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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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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 Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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:
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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,
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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:
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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).
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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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.
The types of paper & board produced by PM-2:
Off-Set Printing Paper
Wrapping Paper
Craft Paper
Tetra Duplex Board
Brown Craft Paper
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Packages Pakistan Ltd
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.
The types of paper & board produced by PM-3:
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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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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.
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Ink Plate Blanket
Sheet
Packages Pakistan Ltd
PROCESS FLOW:
DESCRIPTION:
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Sheet Feeding
Offset Printing
Cutting & Creasing
Separation
Folding & Gluing
Bundling
Dispatching
Flats/Unit cartons
Bundling
Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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Duplex board Reel
Reel Stand Festooning
In feed Unit
Printing Units
Embossing cylinder
Dispatched
Bundling Cutting & Creasing
Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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:
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Polygrains Extruders Melting
Air pressure
Cutting Oxidizing
Poly
Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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:
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Unprinted Reel
Unprinted Film
Unprinted Paper
Machine Printed material
Rotogravure printing
Flexographic printing
Prepared Reel/Bags
Slitting & Folding
Vexing
Lamination
Packages Pakistan Ltd
> 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
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
Process Flow of Making Corruwall (CWCs) Sheets:
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Reel / Liner
Flute Plant
C Flute
Dispatching
Bundling
Corowall Sheets
Cutting & Creasing
Heating & Gluing
Double Baker
B Flute
Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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\)
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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:
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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)
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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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
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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:
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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
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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
Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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ProductionSales Information
Packages Pakistan Ltd
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
Packages Pakistan Ltd
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
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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.
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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.
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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
Packages Pakistan Ltd
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
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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
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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
Liabilities against assets subject
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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Packages Pakistan Ltd
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 Pakistan Ltd
Packages Limited
Profit & Loss Account
As on 30th (June/Dec.) 1998-2000
1998 1999 2000
June 30 June 30 Dec. 31
(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
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Packages Pakistan Ltd
Packages Limited
Vertical Analysis of Balance Sheet
1998 1999 2000
June 30 June 30 Dec. 31
% % %
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
Liabilities against assets subject
to Finance Lease 0.33 0.00 1.79
Long-Term Loans & deferred Liabilities.
Long-term Loans & other payables
(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
Liabilities against assets subject
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)
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Packages Pakistan Ltd
1998 1999 2000
June 30 June 30 Dec. 31
% % %
ASSETS
Fixed Capital Expenditure
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
Long-Term Loans, Deposits
& 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
Loans, advances, deposits,
Prepayments & receivables 3.19 4.44 5.60
Cash and bank balance 15.57 13.75 8.61
Total 100 100 100
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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
June 30 June 30 Dec. 31
% % %
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.
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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
Liabilities against assets subject
to Finance Lease 52.26 (100.00) 100.00
Long-Term Loans & deferred Liabilities.
Long-term Loans & other payables
(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
Liabilities against assets subject
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
June 30 June 30 Dec. 31
% % %
ASSETS
Fixed Capital Expenditure
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
Long-Term Loans, Deposits
& 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
Loans, advances, deposits,
Prepayments & receivables (17.55) 41.07 18.46
Cash and bank balance 13.78 (10.66) (41.06)
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Packages Pakistan Ltd
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.
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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
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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
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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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Packages Pakistan Ltd
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
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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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Packages Pakistan Ltd
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:
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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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,
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
(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.
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Packages Pakistan Ltd
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.
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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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Packages Pakistan Ltd
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
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