INTERNSHIP REPORT

Designed ByHasib TariqBBA 8-D

01-211071-030

ACKNOWLEDGEMENT

Packages Limited is a learning organization where every person whom I interacted during my internship contributes to making this internship report. I would like to acknowledge the efforts of the following persons.

First of all, I would like to mention the generosity and kind behavior of Regional Sale Manager, Mr. Kashif Ahmed who gave me a chance to work in his outstanding organization under his kind control.

In making this report, I can never forget the efforts of whole of the CPD department Islamabad, which let me, learn the working of department with such an ease and freedom.

I would like to thank Mr.Kadir, my immediate Supervisor, who always been kind enough to lend me a helping hand in gathering information from all departments.

A special thanks to Mr.Asad and Mr.Atif, the territory Incharge and all the SPOs whose gracious efforts let me learn about the operations of Packages.

1

TABLE OF CONTENT

EXECUTIVE SUMMARY 4

INTRODUCTION 5

Company Background 5

Nature of the Organization 7

Joint Venture Partner 8

Global Partner 8

Company Profile 9

Mission Statement 11

Vision Statement 11

Environment, Health & Safety Policy 11

Quality Policy 12

Core values 12

Organizational Structure 15

Strategic Business Units of Packages Ltd 16

Paper & Board 16

Packaging Division 17

Flexible Line 19

Corrugated Division 20

Some other Department Involved in Production 21

COATES LORILLEUX (Ink Factory) 23

TETRA PACK 24

2

TABLE OF CONTENT

Consumer Product Department 25

1. Product & its Variants 28

2. Market Share of Packages in Tissue Market 29

Marketing & Sales Strategy 30

Human Resource 37

SWOT Analysis 41

Department In Which I Worked 43

Conclusion 44

Recommendation 45

ANEXURE 47

Project Report 48

Internship Letter 74

Letter of Appreciation 75

Internship Assessment Form 76

3

EXECUTIVE SUMMARY

I, Hasib Tariq student of BBA HONS from Bahria University undertook the internship with Packages Limited which stands unrivalled in the business of packaging products. The ultimate motive behind choosing a manufacturing business sector was a large number of personnel management activities which gives a broader way and outlook regarding operations, human resource management and else more. Therefore, I proudly felt satisfaction while working with Packages Limited. The sheer interest and concern of higher management, excellent working conditions and feasible atmosphere with tremendous cooperation of the staff of all departments made the learning process so much easy and productive in all respects.

As per requirement, the time span was too short to cover all of the aspects. Therefore, the duration was divided in such a way that I can get access to sufficient information and able to observe the working as much possible. Basically my internship refers to the Consumer Product Department where by I had observed the operations of their brands. However, it is essentially to be noted that I had been get aware with other procedures of Packages by interacting with concerned personals. As mainly my area in Packages is Consumer Product Department (CPD), so here I had closely weigh up the procedures of CPD and the Packages as whole while interacting with the personals of other departments.

Packaging is the use of the containers and components with the addition of labeling to protect, identify, merchandise and facilitate the use of the product. Even the nature gifted us various items with packaging though they are not labeled. But all is done only to protect it and to provide the ease to user. From very early ages men became aware about the importance of the packaging and various processes were started to get safe, hygiene, facilitated goods with different type of packaging, not even the food items got attention for packaging but also the other livelihoods were paid attention in this regard especially when we concern the marketing prospects. It is impossible for all kind of industry to make the goods and then also got the expertise of their product’s packaging. They try to save their opportunities and get the packaging material of their choice from other packaging industry.

Packages limited Pakistan came into existence in 1956 started with the corrugated line which helps in the production of the various types of cartoons and with the passage of time packages limited enhanced the production facility and started with the production in flexible line. Flexible line packages includes the packaging of these kinds of products like detergents, bags etc. In 1982 packages limited has a joint venture with the TETRA PAK INTERNATIONAL and established the TETRA PAK PAKISTAN LIMITED and started with the packaging of liquid products. To meet the ink consumption in the preparation of the packaging material. The company agreed to make the joint venture with the coates lorilleus which afterwards transfer the manufacturing facility to the company coates lorilluex Pakistan limited.

4

In 1982 packages limited established the consumer product division (CPD) and production of the rose petal started and today packages limited has three consumer brands named ROSE PETAL, TULIP AND FEMINEX. And also holding the production facility of the consumer products for various institutes like PIA, PIZZA HUT, KFC AND PRIME MINSITER HOUSE.

Today packages limited almost covering 35% of country’s facility. The major share is holding by PTC and contributing almost 50% and consumer product division holds total of 10% of the production of packages limited.

Packages limited also posses the quality standard certificate like ISO 9000, 9001 and now she is contributing the ISO 14001. Packages limited also provides the various facilities to its employee at all level just get them involved and get them motivated. Today packages limited provide basic facility to its customers in the protection, preservation and convenience in shape, size and weight for handling. Packages limited always looks toward more improved and innovated products (packaging) for her customers only due to the reason that they believe on continuous improvement in the form of satisfaction from both ends.

INTRODUCTION

COMPANY BACKGROUND

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

5

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 groupand 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, the packaging cartons are for Soaps, Confectionery, Biscuits, Cigarettes, Tea, Pharmaceutical products and many other products.

Packages Limited is the outcome of an idea to develop and build local skill and competence in sophisticated packaging industry based upon indigenous raw material and talent. It started its business/production in as a private Limited company with a total of about 300 employees. Initially the emphasis was on conversion business and raw material was purchased from outside. Encouraged by the response and confidence reposed by the industry at large, in 1965 it was decided to convert the organization into a Public Limited Company.

It was soon realized that self- sufficiency in all the raw materials was a pre- requisite for maintaining growth. Accordingly in 1968 a 24,000 tones pulp, paper and board Mill was built and integrated into packaging plant. After the modernization and balancing of the machinery in the paper and board Mill its capacity has been increased to 50,000 tones per year. It is also manufacturing and selling varieties of tissue under the brand name of Rose Petal.

With more than 50% of the total share in the industry, Packages Limited is the industry leader. It can be thus safely assumed that in this regard, Packages Limited remains unrivalled among all of its competitors like Century Paper Mills, Adamjee Paper & Board Mills Ltd. , ABN Packaging International, Arsam Pulp & Paperboard Industries etc.

Over the years:

Over the years, Packages has 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 1965.

In 1968 Packages commissioned its own paper mill with a production capacity of 24,000 tones. The mill produces paper and paperboard based on waste paper and agricultural by-products like wheat straw and river grass. With growing demand the capacity was increased periodically and in 2003 was nearly 100,000 tones per year

In 1974, Packages started manufacturing of corrugated cartons used for transporting consumer products.

Since 1982, Packages Limited has had a joint venture with Tetra Pak International in Tetra Pak Pakistan Limited to manufacture paperboard for liquid food packaging and to market Tetra Pak packaging equipment.

6

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, called Tri-Pack Films Limited, commenced production in 1995 with equity participation by Packages Limited, Mitsubishi Corporation, Altawfeek Company for Investment Funds, Saudi Arabia and the public. Packages Limited owns 33% of Tri-Pack Films Limited's equity.

In 1994, Coates Lorilleux Pakistan Limited, in which Packages limited, has 55% ownership, commenced production and sale of printing inks.

In 1996, a joint venture agreement was signed with Printcare (Ceylon) Limited for the production of flexible packaging materials in Sri Lanka. Packages Lanka (Private) Limited commenced production in 1998. Packages Limited now owns 79% of this company.

In 1999-2000, Packages Limited successfully completed the expansion of the flexible packaging line by installing a new rotogravure printing machine and expanded the carton line by adding a new Lemanic rotogravure inline printing and cutting creasing machine. A new 8-color Flexographic printing machine was also installed in the Flexible Business Unit in 2001.

Packages Limited has also started producing corrugated boxes from its plant in Karachi from 2002.

In 2003, Packages entered into an agreement with Vimpex of Austria to provide management and technical assistance to help in the operation, production optimization and capacity expansion of a paperboard mill in Syria. A team from Packages is currently providing these services and is close to optimizing mill production.

The Bulleh Shah Project: Packages planned to relocate its paper manufacturing facilities from the existing location, which has limited capacity for expansion, to a new site 54 km from the present one. This will enable it to radically increase paper and paperboard production from 100,000 to 300,000 tones per year. The packaging operation shall continue concurrently at the Lahore site.

Nature of the organization

Packages is a manufacturing business entity. In manufacturing it is renowned specifically for its unique ideology behind packaging. Company chose this business because the evaluation of packaging in essence is the evaluation of mankind. It seems that the earliest cues were provided by the nature. The form and shape of nature’s packaging varies from rigid to flexible, simple to complex. The classic example of nature’s packaging is an egg.

7

Basically, Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserve, transports, informs, and sells. It is fully integrated into government, business, institutional, industry, and personal use.

Packages limited have extended its expertise to a number of Third World countries in the 1972. Management and Technology was sent to Tanzania, Indonesia, Kuwait, Saudia Arabia, Somalia and Nigeria where packaging companies required assistance in running and managing their operations. Packages Limited has also provided technical assistance to Tetra Pack for general packaging in Kuban, Russia and looking forward to expanding its horizons for more multi-cultural experiences. For the expansion purposes, plans for Syria, Iran and USA are in pipeline.

Technical Collaboration:•AMCOR Flexible, Australia•Stora Enso, Sweden.

Joint Venture Partners:

Global Partners:

One of the best ways for a business to leverage its products and increase growth is through association. Our business alliances help us manage our business more effectively, as well as helping us and our partners develop and diversify our interests. Customers also benefit from the increased knowledge base, as we transform our market awareness and shared technology into innovative and cost effective solutions for customers.

The Packages Group is proud of its long standing network of friends and family, with key business partners as diverse as Print Care, Coca-Cola, Tetra Pak and Mitsubishi Corporations.Packages limited is also exporting tissues to

Name of joint venture Joint venture with

Tetra Pack Pakistan Limited Coats Lorilleux Pakistan Limited

Tri-Pack Limited Packages Lanka (Private) Limited

Tetra Pack International

DIC Asia Pacific Pvt. Limited

Mitsubishi Corporation of Japan

Print Care Group of SirLanka

8

•Iran•Bangladesh•Sirilanka•Indonesia•United Arab Emirates &•Maldives.

Packages started with the work force of 500, and now it has a work force of 3500. In which union and non union employees are included. 3000 workers are from union side and rest of 500 employees is non union, all the office bearers are non union employees. 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.

COMPANY PROFILE

Board of Directors

Towfiq Habib ChinoyChairman

Syed Hyder AliChief Executive & Managing Director

Khalid YacobMatti Ilmari NaakkaMujeeb RashidShahid Aziz SiddiquiShamim Ahmad KhanSyed Aslam MehdiSyed Shahid AliTariq Iqbal Khan

AdvisorSyed Babar Ali

Company SecretaryAdi. J Cawasji

Rating Agency: PACRA

9

Company Rating: AA

AuditorsA.F. Ferguson & Co.Chartered Accountants

Legal AdvisorsHassan & Hassan - LahoreOrr, Dignam & Co. - Karachi

Bankers & Lenders

Allied Bank LimitedAskari Bank LimitedBank Alfalah LimitedBank Al-Habib LimitedBarclays Bank PLC, PakistanCitibank N.A.Deutsche Bank A.G.Dubai Islamic Bank Pakistan LimitedFaysal Bank LimitedHabib Bank LimitedHabib Metropolitan Bank LimitedHSBC Bank Middle East LimitedInternational Finance Corporation (IFC)JS Bank LimitedMCB Bank LimitedMeezan Bank LimitedNational Bank of PakistanNIB Bank LimitedOman International Bank, S.A.O.G.Samba Bank LimitedSilk Bank Limited(Formerly Saudi Pak Commercial Bank Limited)Standard Chartered Bank (Pakistan) LimitedThe Bank of Tokyo - Mitsubishi UFJ, LimitedThe Royal Bank of Scotland LimitedUnited Bank Limited

MISSION STATEMENT

To be;

10

A market leader by providing quality products and superior service to our customers, while learning from their feedback to set even higher standards for our products.

A company that continuously enhances its superior technological competence to provide innovative solutions to cater to customer needs.

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.

A company which combines its people, technology, management systems, and market opportunities to achieve profitable growth while providing fair returns to its shareholders.

A Company that endeavors to set the highest standards in corporate ethics in serving the society.

VISSION STATEMENT

To position ourselves to be a regional supplier of quality packaging and tissue products.

To improve on contemporary measures such as cost, quality, service, speed of delivery and mobilization.

To keep investing in technology, systems and human resources to effectively meet the challenges every new dawn brings.

To develop relationships with all our stakeholders based on sustainable co-operation, upholding ethical values which the shareholders, management and employees represent and continuously strive for.

Environment, Health and Safety Policies

The management of Packages Limited realises this world has finite resources and the Eco-system has a limited capacity to absorb the load mankind is placing on it. That is why Packages Limited is doing everything practically possible to lessen the load placed on the environment and is making every effort so that sustainable development becomes a reality.

11

Packages Limited has formulated its environment, health and safety (EH&S) policy to address these issues in a more effective way. Packages Limited shall:

Minimize its environmental impact, as is economically and practically possible.

Save raw materials including energy water and avoid waste.

Ensure that all its present and future activities are conducted safely, without endangering the health of its employees, its customers and the public.

Develop plans and procedures and provide resources to successfully implement this policy and for dealing effectively with any emergency.

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 themselves, to other individuals and to the environment.

Ensure that all its activities comply with national environment, health and safety regulations. This policy shall be reviewed as and when required for the betterment of the same.

Quality Policy

Packages Limited is committed to producing quality products which conform to their customer’s requirements and strengthen their position as a quality-managed company. Their 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 has continued 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 are directed towards achieving the quality goals through employee’s participation.

CORE VALUES

Underlying everything Company does and everything it believes in is a set of core values. These guide them to deal with every aspect of any issue that might encounter in personal and professional lives. These values help it grow inside and outside, personally and as an organization.

SMART GOVERNANCE

12

Packages is committed to running its business successfully and efficiently, providing long term benefits to its employees and shareholders, and enriching the lives of those whom it serves by fulfilling its corporate responsibility to the best of the ability. Company expects excellence from all processes, whether they relate to policy formation and accounting procedures or product development and customer service.

WORK ENVIRONMENT

The policies and core values are aimed towards creating an informal yet stimulating team-oriented work environment with a culture of sharing and open communication. It cherishes the diversity of viewpoint of every individual; realizes this encourages innovation and develops character.

All employees have the right to a stress- and injury-free work environment. Company ensures employee safety and health by providing various in-house facilities such as a gym and making sure that all staff understand and uphold the safety policy. All employees are permitted and encouraged to afford time and attention to personal concerns.PEOPLE

The success of any organization is largely dependent on the people working for it. Each member of Packages Family is considered equally important and provided constant training, motivation and guidance. Company possesses a dedicated staff of the highest caliber dedicated to making business a success.

It ensures that every employee has the opportunity for maximum professional development. To achieve this goal, it seeks to provide challenging work prospects for all employees. Each person is compensated and rewarded for his or her performance and hard work on a strict merit basis.

CONSERVATION

Company expects and encourages employees to actively participate in community service and to take care of the environment entrusted to citizens sharing the earth's resources.

CUSTOMER SATISFACTION

Company is customer-driven; goes the extra mile to make sure that clients' expectations are met and exceeded on every issue. Company partners with leading companies to arm ourselves with the latest technology and provide customers with innovative solutions in the most cost-effective manner available.

ETHICAL BEHAVIOR

13

Company makes it clear that being a sincere, honest and decent human being takes precedence over everything else. In the Packages family, there is an all-round respect for elders, tolerance for equals and affection for youngsters. Managers are expected to lead from the front, train junior colleagues through delegation, resolve conflicts speedily, be visible at all times and act as role models for others.

Company makes sure that all of its processes and methods conform to the highest ideals of professional behavior. The organizational structure is straightforward and need-based; accountability is transparent, consistent and both horizontal and vertical.

ORGANIZATIONAL STRUCTURE

14

STRATEGIC BUSINESS UNITS OF PACKAGES LTD

15

Paper & Board Mill.

Packaging Division

o Carton Line

o Flexible Line and Poly & Paper Conversion

o Corrugated Division

Consumer Product Division

Coates Lorilleux (Ink Factory)

Tetra Pak Pakistan

Paper & Paper Board

The products of Paper and Board are tested for high performance in terms of strength, stiffness, gloss and machine-ability. Packages Limited is among the first companies in the world to use environment friendly process of manufacturing paper & paper board through a mixture of wheat straw, cotton linter, recycled pulp and wood pulp.

Wood Free Paper:

Packages are specialize in making different kinds of paper which Includes high gloss writing paper, poster paper, fluting paper and liner for shipping cartons.

Food Grade Board:

Most common board varieties include Duplex Board, Bleached Board, Food Grade board and Card Board. A specialized liquid packaging board is also produced in our Paper & Board Mill to cater to the need of customers who manufacture and supply aseptic packaging for milk, cream, oil, fruit juices and other sensitive food products.

PACKAGING DIVISION

16

CARTON LINE:

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.

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:

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

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

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

4-Point Glued: e.g. Wall’s Solo.

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

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

17

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

Hinglet Carton: e.g. cigarette cartons.

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

Top & Bottom: e.g. shoes cartons

i. Self-Lock Cartonii. Glued Cartoniii. Stitched Carton

EQUIPMENT:

One 1-color printing machine HEIDEL BERG Six 2-color printing machines PLANETA

a. ULTRA MAN V Three 5-color printing machines

a. ROLAND 800b. ULTRA MAN V GS

One 6-color printing machinesa. ULTRA MAN VII-Gb. TWO LACQUE

MAJOR CLIENTS:

Lever Brothers Nestle Pakistan Tobacco Co. Procter & Gamble

CONSUMER AREA:

Tea Cartons Detergents Soaps Shoe Cartons Food Cartons Cigarette Industry Biscuit Match Industry

FLEXIBLE LINE

18

Flexographic line:

On our flexographic line, up to eight colors flexographic printing can be done on paper, poly-coated paper and films. We have the first ever gear- less press in the country which has the ability to print real life images on materials like Polyethylene, OPP, Special paper and Polyester. With the addition of Video Mounter System, the printing stereos can be mounted with one micron dot accuracy, which virtually eliminates the mis-registration from the print.

Rotogravure Printing:

Sophisticated quality packaging with computerized controls, makes rotogravure printing an extremely attractive option. With the help of latest technology, including online web cams and auto registration, customers can get up to eight colors of very high quality printing results. The rotogravure printing section also has the latest in- house cylinder making and engraving facilities. Commonly used printing substrates on the rotogravures are: PET, BOPP, Metallized OPP, Pearlised OPP, Paper and PVC. Rotogravure is particularly suited to food packaging where colorful package designs and preservation of food quality are important considerations.

Lamination:

Packages Limited has both solvent base and solvent less laminators. With the help of modern machines even the most complex structures of three to four laminations can be done on our lamination facilities. Equipped with Italian technology and computerized control, they can laminate BOPP, Polyester, Al foil, Met OPP, Met PET, .E. paper as faster as 250 m/min with continuous production due to auto splicing. Automatic viscosity control system ensures consistent quality. R&D center at Packages Limited helps customers develop cost effective laminates to suit their needs.

Extrusion:

Packages have our own mono- and multi-layer extrusion facility that can extrude polyethylene of different grades and colors. The Canadian technology with computerized control and monitoring of each layer on 3 and 5 layer extrusion line enables them to produce high output to meet customers' demands and new market trends as well. They extrude a number of specialized films which includes oil, ghee, detergent and food films. These specialized films are known for their strength and high barrier properties. Packages also have the on-line slitting option which makes the system more efficient.

Bag & Sleeve making:

Bag making is an integral part of the Flexible Line. Packages have the capability to provide the following variety bag constructions: Side Seal, Double side seal, Bottom Seal, Three Side Seal, Bottom Gusset Bags and Side Gusset Bags. They have automated sleeve making machines on which they can make shrinkable PVC sleeves.

19

CORRUGATED DIVISION

For 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

The production process completes in two halls. Paper needed for this purpose is also prepared within the factory premises at the Paper & Board Mill. Then this paper 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.

MACHINES FOR PRINTING:

There are three machines for the purpose of printing.•Two 2 color machines•One 3 color machine

The printing machines used in Corrugated Division have the capacity of printing 250 Cornwall cartons per minute.

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

20

Kunjah Textile Mills

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 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:

21

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.

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

22

Development is a continuous process in any organization. A lot of development is the result of feasibility studies, study of new production 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 make 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.

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:

23

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. PackagesLimited own ink manufacturing facilities now transferred to the new company,"COATES LORILLEUX PAKISTAN LIMITED" in which Packages limited has 55% Ownership.

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. TheAluminum Foil is imported. Now in Tetra Pak daily production is 200,000 meters.

24

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”, and afterward in 2001 they introduce the FEMINEX . The raw material for tissue paper is imported from Scotland. 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 on next page,

1. Luxury pack of Rose Petal (Facial Tissues) in 1981.2. Tissues of pink color were introduced in 19823. Toilet rolls in 1983.4. Economy size pack of 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 of plates and cups were started in 198712. Perfumed tissues were launched in 1987.13. In 1988, Feminex was launched.14. In 1989, wet tissues were introduced.

25

15. In 1992, they manufactured a special kind of wet tissue, which is used to clean the glasses of spectacle.16. In 2001, CPD introduced Feminex

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 quality by making tissues on a new machine, which is far better than a previous one.

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 ofpopulation 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 inefficiency in their main departments to improve the performance. 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.

TYPE OF BUSINESS:

Rose Petal is the product that was the first consumer product introduced by Packages Ltd. They produce:

Tissues

26

Paper Plates

Paper Cups

Feminex. &

Tena Slip

The sales and marketing teams of Consumer Product Department is shown in the following illustration.

SALES FORCE

MARKETING FORCE

27

PRODUCTS AND ITS VARIENTS

ROSE PETAL

Perfumed ORO Multicolor Luxury Supreme Pop-up Toilet Rolls Kitchen Rolls Paper Towel Wet Tissue Pocket Pack Napkins Party Product

TULIP

Perfumed Multicolor Supreme Twin Toilet Roll Double Horse Toilet Roll Pocket Pack

FEMINEX

28

Without Wings With Wings

Regular 8s Regular 8s Large 16s Large 16s

TENA Slip

Medium Large

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 211 distributors, which covers the whole country. There is some 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.

MAJOR COMPETITOR IN TISSUE

Flying Fay Jasmine Moveeta Lily Kleanex

MAJOR COMETITOR IN FEMINEX

Always Trust Butterfly Some other local brands

MARKETING & SALES STRATEGIES:

29

In Packages Limited the sales force is strict to spend almost 80% of their time in market and 20% of their time in the offices. Their distribution network is very strong, first of all I like to discuss about the distributors. There are 211 distributors in all over Pakistan, and only in Lahore they have 5 distributors and whole 211 distributors are divided among 5 zones and these five zones are:

Lahore Islamabad Karachi Sukhar Multan

After these 5 distributors Packages limited has 7 sales supervisor to check upon their performance they have meeting of supervisor in department on every Friday where they discuss about the ongoing problems and about complaints from market and customers and about distributor’s performance.

Sales teem is assigned targets and they have to meet these targets and one of the important thing is the institutional sales. In institutional sales they targeted the Corporate, Food chains, Hotels and Restaurants and Take away etc. These institutions include PIZZA HUT, KFC, MCDONALDS, PIA, PRIME MINISTER HOUSE, OTHER DIFFERENT COMPANIES LIKE PARCO, PEARL CONTINENTAL etc.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•Service•Advertising•Sales promotion•Research & development•Marketing research

MARKETING BUDGET:

Marketing budget is allocated to each brand individually and almost each brand gets Rs. 2.0 million each year.

MARKET SEGMENTATION:

30

Packages Ltd has defined and identified its target market for its consumer products. Target market for facial tissues includes 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:

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..MARKET POSITIONING STRATEGY:

The growth rate of CPD 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 In terms of price and competitors it is cheaper than imported tissues but expensive than local brands. So, Packages position their brand at higher price than their local competitors and cheaper than imported competitors. Packages 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.

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:

31

It has already discuss that 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 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.

PACKAGING:

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 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.

PRICING STRATEGY:

The basic formulae for price determination of Rose Petalproducts are: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 theorder.b) Type of material.

32

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 powerl) Competitors’ products prices

Packages Limited selects the medium price- high quality pricing strategy as Packages never compromises on quality of the products. Packages adopts the “Maximum Sales Growth” pricing objective.

Mark-up pricing

Packages adopt “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.

PRICING POLICIES:

The company has the policy to charge ex-factory prices. They are not concerned with the freight 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.

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.

CONSUMER PURCHASING FACTOR:

33

This is also very significant while determining the final price. Marketing manager has to pay full attention on the purchasing power of the target customers. Again the objective or the philosophy behind the whole pricing concept is to maximize the market share.

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.

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.

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, and other district taxes

PROMOTION:

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 use the entire medium for advertising and promotion that lies under the constraint of below the line and above the line promotion. These tools includes TVCs, print media ads, billboards, broachers, radio ads and other out door campaigns

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:

34

1. Increase the sales.2. Outplace the competitor.3. Increase the market share.4. Higher turnover.5. Informing the consumers6. 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:

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 include:1. Advertising.2. Sales promotion.

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. There are many forms of advertising contribute uniquely to the overall promotional mix. Advertising can reach masses of geographically dispersed 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, Tulip, Feminex division includes the following:a. Broad cast media.b. Print Media.c. Pop Mediad. Out Door Media

ADVERTISING AGENCY:

35

Packages Limited is doing intensive advertising for Rose Petal products. For this they are engaged with the well-known advertising agency LAWE& RAUF AND second one is PRETIGE. 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.

SALES PROMOTION:

Its share in promotional budget is about 10%. It includes:

Sampling. Gifts Schemes. Cent of scheme. Gifts

Sales promotion is defined as short-term incentives to encourage purchase or sale of Rose Petal products. In Rose Petal Consumer promotion in sales promotion is designed to stimulate consumer purchasing, including gifts, price off, and similar in the other two brands like Tulip and Feminex. 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 designed to motivate the sales force and make sales force selling efforts more effective, including bonuses, contests, gifts and sales rallies.

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. But they have spot selling

FUTURE FORECAST OF MARKET:

Future forecast according to the management of the Consumer Product Division is 10-12% per annum.

QUALITY CONCEPT IN MARKETING:

36

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.

HUMAN ESOURCE

IR and HR are the back bone of framework of any organization. The success of organization mainly depends upon personnel department, which not only provides best human asset for an organization but also add to the value of its performance.

In Packages, IR & HRD work in collaboration with each other. IR department is directly headed by IR Manager who is autonomous in decision making regarding factory workers, Union negotiation and recruitment of workers up to grade I to V. While HR involves personnel activities for Junior Executives (JE & above). The IR department consists of four sections.

1. Time Office (Packages,PBD)2. Establishment3. Legal Cell4. Labor Welfare

TIME OFFICE WING:

It is the largest wing of IR department and performs most of the HR activities. It keeps the record of employees; calculate wages and salaries and marks the attendance of the employees. The system of record keeping is electronically organized in data management system (SAP).There are two types of employees in Packages:1. Employees working on monthly basisa. Permanentb. contractual2. Employees working on hourly basisa. Temporary (for 85 days)b. Shift workers

Hourly workers get their wages through a card system, which contains the information of all shift timings of entry and exit, overtime and fortnight attendance. This information is noted through punching machine and manually done and verified by immediate

37

supervisor or shift in charge. Thus total working hours are determined and wages are paid according to card information inscribed on it.

Gate passes:

A gate pass is issued to the employees if they go out of the factory during working hours for any personal / official work. This gate pass is duly signed by the concerned supervisory authority and is shown to the gate office before leaving the premises. These gate passes are then sent to the time office on next day where personnel officers check them in their Time Wizard attendance system.

This system gives workers flexible hour of duty and their performance improves. Moreover, the accuracy in payment is ensured because the pay of employee is directly proportional to the time worked.

ESTABLISHMENT:

Establishment is the main communication bridge between employee and management over and above all internal and external communication and data flow or correspondence. It is concerned with the documentation of whole of the recruitment process and other reports relating to it. The record is kept for 3 years and in some cases it is kept for 10 years as per directives of Tax and Audit department.

A file of a new employee after test and interview is prepared here. His/ her appointment letter , personal bio data form and joining report is filled up here and all related documents are also buckled up in the file. This very file is used for further record keeping of job changes. Furthermore, a personal identity card is issued to the employee who is to swipe in the swipe card system. The establishment section issues this card.

Payroll process is a electronically controlled program which reads the data like leaves deduction, incentive addition, bonuses, gate pass leaves balance, overtime additional payments, in short all deductions and earning of employee is added to each employee’s account and salary slip is prepared which is sent to the accounts department. Other responsibilities of X3 includes, entry of record of each newly hired employee into the system and amend and maintain the record of existing employees, keep a check on the end date of contract of contractual employees etc. Senior Personnel Officer who is in charge of whole wing heads all these activities of Time Office. Sr. Personnel Officer directly reports to IR Manager.

SAP APPLICATION IN HUMAN RESOURCE MANAGEMENT FUNCTIONS:

IR department is partially automated with SAP system. It has a complete module of personnel administration. Whole record of newly hired employees to packages family and existing employees is kept maintained and updated in the system. Salary or payroll process is maintained and entered in the system which increases the efficiency and

38

effectiveness of the HR functions. The work is more error free, reliable data which at any time can be retrieved through its auto generation of information reports.

Limton attendance system, which was introduced by the Limton Group Of Companies, is made compatible with SAP system so that the attendance system acquires the necessary data from employment record. Thus, the whole integrated system has made the Packages a centrally controlled automated system which has increased the working capacity, coordination and ranked it a technologically adaptive learning organization.

TRAINING & DEVELOPMENT:

Training and development refers to a planned effort by a company to facilitate employees' learning of job related competencies. These competencies include knowledge, skills or behaviors that are critical for successful job performance. The goal of training is to master the skills, knowledge and behaviors emphasized in training programs and apply them to their day-to-day activities. Training prepares employees for higher and different assignments and to accept future challenges.

Following are the reasons for which training may be required in Packages:

Introduction of a new technology

New job (transfers, rotation)

Low performance

Legislation

Customer requirement

Lack of basic skills

High expectations of the boss.

Process of Training at Packages

Four components are involved in training at Packages1. Need assessment2. Selecting a training method3. Selecting the source of training4. Training evaluation

1. Need assessment

39

Need assessment is done at the following three levels out of which person analysis is given most importance in Packages.1. Organizational analysis2. Person analysis3. Task analysis

Organization analysis determines whether the training is in line with the company's business strategy, whether resources are available for training and whether managers are willing to provide support for training activities.

Person analysis involves:

Determining whether performance deficiencies result from a lack of knowledge, skills and ability or from a motivational or work design problem

Identify which employees in the organization require training

Determining whether the employee is interested in training or not

Task analysis includes identifying the important tasks and knowledge, skills & behavior that need to be emphasized in training for employees to complete their tasks. Performance appraisal plays a vital role in need assessment. Departmental heads and Human resource manager participates in need assessment.

Packages is a learning organization. It continuously encourages its employees to learn new things and apply it to improve their quality of work through proper feedback.

TRAINING METHOD

The next component is to determine the best training method out of the following.i. In-House Trainingii. On-The-Job Trainingiii.Off-The-Job Training

(a) In-House Training:

At Packages in-house training is conducted at Irshad hall and the method used for in-house training are

Guest speakers Panel discussions Audiovisual techniques Presentations

(b) On-The-Job Training:

40

New or inexperienced employees learn through observing managers' performing on the job and trying to mould their behavior. Self directed learning takes place in on- the-job training.

(c) Off-The-Job Training

HRD department sends employees from different departments to different institutes for off-the-job training where the variety of techniques for off-the-job training which includes:

Simulations Case studies Business game Role-play Behavior modeling

SWOT ANALYSIS

STRENGTHS:

•People are more familiar with Packages than its competitors only due to the reason that they are pioneer in the packaging industry.

•Specialized management personnel and highly motivated staff.

•Leader in paper technology in Pakistan.

•Large R &D budget, almost 34 % of the investment is made in this section.

•Effective distribution management with proper check and balance through proper distribution networks and its division of areas.

•Major market share in tissue paper in which rose petal covers almost 75 % of tissue paper industry.

•Manufactures own tissue papers; its competitors use imported one.

•A long listed product line and length as compared to the competitors i.e. rose petal has 7 variants only in facial tissues.

•Monopoly in wet tissue.

WEAKNESSES:

41

•Sell their products on cash basis.

•High gram age tissue, not much softer.

•Analysis of sales on primary sales report not on secondary.

•Highly paid sales staff, sometimes reluctant to attend small shops.

•High prices as compared with competitors.

•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.

•The promotion process is very slow in the company.

•Particularly consumers are not satisfy with their price of RUMMAL (Rose petal)

OPPORTUNITIES:

•Demand of tissues and other disposable products are increasing, as its awareness is increasing.

•Can target young generation with different variants.

THREATS:

•Different kinds of taxes levied by the government.

•Different kinds of smuggled tissues.

•High costs.

•Tough competition is expected in future, Hier is going to establish the packaging firm.

(EXTERNAL ANALYSIS)

OPPROTUNITY

•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.

42

•Quality awareness & consciousness among the customers are increasing.

THREATS

•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.

DEPARTMENT IN WHICH I WORKED

In my whole internship, I spent majority of time in Consumer Product Department where i take the understanding of the routine operations of CPD. During the first two days of my internship, the territory Incharge briefs me about the Packages as an organization and their departments. A sort of orientation process was gone on the first two days and I got aware by the whole organizational behaviors and procedures. After that I had practically done all the tasks of the CPD department over the period of around eight weeks. The first task is to get aware with brands of packages that includes their variants, how they placed in the markets, what are the target segments, what is the whole supply chain of the product, an over view about the production process and raw materials, how the raw material is procure, what is the pricing and marketing strategy, relationship with the distributors, how the distribution channel work, the relationship with institutions and how are the competitors, what are their strategies

Mean while my immediate boss placed me on the distribution channel to observe their working and learn them by participating in their activities. My second task was to visits the markets and understands the spot selling concept and their implications. While doing this I had revolved around the different markets of Islamabad and develop an understanding about them. Through market visits, I had also learned the concept of merchandising and its applications.

During my internship tenure I had also participate in the management of many out door promotional campaigns with the collaboration of SPOs. In these activities, we usually did the free sampling and organized some recreational elements for the customers. At the end of every day I used to made the daily sale reports and record it. On the last day of every month i prepared the report on the whole month sales and see that how much had been achieved this month and compared it with the last month and with same moth of last year. The starting day of the next month I did the forecasting for the coming month and set the targets. Basically the targets are set for the whole quarter and then that are divide on each month.

The regional sale manager had gave me the project in which I had to conduct a market survey on one their unstabilized brand and made a report on the existing marketing strategy of that brand and gave the inputs on their improvements. Basically it is relatively a new product that is import from the Sweden by Packages and markets it in the Pakistan.

43

Packages had imported that product “TENA Slip” in 2007-08 and launched it in Pakistani market. TENA slip is basically a adult diaper and a medicated product which didn’t used as an common item. Due to some what reasons TENA didn’t show some reliable results and were still in the surviving stage. For that project I had conduct a market survey while considering the markets of Rawalpindi and Islamabad. I directly collect the primary data by interact with the retailers and tried to extract the reason of not clicking of TENA in the market. I had observed the market behavior of the competitors and their strategies. I had made a complete analysis report on it which is attach in the annexure.

During my internship I had identifies the potential institutions to boost the sales of institutional sales and succeed in developing one of them. I had prepared a list of these institutions which become a healthy client of Packages in future. I had also generate a order of Rs 0.085 million against the sale of TENA which was one of my another prominent achievement in my internship.

CONCLUSION

•Packages is one of the latest and pioneer packaging units in Pakistan.

•It also assists the other countries in paper technology and management.

•It is leader in pulp & paper and packaging industry in Pakistan.

•It pays a huge amount annually in the form of taxes to the government of Pakistan.

•“Rose Petal” tissues are very popular among customers.

•The market share of Rose Petal is 75% approx. and 20%-25% in packaging sector.

•Company’s distribution channels are very effective.

•The packing of Rose Petal tissues is much attractive as compared with its competitors.

•It has more variety in tissue line as compared with the competitors.

•It has monopoly in wet tissues.

•The management of Packages Limited is very loyal to its “quality policy”

•Company’s advertisement budget for Rose Petal, Tulip and Feminex is very high as compared to its competitors (Flying & Fay).

•Packages Limited is in pulp & paper and packaging material manufacturing business since 1957, so its management has very vast experience in these fields.

•Packages Limited mostly deals in industrial goods for which they never advertise.

44

•In consumer products the management of Packages believes in “pull strategy” i.e. creating pull through advertising.

•Recently consumer promotion has been introduced for certain consumer products.

•The prices of the products of Packages are higher than the competitors due to the fine quality, it provides.

•It can also be concluded that Packages should reduce the prices of its tissues.

•Since the people are getting easy going day by day so the future of Packages Limited is very bright as it makes disposable products.

RECOMMENDATIONS

During internship in 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. 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.

•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.

45

•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 at all level especially at SPOs level.

•Packages Limited does not offer the credit base sales which effect the sales and as well as losing the more other opportunities.

46