Commerce Solutions Home Assignments Projects Internship Reports 5 Jul Project Report on PEL by Commerce Solutions in Internship Report , PEL , Project Report INTRODUCTION OF COMPANY'S BUSINESS PEL is one of the oldest manufacturing unit of home appliance in Pakistan. It manufactures => A.C => deep freezer => Refrigerator. The products manufactured by PEL have been of high started quality through out the years. PEL was established with Technology Collaboration of AEG Germany in 1956, 1980 PEL expanded into consumer domestic market with introduction of window by PEL A.C. into October 1978 PEL was taken by sagol family. According A then PEL is Now a company on the goes on. The head of HR department is called HR manager. It has 180 employees working in it. Among which 27 are doing clerical job.
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Commerce Solutions Home
Assignments Projects
Internship Reports
5
Jul
Project Report on PEL by Commerce Solutions in Internship Report, PEL, Project Report
INTRODUCTION OF COMPANY'S BUSINESS
PEL is one of the oldest manufacturing unit of home appliance in Pakistan. It
manufactures => A.C => deep freezer => Refrigerator.
The products manufactured by PEL have been of high started quality through out the
years. PEL was established with Technology Collaboration of AEG Germany in 1956,
1980 PEL expanded into consumer domestic market with introduction of window by PEL
A.C. into October 1978 PEL was taken by sagol family. According A then PEL is Now a
company on the goes on.
The head of HR department is called HR manager. It has 180 employees
working in it. Among which 27 are doing clerical job.
PEL has continued on the path of recovery and the business in both its divisions power
and home appliances have grown. Efforts for improvement in productivity, quality of our
products and diversification have yielded positive results and the company has earned a
net profit after tax of Rs.94.100 million (last year 59.000 million). Since the company had
suffered losses in the past, which had eroded its equity leaving huge bank borrowings, the
dept servicing remains a major burden on its operations. Simultaneously increasing
business volumes requiring additional working capital have not allowed the much needed
ease in its cash flows which could offer a smoothness in its operations.
Business in Power Division is propelling positively and is expected to grow
further in the ensuring years. PEL is exploring export market for our Power division
products, Crystal brand Refrigerator launched in 1998 has developed into a major source
of our consistent growth. This trend is expected to continue in the following years. On the
other hand air-conditioner sales have not reached desirable levels due to some serious
weakness in import procedures and smuggled goods, shrinkage in the size of market and
working capital constraints.
The continuous gain in the value of US dollar upto the September 11,
2001 incidence (which is now a declining trend) has resulted in further negative
impact on Rupee-Dollar parity. The decrease in the value of Rupee could not be
fully covered up in the prices of our products due to low purchasing power
resulting in reduction of gross margins. The company will thus have to maintain
its thrust on high volumes alongwith further reduction in costs and improved
quality measure to consistently maintain the profit path in the future.
In order to achieve less dependability on single customer bases company is
moving towards a strategy of diversification of its product and customer base. As a result
Appliances Division is being strengthened whereby marketing network has been widened
with a focus on strengthening sales team as well as the dealer's network. Concept
of 3S introduced earlier is working satisfactorily in our After Sales Service network. A
special focus is being given on widening the product range introducing new models,
sizes, colours and new finishes. The demand of appliances products especially
refrigerators which is growing at a rapid pace is augmented mainly by increased role of
consumer financing through the financial institutions and the conventional hire purchase
schemes by the retailers.
POWER DIVISIONProducts manufactured in Power division are Transformers, Energy Meters and
Switch gears. Business in this division has suffered badly in pervious years due
to problems in WAPDA and KESC. The most needed upgradation of WAPDA's
distribution pilferage was started by the new management. The energy meter
production of single phase and three phase are moving toward an optimum level.
Plans for further improvement in productivity and quality of our meters are also in
progress. Our shares for the supply of distribution transformers to WAPDA has
taken a quantum leap recently. Accordingly, PEL is planning to increase our
production capacity of transformer plan through the techniques of improved
production operations including manpower utilization, product innovation,
process reengineering. We are expecting to obtain the production capacity level
of 2000 transformer per annum. A break through in the Switch gear business has
been already achieved. PEL has successfully supplied a large order of Switch
gear from WAPDA against International Tender. Since entire business of Power
Division is now being carried out against L/C, international tenders or advance
payments, chronic problem of delayed payments has also been resolved.
APPLIANCES DIVISIONBusiness in appliances division has shown mixed trend but the Company is finally on the
right track. Crystal Refrigerator with Aero design and Danfoss compressor with
performance certification by Danfoss Germany was launched in the February 1999. This
has been received very well in the market and our refrigerator sales have shown an
increase of ver 125% since 1999. This thrust is expected to continue in the following year
as a result of company's innovative approach in product development coupled with an
aggressive marketing strategy.
Deep Freezer tested and certified by Danfoss Germany and with improved
aesthetics has also been well received by the market. We have already been supplying our
Deep Freezers to Coca-Cola international and lever Brothers and intend to continue our
focus on institutional sales of this product.
Sales of window Air-conditioners is almost at the same level of last year but have
not reached the desired level with a pressure on prices and exchange rates impact causing
increase in losses to the subsidiary PEL Appliances Limited. Main reason of this situation
is a huge influx of imported product as a result of change in custom valuation recorders
allowing imports at during prices and under invoicing. In addition supply of smuggled
air-conditioners also continued even after Government's announcement to impose
controls on such activities. This is expected to discontinue after old stocks of smuggled
goods are exhausted and fresh supplies are not allowed.
The company in order to address the above situation has embarked upon
a major plan to improve product quality, widen product range, introduce power
efficient models, add competitive features like remote control, added filters etc.
And to improve the product aesthetically. After consistent efforts in the recent
years PEL have been able to develop a new range of models under the brands
name of 'Energy Saver'. The cooling and balancing if this machine is tested &
certified by Copeland of USA. This has received a very positive response from
the market due to its efficient energy savings, cooling, low noise, compact size,
nature friendly features. PEL anticipates that the company will make a break
through in the volume of Energy Saver as what we have successfully performed
in case of Crystal brand Refrigerators. In addition a major exercise is being done
to reduce material cost and improve manufacturing process. Technical support
and know how is being obtained from international companies and foreign
laboratories to achieve this objective.
PEL APPLIANCES LTD.Deep Freezers and window air-conditioners are the products of subsidary PEL It
is expected that PEL Appliances Limited should move into a healthier situation in
the ensuing years.
PEL DAEWOO ELECTRONICS LTD.Agreement for conversion of Sony Television at the plant was concluded and PEL has
started production of their products since May 1999. Under this arrangement television
kits are supplied to us by Sony and converted televisions are delivered to them and
marketed through their own network. The US$ denominated conversion price for the
televisions assembled by us is charged on fortnightly basis.
Tariff structure on Televisions has been rationalized in the federal budget
for 2001-2002 and as a result violability of locally assembled televisions has
considerably improved. Sony intends to take full advantage of this situation and
volumes of locally assembled televisions are resultantly expected to increase
manifolds. Agreement for conversion of VEGA flat screen television has also
concluded and we have very successfully started its production in September
2000.
COMPANY'S MISSION STATEMENT
1. To grow the size of the organization, develop better business practice and build-up
greater resources.
2. To practice actively and consistently in Pakistan's economic development.
3. To build up better operating philosophy.
4. To build a better commercial outlook for operating successfully in this competitive
environment.
5. To keep pleasant working environment.
6. To always maintain exclusive service standards.
7. To promote professional co-operation.
8. To motivate the employees by making them feel that management cares about them
by recognizing their efforts by remuneration or by promotion depending on the individual
efficiency and what he deserves.
9. To create feeling of co-operation so that all employees are satisfied.
10. To build up customer satisfaction.
11. To provide wide range of products and services to customers.
COMPANY'S OBJECTIVES1. The continuous improvement of all products and services through total involvement
of employees.
2. The development and strengthening of joint ventures and partnerships with external
and internal customers and suppliers.
3. Providing innovative and higher quality products to achieve total customer
satisfaction by understanding their requirements and anticipating their future expectations
or needs through:
Monitoring Annual Targets for quality improvement in all areas and function of the
organization.
Valuing people by understanding and drawing upon their strengths i.e. abilities and
knowledge and make efforts for their training and development.
4. With a dedicated team of professionals the company is striving to improve the quality
of life in Pakistan homes through reliable equipment for power distribution and home
appliances.
5. The growth in the size of the organization develops better business practices and
builds up greater resources.
6. The aspiration to capture the complete product family of the product.
DEPARTMENTS
There are 6 major departments in PEL they are :-
(i) Marketing Department
(ii) Finance Department
(iii) Production Department
(iv) Human Department
(v) Administration Department
(vi) Research &Development Department
1. MARKETING DEPARTMENT
This department is headed MANAGING
DIRECTOR YOUSAF. H. ISHAQ. Then Further down in hierarchy there are:-
Brand Managers.
Manager Distribution Credit.
Customer service officers.
Institutional sale Manager.
There are six branches of PEL in Pakistan.
They are Headed by Regional Sales Manager. (RSM).
The sales policies are recommended by head office for all region. The policies
for customer service are defined by General Manager Customer Service at head office.
Targets are given to regional sales Manager of each particular region and then the RSM
gives further target and incentives to sales officers to achieve the demand targets.
In Lahore the market is divided into 3 areas:-
Abid Market
Patiala Market
Out skirts
In Abid Market there are 20 dealers and 30 sub dealers.
In patiala Market there are 16 dealers and 21 sub dealers.
In outskirts there are 35 dealers
In Lahore there is :-
RSM (1)
Area Sales Manager (2)
Sales executive (10)
Marketing department controls the 4P's in the company i.e. Product, Promotion,
Placement, Pricing. They are also responsible for the alteration and Modification in the
different brands of the company and of new product e.g. They can suggest colour change,
size of product etc. which is being demanded by the customers. They try to bring
innovations in the products to make them attractive for the customers and to compete
with the competitors i.e. Dawlance, General, Waves etc.
There are print as well as electronic media for promotion activities.
FINANCE DEPARTMENT
The department is controlled by general
Manager finance, Mr. Manzer Hussain this department is divided into 3 sections:-
Finance
Accounts
Credit Control
(i) Finance
Finance deals with Banks
(ii) Accounts
Accounts deal with costing system, Billing &
booking transactions as well as internal auditing.
(iii) Credit Control
This section of finance department
deals with Credit and recovery procedures.
PRODUCTION DEPATMENT
This department looks after the manufacturing of products. This
department is given targets by top management to produce a specific number of
products which are ascertained by previous sales data and market conditions.
This department is responsible for quality control as well i.e. it sees there are no
defects or any shortcomings in the product. It also overseas new technologies
and also to remain updated regarding any new machinery or other equipment for
better product performance. After manufacturing a new product it is sent to
Germany for technical assessment to Danfoss company. After approval from it