18096694 Internship Report

Internship Report

On

Submitted to: Ms. Shamana Munawar

Submitted by:Shehr Yar Anees SP07-MBA-095

Department of Management Sciences

COMSATS Institute of Information Technology

M.A. Jinnah Campus, Lahore.

COMSATS Institute of Information Technology, Lahore. - 1 -

In The Name

of ALLAH The Most Gracious,The Most Merciful


Dedication

I dedicate this report to my Parents.Without their Patience, understanding, support,

and most of all their love and prayers, the completion of this work would not have been

possible.


ACKNOWLEDGEMENTS

‘In the name of Allah, the most Gracious, the most merciful’

Internship remained a great experience for me as it added a lot to my knowledge.

However completion of Internship Report was not an easy task. It requires

continuous hard work and zeal. I think that there are many people who contributed a

lot to this report and completion of this report would have not been possible with out

the support of all these people, my respected teachers, my friends and my well

wishers. I would like to mention that Mr. Abdul Jabbar Athar, who was Material

Manager at ICI has been very kind and supportive through out my stay at there.

I would like to pay my gratitude to all my respected teachers for their guidance and

assistance in the completion of this report.

My gratitude will always remain due to the COMSATS Institute of Information

Technology and especially ICI Pakistan Ltd., Soda Ash Business for increasing my

knowledge and experience by providing me such an opportunity. Both these

prestigious institutions will have a lasting impact on my life.

May Allah Bestow His Blessings on All of Us

Shehr Yar Anees


TABLE OF CONTENETS

Executive Summary …………………………….......................... 7

Vision & Mission Statements …………………………………. 8

Introduction ……………………………………………………… 9

Business Portfolio ………………………………………… 9

Company from foundation till now …………………………… 10

ICI Pakistan Businesses …………………………………. 12

Products ……………………………………………………… 14

The AkzoNobel Chapter ………………………………….. 19

Soda Ash Business …………………………………………. 21

Values ……………………………………………………….. 23

Organizational Chart …………………………………………. 26

Business Strategy of ICI ………………………………………….. 27

Marketing ………………………………………………………………. 28

Marketing Environment …………………………………… 28

Target Market ………………………………………………… 28

Products ……………………………………………………….. 29

Distribution ………………………………………………… 31

Production & Operations ………………………………………….. 33

Production System ………………………………………….. 33

Solvay Process for Soda Ash Manufacturing ………………. 34

Raw Materials …………………………………………………. 35

Manufacturing Process …………………………………………. 36

SSHE Programme …………………………………………... 39

Finance ………………………………………………………………. 41


Major Highlights of 2007 ……………………………………. 41

Balance Sheet ………………………………………………….. 43

Profit & Loss Account ……………………………………………. 44

Ratio Analysis ………………………………………………….. 45

Activity Ratios …………..………………………………. 45

Profitability Ratios …..………………………………… 46

Market Ratios ………….………………………………. 48

Human Resource Management ……………………………………. 49

Recruitment procedure ……………………………………. 50

Performance Evaluation ……………………………………. 51

Problem Encounters ………………………………………….. 51

Compensations and Benefit ……………………………….. 52

Employees Creational Programmes ……………………… 54

SWOT Analysis ……………………………………………………. 56

My Working at ICI …………………………………………………. 59

Conclusions ………………………………………………………… 61

Recommendations ……………………….………………………… 62

Bibliography ………………………………..………………………. 64

EXECUTIVE SUMMARY


ICI was established in 1926, while it started it Pakistan chapter by establishing Soda

Ash Plant at Khewra, Distt. Jhelum in 1944. It is one of the oldest and fully

automated companies of Pakistan. ICI has currently five business in Pakistan in

which Soda Ash Business is the oldest and important one.

ICI was incorporated in 1953 and listed on Karachi Stock Exchange in 1957 as

Khewra Soda Ash Company and this name was changed to ICI Pakistan Limited in

1987. Now ICI is operating as a subsidry of AkzoNobel which is the chemical

industry leader around the globe.

Main purpose the internship was to extract practical knowledge by working in a

dynamic organization in order to apply the knowledge acquired during MBA

programme. Report include in depth analysis of the organization and carry financial,

technical, managerial and strategic aspects which have been evaluated to analyze

the current position of the organization.

I have evaluated the company by techniques like financial ratio like Profitability,

Activity and Debt ratios. These ratios are showing constructive signs for the future

prospects of the company. Management is capably utilizing the assets of the

company in order to generate sales. Overall financial position is adequate. Further

supportive material regarding the financial situation of the company is also included

in the report.

I am sure that this report will provide you a complete and clear image of

organization.


VISION STATEMENT

ICI’s vision is to be the industry leader in creating

value for customers and share holders. ICI will succeed

by operating at the highest levels of excellence,

acquiring unrivalled knowledge of key markets and

using technology creatively. The result will be products

which deliver greater benefits for the company’s

customers, higher returns for shareholders and

increased rewards for employees.

MISSION STATEMENT

We will remain market leaders in Soda Ash and

derivatives business in Pakistan by strengthening our

customer base while being the lowest cost producer in

the region and the most reliable supplier of quality

products.

Chapter 1

INTRODUCTION


ICI has consistently developed new and innovative areas of business since its

formation in December 1926, by the merger of four of the largest chemical

companies in the UK. ICI today is a collection of world-class businesses, many of

them leaders in their sectors. They are strongly led, technologically sophisticated

with healthy and sustainable long-term growth prospects.

ICI Pakistan Limited was set up as a public limited company in Pakistan in 1952.

ICI’s presence in this part of the world, however, predates the formation of the public

limited company and indeed, Pakistan itself. The Khewra Soda Ash Company, a

predecessor of ICI Pakistan Limited, set up a soda ash manufacturing facility in

Khewra in 1944 with a capacity of 18,000 tonnes per annum. This facility was sited

next to the salt range as rock salt and limestone; two key raw materials for

manufacturing soda ash were available here in abundance.

Today ICI Pakistan’s five businesses, Polyester, Soda Ash, Paints, Chemicals and

Life Sciences, manufacture and sell a range of industrial and consumer products.

These include, Polyester Staple Fibres, POY Chips, Light and Dense Soda Ash,

Sodium Bicarbonate, Paints for the Decorative, Automotive, Refinish segments, for

Industrial use and Projects, Specialty Chemicals, Polyurethanes, and Adhesives and

arranges manufacture on a toll basis of Pharmaceutical and Animal Health products.

It also markets Seeds and in addition is engaged in trading in various specialized

chemicals for use in industries in Pakistan.

In 1995 ICI Pakistan Limited set up a USD 490 million PTA manufacturing facility at

Port Qasim, near Karachi, which was commissioned in 1998. In 2000, the business

was de-merged to form Pakistan PTA Limited, which was at the time a subsidiary of

ICI Plc UK.

The turnover of ICI Pakistan Limited in 2007 was Rs 25.97 billion and the profit

before tax crossed Rs. 2.77 Billion. It is one of the largest quoted companies on the


Karachi, Lahore and Islamabad Stock Exchanges with a paid up share capital of Rs

1.39 billion. The company has around 1300 permanent employees

Company from Foundation till Now

Year Achievements1944 It establishes its first manufacturing site for the production of

Soda Ash at Khewra.1953 The Khewra Soda Ash Company is Incorporated as a Public

Limited Company.1957 The Khewra Soda Ash Company is listed on Karachi Stock

Exchange (G) Limited.1965 ICI Plc acquires 50% shares of Fuller Paints1966 The name of Khewra Soda Ash Company changes to ICI

Pakistan Manufacturers Limited. 1966 ICI Pakistan Manufacturers Limited increases capacity of Soda

Ash Plant to 45,000 tons.1968 ICI Pakistan Manufacturers Limited commissions its Speciality

Chemicals Plant at Karachi.1970 ICI Pakistan Manufacturers Limited sets up its Pharmaceutical

Processing Unit in Dhaka (formerly East Pakistan) 1973 Fuller Paints changes its name to Paintex Limited. 1979 ICI Pakistan Manufacturers Limited increases capacity of Soda

Ash Plant to 65,000 tons.1980 ICI Pakistan Manufacturers Limited is listed on Lahore Stock

Exchange (G) Limited.1982 ICI Pakistan Manufacturers Limited sets up Polyester plant at

Sheikhupura with a capacity of 12,000 tons. 1982 ICI Pakistan Manufacturers Limited Commissions new Dense

Ash Plant at Khewra.1985 Imperial Chemicals Industries (Pakistan) (Private) Limited and

Paintex Limited merge into ICI Pakistan Manufacturers Limited.1987 The company name changes to ICI Pakistan Ltd.1987 ICI Pakistan increases capacity of Polyester Plant to 19,000

tons.1991 ICI Pakistan PowerGen Limited is incorporated as a Public

Limited Company.1991 ICI Pakistan launches its Seeds Business.1991 ICI Pakistan Foundation is registered as a charitable trust.1991 ICI Pakistan increases capacity of Soda Ash Plant to 100,000

tons.1992 ICI Pakistan Paints Business introduces Dulux Range of natural

white colours with added fragrance.1993 ICI Pakistan commissions a plant for manufacturing of


specialized automotive paints.1993 ICI Pakistan adds Polyol blending facility to its Speciality

Chemical Plant.1994 ICI Pakistan increases capacity of Soda Ash plant by 50,000

tonnes to 185,000 tonnes.1994 ICI Pakistan marks the 50th anniversary of Soda Ash production

at Khewra.1995 ICI Pakistan’s operating profit crosses the one billion rupee

mark for the first time.1995 ICI Pakistan commissions Sodium Bicarbonate plant.1995 ICI Pakistan launches SHE (Safety, Health & Environment)

Challenge 2000.1996 ICI Pakistan increases Polyester fibre capacity to 60,000 tonnes

and polymerization capacity to 91,000.1997 ICI Pakistan Limited is listed on Islamabad Stock Exchange (G)

Limited. 1998 ICI Pakistan commissions its PTA plant.1999 ICI Pakistan is awarded second position for “Best Corporate

Accounts” in the non-financial sector for its 1998 Annual Report by the South Asian Federation of Accountants.

2000 ICI Pakistan PTA Business demerges into a separate entity, Pakistan PTA Limited.

2001 ICI Pakistan launches ERP (SAP) implementation. 2002 ICI Pakistan increases capacity of Polyester Plant by 44kpta

completed through Fayzan Manufacturing Modaraba.2004 Zestril of ICI Pakistan’s Pharmaceutical Division become the top

selling ace-inhibitor in Pakistan.2006 As a part of an asset modernization and improvement plan the

Polyester Business commissions a sixth processing line.2006 ICI Pakistan launches seven core values – set of belief and

principles, which the employees live and work by.2006 ICI Pakistan crosses the Rs. 2 billion mark in operating result

for the first time.2006 ICI Pakistan’s Pharmaceutical Division enters the anti-infective

segment with its first branded generic “Icef”.2006 ICI Pakistan achieves compliance with Section 404 of the

Sarbanes Oxley Act.2006 ICI Pakistan’s Paints business launches is first super premium

range – 5 in 1 technology brand Dulux Pentalite Classic.2007 ICI Pakistan completes 50kpta expansion of its Soda Ash Plant.2007 ICI Pakistan announces 65kpta expansion of its Soda Ash

Plant.2007 ICI Pakistan is awarded the Third Best Corporate Report award

for the year 2006 by the Institute of Chartered Accountants of Pakistan an the Institute of Cost and Management Accounts of Pakistan.


2007 ICI Pakistan completes 50 years of continuous listing on Karachi Stock Exchange (G) Limited.

2007 ICI Pakistan constructs and hands over a Girl’s Primary School at Bararkot Near Garhi Habibullah to Earthquake Reconstruction and Rehabilitation Authority.

2008 Akzo Nobel becomes the ultimate holding company of ICI Pakistan Limited.

ICI Pakistan Businesses

Soda Ash Business:

Soda Ash Business produces and caters to approximately 70% of the Country’s

requirement for this commodity. Soda Ash has a wide variety of applications in

construction, hygiene, packaging and the paper industry and, therefore, it is an

important intermediate product to the end manufacturing industry. Situated in

Khewra the plant began commercial production in 1944.

Polyester Business:

The Polyester Business manufactures and markets polyester staple fibre (PSF), a

synthetic cotton, mainly used in the textile industry for producing blended (with

cotton) polyester rich yarn, fabrics and clothing. ICI Pakistan started

Paints Business:

The Paints Business operates in the Decorative, Industrial and the Refinish

segments. Wide range quality products and services, innovation and a legacy of

strong brands such as Dulux have been the foundations of this enterprise. Based in

Lahore, the Paints plant was acquired by ICI Plc in 1965.

Life Sciences Business:


The Life Sciences Business comprises three divisions: Pharmaceuticals, Animal

Health and Seeds. The Pharmaceuticals Division markets a portfolio of leading

prescription drugs sourced from renowned principals and has launched a range of

branded generics. The Animal Health Division markets superior quality veterinary

medicines for livestock and poultry from world-renowned companies as well as some

of its own brands. The Seeds Division is one of the leading providers of hybrid seeds

in the Country and a market leader in both the hybrid sunflower and fodder

segments.

Chemicals Business:

The Chemicals business comprises a unique and diversified portfolio encompassing

General Chemicals, Specialty Chemicals, and National Starch products. The

General Chemicals Business imports, blends, distributes and sells over 250

products/ variants from sixteen well-reputed international trading partners serving

every key industry in Pakistan. The Specialty Chemicals Business manufactures and

markets textile auxiliaries, adhesives, paint lattices, crop protection emulsifiers and a

range of process chemicals. Based in Karachi the plant has been operational since

1968.

Source: Annual Report - 2007

PRODUCTS

Polyester Fibres:


• SD- Semi Dull PSF

• SCD - Single Component Dyeing

• SDOB - Semi Dull Optical Bright

• EHT - Extra High Tenacity

• Super Bright

• Low Pill

• 1.0 Denier Microfibre

Soda Ash:

• Light Soda Ash (Na2CO3)

• Dense Soda Ash (Na2CO3)

• Sodium Bicarbonate (NaHCO3)

Paints:

• Decorative

• Refinish & Industrial

• Automotive

Chemicals:

• Fuel Oil

• Petrochemicals

• Motor Oil Additives

• Paint Additives

• Water Treatment Additives

• Adhesives

• Chlorinated Solids

• Ceramic Additives


• Acrylic Plastics

• Hydregenation Additives

• Explosives

• PVC Stabilizers

• Iron Coatings

• Filteration Aids

• Textile Auxiliaries

• Heat Treatment Salts

• Color Additives

• PVC Foaming Agents

Life Sciences:

Life Sciences-Pharmaceuticals Division

CARDIOVASCULAR

• Tenormin

• Tenoret 50

• Zestril

• Zestoretic

• Inderal

• Etizem

ONCOLOGY

• Nolvadex

• Zoladex

• Arimidex

• Cosadex


NSAIDS

• Proxen

• Synflex

ANAESTHETIC

• Diprivan (EDTA)

ANTIBIOTIC

• Meronem

CNS

• Zomig

• Seroquel

ANTHELMINTIC

• Ketress

GASTRO-INTESTINAL

• Etipro

RESPIRATORY

• Accolate

ANTI-INFECTIVES

• Icef


Life Sciences-Animal Health Division

ANTHELMINTICS

• Nilverm

• Nilzan

• Nilzan Bolus

• Zanil

• Systamex

• Oxfenda XC

• Endectin

INTRAMAMMARY

• Spectrazol

ANTIPROTOZOALS

• Butalex

• Imizol

ANTIBIOTIC

• Amoxivet

VACCINE

• Decivac FMD

INJECTABLE

• Somatech


Life Sciences-Seeds Division

CANOLA

• Hyola 401

CORN SEED (For Spring Season)

• Garst 8464

• Garst 8288

CORN SEED (For Autumn Season)

• Hycorn 11 Plus

• Hycorn 984

SUNFLOWER

• Hysun 33

• Hysun 38

• Hysun 39

FODDER

• Sweet Jumbo

• Rambo


The Akzo Nobel Chapter

“ICI Pakistan now operates as an independent business unit within

Akzo Nobel and as a part of its specialty chemicals portfolio”

It was announced on 13th August 2007 that Akzo Nobel and ICI Plc. had reached an

agreement on the terms of a recommended cash offer by Akzo Nobel for ownership

of ICI Plc. In October 2007, an agenda and accompanying Shareholder’s Circular

were published stating that, subject to the approval of the shareholders of Akzo

Nobel and ICI Plc, completion of the ICI deal was to take place on 2nd January, 2008.

During the month of November, Extraordinary General Meeting of the shareholders

of both Akzo Nobel and ICI Plc were held, during which Akzo Nobel and ICI Plc

shareholders voted 79% and 92.5% respectively in favor of the acquisition. On 2nd

January, 2008 the acquisition of ICI Plc by Akzo Nobel was officially completed and

the two companies became one.


Here is Bruce, as our logo is affectionately known. Bruce has been with us for more than 20 years and we have transformed him into an energetic and purposeful character that is more representative of the new Akzo Nobel.

The logo reminds us that our success has been built on forward-looking individual and collaborative achievement. The logo is the embodiment of Tomorrow’s Answers Today.

You will notice that AkzoNobel is now one word. It’s one word because we are one company. This might seem like a small change but it represents a great deal. It says that we are combining our strengths and talents to deliver Tomorrow’s Answers Today.

On 2nd January 2008, the acquisition of ICI by Akzo Nobel was officially completed

and the two companies became one creating a leading industrial company in coating

and chemicals. All businesses of ICI Pakistan have become a part of Akzo Nobel’s

continuing coating and chemicals portfolio. With a sold standing in the market, ICI

Pakistan are excited to be a part of this new company and are well posed to capture

the dynamic avenues it offer for future growth in coatings and chemicals and are set

to become bigger, better and more focused ever before.

Akzo Nobel has the distinction of being Fortune 500 company and listed on the

Euronext Amsterdam Stock Exchange. Complementing its long history dating back

to 1777 is the endless application of Akzo Nobel’s products across many

downstream industries. Akzo Nobel is the Chemicals industry leader on the Dow

Jones Sustainability Indexes as well as being included on the FTSE4 Good Index.

The new company has a presence in over 80 countries in the world, and is the

largest single industrial Company in decorative coatings. It stands on a solid platform

of combined global presence, technologies, products, brands and expertise that will

benefit their customers and drive the new Company to even greater success.


Key Facts• 14.4 billion in 2007

revenues*• Around 60,000 employees*• No. 1 global position in

Performance Coatings, and largest Decorative Paints Company

• One of the world’s leading Speciality Chemicals Producers

Chemicals Industry Leader Dow Jones Sustainability indexes

FORTUNE 500

Soda Ash Business

ICI Pakistan’s Soda Ash Business caters to approximately 70% of the Country’s total

requirement for this commodity. The Business mainly uses indigenous raw materials

and locally made equipment, thereby accruing savings to the Nation’s foreign

exchange reserves through import substitution. The major raw materials used are

Salt, supplied by the Pakistan Mineral Development Corporation from the Khewra

mines, PUNJMIN (Punjab Mineral Development Corporation) and other private

suppliers, and Limestone from ICI Pakistan’s own quarries in Tobar and Dandot as

well as some private suppliers.

In addition Coke, an essential raw material, is being imported from China because of

its non availability from local supplier Pakistan Steel Mills. The water for the plant

comes from Watli, a natural spring as well as the river Jhelum. The plant generates

7.0 MW of its own electric power and uses around 1.0 MW of WAPDA power, which

is backed up by diesel generators.

As the production capabilities have changed, so have the various markets and

applications for Soda Ash. Today Soda Ash consistently ranks as one of the top 10

inorganic chemicals produced in the world and is an essential raw material to a

variety of industries. In the Pakistani market it is largely consumed as a raw material.

Soda Ash is used as a builder or filler in formulation of soaps, detergents, and other

cleaning compounds.


"We will remain market leaders in Soda Ash and derivatives business in

Pakistan by strengthening our customer base while being the lowest cost

producer in the region and the most reliable supplier of quality products."

The principal use of Soda Ash in the glass industry is to bring down the melting

temperature of silica sand (the main raw material). Soda Ash, with its low melting

point and reactivity, acts as a flux for other ingredients, primarily Silica and other

oxides, allowing them to be melted at reasonable temperatures. In the paper

industry Soda Ash is used in the preparation of the sodium sulphite buffer liquid used

in the pulp manufacturing process. Soda Ash even finds application in the water

treatment segment by adjusting the pH of water when it is in acidic condition.

ICI Pakistan’s Soda Ash business is committed to remain the preferred supplier for

its customers and strives to maintain its competitive advantage through the

relentless pursuit of manufacturing excellence and by delivering quality products

through a world-class plant.

The Soda Ash market in Pakistan is continuing to grow and ICI’s experience in the

Soda Ash Business in these 62 years is an asset to the Company in the face of

changing markets and emergent competition. The Company uses this competitive

advantage along with continued improvement in efficiencies, control over fixed costs,

improved productivity and above all a sustained market share and strong customer

loyalty to continue to be the market leader in the Soda Ash industry in Pakistan. ICI

Pakistan’s Soda Ash plant expansion and modernisation at Khewra has placed the

Business in a position of strength to face these challenges.

The Company continues its endeavour to make a meaningful contribution to the

people of Khewra in the health, education and environment sectors. This symbolises

ICI’s commitment to growth and success and demonstrates its continued focus

towards improving the quality of service to its customers and the community.



SSH&E

BusinessExcellenc

e

CustomerObsession

Trans-parency

Ethics

Innovation

Valuing People

ICI Pakistan Limited, Soda Ash Business

We Live Our Values

VALUES

Employees of ICI Pakistan work and live by the following values based on the belief

and principles. These are:

The foundation of our organization

Not open to compromise

Timeless

All equal in importance

1: SSH&E - “Nothing We Do is Worth Getting Hurt for”

2: Valuing People – “Our Competitive Edge”

3: Innovation – “Creativity for Improvement”

4: Business Excellence – “Better, Faster and Best Value”

5: Customer Obsession – “They Pay Our Bills”

6: Transparency – “Beyond Reproach”

7: Ethics – “Un-compromising Integrity”

Our Behaviour (ICI Pakistan Ltd)


ICI believes that based on our values, our behaviour is consistent and corresponds

to the following:

Acting Responsibly

Responsibility

Agility

Boldness

Candor

Development Orientation

Intellectual Honesty

Meeting Commitments

No Shortcuts

Respect for the Individual

Safety Consciousness

Team-orientation

Tolerance

Management Structure

Before we discuss the management structure of the Soda Ash Business, it is

important that we first observe the board structure of the whole company.

Board of Directors:

ICI Board consist of ten members, headed by the Chairman of the board. Currently

is comprise of six non-executive directors and four executive directors. Mr. M. J.

Jaffer (non-executive directors) is the current chairman of the board and Mr. Waqar

A. Malik is the chief executive of the company.


Main responsibilities of the board is to guide the company and form policies

consistent with objectives of the company i.e. being the industry leader in creating

value for the customers and shareholders.

Executive Management Team:

The management of ICI is done through an executive team headed by the Chief

Executive of the company. Team includes head of the management team from each

business (generally Vice President or General Manager) and also includes Chief

Financial Officer and G.M. Human Resources. So the team of eight members is

formed which manage the overall business of the ICI Pakistan Ltd.

The Executive Management Team is responsible for delivering the Group’s two

major strategic thrusts of driving performance and reshaping the portfolio. The

members of the team have an in-depth experience of managing complex

international businesses and functions within ICI and other leading companies.


ORGANIZATIONAL CHARTSODA ASH BUSINESS

VICEPRESIDENT

OperationsManager

ProductionManager

MedicalSuperin-

tend

H.RManager

MaterialsManager

MarketingManager

FinanceManager

TechnicalManager

TechnicalEngineering

BUSINESS STRATEGY OF ICI SODA ASH


FinanceDept.

Accounts & Store

I.T.Dept.

Right PeopleRight PlaceRight Time

Right Motivation

Employee Communicat

ion

Succession

Planning

Job ProfilingQualification

SkillsExperience

Competencies

Recruitment Appointmen

tCarrier

DevelopmentPotential Appraisal

Employee

Information

TrainingLearning And

Educati

Performance

Managemen

Reward and

Recog-nition

Specialist HelpChange

ManagementDispute

ResolutionDiversity

Management

People Performing to Full potential

Output Aligned to Business Objectives

Organization and workforces Requirement

Business Strategy

Chapter 2

MARKETING

Marketing Environment

Competition:

Soda Ash is produced on the base of mass scale production in order to

achieve low cost because in this sector, low cost matters a lot. That’s why it is not

such a segment in which many producer enter because if this happen, every one will

have either surplus production if he operates on mass production or have high cost

in he operates as per demand of the market. That’s why in this sector, mainly there

are two industries which are production Soda Ash. First one is the ICI Pakistan Ltd,

Soda Ash Business, Khewra and second one is the Olympia Chemicals Limited.

So ICI the only competitor ICI has to face is the Olympia Chemicals Ltd who

has setup is plant in Warcha Distt. Khoshab. ICI has a clear domination in this


segment over his competitors due to many reasons. First is that ICI has established

its plant in 1944 while Olympia is new in this segment. Further their capacity is only

140 tons/day which is very less than the ICI. That’s why market share also reflects

this distinction and ICI holds 70% of the market, while Olympia has only 30% of the

market share.

Target Market

(a) Consumer or Industrial: Soda Ash is mainly an industrial product, that’s why

target market for the Soda Ash is the industries and especially the Distributors

and the Dealers. Mostly market is in the hands of ICI and there is no close

substitute of the products, that’s why consumers are targeted for the product.

Further industries which do not require it in huge amounts also prefer to buy it

from the dealers. That’s why main target market is the dealers and industries

which require it in huge amounts and consumers are not influenced through

mass media.

Another thing is that two products out of three are industrial nature, and only

Sodium Bicarbonate is used by home consumers as Baking Soda. That’s why

industry has more importance than the house holds.

(b) Buying Characteristics: Soda Ash is purchased in bulk amount by the

industries and dealers. Purchase orders are not of small quantities (e.g. 5, 6

bags) but are in tons. Transportation also matters because plant is situated in

Khewra. So purchase orders are usually in tons.

(c) Market Potential: Due to high growth in the industrial sectors in Pakistan,

there is huge market potential. Soda Ash is raw material for different

industries, e.g. Paper, Textile, Detergents, FMCG Products, etc. That’s plant

operates at its full capacity and when one expansion project completes,

second starts.


Product

ICI Pakistan produces the following products at the

Soda Ash Plant in Khewra:

Light Soda Ash (Na2CO3)

o Light Soda Ash is used as a raw material in Detergents, Papers,

Silicate, Chemicals and Textile Industries.

Dense Soda Ash (Na2CO3)

o It is used a raw material in Glass Industry

Sodium Bicarbonate (NaHCO3)

o Used as a baking soda

o Poultry, Cattle Feed, Leather Tanning and Textiles.

Classification:

Soda Ash is generally classified as an Industrial Product. It includes two products

mentioned above. Two out of three and generally used in industrial. Only one has a

limited use as a Baking Soda in house holds.

Packing and Labelling:

As far the packing and labelling is concerned, all three

types of Soda Ash are packed in Poly Propylene Bag.


Bags are purchased from foreign countries in bulk

quantities usually in more than .2 million while they are printed by the plant itself

during the packing. Each bag is contains information regarding its category, its

weight, ICI logo and “Made in Pakistan” logo.

However there is difference in the Packing weight of the all three types. ICI recently

has issued new packing. Weight of their packing is as follow:

Type Weight Size of BagLight Soda Ash 50 Kg 24 x 43 inchDense Soda Ash 50 Kg 20 x 35 inchBy Corp (Metha Soda) 25 Kg 19 x 26 inch

Distribution

ICI has more than 70% share in the Soda Ash business in Pakistan. This is because

of its vast market coverage through the powerful distribution network of its

distributions. Mainly Soda Ash is mainly distributed through the network of

distributors through Pakistan. Different regions are assigned to different distributors.

They purchase Soda Ash from ICI and distributed it to different consumers and

industries in their areas which contact them for sale.

Along with the distribution network, big industries also purchase directly from the ICI

as they need it is bulk amounts. These include glass and chemicals industries. They

directly contact sale department of the ICI Soda Ash business and purchase it from

there at market price or if they is a discount agreement then at discounted price

rather than the distributors.

This is al for the local sale. However ICI is also involved in international sale. Further

ICI is also distributor of the some Soda Ash manufacturers in Pakistan in order to

fulfil the demand of soda ash in Pakistan and abroad. Sale agreement is the duty of


marketing department. Then purchase department arrange the delivery of the soda

ash from Khewra to the destination with help of the Karachi Head Office. Channel is

selected with the mutual understanding with the customer depending upon the need

of the customer i.e. Urgent or normal. On this base it is decided whether it would be

sent through Air Mail, or through Voyage. Further the clearing agents and shipping

companies are selected and consignments are fully insured.

Pricing

Prices are fixed at cost plus margin. For distributors, a margin is fixed on the market

price. They get it at discounted price and sale it on the market price to the

consumers. However ICI also has discount agreements with its value able

customers. For that company offers them a discount percentage for some period

(i.e. 6 month, 1 year) etc. and this discount is carried on with mutual understanding.

Promotion

ICI has a proper marking department with a fully experienced team. A proper budget

is allotted for the sale activities. However sale is not done through advertisement in

news papers, television, radio etc because of the nature of the products. That’s why

selling are mostly based on relationship with the dealers.

However company spends a lot on building the image of the company. For that a lot

of activities are done in fulfil the corporate social responsibilities. Through this the

brand name is introduced with the people and image of the company is

strengthened.

Meeting of the dealers is arranged frequently. Further best performing dealers are

also awarded cash prized and trips to different local and foreign countries. This

boosts up their moral and they deliver their best in order to achieve high targets.


Customer Satisfaction Programme:

Customer satisfaction teams are formed to tackle quality related issues prompted by

customer’s complaints. Each team comprise of operators, technicians, contract staff

and mangers and are allocated different aspect of quality control in order to focus on

all problem areas. The teams met on a monthly basis and implement original

solutions to improve quality. This focused approach pay off in the form of reduced

number of complaints and result in end user satisfaction.

Chapter 3

PRODUCTION AND OPERATIONS

Products:

Soda Ash Plant manufacturers three type of core products:

Light Soda Ash (Na2CO3)

Dense Soda Ash (Na2CO3)

Sodium Bicarbonate (NaHCO3)

Production System:

ICI’s Soda Ash production plant is situation in Khewra Distt. Jhelum. In this system,

main raw materials are Salt, Lime Stone, Coke and Ammonia Anhydrous. Due to

location of the plant in Khewra most raw materials are readily available. Further ICI

has his own quarry for limestone production.


In Soda Ash production, these raw materials are converted into Soda Ash through

different processes. Currently plant is operating at a capacity of 235,000 tons per

year and an expansion project of 50,000 tons is recently completed.

Further ICI Pakistan Ltd has further started expansion of its Soda Ash plant by an

additional 65,000 tons. This further investment in Soda Ash is fully in line with ICI

Pakistan’s continued commitment towards the development of import substitution

industries to cater to the local demand.

The total nameplate capacity of the plant after completion of the current expansion

will be around 350,000 tons in 2009. ICI conveyed the information to investors

presumably under the listing regulations of the stock exchangers.


Solvay Process for Soda Ash Manufacturing


Raw Materials:

Salt (NaCl): Salt is the main raw material for the Soda Ash production. So salt is

purchased main from the PMDC (Pakistan Mineral Development Corporation) in

Khewra and some portion is also purchased from the private mines in Khewra

and nearby areas. Further ICI also has an agreement to collect the rain water

that is accumulated in the pools of the Salt Mine of Khewra. This saves a lot of

time and working for the plant.

Lime Stone: Lime stone is partially collected from the own Quarries at Tobar &

Dandot. ICI has acquired the quarries in order to get the high quality lime stone

timely and rest is purchased from the local contractors and miners. 30-35 days

buffer stock is always maintained at the work.

Coke: Coke is purchased from Pakistan Steel Near Karachi on Advance payment

through Karachi Head Office. Steel is purchased and handed over to contractors

for processing as this coke is 80mm in size. They process it and required size

coke (30-35mm) is sent to the plant. 35-40 days stock is always maintained at

the plant.

Ammonia Anhydrous: It is purchased from the fertilizer plant having surplus

stock. It is generally purchased from M/s Dawood Hercules & Pak China

Fertilizers, Haripur.

Other Chemicals: Further some other chemicals are also involved which are

Sodium Sulphide

Ammonium Sulphate

Hydro Caloric Acid

Nalco Water

These chemicals are first purchased from the local market. Some of them are not

available in Pakistan. So these are purchased from foreign countries.


Manufacturing of soda ash through Solvey process

Main Raw material:

1. Lime Stone (CaCO3)

2. Coke (C)

3. Rock Salt (i.e.) Sodium Chloride (NaCl .H2O) as brine

4. Ammonia (NH3)

Solvey Process consists of the following steps:

1. Preparation of Ammonical Brine

Brine is pumped into tower and a steam of ammonia gas is passed through it.

The brine becomes saturated with ammonia. At the same time calcium (Ca) and

magnesium (Ma).

Are precipitated as carbonates and allowed to settle down.

2. Carbonation

The sodium chloride salt (NaCl) and ammonia mixture is passed into carbonating

tower (solvey tower) it is consists of a large number of superposed cylindrical

compartments. The bottom of each compartment has a large circular hold

covered with a preferated sieve the object of which is to break up the carbon

dioxide (CO2) into small bubbles to obtain maximum absorption of the gas.

The carbon dioxide (CO2) is pumped in at the bottom of the tower and the

ammonical brine is admitted from the top. In such a way as to fill the tower


almost completely. The absorption of carbon dioxide (CO2) by the ammonical

solution forming ammonium carbonate and then ammonium carbonate liberates

considerable heat which is removing by cold water coils in the lower section only.

During the reaction the temperature is kept at 30-40*C but near completion the

temperature is reduced to about 15*C, to ensure maximum separation of sodium

carbonate. Carbon dioxide is obtained by ignition of the sodium bicarbonate and

by heating calcium carbonate in special kiln.

3: Filtration

The solid sodium bicarbonate is filtered off, washed with a little water dried and

heated in ovens to get Na2CO3.

2NaHCO3 Na2CO3 + H2O + CO2

Carbon dioxide produced is used again.

4: Recovery of ammonia

As ammonia is much more costly than sodium carbonate, so great care can be

taken to recover as much of ammonia as possible. The liquid, from the filters

contains nearly all the ammonia as ammonium chloride and ammonium

carbonate.

The free ammonium is distilled off in steam. Lime obtained from lime kiln is

added to ammonia recovery tower steam is blown in so as to generate ammonia

for next use.


Heat

Ca (OH)2 + 2NH4Cl CaCl2 + 2NH3 + 2H2O

(NH4).2CO3 + Ca (OH) 2 CaCO3 + 2NH3 + 2H2O

The information about the process is given from the text book of chemistry-11.

The original process used in the manufacturing of soda ash based upon 10 steps

which are confidential but these are also based upon these lines.

Use of Computer / Technology in the Production Environment:

There is a lot of computer technology involved in the production. There is a

control room form where production activities are observed and controlled.

Further system is greatly influenced by the computer and robot technology and

some process are based on Mechatronics technology which is automated robot

system controlled by the centre control room.

Quality Assurance System:

Quality assurance is an important part of the productions. Quality Insurance

Team make is sure that processes are as per quality standards. Production is

also observed and a fixed portion of each batch is tested in order to assure

quality. ICI have high quality standards and never compromise on quality.

Warehousing and Storage:

Ware house is also located at the site area. When Soda is manufactured, it is

packed and labelled. Then these bags are brought in the ware house where they

are recorded and stored and then sent to the different destinations in the country

and outside the country.


SSH&E Programme (Safety, Security, Health & Environment)

Goal of ICI is to be the industry leader in the production and sale of products,

which benefit society. They provide a safe and healthy work place for both staff

and contractors, and act responsibly towards the communities and environment

in which they operate.

This is achieved by the continuous improvement of their first class SSHE

performance through corporate leadership, the dedication of their staff and the

application of the highest professional standards in their work.

SSHE Logo:

Good, safety, health and environmental performance

are essential to the long-term success of ICI.

Recognizing this and to build on the progress already

made, the SHE symbol has been developed to

encourage a unity of purpose across the Group.

There are three key elements to the symbol:

Unity of Purpose: Represented by the sculpture’s form of a circle to

signify the common SHE goals of the businesses and the ICI Group

worldwide.

People: Depicted by the face, representing ICI staff, all intent on

improving all aspects of safety, health and environment, and supporting

strong ethical values.

Care: The hand represents care for oneself, for others and the

environment. It shows personal responsibility.

SSHE Policy:


ICI will ensure that:

(a) Its activities are conducted safely;

(b) The health of its employees, its customers and the public will be protected;

(c) Environmental performance will meet contemporary requirements;

(d) Its operations are run in a manner acceptable to the local communities;

(e) Employees, capital, information and other assets will be protected from

deliberate harm, damage or loss.

SSHE OBJECTIVES:

Safety

Health

Energy

Greenhouse Gases

Ozone Generators

Water use

Aquatic Oxygen Demand

Hazardous Waste

Non-hazardous Waste

Bio diversity

Land Assessment

Reduce Hazardous Substances to Air

Acid Gases

Systems

Distribution Incidents

Suppliers


Chapter 4

FINANCE

Major Highlights of 2007

Net Sales income and gross profit were up by 18% each.

Operating result was up by 20%

Profit before and after tax at Rs. 2,768.5 million and Rs. 1,784.8 million

were up by 31% and 23% respectively.

Earning per share increased by 23%

Investment of over Rs 2 billion on major projects expansion of Soda Ash

plant by additional 65kpta, investment in ICI Pakistan Power Gen Limited

(wholly owned subsidiary of ICI Pakistan Limited) to finance a Waste Heat

Recovery & Power Plant generally known as Co-Gen.

The company declared a total dividend (interim and final) of 60% i.e. Rs. 6

per share for the year ended 2007 compared to Rs. 5.5 per share for

2006.

Rs. (million)

25,973

21,948

21,054

21,303


Turnover

2003

2004

2005

2006

2007

21,156

Rs. (million)

2,971

2,479

1,842

1,347

1,088

Turnover by Business

40%

19%

22%

10%

9%

Polyster

Soda Ash

Paints

Life Sciences

Chemicals


Operating Profit

2003

2004

2005

2006

2007

Turnover by Business

7%

13%

29%29%

22%

Polyster

Soda Ash

Paints

Life Sciences

Chemicals

Balance Sheet

For the year ended 31st December, 2007

Amount in Rs. ‘000

ASSETS 2007 2006Non-Current Assets: 8,506,736 8,343,260Property Plant and Equipment 39,737 71,774

8,546,473 8,415,034Deferred Tax Assets – Net 354,456 1,029,589Long-term investments 582,500 212,500Long-term Loans 204,867 175,687Long-term Deposits and

prepayments

59,888 72,919

1,201,711 1,490,6959,748,184 9,905,729

Current Assets:Stores and Spares 605,480 705,639Stock-in-Trade 2,311,336 2,347,790Trade Debts 1,049,464 730,676Loans and advances 137,680 174,039Trade deposits and short-term

prepayments

343,570 287,159

Other receivables 658,489 549,933Taxation recoverable 337,032 437,468


Cash and Bank Balance 3,615,056 1,791,1519,058,107 7,023,855

TOTAL ASSETS: 18,806,291 16,929,584

Profit & Loss Account

For the year ended 31st December, 2007

Amount in Rs. ‘000

2007 2006

Turnover 25,973,009 21,947,688

Sales Tax, Commission, and

discounts

(2,943,274) (2,373,570)

Net Sales & Commission Income 23,029,735 19,574,118

Cost of Sales (18,223,615) (15,492,648)

Gross Profit 4,806,120 4,081,470

Selling and distribution expenses (1,074,549) (876,075)

Administration and general expense (760,201) (726,377)

2,971,370 2,479,018

Financial Charges (146,421) (319,301)

Other Operating Charges (222,345) (171,127)

(368,766) (490,428)

Other Operating Income 165,919 129,207

Profit Before Taxation 2,768,523 2,117,797

Taxation (983,723) (662,169)

Profit After Tax 1,784,800 1,455,628

(Rupees) (Rupees)


Earning Per share (Basic &

diluted)

12.86 10.49

RATIO ANALYSIS

Ratio refers the one number in terms of another. The purpose of ratio analysis

depends upon the event for which the analysis is made. Management likes

to know about the operational efficiency and think of such ratios as return

on investment, turnover of fixed assets, and net profit to sales etc.

Creditors like to know the ability of the company to meet its current

obligations and therefore, think of current and liquid ratios, turnover of

receivables, and coverage of interest by the level of earnings. So ratio

analysis is important from all perspective.

ACTIVITY RATIOS

1) Total Asset Turnover:

Formula = Sales (Revenue) / Total Assets

0

0.5

1

1.5

2

2.5

3

2003 2004 2005 2006 2007

Total asset turnover indicates the efficiency with which firm uses it assets

to generate sales (revenue). The higher the firm’s total assets turnover the

more efficiently its assets have been used. This measure is probably of

greatest interest to management, because it indicates whether the firm’s


Year Ratio

2003 2.95

2004 2.04

2005 1.84

2006 1.71

2007 1.85

operations have been financially efficient.In five years Total Asset Turnover

has a negative trend butafter in 2007, it showed a positive increase.

PROFITABILITY RATIOS:

1) Gross Profit To Sale:

Formula = (Gross Profit / Net Sales) x 100

0

5

10

15

20

25

2003 2004 2005 2006 2007

Comparing the gross profit ratio with the industry shows whether company is

performing good or bad when compared with the competitors. It determines of

efficiency of the performance of the company and in last five years, it is on the

positive end.

2) Net Profit To Sale:

Formula = (Net Profit after tax / Sales) x 100


Year Ratio

2003 14.70%

2004 15.62%

2005 18.14%

2006 20.86%

2007 20.87%

0

5

10

15

20

2003 2004 2005 2006 2007

Net profit margin measures the percentage of sales revenue remaining after all

cost and expenses, including interest and taxes have been deducted. Net profit

margin shows a very minor positive increase in last year although gross profit to

sale ratio is increasing. So company should take care of its expanses and should

increase it.

3) Return on Equity:

Formula = (Net Profit after tax / Share holder’s equity) x 100

0

50

100

150

200

250

2003 2004 2005 2006 2007

It measures the shareholder’s return earned on their investment in the firm. This

ratio indicates how profitable a company is by comparing its net income to its

average shareholder’s equity. For last five years ROE showing mixed downward

trend but it’s increased in 2007 and it is positive sign for company.


Year Ratio

2003 4.22%

2004 16.13%

2005 12.19%

2006 7.43%

2007 7.74%

Year Ratio

2003 55.20%

2004 205.06%

2005 162.33%

2006 104.87%

2007 128.58%

MARKET RATIOS:

1) Market Price per Share:

0

50

100

150

200

2003 2004 2005 2006 2007

Share prices in a publicly traded company are determined by market supply and

demand, and thus depend upon the expectations of buyers and sellers.

Increasing share price of ICI is reflecting the companys’s future and recent

performan, including potential growth.

2) Earning Per Share (EPS):

Formula = Earning available for common shareholders/No. of outstanding

shares


Year Price per share

2003 85

2004 89.65

2005 140.50

2006 115.50

2007 196.65

http://en.wikipedia.org/wiki/Supply_and_demand

http://en.wikipedia.org/wiki/Supply_and_demand

http://en.wikipedia.org/wiki/Publicly_traded_company

0

5

10

15

20

25

2003 2004 2005 2006 2007

Earnings per share is generally considered important variable in determining a

share's price. It serves as an indicator of a company’s profitability. Up to 2006, it

was decreasing but in 2007 it showed a positive trend.

Chapter 5

HUMAN RESOURCE MANAGEMENT

Human Resource Management is an important factor in supporting the

achievement of company business, meeting results and the attraction of those

with the potential to contribute to business performance i.e. to be seen as a

Preferred Employer.

A compensation and benefits strategy supporting drive for a more efficient,

flatter structure, with increased employee involvement and improved

communication was developed at ICI. Efforts continue for ensuring that the total

compensation remained competitive in the Pakistan labour market and

represented value for money for the company.

Compensation and benefits practices are regularly compared with other

employers to develop the company’s compensation and benefits. Any salary

review is then based on market practices, company and employee performance,

relative job size and skill scarcity.


Year Earning per share

2003 5.52

2004 20.51

2005 16.23

2006 10.49

2007 12.86

HR Department at ICI is one of the strongest HR departments in Pakistan.

Some local companies think that HR is not such a productive department, but the

loss of money and resources but ICI is well aware of the benefits of the HR

Departments. That’s why it has a fully establish setup. No of employees of the

Soda Ash Business are as follow:

Managerial Staff : 96

Non-managerial Staff : 320

Recruitment Procedure

For Managerial Staff:

To hire the managerial staff, following procedure is followed:


Advertise

Applications

Short Listing

Interview

Final Interview with VP

Medical Check-up

First of all, post is advertised in the news papers and the official website of

the company and applications are invited. After dead line, all applications are

processed by HR department and candidates are short listed with the

consultation of the Head of the concerned people. Then these short listed

candidates are interviewed.

Then comes the final interview with the Vice President of the company

and final candidates if selected. After this candidate has to prove his Medical

fitness and passing the medical, he/she is selected.

Non-managerial Staff:

For non-managerial staff, process depends upon the importance of the post. If

the post is important one, then previous procedure is followed. However if the

post is not of such important e.g. un-skilled labour, etc. then they are hired

through referrals etc.

Performance Evaluation

For the purpose of performance evaluation, employees are allocated objectives

in the start of the year. These objectives are clearly explained to the employees.

Now performance of the employees is judged by comparing their performance

with the objectives and task assigned to them. These objectives are decided in

light of the discussion with the employees and are realistic.

Many benefits like salary increments, bonuses etc. are linked with this

performance evaluation. If all tasks assigned are completed and objects are

meeting, there is a huge increment in the salary of the employee and bonuses


are also announced for the shinning one. However these benefits can be cut

down, if employee’s performance remains below the standards.

However the reasons behind this failure are also studies. It is checked whether

these objectives were un-realistic or there were other reasons behind this. If

employees need any training, he is fully provided a chance to improve his skills

by training.

Problems encounters

When an employee faces any problem regarding HR department or in case of

grievance, he can directly contact Human Resource Department and can bring

his view in from of the staff. HR staff is required to solve his problem as early as

possible. However if employees is not satisfied with the HR department at

Khewra, further he can contact HR Combined Services in Head Office. Even now

if he is not satisfy, he can directly contact ICI Plc Ltd, London through “Speak Up

Programme”. Through this programme, employees are allowed to contact the

parent company in United Kingdom for his problem.

Compensation & Benefits

Provident Fund: Provident fund is provided to both management staff and non-

management staff at the time of retirement or leaving the company. However

employee has to serve a fix time period in the company in order to claim for the

provident fund in case of leaving the company.

Gratuity: Employees are also awarded gratuity at the time of retirement or

leaving the company. However no gratuity is awarded in case of the dismissal

from the company.


Pension: Pension is awarded in case of the management staff. Further they can

also claim for the benefits under the provision of the Employees Old Age Benefits

Institute and as per laws. However in came of non-management staff, no pension

is awarded. Such employees can only claim for the Employees Old Age Benefits.

Non-Work Related Facilities and Benefits:

Wheat system: They are providing wheat to their employee’s @Rs.10 per

40 KG to self and to the employee’s children till the age of 18 years of son

and till marriage of daughter.

Staff Colony: There is a staff colony for the employees of the company

these houses are furnished according to the grade as follows.

o Air Conditioner

o Telephone

o Geezers

o Heaters

o Refrigerator

o Water, Gas and Electricity

o White wash etc. etc.

House Allowance: House allowance to those employees who are not

living in the staff colony.

Pick and Drop Service: Pick and drop service to those employees who are not

living in the colony and are away from the site.


Car and Motor cycle Loan: They also provide motor cycle loans to those

employees who are willing to buy that and is deducted from there pays as

installment @ Rs.1000 per month.

Winington Hospital: A full time working fully equipped 20 beds Hospital

with 1 doctor and 1 lady doctor supported by other visiting doctors and

other well trained medical staff for employees.

Medical Allowance: Medical allowance to those who are referred by the

doctor outside.

Self (Employee and His wife) @ 100%

Dependent (Children and Parents) @ 80%

Winington School: A very well established school up to class 10th.

Fair Price Shop: A Fair Price Shop for employees who deliver things at

cost (No profit no loss).

Ladies Welfare Centre: Ladies welfare centre for training of ladies like

tailoring cooking etc.

Alkali Supports Club: Alkali supports club for refreshment of workers

(non-management staff).

Winington Club: Winington club for refreshment of management staff.

Guest House: A well furnished guest house.

Employees Creational Programmes


Employees at ICI are considered the main ingredient for the success. So in order

to over come some barriers, keep employees motivated and reducing the stress

of work on the employees, ICI Soda Ash Business arranges different events

frequently. These are:

Musical Nights: There are musical shows are conducted on different

occasions like 14 August etc. all the employees and their families are

invited on that function.

Drama Shows: Drama shows are also a part of grand show.

Annual Dinner: Annual dinner is a wonderful program which is arranged

by HR. in this program all the management and non management staff get

together and have a sweet dinner.

Bassant Mala (kite festival): Bassant Mala also a very interesting event.

Eid Millan Party: Eid millan party after Eid-ulfitter is a very sweet event.

Annual Games: Annual games are conducted of every type like cricket,

hockey, football, athletics, etc. every department has its own team and

every department has to participate in this event.

Murree Trip: Annual Murree trip is a wonderful event employees go their

have a “mango party” and a lunch by company.

Grievance Management: As the concept of team work is prevailing in ICI

Soda Ash so all the grievances are solved at the lover level and that is the

culture of ICI that if some goes to his boss for a matter that can be solved

by his college that is considered bad. So all the grievances are

management at the team level unless any serious matter.


Insurance Policy: All the employees are insured from all aspects. That

means if in case of natural death or in case of murder he is insured and if

case his is bodily become disabled in the factory due to any reason his

every body part like finger eyes hands legs etc. these are also insured.

Chapter 6

SWOT ANALYSIS

SWOT Analysis is a simple framework for generating strategic alternatives from a

situation analysis. It is applicable to either corporate level or the business unit

level and frequently appears in marketing plans. SWOT stands for Strengths,

Weaknesses, Opportunities and Threads. The SWOT framework was described

in the late 1960’s by Edmund P. Learned, C. Roland Christiansen, Kenneth

Andrews, and William D. Guth in Business Policy, Text and Cases (Homewood

IL: Irwin, 1969).

As far the SWOT analysis of ICI is concerned, situation show the following facts:

Strengths:


Strong Brand Name

Good reputation among customers

Cost advantage from proprietary know-how

Exclusive access to high grade natural resources

Favourable access to distribution networks

Resources, Assets and People

Innovation Aspects

Experience, Knowledge & Data

Quality process and procedures

ICI enjoys a good reputation not only in Pakistan but across the globe. Further

recently it is acquired by Akzo Nobel which is also chemical industry leader in the

world. So it strengthen the image of Soda Ash business. Further resources are

readily available in Khewra which is situation among the Salts, Lime Stone and

Coke mines. Innovation and quality control also have been a success for the ICI.

Business has a team of experience people and has a powerful distribution

network across Pakistan.

Weaknesses:

Timescale, Deadlines and pressure

Reliability of Data, plan predictability

Location of the business

Along with the strengths, Soda Ash business also has some weaknesses. First

one is the pressure and deadlines for the plant. Plant is operating at its full

capacity and company cannot afford the breakdown or shutdown of the plant

because demand is always on the higher end. Plant is in remote area, that’s why

in case of any emergency, when expertise and not available in Khewra, it takes

time to repair any damage to the production. Further production at remote area,

also increased transportation cost to the different areas of the country.


Opportunities:

Market Development

An unfilled customer need

Arrival of new technologies

Loosening of regulations

Removal of international trade barriers

Information and Research

Partnership, Agencies and Distribution

Volume, Production and Economies

There are a lot of opportunities for the Soda Ash Business. Due to high growth of

industry in Pakistan, demand of the Soda Ash is increasing day by day as it is an

important raw material for different industries like glass, textile, paper etc. Further

economy of scale is also an important opportunity. There is only one competitor

for the ICI in Soda Ash and ICI has hold on more than 70% of the market. New

technologies are also helping in order to reduce cost of production.

Threats:

Emergence of substitute products

Political Effects

Shift in consumer tastes away from the firm’s products

Loss of key staff

Environmental Effects

Competitors Intentions

New regulations

Soda Ash business is also facing some threats in process of conducting

business. Soda Ash is mainly used as raw material in different industries. Due to


growth of production and new technologies, it is possible to substitute some

products from others. So business faces this threat that in future their products

can be replace by some other low cost products. Due to situation if far area,

many employees leave the job when they got an opportunity in some other sector

in main city or move to some other business of ICI in Lahore, Karachi etc.

Further competitors can also expand their capacity or adopt some better

technique in order to produce more quality goods. That’s also another threat for

the business. Environment effects are also important one. Awareness regards

CFC’s is also increasing day by day. Although business has adopted a strategy in

order to reduce CFC’s but it has to make it fast.

Further political situation effect the business a lot, especially the multi national

one. Falling price of rupee against dollar, inflation, increase in raw material,

shortage in electricity are also threats for the industries.

Chapter 7

MY WORKING AT ICI

Working at ICI remained a very successful experience for me and it was great

experience for me that I worked with such a dynamic firm. Mainly I worked in the

Purchase (Material) Department at ICI Soda Ash Business, Khewra, however I

also visited other departments of the company and also interviewed different

people. I think I remained successful in order to grasp the procedures and extract

the valuable knowledge.

I want to appreciate the efforts and their corporation of ICI employees for their

advice and their assistance in helping me to avail this opportunity. I learned a lot

from these people. They were much experienced and have a great command in

there own work & on policy of ICI. Mainly I worked in the following tasks:


Supplier Code Opening: This process involved the registration of different new

suppliers who want to work with ICI. So I learned who they are registered and

who they are assigned codes.

Classification of the Materials: Classified of different materials, categorization,

and codes are assignation.

Stocks Information: Information regarding the stock levels, consumption, re-

order quantity and safety stock.

Item Status Reports: To check the status of different materials, they inventory

level, and creation of the indent in case of reaching to re-order level.

Indent Generation: Procedure of indent generation, authorized persons, and the

circumstances under the indent is generated.

Approval of the Indent: How indent if floated to different department and the

approval of the indent.

Request for Quotations: Process for the generation of RFQ (Request for

Quotation) for materials to be purchased.

Statement of Comparison: Comparison of different quotations received and

making comparison of the rates stated by the different suppliers.

Purchase Orders Generations: Generation of the purchased order after

selecting final supplier.

Gate Receiving Notes: Handled Gate Receiving Notes generated for different

materials supplied by the suppliers.


GRN Clearings Procedure: Procedure from Gate Receiving Note to the clearing

of the invoices and sending to Accounts Department for the payment.

Reminder Letters: Correspondent with the different suppliers and generating

reminder letters to the suppliers who do not meet the deadlines.

Warehousing: Studied the ware house structure of the ICI, Soda Ash Business,

its capacity and material handling procedure.

Foreign Purchases: Helped in correspondent with different foreign suppliers

and assisted in Coke Purchase from Poland.

Mr. Zahid Muhammad Sheikh, Purchase Officer was my supervisor during my

internship. Further I also interviewed different people e.g. S. M. Aamir (Assistant

HR Manager), Mr. Adnan Sheikh (Assistant Purchase and Quarry Manager), Mr.

Asghar Malik (Planning Officer) also helped in order to get valuable knowledge.

CONCLUSIONS

ICI Pakistan Ltd. is an excellent organization. It operates as a independent

business unit with AkzoNobel as a part of its specialty chemical portfolio. The

seed planted in 1926 is now a tree which provides extremely qualitative products

to billions of people all around the world. It is also providing jobs to millions of

people in different countries. The fact can be judged by ICI and AkzoNobel is the

number one chemical manufacturing and processing company of the world and

this fact is recognized by Fortune 500.

Management of ICI Pakistan is mostly local. Top management involves CEO and

senior mangers (Chief Financial Officer, Production and marketing) while every


business is headed by Vise President of the Company. They all are experienced

people. It is a relatively very old Multinational on the Pakistani established in

1944 It has established a strong footing for itself in the chemical industry.

Apparently, there are no loop holes in the working of the organization, but still

some areas require more attention.

Management has designed rules and regulations which are supposed to be

followed by everyone. Policies have been formulated for major and minor issues

both. Relationship with the employees is maintained at every level. Employees

work with commitment and dedication to achieve the best for the organization.

Job satisfaction soars at a high level.

Due to its innovation technologies, committed employees and best use of the

resources, it has gained a prominent position in the market and is far ahead of its

competitors.

RECOMMENDATIONS

Following recommendations are based on my observation during my

internship at ICI and some have been given during formal and informal interview

with the people.

Although ICI is offering a lot of incentives to its employees in case

of salary and benefits. However there is a clear different in facilities

of permanent and contract employees. For example in department I

worked, Purchase Clerks were on contract basis and there was

more burden of work on them while they were getting only the basis

salary. Facilities like medical allowance, Pension, Gratuity,


Provident Fund is not for the contract employees. This creates a lot

of dissatisfaction among the employees.

Pay increment of people should be according to the work and

duties they perform. In some cases it does not happen and pay is

not increased according to seniority and work base. For example,

during my stay at ICI pay was increased and clerk handling the

most work was awarded 20% increment while other was awarded

40% increment although his work was less and duties were easy

one as compared to first one.

Purchase department is very important department of any company

and production depends a lot on purchased of timely raw material,

plant equipment and other supplies. So purchase department was

already facing a high burden, further quarry department was also

added in it and quarry staff was also working in the same premises

producing a lot of difficulties. So Soda Ash Business should

separate the quarry department and it would be most suitable if it is

shifted at the site where quarry is located so that burden on

purchase department decrease and quarry staff also not has to

travel daily between site and purchase department.

Purchase Department was handling a lot of suppliers at a time.

They have to enter into correspondence with a lot of suppliers while

supplier’s evaluation was in delay for a couple of years. Many

suppliers were giving no response and because they were not

evaluated, that’s why there were contacted every thing when their

related material was required resulting in loss of time and money.

So supplier’s evaluation should not be delayed and should be


carried out at least once in a year.

Consumer Services Department but couldn’t get what and where it

is. Well the name suggests that it should be most visible and active

department, I wonder if it is there? If it is there it should be

organized at a larger scale and efforts should be made to interact

more frequently and at a personal level with the consumers.

Last of all I must THANK ICI and CIIT once again for providing me the golden

opportunity of spending 6 weeks in such a wonderful place where most people

can only dream of. It was an experience of life time. I got the chance of sitting

among the ideal sort of people, professionals whose names are engraved as

pioneers and geniuses of the field. I learned about meeting and dealing with

people. I must say that the integration of this internship program will definitely a

significant improvement in my future professional life.

I end my report here by again thanking Allah Almighty who gave the ability to

complete this tedious task and all other people who have helped me in this task.

BIBLIOGRAPHY

1. Web:

www.ici.com.pk

www.wikipedia.com

www.investopedia.com


2. Annual Report, ICI Pakistan Ltd.

3. Employees Interview

Mr. Abdul Jabbar Athar (Material Manager, ICI Soda Ash Business)

Mr. Adnan (Assistant Purchase & Quarry Manager)

Mr. S. M. Aamir (Asst. HR Manager)

Mr. Waqar Khawaja (Assistant Accounts Manager)

Mr. Asghar Malik (Planning Officer)

Mr. Zahid Muhammad Sheikh (Purchase Officer0

Mr. Asad Aslam (House Officer, Hospital)

4. Company Magazines

Images, Spring 2008 Edition

Images, Fall 2007 Edition


18096694 Internship Report

Documents

abdul jabbar athar

zahid muhammad sheikh

alkali supports club

ladies welfare centre

independent business unit

dense soda ash

fair price shop

eid millan party