

products below cost also. For example they sell wet tissue below cost to

create its market, because majority of people is not familiar and accustomed

to use the wet tissues, which has limited demand in the market. The

management of Consumer Product Division (CPD) also makes their price

decisions on the basis of the competitors on going rate prices. So, they have

to take keen interest on the pricing policies of the competitors. Although

quality play a leading role in their products, but prices have also its

importance in the development of the product image in the market.

(Source: material provided by executives of CPD)

PRICING POLICIES:

The company has the policy to charge ex-factory prices. They are not

concerned with the freight and octroi charges. All such costs are borne by the

buyer.

The basic objective behind the price determination of consumer products is to

maximize the market share. The company actually wants a higher turnover.

The marketing people set prices by considering the following factors.

1. COST OF PRODUCTION:

Every organization strives to sell its goods on Maximum profit. But the first

objective is that to cover the cost of production, or to sell at the break

even. And profit margin is set in order to maximize the market share.

2. CONSUMER PURCHASING FACTOR:

This is also very significant while determining the final price. Marketing

manager has to pay full attention on the purchasing power of the target

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customers. Again the objective or the philosophy behind the whole pricing

concept is to maximize the market share.

3. PRICING POLICIES OF THE COMPETITORS

The prices charged by the competitor also play very important particular in

case of consumer products. Since price is the basic factor. Marketing

department always keep an eye to track any movement by the

competitors. If the company starts charged higher price as compared with

the competitors, then definitely it is going to loose its market share. Which

is the major objective of the company.

4. GOVERNMENT TAXES:

Another factor, which affects the pricing policy, is the taxes imposed by the

Government. Rose Petal has the policy to increase as with the increase in

the taxes.

5. AREA PRICING:

Rose Petal has the policy to charge a homogeneous price for all of its

consumer’s products through out the country. In this regard, enough

margins are kept to cover the freight, octroi, and other district taxes.

(Material provided by executive of Industrial Marketing Division)

PROFIT/UNIT:

They are earning normal profit/unit @ 10-15%.

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PRICES OF ROSE PETAL TISSUES:

Products Factory price

for Reg.

distributor

Factory price

for unReg. Dist.

Customer price

per unit

Standard

packing

Perfumed tissue 1431.70 1469.05 47 36 car/case

Classic per. 1128.95 1158.4 39 36 car/case

Tulip Viva 0688.30 0706.25 30 36 car/case

Fresh Wipes 2203.20 2260.70 20 144 packs/c

Multicolor 1377.00 1412.90 50 36 car/case

Luxury size 0963.75 0988.90 35 36 car/case

Supreme size 0799.20 0820.65 29 36 car/case

Tulip Tissue 0550.80 0505.15 22 36 car/case

Handy pack 0367.20 0367.80 10 48 pack/case

Paper towel 1032.60 1059.55 45 30 roll/case

Party pack 1308.00 1342.10 57 30 pack/case

Toilet roll 0918.00 0941.95 16 100 roll/case

Prices are subject to revision Source: company’s brochures

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DISTRIBUTION STRATEGY:

Even before a product is manufactured for marketing, management should

determine what methods and routes would be used to get it available to its

customers on outlets. This task involves establishing a strategy covering

distribution channels and physical distribution of the product.

The marketing concept calls for paying increased attention to physical

distribution. Physical distribution is an area of potentially high cost savings and

improved customer satisfaction. When order processors, warehouse planners

inventory managers, and transport managers make decisions, they affect each

others costs and demand creation capacity. The physical distribution concept

calls for treating all these decision within a unified framework. The task becomes

that of designing physical distribution arrangements that minimize the total cost

of customer service.

Physical distribution involves planning, implementing, and controlling the physical

flows of materials and final goods from points of origin to point of use to meet

customer requirements at a profit. The aim of Physical distribution is to manage

supply chains, that is value-added flows from suppliers to ultimate users. Thus,

the logistic task is to coordinate the activities of suppliers, purchasing agents,

marketers, channel members and customers. The main elements of total

physical distribution costs are transportation (37%), inventory carrying(22%),

ware housing (21%), and order processing/customer services/distribution

administration areas.

Companies can attract additional customers by offering better service, faster

cycle times, or lower prices through physical distribution improvements.

Companies lose customers when they fail to supply goods on time. Sales force

of consumer products division of Packages Limited is responsible for;

a. Sales

b. Sales development

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c. Trade promotions

d. Merchandising

e. Distribution management

Total sales force working in this section consists of fifteen people. Through its

sales force company makes good relation with the distributors and also makes

them its permanent customers.

There are many factors to motivate the channel members such as high profit

margin, company’s major market share, high quality products, cooperative and

creative advertising, and company’s reputation and goodwill.

Strategies they use are cash based for distributors and they do not allow

distributors to over or under stock because they have check on them. They do

not allow windfall profit to distributors.

DISTRIBUTION NETWORKS:

Distribution networks (placement) means like the way through which you enter in

the market and come in the each of your target market. Most of the companies

use intermediaries to bring their products to market. They try to force a

distribution channel-a set of interdependent organizations involved in the process

of making a product or service available for use or consumption by the consumer

or business user

So far as the consumer products are concerned, Rose Petal of the packages Ltd.

uses dealers or distributors. They think that the use of middleman is much more

economical for the consumer products. Rose Petal has the network of the

distributors, which cover the whole country, in more than 100 cities. Only in

Lahore there are two distributors because of large size of population. Rose Petal

has the policy to sell its products to all those cities having population more than

200,000 through its vast distribution network. They always supply their products

on cash to the distributors. The distributors then supply those products to the

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whole sellers, who in turn supply, the stuff to the retailer. And finally, the retailer

sells the products to the final consumers.

Customer sale:

Packages Distributor Wholesaler Retailer Consumer

Institutional sale:

Packages Distributor Institution

PIA:

Packages PIA

Source;(www.packages.com.pk\)

There are also orders, which come directly through the big institutions or big

restaurants like KFC. McDonalds, Pearl Continental, Avari Hotel, Holiday Inn etc.

These types of orders require some type of modification in printing and

packaging of the tissues. So, according to the requirements of these orders

tissues are dispatched but through the distributor of that area. Because company

has no policy to distribute these type of special orders. So, this also plays an

important role in the promotion of the products of the Rose Petal.

LOGISTICS :

All the distribution of rose petal is done from Lahore to all over the country.

NUMBER OF DISTRIBUTORS:

They have 166 distributors all over the Pakistan. Two distributors in Lahore.

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PROMOTION/ADVERTISING STRATEGY:

Promotion is the last and very important component of company’s marketing mix

program, because other components of marketing mix program of the company

like product and price are performed mainly within the organization. It is the

promotion, part of the company’s marketing mix, in which the company

communicates directly with the potential buyers. Promotion is that element in an

organization’s marketing mix that serves to inform, persuade and remind the

target market of the organization.

Basically promotion is an attempt to influence the target market. The promotion is

very vast field. There are many methods in use for promotion of products. These

various methods together are known as “promotion mix”

Packages almost uses all the medias for advertising and promotion of their

consumer products. The main advertising and promotional medias used by

packages are as under:

1. Television PTV, STN, PTV2, and ZEE TV

2. Radio Radio Pakistan and FM 100

3. Urdu Newspapers Daily Jang, Pakistan, Nawa-e-Waqat and Din

4. English Newspapers Daily Dawn, The News, The Nation & Business

recorder

5. English Magazines SHE, HERALD, and MAG

6. Urdu Magazines Akber-e-Jhan, Family, Urdu Digest

7. Sponsorship Sports, T.V.dramas. trade shows, and

Exhibitions.

In sponsorship they mostly sponsor the television programs, many exhibitions

like annual industrial exhibitions held in the Fort Stadium, Lahore. Packages

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also uses moving sign-boards, posters, stickers, mobiles, note book stickers for

students and brochures for advertisement of its products.

There are two types of promotional strategies:

1. Pull strategy

2. Push strategy

Packages believes in “Pull strategy” i.e. creating pull (demand) through

advertising. Packages provides wall clocks, menu paper pads, clipboard and

purses to its dealers. Packages also provides key chains and calendars to its

customers.

Recently consumers promotion have been introduced for certain variants where

in consumers will get something extra with the products i.e. two wet tissues free

with luxury pack and cosmetic mirror with perfumed tissues.

The only trade promotion have been in Packages is for Feminex sanitary napkins

where trader gets one pack free against every twelve packs, he buys. So far no

trade scheme has been given on tissue products and industrial goods.

Usually Packages limited evaluates the sales promotion results by comparing the

sales figures before, during and after the sales promotion campaign. They also

tally the sales figures with the objectives to evaluate the sales throughout the

year.

In trade shows and conventions Packages gives colored T.V., VCR, Tape

recorders and electronic irons to its customers through the process of lucky

draws. The objectives of sales promotion of Packages are as follow,

1. To stimulate end-user demand.

2. To improve the marketing performance of middlemen.

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3. To get consumers to try a new or improved product.

4. To attract new customers.

5. To encourage present customers to use the product in greater quantities.

6. To combat a competitors’ promotional activity.

7. To increase the amount of impulse buying by consumers by placing the

products on display by the checkout stands.

8. To get greater cooperation from the retailers.

PROMOTIONAL POLICIES:

It is the job of marketing department to promote the business of the organization.

In consumer product division, marketing people have different promotion plans

for each product.

Without promotion, no consumer product can be successful. Promotional

activities are an integral for marketing consumer products:

1. Increase the sales.

2. Outplace the competitor.

3. Increase the market share.

4. Higher turnover.

5. Informing the consumers.

6. Guiding of goodwill.

PROMOTIONAL BUDGET:

The management fixes the promotional budget. The basis premise is that

whether the organization can afford the budget or not. A part from this fact, there

are a lot of other factors, which the marketing people have to consider. These

are:

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Cost of media.

The number of products already in the market.

The number of new products the company is going to launch.

ALLOCATION OF THE PROMOTIONAL BUDGET:

One of the hardest marketing decisions facing a company is how much to spend

on promotion. Rose Petal division develops the promotional budget by defining

specific objectives and estimating the costs of performing these tasks.

There are number of tools that are used to promote a business. These includes:

1. Advertising.

2. Sales promotion.

3. Public relations.

1. ADVERTISING:

Packages Limited arranges advertisement on different electronic media.

Advertising accounts for about 80% of the total promotional budget. In-fact,

advertising is the most popular and effective media to persuade the customers.

Share Of Different Media for Advertisement by

CPD

Television, VCR 65%

Newspapers 20%

Pop Media 10%

Public Relation 1%

Others 4%

There are many forms of advertising contribute uniquely to the overall

promotional mix. Advertising can reach masses of geographically dispersed

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buyers at a low cost per exposure. It enables the seller to repeat a message

many times, and it lets the buyer receive and compare the messages of various

competitors.

This is because of the fact that all the products are of the convenience type and

hence, require frequent advertisement. Consumer product division of the

packages Limited normally follows the “PULL STRATEGY”.

The advertising campaign of the Rose Petal division includes the following:

a. Broad cast media.

b. Print Media.

c. Pop Media.

d. Out Door Media.

Explanations of these advertising campaigns is given as below:

a) BROAD CAST MEDIA:

The largest share of the broadcast media is allocated to this media because it is

the most interesting media with far reaching affects. Although, it is the most

expensive media, but the nature of the products requires its use. It includes:

Television

FM Radio.

VCR.

Consumer product division extensively uses FM Radio and Television while VCR

is not used very much. Normally the ad of the facial tissues of Rose Petal

consists of 15 seconds that is run both on television and the FM Radio. The

advertising budget for Television and the FM Radio is about 65% of the total

budget.

b) PRINT MEDIA:

Print media is also an important part of the promotional technique. It includes:

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Newspapers.

Magazines.

Direct mail etc.

Consumer product division normally uses newspapers and the magazines for the

advertisement of the Rose Petal products and all of these print media used about

20% of the total budget.

c) POP MEDIA:

Pop media includes posters, stickers, and other point of purchase material. It

takes about 105 of the total budget.

d) OUTDOOR MEDIA:

Marketing people normally don’t prefer its use because they think that this is not

very effective. It has a nominal share in the budget. It includes billboards,

roadside signs etc.

ADVERTISING AGENCY :

Packages Limited is doing intensive advertising for Rose Petal products. For this

they are engaged with the well-known advertising agency R-Lintas. They

changed advertising agencies according to their requirements and demands. If

agency is not fulfilling their requirements then they switched to another agency.

From their CPD sales they spend almost 10 % on the advertising. For the

compensation of advertising agency they give them a fixed fee.

2- SALES PROMOTION:

Its share in promotional budget is about 10%. It includes:

Sampling.

Gifts.

Cent of scheme.

Sales promotion is defined as short-term incentives to encourage purchase or

sale of Rose Petal products. In Rose Petal

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Consumer promotion in sales promotion is designed to stimulate consumer

purchasing, including gifts, price off, premiums and sweepstakes.

Trade promotion in sale promotion is design to gain reseller support and to

improve reseller selling efforts, including discounts, allowances, free goods,

cooperative advertising, push money and trade shows.

Sales force promotion in sales promotion is designed to motivate the sales force

and make sales force selling efforts more effective, including bonuses, contests,

gifts and sales rallies.

3- PUBLIC RELATIONS:

Public relations have become an integral part of any promotional mix. Every

company tries to build its image. Consumer product division also undertakes

some activity in the name of public relations but its share is very nominal.

They have special merchandizing officer to make a contact with public and get

feedback. Public relation in Rose Petal is basically building good relations with

the company’s various publics by obtaining favorable publicity, building up a

good “corporate image” and handling or heading off unfavorable rumors stories

and events. More public relation tools in Rose Petal include press relations,

product publicity, corporate communication, lobbying and counseling.

COMPETITION:

LEVEL AND TYPE OF COMPETITION:

Their competition strategies are based on the competitor’s strategy (flying

tissues). They do not follow the price war competitive strategy. They follow the

standard of product and quality in competition. Their competition type is

oligopoly.

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COMPETITORS:

One cannot imagine about a business without competition. Packages Limited has

also some competitors for its consumer products. So far as facial tissues are

concerned, there used to no competitor in early 80’s except the foreign brands.

Then companies like FLYING, competed for some time but CPD superseded

them very soon and starting enjoying their monopoly. Major threat to Rose Petal

is the Flying tissues, which has almost 20% of the market share. But as quality of

the product play an important role which is not up to the standard by the Flying

facial tissues. So, Rose Petal is outstanding in all the ways to the Flying tissues

like advertisement, quality, quantity, price, variety of the product etc. Fay is

another competitor in the market but Rose Petal is totally dominating the market

with its marketing mix strategies.

The names of major competitors are as follows:

1. Flying tissues. (Local)

2. Super soft. (Imp)

3. Duds. (Imp)

4. Fay. (Local)

5. Moveeta. (Imp)

6. Dew. (Imp)

7. Amour. (Imp)

8. Grace. (Imp)

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Market Share Of Competitors In Tissue Market In 2000:

Rose Petal Flying Tissues Fay Tissues Others

75% 15% 7% 3%

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COMPETITIVE STRATEGY:

Their competition strategies are based on the competitor’s strategy (flying

tissues). They do not follow the price war competitive strategy. They follow the

standard of product and quality in competition.

PERSONAL SELLING:

They don’t do personal selling.

FUTURE FORECAST OF MARKET:

Future forecast according to the management of the Consumer Product Division

is 10-12% per annum.

SALES FORCE:

Their head office is situated in Lahore and they have five regional zone offices:

1. MULTAN

2. SUKKAR

3. ISLAMABAD

4. KARACHI

5. LAHORE

And they are planning to establish a new zonal office in FAISALABAD.

SALES FORCE TRAINING AND DEVELOPMENT:

They send their sales force on training abroad and to other zonal offices and they

have also human resource department for their development to meet the

challenges of changing environment.

CPD Industrial Sales:

Packages Limited also sold some consumer products to different industries.

Sales Executives personally visit hotels, restaurants etc. If the prospective

customer agrees to buy, then he must have to enter in a contract with the

Packages Limited. There is one important condition that the order should be

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more than 24000 pieces. However, under certain conditions the product manager

can relax this condition. These are:

Tissues for various hotels and restaurants.

2. Tissues supplied to large organizations like PIA etc.

These products are actually distributed directly to the final customer that is no

dealer or distributor is assigned this job.

SALES INCENTIVES:

i) Sales force: They are given incentives in terms “Trophies”

and in form of verbal appraisal.

ii) Dealers: They have no dealers.

QUALITY CONCEPT IN MARKETING:

Quality is one of the marketer’s major positioning tools. Rose Petal is the ISO

9001 certified and has the standard of their products in the tissue market. They

also follow up the rules of total quality management to provide the best quality

product to its end users. They follow different quality improvement program to

increase their profitability as well the image in the market. First priority of the

CPD is to improve the different features and characteristics of the core product.

Rose Petal is satisfying most of its customers by providing the quality product.

Quality in the Rose Petal means the softness, strength ness and absorbs ness of

the tissue. In case of special orders a margin of 10% of variation is considered as

normal variation and the customer has to accept the order as such. In Rose

Petal, marketing people also deliver the marketing quality as well as production

quality to their customers, which is key to success in the market.

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SOCIETAL MARKETING:

In case of providing benefit to the society, Rose Petal contributes in the charity

programs. They conduct different programs as sponsors and in this way they

provide money to the needy people.

E-COMMERCE:

CPD has developed the website that contains only information of the company.

The site that they build is not used for the purpose of buying and selling of their

products.

The address of the website is as follows:

“www.rosepetal.com.pk”

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CRITICAL ANALYSIS OF THE THEORETICAL

CONCEPTS RELATING TO PRACTICAL EXPERIENCE:

Practice without theory is blind and theory without practice is unproductive. When

I related theoretical concepts with my practical experience during my internship

with the marketing department of Packages Limited, I concluded it in the

following way:

Target Market & Market Segmentation:

As sound marketing program starts with the identification and analysis of the

target market for a product while setting business the basic objective of

Packages was to provide Packing material to national consumer industry which

use any kind of paper and paper & board packing. So we can say that their target

market is “national consumer industry” for which they produce 90% of their

products.

For Rose Petal tissue their target market is “urban young generation” with

income of more than Rs.5000 per month. As concerned with the age factor :

Women between 16-40 years

Men between 21-50 years

Product Planning & Development:

A firm can fulfill its socio-economic responsibilities to satisfy its customers by

producing and marketing, truly want-satisfying products. Any change in the

physical feature, (design, color, size, packing) however minor it may be, creates

another product.

The development process for new products should begin with the selection of an

explicit new product strategy. This strategy then can serve as a meaningful

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guideline through the step-by-step development process use for each individual

new product.

A new product might be design to defend a market share position or to maintain

the company’s position as a product innovator. In other situation, the product ‘s

role might be to meet a specific return on investment goal or to establish a

position in a new market.

A new product’s intended role also will influence the type of product to be

developed. To illustrate:

COMPANY GOAL PRODUCT STRATEGY

1 To defend market share position

product line or revise an existing

product.

Introduce an addition to an existing

2 To further the company’s position as

an innovator.

Introduce a really new product not

just as an extension of an existing

one.

Steps In The Development Process:

1. Generation of new product ideas.

2. Screening and evaluation of ideas.

3. Business analysis: management (a). Identifies product features

(b). Estimates market demand and the product profitability. (c). Establishes a

program to develop the product and (d). Assigns responsibility for further

study of the product feasibility.

4. Product development: Pilot model or small quantities are manufactured.

5. Test marketing: Commercial experiments in limited geographic areas are

conducted to ascertain the feasibility of a full-scale marketing program.

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6. Commercialization: Full-scale production and marketing program are

planned and then the product is launched.

The Packages conceive ideas from its annual sales conference, when

distributors and retailers tell that what actually consumer/market wants. The

other major source of obtaining the ideas for company is tours by higher

management of the developed and advanced countries where they see that

what the new is going on globally in their own line.

In industrial marketing at first they obtain orders from the customer. Product is

designed in art department, samples are developed by development section,

approval obtains from customer. Make full lot consignment and dispatch to the

customer. In consumer goods, they adopt all the above-mentioned six steps.

PRICING:

After deciding on pricing goals and then setting the base price, the next task in

pricing is to establish pricing structures. One of areas relates to discounts and

allowances. Management has the option of offering quantity discounts, trade

discounts, cash discounts and other types of deductions. The factor of freight or

let the buyer pay the freight bill. Or the two parties can share the cost in some

proportion.

When pricing a product, especially a new product, a company should consider

whether to use a skimming or penetration pricing strategy. Management also

should decide whether to charge the same price to all similar buyers or to adopt

a flexible pricing strategy.

Another basic decision facing management is whether to engage primarily in

price competition or in non-price competition. Most firms prefer to use promotion,

product differentiation, and other non-price marketing activities, rather than to

rely only on price as a sales stimulant.

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Packages use cost plus pricing strategy in both industrial and consumer goods.

The price of a unit of a product is set at a level equal to the total cost of unit plus

a desired profit on the unit.

While this is a very simple and easily applied pricing method, it has one serious

limitation. It does not account for the fact that there are different types of costs

and that these costs are affected differently by increase or decrease in output.

All the products of Packages are going very fine but some times company sells

its products below cost. For example they sell wet tissues below cost due to

limited demand in the market.

Packages charges uniform delivered prices for its products throughout the

country.

Physical Distribution Management:

Physical distribution strategy of Packages for consumer products is conventional

one i.e.

Packages Distributor Wholesaler Retailer Consumer

Company prefers distribution to supply directly to the retailer. Percentage of sale

through wholesalers varies from town to town and ranges between 25% and

40%. Sales to major institutions like PIA, PEARL CONTINENTAL is direct from

the company.

Physical distribution strategy for industrial goods is also direct from the

company. The distribution management of the company is very effective . The

management assigns targets yearly to its sales executives. Company monitors

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and records these targets on monthly basis for each individual sales executive

as under:

Targets achieved by Mr.…………………………..during 2000.

JAN, 00 FEB,00 MAR,00 APR,00 MAY,00 JUNE,00

Targets assigned. ………. ………. ………. ………. …………. ………….

Targets achieved. ………. ………. ……….. ……….. ……….. ………….

% age achieved ……….. ………. ……….. ……….. ……….. …………..

The feed back to each sales executive is being given on quarterly (3 months)

basis. It is due to effective distribution management that company has achieved

75% market share and 80% of business volume for tissue paper. It’s nearest

competitor in tissue business is FLYING which has 15% approx. market share

and next is FAY with 7%approx. market share.

Consumer Promotion/ Trade Promotion:

Basically promotion is an attempt to influence the target market. The promotion

is very vast field. There are many methods in use for promotion of products.

These various methods together are known as promotional-mix.

1. Objectives of Sales Promotion:

The major objectives of sales promotion are identifies as:

To stimulate and user demand.

To improve the marketing performance of middleman.

To supplement and coordinate advertising and personal selling

activities.

The more specific objectives of sales promotion are as follows:

To get consumer to try a new product or an improved model of an

established product.

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To attract new customers.

To encourage present customers to use the product in greater

quantities.

To combat a competitor’s promotional activities.

To increase the amount of impulse buying.

To get greater cooperation from retailers.

2. Major Sales Promotion Tools:

End User Middleman Producer Own Sales

Force

Coupons Trade shows/exhibition Sales contest

Cash refunds P.O.P displays Sales training manuals

Premiums (gifts) Free goods Sales meetings

Free samples Advertising allowance Promotional materials

Contests Contest for sale people Demonstration of products

P.O.P displays Product demonstrations ****************************

Product

demonstrations

Training sales force ****************************

Exhibitions/trade

shows

***************************

*

****************************

1. Evaluation Of Sales Promotion Performance:

A company’s sales volume or market share can be measured before, during

and after a particular sales promotion efforts.

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2. Sales Promotion by Packages Limited:

For industrial goods Packages never introduced any sales promotion. For

consumer goods Packages believes in “pull strategy”. It means creating demand

through advertising. Recently consumer promotion have been introduced for

certain variants wherein consumer will get something extra with the products for

example; two wet tissue free with luxury pack tissue box, and cosmetic mirror

with perfumed tissues.

5. Trade Promotion by Packages:

No trade scheme has been introduced so far by Packages for industrial products

because company does not engage any middleman for its products distribution.

It’s own sales force obtain orders from different industrial users directly and

distribute its products to them through its own dispatch department, which they

delivers through hired vehicles.

In consumer products the only trade promotion is for Feminex where the traders

get one free pack against every 12 packs. So far no scheme has been given on

tissue products.

Advertising:

In product advertising, advertisers are informing or stimulating the market about

their products.

1. Specific Advertising Objectives:

Support personal selling.

Reach people inaccessible to the sales force.

Improve dealers’ relations.

Enter a new geographic market or new group of customers.

Introduce new products.

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Increase sales of a product.

Expand industry’s sales.

Building goodwill for the company and improves its reputation.

2. Major Types of Advertising Media:

Television

Radio

Newspapers

Magazines

Direct mail

Out door

3. Media Using by Packages:

For industrial goods Packages does not advertise in any way. Its promotion

depends on personal only. For consumer goods Packages uses all the medias

for advertising and promotion of its products. The main advertising and

promotional medias used by Packages are as under:

Electronic Media: Television

Radio

Print Media: English Newspapers

Urdu Newspapers

English Magazines

Urdu Magazines

Other Media: Out door

POP displays

Trade shows/exhibition

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Success and Failure of different Products of Organization in the

Market:

Packages has limited number of products in its consumer product division like

tissue papers, paper cups, paper plates and sanitary napkins. All these products

are doing very well business volume, which is marvelous achievement.

So far the only product failed was “CLING WRAP”. The cling wrap is a kind of

polyethylene sheet, which is being used by housewives to cover the molded Atta

and other things before placing these in refrigerator.

The major reason of its failure was limited demand in the market and higher cost

of production due to smaller production lots. The improved cling wrap was

cheaper in the market so the Packages product “CLING WRAP” could not

survive.

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SWOT ANALYSIS

Like an every company Rose Petal tissues have also some type of strengths,

weaknesses, opportunities and threats from out side the organization. These are

as follows:

STRENGTHS:

People are more familiar with Packages than its competitors.

Specialized management personnel and highly motivated staff.

Leader in paper technology in Pakistan.

Large R &D budget.

Effective distribution management.

Major market share in tissue paper.

Attractive brand name “Rose Petal”.

Large advertisement budget.

Consistent in the market.

Manufactures own tissue papers, its competitors use imported one.

Attractive packing of “Rose Petal” tissues.

A long listed product line as compared to the competitors.

More variety in tissue line than competitors.

Monopoly in wet tissue.

WEAKNESSES:

Sell their products on cash basis.

High grammage tissue, not much softer.

High employee turnover.

High cost due to greater operating expenses.

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Highly paid sales staff, sometimes reluctant to attend small shops.

High prices as compared with competitors.

OPPORTUNITIES:

Can export their products to European countries.

Demand of tissues and other disposable products are increasing.

Diversification into related product line.

Can target young generation.

THREATS:

Different kinds of taxes levied by the government.

Different kinds of smuggled tissues.

Competitors’ tissues are softer.

High costs.

Tough competition is expected in future.

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FINANCE DEPARTMENT

Finance Department plays a very important role in any business firm now days.

So Packages Limited has established its own Finance Department on

professional basis. Packages Limited has different financial managers who are

responsible for the financial aspects of the Packages Limited. This department

plays a key role in organization’s performance. Finance Department in Packages

Limited is responsible to maintain accounts of all departments within the

organization.

For solving the complex and difficult problem, Finance Department is segregated into four divisions. These divisions are as follows:

1. Accounts Division

2. Internal Audit Division

3. Cost & Tax Division

4. Share’s Division

The Share’s division of Packages Limited exists in Karachi. This section deals in

all the transaction about the shares of Packages Limited. So I will discus only first

three divisions of the Packages Limited one by one. (www.packages.com.pk\)

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FINANCE DEPARTMENT

INTERNAL AUDIT

COST & TAXATION

SHARE’S DIVISION

ACCOUNT

S DIVISION


MAJOR FUNCTIONS OF FINANCE DEPARTMENT

Finance Department performs different functions in the organization to run the

finance of the organization more effectively. Finance Manager is responsible for

the company’s financial management. The major functions that are performed by

this department are as follow:

Calculate different expenses of the organization.

Calculation of all incomes receiving from sales & other resources.

Financial Planning of the organization.

Distribution of profit to the shareholders.

Getting loans from banks and other financial institutions.

Costing the production.

To make efficient use of money of the company.

Maintains all the accounts about inventory & imports of material.

Maintains all the records about purchases made by organization.

1. Accounts Division:

The Accounts Division maintains all types of accounts in the organization. This

division records the transactions, designs & implements the accounting system

and prepares the financial statements for the company. This department is under

the Finance Manager. There are eight sections in the accounts division and in

each section there is one incharge. The Accounts Division has computerized

accounting process & linked with Management Information Department.

Following are the major sections of the Accounts Division:

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2. Internal Audit Division:This section is an important part of Packages Limited as it informs the

management about the accuracy of all types of accounts. Internal Audit

Department is concerned with sales accounts, purchase accounts, cash & banks,

salaries & wages, payroll, inventory & imports and other departments of the

Accounting System. It is an independent appraisal activity within an organization

for the review of operations as a service to management. This department is

under the Finance Department and run by Chief Internal Auditor, who reports to

the Finance Manager. They are concerned with the control of accounting

procedures. The operations of this department are divided into five major areas:

Use of company’s resources efficiently

Safeguarding of company’s assets

To provide reliable information

To active the Company’s objectives

Before payments documents are processed through audit for payment. This is

known as pre-audit. In this section all the books are kept in the custody of

machine room staff, and thus the chances of fraud, manipulation and

irregularities are reduced.

In order to ensure a smooth running of the system, it is necessary to follow the

policies and procedures and common practices of the Company. So in this

department, there is a division of work and every one is assigned a specified job,

one another principle of this department is that no irrelevant person is allowed to

enter the machine room. The job of this department is to make sure that the

company’s resources are protected against losses resulting from theft,

embezzlement, or carelessness. This department is also responsible for a

complete appraisal of the performance of organization.

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3. Cost & Tax Division:This division has the responsibility to make the costing of all the products

produces by the company and at the same time it has to oversee all the matters

regarding the taxes of the company. There are two types of products of the

company.

1. The paper and board products

2. The packaging (Offset, flexible and corrugated) products

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ACCOUNTING POLICIES

The following are major accounting policies:

1. ACCOUNTING CONVENTION :

The accounts have been prepared under the historical cost convention,

modified by capitalization of exchange differences referred to in note 2.8.

2. TAXATION :

Current: The charge for current taxation for the year is based on taxable income

at the current rates of taxation after taking into account tax credit and tax rebates

realizable, if any.

Deferred: The company accounts for deferred taxation, using the liability

method, on all major timing differences.

3. FIXED CAPITAL EXPENDITURE & DEPRECIATION :

Operating fixed assets except land are stated at cost less accumulated

depreciation. Land and capital work in progress are stated at cost. Cost in

relation to certain plant and machinery signifies historical cost and exchange

differences referred to in note 2.8 and interest etc. in note 2.10.

The management carried out a comprehensive review of the useful lives of major

items of plant and machinery in 1985. Depreciation in respect of such assets is

charged in annual installments so as to write off their year-end book value over

their remaining re-estimated useful lives.

Depreciation on all operating fixed assets is charged to profit on the straight-line

method so as to write off the historical cost of an asset over its estimated useful

life at the following annual rate:

Tangible:

Plant & Machinery 06.25% to 20.00%

Buildings 02.50% to 10.00%

Other Equipment 10.00% to 33.33%

Furniture & Fixture 10.00% to 20.00%

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Intangible:

Computer software 33.33% --

Depreciation / amortization on additions to fixed assets is charged from the

month in which an asset is acquired or capitalized while no depreciation /

amortization is charged for the month in which the asset is disposed off.

The net exchange difference relating to an asset, at the end of each year, is

amortized in equal installments over its remaining useful life. Major renewals and

improvements are capitalized.

4. Asset Subject to Finance Lease:

Asset subject to finance lease are started at lower of present value of minimum

lease payments under the lease agreements and the fair value of the assets. The

related obligations of the lease are accounted for as liabilities.

Assets acquired under a finance lease are amortized over the useful life of the

asset on a straight-line method at the rate in note 2.3. Amortization of leased

assets is charged to profit.

Amortization on additions to leased assets is charged from the month in which an

asset is acquired while no amortization is charges for the month in which the

asset is disposed off.

5. LONG TERM INVESTMENT :

These are stated at lower of cost and market value determined on a portfolio

basis. Provision is made for permanent diminution in the value of any investment.

6. STORES AND SPARES :

Usable stores and spares are valued principally at moving average cost while

items considered obsolete are carried at nil value. Items in transit are valued at

cost comprising invoice value plus other charges paid thereon.

7. STOCK IN TRADE :

Stocks of raw materials, except for those in transit, work in process and finished

goods are valued principally at the lower of average cost and net realizable

value. Cost of work-in-process and finished goods comprises cost of direct

materials, labor and appropriate manufacturing overheads. Materials in transit

157


are stated at cost comprising invoice values plus other charges paid thereon. Net

realizable value signifies the estimated selling price in the ordinary course of

business less costs necessarily to be incurred in order to make a sale.

8. FOREIGN CURRENCIES :

All assets and liabilities in foreign currencies are translated at exchange rates

prevailing at the year end except for foreign currency long term loans and

committed foreign currency balances out of the proceeds of such loans, which

are translated at the rates under State Bank Of Pakistan exchange risk cover

scheme.

Exchange differences, which are capitalized during the year as part of cost of

plant and machinery acquired out of the proceeds of foreign currency loans,

consist of exchange loss or gain on the repayment and year translation of foreign

currency loans. All the other exchange differences are included in profit currently.

9. RETIREMENT BENEFITS :

a. CONTRIBUTORY PENSION FUND :

This scheme, administrated by the Board of Trustees, covers all the

management staff. The scheme is funded and is approved by the Central

Board of Revenue.

Contributions by the company included in salaries, wages and immunities

are based on actuarial valuation using the projected benefits valuation

method. The most recent valuation took place during the year ended

December 31, 1994, when the benefits for both past and future services

were found to be fully funded. Contributions made by the Company are

charged to profit currently.

b. GRATUITY FUND :

This scheme, administrated by the Board of Trustees, covers all

employees with qualifying service period of ten years. Contributions to the

fund are payable on the basis of an actual valuation using the projected

benefits valuation method. The most recent valuation took place during

the year ended December 31, 1994, when the benefits for both past and

158


future services were found to be fully funded. Contributions made by the

Company are charged to profit currently.

10. MARK UP, INTEREST & OTHER CHARGES :

Mark up, interest and other charges on redeemable capital, debentures and long

term loans are capitalized for the period up to the date of commercial production

of the respective plant and machinery, acquired out of the proceed of

redeemable capital and other borrowings. All other mark up, interest and other

charges are expensed during the year.

11. REVENUE RECOGNITION :

Sales of goods and services is recognized on dispatch of goods or on the

performance of services except for management fees abroad which are

recognized on actual receipt.

12. SECURITY :

The finance is secured by an equitable mortgage of immovable properties and by

hypothecation of all plant and machinery and a floating charge on all other assets

subject to the hypothecation of stores, spares, stock-in-trade and the trade debts

in favors of the Company’s bankers.

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Packages Limited

Balance Sheet

As on 30th (June/Dec.) 1998-2000

1998 1999 2000

June 30 June 30 Dec. 31

LIABILITIES & OWNER’S EQUITY (In thousands rupees)

Shareholders, capital & Reserve

Authorized capital 400,000 500,000 600,000

Issued, subscribed & paid up capital 357,893 411,577 452,734

Reserves 1,338,309 1,514,625 1,832,262

Unappropriated profit 407 899 640

Redeemable Capital- Secured 89,270 205,944 250,000

Liabilities against assets subject

to Finance Lease 20,412 _ 105,600

Long-Term Loans & deferred Liabilities.

Long-term Loans & other payables

(secured) 1,948,665 1,400,564 536,043

Deferred liabilities 326,613 440,564 547,769

Current Liabilities

Current portion of redeemable capital 113,145 89,270 100,000


to finance lease 22,345 20,412 35,200

Long-term Loans & other payables 796,129 683,346 620,927

Finance under mark up arrangements 706,342 698,777 786,082

Creditors, accrued & other liabilities 497,381 707,698 553,776

Proposed dividend 35,789 153,662 90,547

Total 6,252,700 6,327,310 5,911,580

(Liabilities & Shareholders’ Equity)

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1998 1999 2000

June. 30 June 30 Dec. 31

(Rupees in thousands)

ASSETS

Fixed Capital Expenditure

Operating fixed assets-tangible 2,541,543 2,335,378 2,452,537

Assets subject to finance lease 71,378 65,171 159,500

Capital work-in-progress 7,183 351,722 257,381

Long-Term Investments 266,014 291,952 459,616

Long-Term Loans, Deposits

& Other Receivables 1,203,141 919,162 349,394

Retirement & Other Benefits _ _ 16,222

Current assets

Stores & Spares 237,416 253,660 277,781

Stock-in-trade 323,648 508,411 629,719

Trade debts 429,488 450,887 463,807

Loans, advances, deposits,

Prepayments & receivables 199,234 281,066 332,944

Cash and bank balance 973,665 869,901 512,679

Total 6,252,700 6,327,310 5,911,580

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Packages Limited

Profit & Loss Account

As on 30th (June/Dec.) 1998-2000

1998 1999 2000


(Rupees in thousands)

Sales 3,512,272 3,925,696 2,236,407

Cost of Goods Sold ` 2,885,003 2,984,224 1,882,131

Trading Profit 627,269 941,472 354,276

Selling, Admin. & General expenses 256,524 299,777 168,688

Operating Profit 370,745 641,695 185,588

Other Income 328,859 345,697 196,404

Income Before Interest 699,604 987,392 381,992

Financial charges 528,503 445,853 123,551

Other Charges 8,348 29,150 16,5141

Profit Before Taxation 162,753 512,389 241,927

Provision for Taxation (57,326) 128,235 48,668

Profit After Taxation 220,079 384,154 193,241

162


Packages Limited

Vertical Analysis of Balance Sheet

1998 1999 2000


% % %

LIABILITIES & OWNER’S EQUITY

Issued, subscribed & paid up capital 5.72 6.50 7.86

Reserves 21.40 23.94 30.99

Unappropriated profit 0.01 0.01 0.01

Redeemable Capital- Secured 1.43 3.25 4.23


to Finance Lease 0.33 0.00 1.79



(secured) 31.17 22.13 9.07

Deferred liabilities 5.22 6.96 9.27

Current Liabilities

Current portion of redeemable capital 1.81 1.41 1.70


to finance lease 0.36 0.32 0.60

Long-term Loans & other payables 7.79 7.60 10.50

Finance under mark up arrangements 16.24 14.24 3.30

Creditors, accrued & other liabilities 7.95 11.18 9.37

Proposed dividend 0.57 2.43 0.15

Total 100.00 100.00 100.00

(LIABILITIES & SHAREHOLDERS’ EQUITY)

163


1998 1999 2000


% % %

ASSETS


Operating fixed assets-tangible 40.65 36.91 43.49

Assets subject to finance lease 1.14 1.03 2.70

Capital work-in-progress 0.11 5.56 4.40

Long-Term Investments 4.25 4.61 7.78


& Other Receivables 19.24 14.53 5.91

Retirement & Other Benefits _ _ 0.27

Current assets

Stores & Spares 3.80 4.01 4.70

Stock-in-trade 5.18 8.04 10.65

Trade debts 6.87 7.13 7.85


Prepayments & receivables 3.19 4.44 5.60

Cash and bank balance 15.57 13.75 8.61

Total 100 100 100

164


INTERPRETATION

In the vertical analysis of the Balance Sheet, total assets are taken, as base and

percentages of other Balance Sheet items to total assets is determined. On the

liabilities and capital side of Balance Sheet reserves contribute as a major portion

to this side. In the current liabilities section long-term loans and payables are the

major contributor. This means that company is not paying to its creditors on

regular basis.

On the asset side operating fixed assets make a larger portion and their

percentage has been increased as compared to the year 1999. It shows that

company has interested in its fixed asset in the year 2000. There is overall an

increasing trend in the Balance Sheet of year 2000. This should be kept in mind

that the figures taken for analysis are of Dec. 31, 2000. So there is a gap of 18

months in between 1999 and 2000, and it is tough to analyze the situation.

On the assets side not only the fixed assets make a large portion but also the

stock-in-trade. This means that company has taken a large amount of stock, and

is in a position of doing business as its current assets are also in a good position.

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Packages Limited

Vertical Analysis of Profit & Loss Account

1998 1999 2000


% % %

Sales 100 100 100

Cost of Goods Sold ` 82.14 76.02 82.12

Trading Profit 17.86 23.98 17.88

Selling, Admin. & General expenses 07.30 07.64 07.39

Operating Profit 10.56 16.35 10.43

Other Income 09.36 08.81 09.30

INCOME BEFORE INTEREST 19.92 25.15 19.77

Financial charges 15.05 11.36 06.63

Other Charges 0.24 0.74 0.75

Profit Before Taxation 04.63 13.05 12.40

Provision for Taxation (1.63) 03.27 _

Profit After Taxation 06.27 09.79 09.71

INTERPRETATION

In the vertical analysis of Income Statement, Sales are taken as base figure and

the percentage of other Income Statement items are determined to the Sales. As

Cost of Goods is the major contributor but it has been increased (82.12%) as

compared to the last year (still there is a difference of 18 months than the last

value). The Cost of Goods Sold in 1998 was 82.14% and decreased in 1999 to

76.02%. This is not a satisfactory sign for the company. This increase in Cost of

Goods has produced an overall decreasing trend in the remaining items. Net

Profit is 9.71% of total sales and it has decreased as compared to the previous

year.

166


Packages Limited

Horizontal Analysis of Balance Sheet

1998 1999 2000

% % %

LIABILITIES & OWNER’S EQUITY

Authorized capital 14.29 25.00 0.00

Issued, subscribed & paid up capital 12.50 15.00 10.00

Reserves 12.14 13.17 20.97

Unappropriated profit (49.19) 120.88 (28.81)

Redeemable Capital- Secured (55.90) 130.70 21.39


to Finance Lease 52.26 (100.00) 100.00



(secured) 14.78 (28.13) (61.73)

Deferred liabilities (15.40) 34.89 24.33

Current Liabilities

Current portion of redeemable capital (4.23) (21.10) 12.02


to finance lease (18.38) (8.65) 72.45

Long-term Loans & other payables 11.69 (1.33) (9.13)

Finance under mark up arrangements 5.17 (1.07) 12.49

Creditors, accrued & other liabilities 14.99 42.28 (21.75)

Proposed dividend 0.00 329.36 (41.07)

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1998 1999 2000


% % %

ASSETS


Operating fixed assets-tangible (6.35) (8.11) 05.02

Assets subject to finance lease (8.00) (8.70) 144.74

Capital work-in-progress (66.42) \\\\\\\\ (26.82)

Long-Term Investments 0.00 9.75 57.43


& Other Receivables 8.35 (23.60) (61.99)

Current assets

Stores & Spares (1.83) 6.84 9.51

Stock-in-trade (15.71) 57.09 23.86

Trade debts 44.24 4.98 2.87


Prepayments & receivables (17.55) 41.07 18.46

Cash and bank balance 13.78 (10.66) (41.06)

168


INTERPRETATION

Horizontal analysis shows the percentage increase or decrease in the balance

sheet items from year to year.

On the liability side of the Balance Sheet of Packages Limited, long-term

liabilities show a decreasing trend over the years. The long-term investments

have increased to a great extent. This means that the company is investing more

as compared with the last years.

Redeemable capital has been increased where as long-term loans and deferred

liabilities have decreased, this shows that company is paying off its payables.

There is decrease in cash & cash balance over the years, this shows that the

company is not maintaining its cash and it is trying to best utilize the money.

The stock-in-trade in 1999 was increased by 57.09% but it decreased in 2000 to

26.83%. This shows that the company is adjusting its stock-in-trade. There is

also a definite increasing trend in assets to subject finance lease.

The current liabilities portion is showing an increasing trend, this is not a

satisfactory situation for the company. Redeemable capital-secured has

decreased.

On the assets side of the Balance Sheet, the fixed assets are showing a

decreasing trend. Long-term investment are also decreased, this means that

company is financing its operations through the sale of its investments. Current

Assets are showing an increasing trend, this is a satisfactory situation for the

company.

169


Packages Limited

Horizontal Analysis of Profit & Loss Account

1998 1999 2000

% % %

Sales 11.36 11.77 63.07

Cost of Goods Sold ` 09.16 03.44 76.17

Trading Profit 22.72 50.09 21.58

Selling, Admin. & General expenses 05.18 16.86 39.09

Operating Profit 38.73 73.08 04.05

Other Income (11.53) 05.12 73.04

INCOME BEFORE INTEREST 09.49 41.41 28.19

Financial charges 01.31 (15.64) (05.24)

Other Charges 26.14 249.19 63.33

Profit Before Taxation 47.04 214.83 55.26

Provision for Taxation (382.41) (323.69) 33.51

Profit After Taxation 143.49 74.55 62.01

170


INTERPRETATION

In the horizontal analysis of profit & loss account percentage increase or

decrease from year to year in analyzed.

Although the Sales of the company is increased in the year 2000 (December 31)

but its Cost of Goods has also been increased, this means that company is not

managing its cost of sales on a proper way. Eventually this results in decreased

profit.

Selling & Admin. Expenses has increased with a big amount, this also has a

negative effect on the net profit.

Financial charges have been considerably decreased, that results in increased

Net Profit but at a low rate than the previous years. There is a decreasing trend

in other charges this is a satisfactory situation for the company.

If we compare the values of 2000 to the year 1999 (although there is difference

of 18 months) there is almost, in every situation, a decreasing trend. Perhaps this

is due to the unstable economic conditions of the country.

171


RATIO ANALYSISRatio analysis allows present and prospective stockholders and lenders and the

firm's management to evaluate the firm’s performance and status. It can be

performed on a cross sectional or a time-series basis. The basic inputs to the

ratio analysis are the firm’s "Income Statement” and the "Balance Sheet" for the

period to be examined. Different types of ratios are necessary to be analyzed as:

1. A single ratio does not generally provide sufficient information.

2. Ratios should be compared for similar time periods.

3. Audited financial statements should be used.

4. Data should be checked for consistency of accounting treatment.

The most common ratios can be divided into five basic groups:

1. Liquidity Ratios

2. Profitability Ratios

3. Efficiency Ratios

Note:

I have calculated the below ratios for the years ended on June 30,1998, June

30,1999, and December 31 2000. In other words, in the analysis of year 2000, I

have taken total 18 months’ values. As Packages Limited has changed the year-

end from June to December.

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1. SOLVENCY RATIOS

The liquidity of business firm is measured by its ability to satisfy its short-term

obligations as they come due. Liquidity refers to the solvency of the firm's overall

financial position. The three basic measures of liquidity are:

a. Net Working Capital

b. Current Ratio

c. Quick Ratio (Acid Test Ratio)

d. Debt-Equity Ratio

e. Asset Coverage Ratio

f. Debt Service Coverage Ratio

Note: the figures of 2000 are actually taken from Dec. 31 2000 and there is a

difference of 18 months between the values of 1999 and 2000.

1). NET WORKING CAPITAL:

It is calculated as follows:

Net Working Capital = Total Current Assets - Total Current Liabilities

1998: 2,163,441 _ 2,171,131 = (7,690) (Rs.in Thousand)

1999: 2,363,925 – 2,353,165 = 10,760 (Rs.in Thousand)

2000: 2,216,930 – 2,186,532 = 30,398 (Rs. in Thousand)

INTERPRETATION:

The firm’s Net Working Capital is calculated by subtracting total current liabilities

from the total assets. These figures are not useful for comparing the performance

of different firms, but it is quit useful for internal control.

Net working capital in the year 1998 was (7,690,000). In 1999, it was Rs.

10,760,000. But in 2000 it is Rs. 30, 398,000. It means that either company has

increased its current assets or decreased its current liabilities. This ratio forces

173


the management to maintain sufficient operating liquidity and helps to protect the

creditor.

2). CURRENT RATIO:

It is expressed as follows:

Current Ratio = Current Assets / current Liabilities

1998: (2,163,441 / 2,171,131) = 0.996: 1

1999: (2,363,925 / 2,353,165) = 1.005: 1

2000: (2,216,930 / 2,186,532) = 1.010: 1

INTERPRETATION:

The Current Ratio, one of the most commonly cited financial ratios, measures the

firm's ability to meet its short-term obligations. A current ratio of 2.0 is

occasionally cited as acceptable, but acceptability of the value depends on the

industry in which a firm operates.

The Liquidity position of Packages Limited has improved in the year 2000 as

compared with the last year. This ratio was .996 in the year 1998 and 1.005 in

the year 1999 but in 2000 it is increased by 1.01. The ideal current ratio should

be 2:1. It means that current assets should be double to the current liabilities.

The current ratio of Packages Limited is not satisfactory at all and it is low than

standards.

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3). ACID TEST RATIO/QUICK RATIO:

The Quick Ratio is calculated as follows:

Quick Ratio = Current Assets - Inventory

Current Liabilities

1998: 1,602,377 / 2,171,131 = 0.74: 1

1999: 1,601,854 / 2,353,165 = 0.68: 1

2000: 1,309,430 / 2,186,532 = 0.59: 1

INTERPRETATION:

The Quick Ratio is similar to the current ratio except that it excludes inventory

(generally the least liquid current asset). It tells that how much the liquid assets

can finance the current liabilities. A Quick Ratio of 1.0 or greater is occasionally

recommended, but as in case with the current ratio, an acceptable value

depends largely on the industry.

The Acid Test Ratio is 0.59 in year 2000, while it was 0.68 in 1999 and 0.74 in

the year 1998. The ideal ratio should be 1:1. There is gradual decrease in the

ratio over the years, which is not a satisfactory condition.

4). DEBT-EQUITY RATIO:

It is computed as follows:

Debt Equity Ratio: Long term Loans

Shareholder’s Equity

1998: 2,364,548 / 1,696,609 = 1.39: 1

1999: 2,047,044 / 1,927,101 = 1.06: 1

2000: 1,333,812 / 2,285,636 = 0.58: 1

INTERPRETATION:

The Debt-Equity Ratio indicates the relationships between the long-term funds

provided by creditors and those provided by the firm's owners. It is commonly

175


used to measure the degree of financial leverage of the firm. The ratio should be

low for a good company, as assets will be financed by the company’s capital.

In 1998 this ratio was 1.39, it became 1.71 in 1999 and 0.583 in Dec. 31 2000.

This shows that firm is going on the right direction because the assets are

financed 58% by the creditors and 42% by the shareholders’ equity.

5) ASSET COVERAGE RATIO:

This ratio is computed as follow:

Asset Coverage Ratio: Net Fixed Asset

Mortgaged Loans

1998: 2,620,104 / 2,037,935 = 1.286: 1

1999: 2,752,271 / 1,606,980 = 1.710: 1

2000: 2,869,418 / 786,043 = 3.65: 1

INTERPRETATION:

This ratio shows the value of mortgage, which is financed against the security of

fixed assets.

This ratio was 1.286 in 1998 and 1.71 in 1999 and now it is 3.65 in 2000, it

means that the company ahs taken a smaller amount of loans as compared with

the fixed assets.

6) DEBT SERVICE COVERAGE RATIO:

This ratio is calculated as follows:

= Net Profit After Taxes + Depreciation + Financial Expenses

Current Maturity of Long-term Loans + Financial Expenses

1998: 1,070,035 / 1,437,777 = 0.744: 1

1999: 862,507 / 1,218,469 = 0.950: 1

2000: 924,305 / 844,478 = 1.095: 1

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INTERPRETATION:

This ratio also shows an increasing trend from 1998 to December 2000. this

means that the firm is in a better position and there is no risk of bad debts.

2. PROFITABILITY RATIOSThere are many measures of Profitability. Each relates the returns of the firm to

its sales, assets, equity, or share value. As a group, these measures allow the

analyst to evaluate the firm's earnings with respect to a given level of assets, the

owner’s investment or share value. Without profits a firm could not attract outside

capital; moreover, present owners and creditors would become concerned about

the company's future and attempt to recover their funds. Profitability is the net

result of a large number of policies and decisions. There are different ratios for

examining the Profit ability of the Company:

Return on Sales

Return on Equity

Return on capitalization

Return on Total Assets

1). RETURN ON SALES:

Return on Sale is computed as follow:

Return on Sales: Net Profit After Taxes

Sales

1998: 220,079 / 3,512,272 = 6.27%

1999: 384,154 / 3,925,696 = 9.79%

2000: 621,944 / 6,402,010 = 9.00%

INTERPRETATION:

177


This ratio tells that what is the percentage of profit after taxes to the sales.

Obviously the greater the ratio, the better financial position of the company.

From calculations we see that there is an increasing trend from 1998 to 2000

and the company’s financial position is becoming more strong.

2). RETURN ON EQUITY (ROE):

Return On Equity is calculated as follows:

Return on Equity = Net Profits After Taxes

Shareholders' Equity

1998: (220,079 / 1,696,609) = 12.97%

1999: (384,154 / 1,927,101) = 19.93%

2000: (428,703 / 2,182,940) = 27.20%

INTERPRETATION:

The Return On Equity (ROE) measures the return earned on the owners’ (both

preferred & common stockholders') investment. Obviously the higher the return,

the better will be the financial position of both the company and the investors.

As we see that it was 12.97% in 1998, it increased in1999 to 19.93% and in 2000

it again increased to 27.20%. which is a satisfactory condition.

3. RETURN ON CAPITALIZATION:

This ratio is calculated as follow:

Return on Capitalization:

= Net Profit After taxes + Interest on Long-term Loans

Shareholder’s Equity + Long-Term debts

1998: 566,581 / 4,061,157 = 13.95%

1999: 709,526 / 3,533,581 = 20.10%

2000: 713,762 / 3,619,448 = 19.70%

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INTERPRETATION:

This ratio shows that the firm’s profit is at what percentage of profit is to the

shareholders and outside investors. This ratio should be high.

As we see from the analysis that it has an increasing trend, so the company is

performing well in its business.

4. RETURN ON TOTAL ASSETS:

Return on Total Assets is calculated as follows:

Return on Total Assets = Profit before Interest & Taxes

Total Assets

1998: 699,581 / 6,252,700 = 11.0%

1999: 987,392 / 6,327,310 = 16.0%

2000: 1,265,768 / 5,911,580 = 21.4%

INTERPRETATION:

This ratio tells that how much profit does using the assets or what is the

percentage of profit before interest and taxes to the total assets get.

In 1998, this ratio was 11%, in 1999 it became 16% and in 2000 it has become

21.4%. This shows an overall increasing trend.

3. EFFICIENCY RATIOS1. Inventory Turnover Ratio

2. Inventory Turnover in Days

3. Operating Ratio

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1. INVENTORY TURNOVER RATIO:

The formula for the computation of this ratio is as follow:

Inventory Turnover Ratio: Cost of Goods Sold

Inventory

1998: 2,885,003 / 561,064 = 5.14: 1

1999: 2,984,224 / 76,2071 = 3.92: 1

2000: 5,257,349 / 907,500 = 5.79: 1

INTERPRETATION:

Inventory Turnover measures the activity, or liquidity, of a firm's inventory. The

resulting turnover is meaningful only when compared with that of other firms in

the same industry or to the firm's past inventory turnover.

In 1998 it was 5.14, it decreased to 2.12 in 1999 and 5.79 in 2000. It is showing

the mixed trend, the co; is sensitive to its inventory handling.

2. INVENTORY TURNOVER IN DAYS:

This is calculated by dividing number of days in one year with the value of

inventory turnover ratio.

1998: 365 / 5.14 = 71 Days

1999: 365 / 3.92 = 93 Days

2000: 365 / 5.89 = 63 Days

INTERPRETATION:

As the inventory turnover ratio, it tells that how many times the inventory is

turned into finished products but the difference is that it tells in terms of days.

In 1998 it was 71 days, it became worst in 1999 as it went to 93 days but in 2000,

it came down to 73 days. This shows that the company has managed its

inventory.

180


3. OPERATING RATIO:

The formula to compute this ratio is as follow:

Operating Ratio = Total Operating Expenses

Sales

1998: 256,524 / 3,512,272 = 7.30%

1999: 299,777 / 3,925,690 = 7.36%

2000: 476,926 / 6,402,010 = 7.40%

INTERPRETATION:

This ratio tells that how much profit does using the assets or what is the

percentage of profit before interest and taxes to the total assets get. In 1998 the

ratio was 7.30%, and in 1999 it was 7.36% and it became 7.40% in 2000. This

shows the satisfactory position of the company,

181


TRAINING PROGRAMPackages Limited is a leading packaging manufacturing industry in Pakistan. It

was not an easy job for any internee to study the complete working of this big

organization within six weeks. I think one needs a lot of more time to study such

a versatile type of organization. It was very difficult for internees to manipulate all

sort of information about Packages Limited. This internship program was very

fascinating experience for me and during my stay at Packages Limited, I learned

so many things. So it was the best time for me to see the application of the

theoretical studies in the MBA classes in the practical fields.

I went there at 02/07/01; the security officer sent me to the Industrial Relation

Department. Mr. Saleem (manager) allocated Industrial Marketing Department to

me. Ha gave me I.D. card with expiry date of 12/08/01. I went there; first I met

with Mr. Nadeem Aslam (Area Marketing Manager). Already there were some

trainees. One of them told me that I would have to spend all the six weeks in that

department and I could visit any department with the permission of the

executives of that department.

Two trainees from Bahauddin Zakria University, one from Islamic International

University and one from Quid-e-Azam University, and I from IBA Punjab

University, made a group. In the mean while Mr. Nadeem Aslam assigned us a

task to visit different departments and he would take a test (he and other

executives were very cooperative with us). We all in that group started visiting

different departments from the very next day. After visiting any department for

two or three hours, we used to come back in our department and observe and

learn the working of Sales Executives. The details of visits are as follows:

PRE-PRESS PLANNING DEPARTMENT

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Instructor: Mr. Imran Chishti (head of department)

We went to this department and met Mr. Imran; he welcomed us and gave us

briefing about Pre-Press Planning Department, its procedures, schedules and

workings. The basic purpose of this department is to make available each and

every requirement of Packaging Division according to the customers’ needs. We

spent two days over there.

RE-PRODUCTION DEPARTMENT

Instructors: Mr. Bashir Ahmed (Incharge)

Mr. Mubashir Ali (Assistant)

We spent two days in this department. Our instructors provided us every

information. Because before the final production, it is one of the most important

department. The basic function of this department is to prepare Plates for printing

purpose.

CARTON LINE

Instructors: Mr. Bisharat

Mr. Iftikhar

Mr. Rehman

In the Carton Line, we got information about the Offset Printing and cutting &

creasing of packing material. We observed the working of machines and the

personnel. In this section simple sheet are converted into packing boxes and

many other shapes, as I have discussed in the production section.

PC PLANNING & PRODUCTION

183


Instructors: Mr. Shakeel (Production Manager PC)

Mr. Ahsen (Planning Officer PC)

Mr. Iqrar Shah (Production)

Mr. Zaheer (Production)

According to the given information by the experienced persons, we came to know

that in PC first planning is done for any job than printing material is prepared and

after this slitting & folding is done to make the final shape. Basically in this

section poly and paper is converted into packing material (detail is given in the

production section).

CORRUGATED DIVISION

Instructors: Mr. Javed Iqbal (Production Engineer)

Mr. Imran

Mr. Siddique (Production)

Corrugated Division of Packaging Division is to prepare Corowall cartons. We

discussed the planning of this department with the executives and then went to

the production places and observed the process from preparing the corrugated

sheets to the final Corowall cartons.

FLEXIBLE PACKAGING DEPARTMENT

In this department packing material is prepared with Rotogravure printing. This is

a special as well as expensive printing. Refined poly and paper of different types

can be used in the machines of this section.

PAPER & BOARD MILL

184


We visited Paper & Board Mill, when the climate was very fine as there was lot of

heat. We visited Pulp Section and the Paper Making Section in two different

days.

CONSUMER PRODUCT DIVISION (CPD)

Consumer Product Division (CPD) normally known as Rose Petal actually deals

in tissue industry. This department is for consumer marketing. Almost all the

marketing concepts, I studied are practically implemented here. The marketing

mix is prepared here and so on. The detail is discussed in the marketing

department section.

ENVIRONMENT, HEALTH & SAFETY DEPARTMENT

(E, H & S)

While visiting this department we gathered information about ISO 9000 series

and ISO 14000. The basic function of this department is to make Packages

Limited, a quality conscious and environment friendly organization.

A GLIMPSE OF THE UNAVAILED PROSPECTS FOR

PACKAGES LIMITED

During my training program, I conducted a survey in order to locate customers for

Packaging Division of Packages Limited. I visited markets of A. Block, B. Block,

and Bank Square Model Town Lahore. The survey instrument, I used, was

observation. My findings show that 65 companies do not avail the services of

Packages Limited. The detail of survey is given in the Appendix at the end

of internship report.

185


SWOT ANALYSIS OF PACKAGES LIMITED

(INTERNAL ANALYSIS)

Strengths

Packages Limited is a public limited company listed in the stock

exchanges of Lahore, Karachi and Islamabad.

Packages Limited has backward linkages. It has its own Paper & Board

Mill, which is producing all types of paper & board for packaging.

The company has the capacity to produce the complete range of

packaging and have operations on a very large scale. None of its

competitors has so wider operations and so deep range of packaging.

It is having the best positive image & reputation for quality packaging

products in Pakistan.

It is having the most advanced, sophisticated & up to date machinery in

Pakistan and even in Asia.

Due to mass production the cost is reduced and the company enjoys

economies of scales.

It has ISO 9001quality assurance certificates in five different lines or

divisions.

It has latest machines (rotogravure Cerutti, flexographic, Lemanic inline

cutting and creasing etc.) for the printing purposes.

The company has a modernized (RD&C) Department, which is fully

equipped and can compete any RD&C department of any foreign

company.

It is enjoying approximately 25% market share, which is greater than any

other company in this business.

186


The company is having its own Power generation plant.

It has an advanced management information system, Systems Application

and Product in data processing (SAP).

Packages Limited has a Well-established name in Pakistan.

Its brand is widely accepted as a symbol of quality.

Weaknesses

Cannot take small orders.

High prices of the products, which they produce.

Lack of motivation & intrinsic reward orientation among the management.

The procedure form getting an order to its completion is very lengthy with

a new customer.

There is a lack of communication between different departments of the

company.

Mostly, the orders are not completed on time, due to the communication

gap between the marketing people and the production people.

When the sales executives go out on customer’s visits, there is no one in

the department, who in his absence, may deal with his allotted customers.

There is high employee turn over in particular in the executives’ posts.

The promotion process is very slow in the company.

187


(EXTERNAL ANALYSIS)

Opportunities

Being one of the best packaging manufacturers in the Asia, Packages

Limited has great opportunity in the export market in the Middle East and

other third world countries.

As yet, there is no rival company within the country at the level of

Packages Limited, the market share and capacity of production can be

enhanced.

Quality awareness & consciousness among the customers are increasing.

Threats

The growing mushroom industry, which attracts the price (not quality)

conscious customers, is a threat for Packages Limited.

Products of mushroom industry are cheap.

Advertise taxation policies of government are causing reduction in

profitability.

The use of offset packaging is decreasing day by day, due to greater use

of Polyethylene and disposable packaging.

188


CONCLUSION

1. Packages is one of the latest and pioneer packaging unit in Pakistan.

2. It also assists the other countries in paper technology and management.

3. The company is performing very well for the financial point of view.

4. It is leader in pulp & paper and packaging industry in Pakistan.

5. It pays a huge amount annually in the form of taxes to the government of

Pakistan.

6. “Rose Petal” tissues are very popular among customers.

7. The market share of Rose Petal is 75% approx. and 20%-25% in

packaging sector.

8. People buy tissues for price ranges Rs. 10 to Rs.50 but consumer

demands more soft tissues at this price.

9. Company’s distribution channels are very effective.

10.The packing of Rose Petal tissues is much attractive as compared with its

competitors.

11. It has more variety in tissue line as compared with the competitors.

12. It has monopoly in wet tissues.

13. It has large R & D budget.

14.The Company continuously enhances its superior technological

competency to provide innovative solutions to its customers’ needs.

15.The management of Packages Limited is very loyal to its “quality policy”.

16.Company’s advertisement budget for Rose Petal is very high as compared

to its competitors (Flying & Fay).

17.Packages Limited is in pulp & paper and packaging material

manufacturing business since 1957, so its management has very vast

experience in these fields.

18. Packages Limited mostly deals in industrial goods for which they never

advertise.

19. In consumer products the management of Packages believes in “pull

strategy” i.e. creating pull through advertising.

189


20.Recently consumer promotion has been introduced for certain consumer

products.

21.All the products of Packages are doing fine in the market, so for the only

product failed was “Cling Wrap”. It failed due to limited demand in the

market and high cost of production due to smaller production lots. The

imported cling wrap was cheaper.

22. The prices of the products of Packages are higher than the competitors

due to the fine quality, it provides.

23. It can also be concluded that Packages should reduce the prices of its

tissues.

24.Since the people are getting easy going day by day so the future of

Packages Limited is very bright as it makes disposable products.

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RECOMMENDATIONS

During studying the different departments of Packages Limited, I conclude that it

is an excellent organization. Both the packaging and consumer products are the

market leaders. Apart from its excellent operations, it does not tend to be

stationary at one point. The Top Management keeps on exploring the profitable

opportunities both at home and abroad. Collaboration with “COATES

LORILLEUX” and MITSUBISHI CORPORATION OF JAPAN” are the

examples. Although it is quite difficult to suggest some thing to such an

established organization yet in the following lines, I make a humble effort to give

some recommendations to this well performing organization.

The most important issue is the high prices of the products of Packages

Limited; due to this it loses a number of customers. So the management of

Packages must take some measures to cope with this problem so as to

attract new customers.

The Paper & Board Industry is presenting many new opportunities in the

future, in domestic and foreign markets. There is a need to exploit these

opportunities before the competitors use them up. The production capacity

of this industry should increase.

They should realize its constant market share, which is not exceeding

from 25-30%, in the packaging division. So measures should be taken in

order to expand the target market and increase market share.

The Industrial Marketing Department should tap the pharmaceutical

sector, because there are many more potential customers for Packages

Limited in the above-mentioned sector.

There is high employee turnover in Packages Limited, which shows the

dissatisfaction of the employees, so the management should rectify this

problem.

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There is lack of information literature about the Packages Limited. There is

no informative books or material in library about Packages Limited for new

comers or internees and so it is very difficult for internees to get accurate

and complete information.

They can enhance the image of their company by entering into the field of

public relations. If they let the public know their plans and operations, say,

in electronic media, it is hopeful that the people will consider the

organization with a sense of still greater esteem and this can add to the

growth of their consumer products.

In Packages Limited, some departments are decentralized but still there is

a need of more decentralization in some departments.

Although the management has given many attractive incentives to its

employees, but there is a need of workers' colony in Packages Limited.

The Packages Limited follows an unsound advertising strategy. The

advertising budget should be increased, and it would be better if an

advertising department is opened, instead of paying big amounts to the

advertising agency.

Consumer Product Department is producing disposable cups and plates,

but they are not promoting these products. They should educate

consumers about these products with an effective promotional program.

As the training procedures are also very important to have qualified people

on their jobs, special emphasis should be laid on to the management

development part of the training programs.

Packages Limited does not offer credit sale to its customers, which affects

sales. If Packages Limited provides some sale on credit to the new

customers; they will be able to get good business from some well-known

organizations for example DAWN BREAD, VITA BREAD etc. Due to the

strict policy of 100% advance Packages has to lose the business with

these companies.

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Survey Conducted On

Companies, Which Are Not The Prospects Of

Presented To:Sir. Nadeem Aslam(Area Marketing Manager)

Presented By:

M. Amjad Misbah

LOCATION OF THE SURVEY

A. Block, B. Block, Bank Square Market Model Town Lahore

193


Survey Summary

Survey Instrument:

Observation

Survey Objective:

To identify new prospects for the packages limited, so that these could be further qualified as our final customers.

Industries Covered In The Survey:

Biscuit Bakers And Confectioners Sports Pharmaceutical Miscellaneous

Number Of Companies Covered In The Survey

65

Number Of Products Covered In The Survey.

121

194


Prospects For Packages Lahore

S.No

Name Of The Product Company’s Name And Address

Packaging Mode

Products And Companies Related To The Biscuits Industry

1 Wonder Special Day Biscuits Maria Food Industries 13 Km, Multan Road, Lahore

Flexible

2 Wonder Ringo Bold Biscuits, Maria Food Industries 13 Km, Multan Road, Lahore

Flexible

3 Wonder Mr. Junior Biscuits Maria Food Industries 13 Km, Multan Road, Lahore

Flexible

4 Wonder Special Executive Biscuits.

Maria Food Industries 13 Km, Multan Road, Lahore

Flexible

5 Surprise Zeera Biscuits Montgomery Flour Mills Limited Sahiwal

Flexible

6 Hit Ticky Pack Best Way Foods. 11 Km Multan Road Lahore.

Flexible

7 Fairy Coconut Biscuits Swiss Big Mac Food 137 Industrial Estate Kot Lakhpat

Flexible & Carton

8 Milkona Biscuits Amna Food Industries Suraj Kund Road Lahore

Flexible & Carton

9 Tea Time Biscuits Tastemakers Plot No 38 Industrial Area Kot Lakhpat Lah.

Flexible & Carton

Products And Companies Related To The Bakers & Confectioners

1 New Mezban Swift Dissolving Gelatine Powder

Ittefaq Foods Products Lahore

Carton

2 Dawn Burger Bun Auto Bake Food Kot Lakhpat Lhr

Flexible

3 Dawn Bread Auto Bake Food Kot Lakhpat Lhr

Flexible

4 Dawn Rusk Auto Bake Food Kot Lakhpat Lhr

Flexible

5 Bunny’s Burger Bun Ms Enterprises Kot Lakhpat Lhr.

Flexible

6 Bunny’s Milk Bread Ms Enterprises Kot Lakhpat Lhr.

Flexible

195


7 Bunny’s White Bread Ms Enterprises Kot Lakhpat Lhr.

Flexible

8 Bunny’s Rusk Ms Enterprises Kot Lakhpat Lhr.

Flexible

9 Bunny’ Marble Cake Ms Enterprises Kot Lakhpat Lhr.

Flexible

10 Pep Pops Usman Food (Pvt) Limited Lhr

Flexible

11 Heera Zeera Biscuits Max Zealer Cosmetics. Max Food International, 27 Km Sheikhpura Road, Lahore

Flexible

12 Quality Porridge Food Quality Foods 27, Haider Road Lhr

Carton

13 Energy Bar Nourbiz (Pvt) Limited 69-S Kot Lakhpat, Lahore.

Flexible

14 Harry’s Bran Bread Arrow Food Pakistan Limited, Bund Road Lhr.

Flexible

15 Harry’s White Bread Arrow Food Pakistan Limited, Bund Road Lhr.

Flexible

16 Harry’s Fruit Bun Arrow Food Pakistan Limited, Bund Road Lhr.

Flexible

17 Harry’s Burger Bun Arrow Food Pakistan Limited, Bund Road Lhr.

Flexible

18 Indus Custard Powder Indus Food, 10 Abbot Road, Lahore

Carton

19 Bp White Bread Bp Lahore Pvt Ltd. Flexible20 Super Queen Cakes Bp Lahore Pvt Ltd. Flexible21 Felix Puffed Corn Farooqabad Mandi Distt

SheikhpuraFlexible

22 Felix Puffed CornSugar Coated

Farooqabad Mandi Distt Sheikhpura

Flexible

23 Goofy Butter Scotch Km Food Industries, Lahore Cartoon & Flexible

24 Shahzad Nimko Malik Brothers, Gulberg Lahore

Flexible

25 Nimco PFT Foods Products. Infantry Road Lahore

Flexible

26 Fresco Nimko M.F.G Fun Food Lahore. Flexible27 Citi Rusk M Kay Suprim Enterprises,

Ferrozpor Road LhrFlexible

28 Citi Queen Cake M Kay Suprim Enterprises, Ferrozpor Road Lhr

Flexible

29 Citi Burger Bun M Kay Suprim Enterprises, Flexible

196


Ferrozpor Road Lhr30 Citi Fruit Cake M Kay Suprim Enterprises,

Ferrozpor Road LhrFlexible

31 Citi Plane Cake M Kay Suprim Enterprises, Ferrozpor Road Lhr

Flexible

32 Wonder Loaf White Bread Wonder Loaf 17th Km Salman Park Lahore.

Flexible

33 Prince Bun Vita. Thokar Niaz Baig, Lahore

Flexible

Products And Companies Related To The Sports Industry

1 Carrum Boric Powder Adeel Chemical Works, Lhr Carton 2 Jump Rope Four Star Corporation, Lhr Carton 3 Jump Rope Nylex Series, Lahore Carton 4 Nylex Chess Pieces Nylex Series, Lahore Carton 5 Millar Star Carrum Boric Millat Star, Lahore Carton 6 Solid Chessman Pieces Diamond Industries,

GujranwalaCarton

7 Five Star Carrum Boric Gots Asad Game Manufactures, Lahore

Carton

Products And Companies Related To The Pharmaceutical Industry.

1 Fenamic-Tab Unexo-Labs, 9.5 K.M Shekhpura Road Lhr

Carton

2 Provate Cream Reko Pharmaceuticals, Lhr Carton 3 Polycef-Syp Pharmadec (Pvt) Multan Road Lahore. Carton 4 Olgon-Tab Squx, Pharma, Ferosepura Road Lhr Carton 5 Wicep-Syp Remington Pharmaceuticals Lhr Carton 6 Cofsonil-Tab Dosaco Lab Shekhupura Road Lhr Carton 7 Senjuis-Tab Ipram Ferosepura Road Lhr Carton 8 Ofloquuin-Tab Global Marketing Township Lhr Carton 9 Axalyn-Inj Unexo Labs Shekhupura Road Lhr Carton

10 Allegro-Tab Phermix Labs Lahore Carton 11 Diclotab-Tab Wilshire Labs Lahore Carton 12 Neomycine-Oint Amrose Pharmaceuticals Lahore Carton 13 M. Phemical-Susp Munawar Pharma Lahore Carton 14 Furadil-Susp C.C.L Gulberg Lahore Carton 15 Jetepar-Inj Popular Chemical Works. Lahore Carton 16 Torant-Syp Albro Pharmaceuticals Lahore. Carton

197


Miscellaneous1 Zebra Brown

Liquid Sweed Cleaner

Moazzam Ali Chemicals, Lahore Carton

2 Zebra Black Liquid Sweed Cleaner

Moazzam Ali Chemicals, Lahore Carton

3 Sun Drop Cooking Oil

Wali Oil Mills Ltd, 78 Shadman Ii, Lahore Flexible

4 Season Banaspati Wali Oil Mills Ltd, 78 Shadman Ii, Lahore Flexible5 Red Chili Powder Malik Farm House, 133 Temple Road,

LahoreCarton

6 Red Chili Masala Malik Farm House, 133 Temple Road, Lahore

Carton

7 Pakora Mix Malik Farm House, 133 Temple Road, Lahore

Carton

8 Treatose Popcorn Treatose, 98 Saint John’s Park, Lahore Flexible 9 Korneez Sweet

PopcornNourbiz (Pvt) Limited, Kot Lakhpat, Lahore

Flexible

10 Korneez Crunchy Chunks

Nourbiz (Pvt) Limited, Kot Lakhpat, Lahore

Flexible

11 Korneez Plain Salted popcorn

Nourbiz (Pvt) Limited, Kot Lakhpat, Lahore

Flexible

12 Husk Ispaghol Aftab Qarshi Dawakhana, Lahore Carton 13 Guard Dupreme

BasmatiGuard Agri Research & Service (Pvt) Ltd, Lahore

Flexible

14 Noble Salt Javed Brothers, Lahore Flexible15 Samad Bond Samad Rubber Works (Pvt) Limited,

LahoreCarton

16 Samad Powder Glue

Samad Rubber Works (Pvt) Limited, Lahore

Carton

17 Samsol Perfumed Leather Shaving Cream

Samsol International (Pvt) Limited, Lahore. Pakistan

Carton

18 Haleeb Milk Chaudhary Dairy Limited (CDL), Lahore Carton19 Candia Milk Chaudhary Dairy Limited (CDL), Lahore Carton20 Haleeb Milk

CreamChaudhary Dairy Limited (CDL), Lahore Carton

21 Bajoo’s Moist Tissues

Garter Industries (Pvt) Limited, Lahore Flexible

22 Haleeb Standardized Milk

Chaudhary Dairy Limited (CDL), Lahore Carton

23 Candia Milk Chaudhary Dairy Limited (CDL), Lahore Carton

198


24 Bunties Chocolate Beands

Modern Food Industries Lahore Carton

25 Litex Tube Lights Syed Bhai Industries, Ferozpur Road, Lhr Carton26 Litex Bulb Syed Bhai Industries, Ferozpur Road, Lhr Carton28 Shell Salt Shell Foods (Pvt) Limited, Lahore Flexible 29 Sitara Awami Rice Shell Foods (Pvt) Limited, Lahore Flexible30 Super Hockey

Safety MatchFazal Sons Match Industries Flexible

31 Pari Paper Malik Ji Foods, Lahore Flexible

Prospects for packages limited

Serial No.

Name Of The Product Company’s Name & Address

Packaging Mode

1 Touchme Shaving Cream

Max Lavender, Karachi Carton

2 Vicks Vaporub Proctor & Gamble, Karachi Carton3 Tapal Special Tapal Tea, Karachi Carton4 Ali Baba Shirts Ali Baba, Karachi Carton5 Ars Oil Spray Uniferoze, Karachi Carton6 Cosmic Toothpaste Dr. T.J.H & Co;Karachi Carton7 Chiragh Din Shirts Chiragh Din Karachi Carton8 Medicam Hair Color Max Lavender, Karachi Carton9 Touchme Toothpaste Max Lavender, Karachi Carton10 Closeup Toothpaste Lever Brothers Karachi Carton11 Cambridge Shirts Cambridge Karachi Carton12 Kala Kola United Traders.Karachi Carton13 Kidco Baby Feeder Kidco, P.E.C.H.S. Karachi Carton14 Wolf Dieter Coconut Diamond Food Industries

Karachi.Carton

15 Shield Feeder Transpak Corporation Karachi

Carton

16 Gulab Roomi Air Freshner

Roomi Chemical Industry Karachi.

Carton

17 Lemon Roomi Airfresh. Roomi Chemical Industry Karachi.

Carton

18 Lavender Roomi. Roomi Chemical Industry Karachi.

Carton

19 Jasmine Roomi Roomi Chemical Industry Carton

199


Karachi.

Prospects For Packages Islamabad

Serial No.

Name Of The Product Company’s Name & Address

Packaging Mode

1 Sports Safety Match Am Match Pvt Limited, Mardan

Carton

2 Cricket Safety Match Pine Match Pvt. Limited Hattar. Haripur

Carton

200