Sitara Chemicals Industries LTD INTERNSHIP REPORT NAME OF THE ORGANIZATION: SITARA CHEMICAL INDUSTRIES LIMITED 32KM SHEIKHUPURA ROAD ACKNOWLEDGEMENT PDF

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Sitara Chemicals Industries LTD INTERNSHIP REPORT NAME OF THE ORGANIZATION: SITARA CHEMICAL INDUSTRIES LIMITED 32KM SHEIKHUPURA ROAD FAISALABAD. SPECIALIZATION: MARKETING. SUBMITTED BY: MUHAMMAD JAHANGIR ILYAS ROLL #2082 SUBMITTED TO: Sitara Chemicals Industries LTD ACKNOWLEDGEMENT All praises belon...

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Sitara Chemicals Industries LTD

INTERNSHIP REPORT

NAME OF THE ORGANIZATION:

SITARA CHEMICAL INDUSTRIES LIMITED 32KM SHEIKHUPURA ROAD FAISALABAD.

SPECIALIZATION:

SUBMITTED BY:

MARKETING.

MUHAMMAD JAHANGIR ILYAS ROLL #2082

SUBMITTED TO:

Sitara Chemicals Industries LTD

ACKNOWLEDGEMENT All praises belong to almighty ALLAH who is the supreme Authority Knowing the ultimate relations underlying all sorts of phenomenon going on in this universe and whose blessings and exaltation flourished my thoughts and thrived my ambitions to Have the cherished fruit of my humblest thanks to the Holy Prophet Hazrat Muhammad (Peace be upon him) who is forever a torch of guidance and knowledge and knowledge for humanity as a whole. I deem it my utmost pleasure to avail this opportunity to express gratitude and deep sense of obligation to my reverend teachers, for their valuable and dexterous guidance, scholarly criticism, untiring help, compassionate attitude, kind behavior, moral support and enlightened supervision during the whole study and completion of the project. I am also gratitude to staff of Sitara Chemical Industries Ltd. Especially Mr.Ijaz Hussain (D.G.M Sectt/Acting G.M Marketing) Mr. Khalid Pervaiz Khan Niazi (Sr. Manager Admin), Tariq Mehmood (Manager HR) who provides me useful information during the internship program. I am thankful to all those people, who provide me valuable information. Finally, I should like to extend heartfelt thanks to my adoring PARENTS, for their day and night prayers, sacrifices, encouragement, moral and financial support throughout the course of my study.

MUHAMMAD JAHANGIR ILYAS B.B.A (Marketing)

Sitara Chemicals Industries LTD

3: LIST OF CONTENTS LIST OF CONTENTS Subject

Page No.

1. TITLE PAGE

01

2. ACKNOWLEDGEMENT

02

3. LIST OF CONTENTS

03

4. LIST OF TABLES & ILLUSTRATION,IF ANY

05

5. INTRODUCTION

06

6. OBJECTIVES OF STUDYING THE ORGANIZATION

07

7. OVERVIEW OF THE ORGANIZATION

08

7.1 HISTORY

08

7.2 NATURE OF THE ORGANIZATION

09

7.3 BUSINESS VOLUME

09

7.4 PROFILE OF EMPLOYEES

11

7.5 PRODUCT LINES

14

8. ORGANIZATION AL STRUCTURE

16

8.1 MAIN OFFICES

16

8.2 MARKETING OPERATIONS

20

9. STRUCTURE OF MARKETING DEPTT. 9.1 NUMBER OF EMPLOYESS WORKING

21 21

IN THE MARKETING DEPARTMENT. 9.2 MARKETING OPERATIONS

22

Sitara Chemicals Industries LTD

10. FUNCTIONS OF MARKETING DEPTT.

24

10.1 MARKETING STRATEGY

26

10.2 PRODUCT PLANNING, DEVELOPMENT

26

& MANAGEMENT 10.3 PRICING STRATEGY

28

10.4 DISTRIBUTION STRATEGY

29

10.5 PROMOTIONAL STRATEGY

30

11 CRITICAL ANALYSES

32

11.1 SUCCESS & FAILURE OF PRODUCTS

38

11.2 MAJOR COMPETITORS

38

11.3 FUTURE PROSPECTS OF THE ORG.

40

12 SHORT-FALLS/WEAKNESSES OF THE MARKETING DEPARTMENT

42

12.1 SWOT ANALYSIS

42

13 CONCLUSION & RECOMMENDATIONS

43

14 REFERENCES & SOURCES

46

15 ANNEXURE

47

Sitara Chemicals Industries LTD

List of tables & illustration List of tables & illustration, if any 1. TABLE OF PER TON CAPACITY OF CAUSTIC SODA 2. TABLE OF SHARE HOLDING & THEIRE PERCENTAGE 3. MARKET SHARE OF CAUSTIC SODA 4. ILLUSTRATION OF WORLD WIDE CAUSTIC SODA CONSUMPTION 5. ILLUSTRATION OF CAUSTIC SODA CONSUMPTION IN PAKISTAN 6. ILLUSTRATION OF SHARE HOLDER EQUITY

Sitara Chemicals Industries LTD

Introduction Sitara Chemical Industries Ltd. (SCIL) SCIL is an industrial unit belongs to one of the largest Group of Industries in Pakistan “Sitara Group Of Industries Ltd.” Sitara Group of industries comprises of following business units.

Sitara Group Of Industries Sitara Chemical Industries Ltd. _ Chemical Division Sitara Chemical Industries Ltd. – Textile Division Sitara Textile Limited Sitara Energy Limited Sitara Fabrics Sitara Agri Model Farm Sitara Per Oxide Sitara PVC Ltd. Sitara Shopping Mall Groups Charitable Institutions Aziz Fatimah Trust Hospital Ghafoor Bashir Children Hospital Aziz Fatimah Girls High School Sitara Children Health care Foundation

Sitara Chemicals Industries LTD

Objectives of Studying the Organization •

To learn about the modern Information Technology S.A.P (ERP) is implemented in Sitar Chemical by the Abacus Consulting. Its main objective of an ERP to provide instantaneous information on Sales, Marketing, Manufacturing, Operations, Inventories and Financial etc.

•

To learn about sales volume increased every year 10% from other competitors.

•

To learn about Sitar Chemical daily average sales above 20 Million. That is the efficiency of Marketing Department.

•

To learn about PVC Project has been working that able to complete the demand on poor electricity supply conditions prevailing in the country.

•

To Learn about Sitara Chemical Industries Limited which is working Riba Free.

•

To Learn about Sitara Chemical Industries Limited who has the Largest Chlor Alkali Manufacturing Plant in the Pakistan.

•

To Learn about Sitara Chemical, which has, the fully automatic caustic soda plant based on latest membrane cell Technology absolutely mercury free initially production of Caustic soda is 30 MT/day gradually increased due to demand to current Level of 550 MT/day.

•

To learn about the quality products of Sitara Chemical Industries Limited who has ISO 9001-2000 Certified & Producing the Quality Product. The following is the Quality Policy of the Sitara Chemical Industries

Sitara Chemicals Industries LTD

SCIL QUALITY POLICY (CQM-001) “SCIL is Committed to remain alert & advance to continuously grow as a quality symbol for its products & in meeting industrial & consumer requirements through training, teamwork & procedures on time, every time” •

To learn about the Sitara Chemical Industries Limited who is also ISO 14001 Certified & is the environment friendly & Pollution free organization. The following is the Environmental Policy of the of the Sitara Chemical Industries SCIL ENVIORMENTAL POLICY (EQP-001) “SCIL is committed to continual improvement of its environmental management system (EMS) by adoption of appropriate pollution prevention measures & complying with all relevant environmental legislations/regulations through training, teamwork & procedures as implemented from time to time”

•

To Learn about the organization who has the deep Regard of the vendors Customers, Business Partners & Employee

7: OVERVIEW OF THE ORGANIZATION 7.1 Brief History Sitara

Chemical Industries Ltd. Was

incorporated

in 1981 as a

public limited

company and started its commercial production in 1984, under the zealous administration of two brothers, Haji Abdul Ghafoor (late) and Haji Bashir Ahmad. Now Mr. Muhammad Adrees is the Chief Executive of SCIL. The factory is situated at 32km Sheikhupura Road Faisalabad. SCIL incorporated under the companies’ ordinance 1984 and listed in1987 Initially SCIL was incorporated for Chloral Alkali Production, however it under gone merger with Gafoor Basheer Taxtile. SCIL has made growth by leaps and bounds and

Sitara Chemicals Industries LTD

become largest Caustic Soda producer in Pakistan. At present SCIL has a market share of 70% in Caustic Soda industry. 7.2Nature of the Organization Core business of the company is manufacturing of Caustic Soda and some byproducts at Chemical Division. Textile Division consist of one spinning units of 45,408 spindles where cotton yarn if produced. The Company mainly supplies industrial chemicals to various industries, which gives the company a very wide consumer base diversification over many industrial segments. The location of the plant is also strategic as some of the major consumers belonging to textile, soap, paper and vegetable oil industries are situated in the surrounding area. 7.3 Business Volume Sitara Chemical Industries Ltd. is the largest producer of Chlor-Alkali products in Pakistan. The total amount of turnover in 2012 was Rs.6.00 Billion Caustic soda industry in Pakistan comprised of only three produces mentioned below. Forecasting a persistent increase in demand management is trying to increase production capacity of plant. The estimated market situations of last five years are as follows. June 2012 Producer

Sitara Chemical Ind. Ltd Ithad Chemical Ltd.

Capacity Tons

% Age 58.

213,575

23 35.

145,750

81

31,000 390,325

96

5. Nimar Chemical Total

100 .00

Sitara Chemicals Industries LTD

Sitar chemical Industries Ltd Itehad Chemical Ltd Nimir Chemical

Market Share of Caustic Soda Industry in Pakistan

June 2011 Producer

Sitara Chemical Ind. Ltd Ithad Chemical Ltd.

Capacit y Tons

% Age

179,850

23

125,400

81

54. 37. 7.

Nimar Chemical

26,400

96 100.

Total

331,650

00

Sitar chemical Industries Ltd Itehad Chemical Ltd Nimir Chemical

Market Share of Caustic Soda Industry in Pakistan June 2010

Sitara Chemicals Industries LTD Producer

Sitara Ind. Ltd

Capacit y Tons

% Age

Chemical

54. 180,230

76

118.269

64

31,500

50

36. Ithad Chemical Ltd.

8. Nimar Chemical Total

329,999

100 .00

Sitar chemical Industries Ltd Itehad Chemical Ltd Nimir Chemical

Market Share of Caustic Soda Industry in Pakistan June 2009 Producer

Sitara Ind. Ltd

Capacit y Tons

% Age

Chemical

51. 145,003

15 38.

Ithad Chemical Ltd.

130,588

52 1

Nimar Chemical Total

75,099 350690

0.33 100 .00

Sitar chemical Industries Ltd Itehad Chemical Ltd Nimir Chemical

Market Share of Caustic Soda Industry in Pakistan

Sitara Chemicals Industries LTD

June 2008

Producer

Sitara Chemical Ind. Ltd

Capacit y Tons

% Age 52.

165,659

34 41.

Ithad Chemical Ltd.

130,700

36

18,400

30

6. Nimar Chemical Total

314,759

100 .00

Sitar chemical Industries Ltd Itehad Chemical Ltd Nimir Chemical

Market Share of Caustic Soda Industry in Pakistan 7.4 Profile Of Employees For the year ended June 30, 2012, total number of permanent employees were 1,184 where as number of contract employees were 715. Company has maintained recognized provident fund, based on audited accounts as at June 30, 2012, value of

Sitara Chemicals Industries LTD investment thereof was Rs, 30,408,7052. Whereas employees of Textile Division are entitled to gratuity. Company has its charter of ethics and business practices which is signed by all the employees. Career Planning The company provides attractive salary packages as well as good career progressions to its employees. Special attention is given to Succession plans to fill up gaps required at the time of need. The employees are made aware of their career progression’s profile right at the time of induction.

Training Need Assessments The company understands the importance of training and is totally committed to the training aspects to enhance the skills and capabilities of its employees. A fully equipped HRD center has been established at SCIL to conduct regular in-house courses and training sessions. Sometime SCIL qualified staff conducts these sessions and at times experts from outside Institutions are invited to impart training to employees of various trades. Mostly there training is arranged in PIMS, SEMEDA and employers Federations of Pakistan, etc for external courses in their related field. Hiring Of Trainee Engineers And Management Trainees Sitara Industries plays an important roll in the professional growth of the fresh Engineers and MBAs/ Master Degree Holders. SCIL induct them as Management Trainees for a period of one year and during the training period offer them reasonable

Sitara Chemicals Industries LTD stipend. On successful completion of training period, company offers them Jobs with handsome Salary package. Profile of Eminent Executives MR. SHER ALI MALIK has joined Sitara Chemical Industries Limited on July 25, 2008 as Manager Marketing. He is holding a degree of MPA from University of Punjab Lahore. He brings with him 15 years of experience in Sales Operational Management and Brand Management of Fast Moving Consumer Goods (FMCG). He has prior worked with well known processing as well as manufacturing companies like Habib Oil Mills (pvt) Ltd. United Industries Limited and Iffco Pakistan (pvt) Ltd., Formerly Evian Fats and Oils.

MR.LIAQAT ALI SHAHID has joined Sitar Chemical Industries Ltd. As General Manager Commercial on August 01, 2008. Did his B.Sc. Mechanical Engineering from University of Engineering & Technology Lahore in the year 1978. He has about 30 years of experience in well-known companies like Crescent Sugar, Pakistan Tobacco, Rafhan Maize & Syed Bhais. His past experience is related to Plant Maintenance, Preventive Maintenance, Operations, Material Planning, Inventory Control, Purchasing (Local & Imports) and Vendors development. He has also attended various short courses like improving steam boiler efficiency & steam distribution system, waste heat recovery, Operations Management and basic courses for ISO-9001. MR. TARIQ MEHMOOD is a valuable addition to highly professional, committed and motivated team of Sitara Chemical Industries Ltd. He has professional qualification of AICM (Chartered Manager). He brings with him diversified

Sitara Chemicals Industries LTD experience of Human Resources Management spread over 13years in different capacities/organizations. He has attended number of conferences and courses. MR. SHAKEEL REHMAT MALIK has joined as Manager Administration in Sitara-Family with effect from 11th April 2008. Mr. Malik has done his Masters in Organic Chemistry and bachelor degree in law from University of the Punjab. He has also done Post Graduate Diplomas Labor, Taxation laws and International Affairs. Mr. Malik is also equipped with 15years of rich managerial and professional experience in the fields of Legal, corporate, Industrial Relations and Administration during which he has not only served in private but also in public sector. He has privileged to serve in large industrial groups like Packages, Crescent, Chakwal and Habib Group.

7.5 Product Lines Following SCIL’s main products along with production capacity Chemical Division Product Name

Designed Capacity (Tons Per Year)

Caustic Soda

132,000

Sodium Hypochlorite

36,000

Bleaching Powder

7,500

Ammonium Chlorite

3,000

Hydrochloric Acid

110,000

Textile Division Kgs In 20-Single Cotton Yarn

20,791,776

Caustic Soda utilization It is used in textile processing as mercerizing agent & fixing agent, Neutralizing agent in petroleum refining, pulp and paper, detergents, vegetable-oil refining, soap industry

Sitara Chemicals Industries LTD as a sponifying agent, ion exchange resins regeneration, chemical manufacture of rayon and cellophane etc. Worldwide caustic soda apparent consumption by end use 2012 (%)

Caustic consumption in Pakistan – sector wise

Sodium Hypochlorite utilization Used in textile, carpet industry, sodium silicate manufacturing, sugar industry, disinfection for potable water and cooling tower, rayon and other chemicals

Sitara Chemicals Industries LTD Bleaching Powder utilization Used in textile Industries, carpet Industries, water purification, pulp, paper and paper board, sugar etc. Ammonium Chlorite Utilization Used dry battery cell, galvanizing pipe, sheet and other material, pharmaceuticals metal cleaning, soldering, tanning etc. Hydrochloric Acid Utilization Textiles, water treatment, production of liquid sugar, steel pickling & galvanizing industries, Production of gelatins from bones, activated clay etc. Cotton Yarn utilization Used in weaving of gray cloth.

8: ORGANIZATIONAL STRUCTURE 8.1 Main Offices Department Accounts Department

Function To prepare monthly, quarterly and annually Accounts, Costing, Budgeting & Forecasting. To handle payable

Finance Department

and insurance, L.Cs, Inventory & Stores etc Arranging Finance and negotiate over coat of finance, To

Internal Audit

handle sale, receivable, debtor aging, cash and bank etc To monitor the implementation of internal procedures,

Department

policies internal control systems and repot any violation.

Commercial Department Information Technology

Detection and control of financial risk and frauds. To handle local & Import procurements. Development & launch the new system (SAP),

Department Administration

Networking, Hardware Maintenance. Dealing stake holders in general issues, transport, care

Department Human Resource

taking, weighbridge, security, recovery, horticulture, Hiring new manpower, satisfaction, Motivation,

Department Health Safety

Appraisals etc ISO Audit and ISO implementation, Internal safety &

Environment (HSE)

environmental awareness and health improvement.

Sitara Chemicals Industries LTD CEO Secretariat

To assist Chief Executive Officer in performing his daily

Production Department

functions. To undertake production activity and maintain desired

Electrical & Instrument

production volume Maintain and economies

electricity

consumption,

Installation and maintenance of Electrical & Electronics Mechanical Department Civil Department

Instruments Installation and maintenance of plant and machinery. Undertake civil works activity either in maintenance or new projects

Research & Development

Product

development,

product

improvement

and

(R&D)

economies production cost by discovering raw material

Quality Control Project Department

substitute or change in production process. Maintain quality and deal with complaints To design and build structural design of new plant to be

Agri Division

installed. Basic purpose was to go for diversification by innovative Agri products developme...