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Internship report on ICI Pakisthan Ltd

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					                        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
COMSATS Institute of Information Technology, Lahore.      -2-
                               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.




COMSATS Institute of Information Technology, Lahore.   -3-
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



COMSATS Institute of Information Technology, Lahore.                           -4-
                         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




COMSATS Institute of Information Technology, Lahore.             -5-
      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




COMSATS Institute of Information Technology, Lahore.           -6-
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.




COMSATS Institute of Information Technology, Lahore.                          -7-
                              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.




COMSATS Institute of Information Technology, Lahore.                    -8-
                                      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.




COMSATS Institute of Information Technology, Lahore.                           -9-
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                                  Achievements
    1944        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 Paints
    1966        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.



COMSATS Institute of Information Technology, Lahore.                                - 10 -
    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.



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    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


COMSATS Institute of Information Technology, Lahore.                        - 12 -
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



COMSATS Institute of Information Technology, Lahore.                            - 13 -
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


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      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



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NSAIDS

      Proxen
      Synflex

ANAESTHETIC

      Diprivan (EDTA)

ANTIBIOTIC

      Meronem

CNS

      Zomig
      Seroquel

ANTHELMINTIC

      Ketress

GASTRO-INTESTINAL

      Etipro

RESPIRATORY

      Accolate

ANTI-INFECTIVES

      Icef




COMSATS Institute of Information Technology, Lahore.   - 16 -
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




COMSATS Institute of Information Technology, Lahore.   - 17 -
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




COMSATS Institute of Information Technology, Lahore.   - 18 -
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”

                                                 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.


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 2 nd 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.


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



COMSATS Institute of Information Technology, Lahore.                                 - 19 -
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
                                          * 2007 pro forma figures


                              Chemicals Industry Leader
                                    Dow Jones
                                    Sustainability indexes
                                   FORTUNE 500




COMSATS Institute of Information Technology, Lahore.                          - 20 -
Soda Ash Business


 "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."


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.

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


COMSATS Institute of Information Technology, Lahore.                           - 21 -
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.




COMSATS Institute of Information Technology, Lahore.                           - 22 -
                                     SSH&E
             Valuing
             People                                       Ethics




       Innovation                                           Trans-
                                                           parency




                      Business                Customer
                     Excellence               Obsession




         ICI Pakistan Limited, Soda Ash Business

            We Live Our Values


COMSATS Institute of Information Technology, Lahore.                 - 23 -
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



COMSATS Institute of Information Technology, Lahore.                       - 24 -
      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.




COMSATS Institute of Information Technology, Lahore.                        - 25 -
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 CHART
                     SODA ASH BUSINESS
                                 VICE
                               PRESIDENT



                                 Operations
                                  Manager
                                                              Marketing
                                                              Manager




      Production           Medical            H.R             Materials
       Manager             Superin-          Manager          Manager
                             tend


                          Finance          Technical           Technical
                          Manager          Manager

                                                              Engineering

        Accounts &          Finance            I.T.
          Store              Dept.            Dept.


COMSATS Institute of Information Technology, Lahore.                        - 26 -
              BUSINESS STRATEGY OF ICI SODA ASH



                                    Business                Employee
                                    Strategy               Communicati
                                                              on
      Specialist Help
         Change
       Management
         Dispute
        Resolution               Organization and                  Succession
        Diversity                  workforces                       Planning
     Management                     Requirement



                                                             Job Profiling
                                   Right People
      Reward                                               Qualification
                                   Right Place                Skills
        and                        Right Time
      Recog-                                                Experience
       nition
                                      Right                Competencies
                                    Motivation



     Performance
     Management
                                                             Recruitment
                                                             Appointment
                                                               Carrier
                                                             Development
                               People Performing to
                                                              Potential
                                  Full potential
        Training                                              Appraisal
       Learning
         And
       Educatio
          n
                                                       Employee
                                                       Informati
                                Output Aligned to      on system
                                Business Objectives



COMSATS Institute of Information Technology, Lahore.                         - 27 -
                                      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.



COMSATS Institute of Information Technology, Lahore.                         - 28 -
          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.




COMSATS Institute of Information Technology, Lahore.                             - 29 -
      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 Bag
Light Soda Ash                         50 Kg                    24 x 43 inch
Dense Soda Ash                         50 Kg                    20 x 35 inch
By Corp (Metha Soda)                   25 Kg                    19 x 26 inch




COMSATS Institute of Information Technology, Lahore.                           - 30 -
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


COMSATS Institute of Information Technology, Lahore.                             - 31 -
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.




COMSATS Institute of Information Technology, Lahore.                           - 32 -
                                      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.




COMSATS Institute of Information Technology, Lahore.                        - 33 -
                                 Solvay Process for Soda Ash Manufacturing




COMSATS Institute of Information Technology, Lahore.            - 34 -
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.



COMSATS Institute of Information Technology, Lahore.                         - 35 -
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


COMSATS Institute of Information Technology, Lahore.                        - 36 -
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.

                             Heat
       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.




COMSATS Institute of Information Technology, Lahore.                            - 37 -
      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.




COMSATS Institute of Information Technology, Lahore.                         - 38 -
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:


COMSATS Institute of Information Technology, Lahore.                       - 39 -
(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




COMSATS Institute of Information Technology, Lahore.                             - 40 -
                                    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.


                         Turnover                      Rs. (million)


         2007                                          25,973

         2006                                          21,948

         2005                                          21,054


         2004                                          21,303


         2003                                          21,156




COMSATS Institute of Information Technology, Lahore.                         - 41 -
                     Operating Profit                        Rs. (million)


         2007                                                2,971

         2006                                                2,479

         2005                                                1,842

         2004                                                1,347

         2003
                                                             1,088




                                  Turnover by Business

                             9%
                       10%
                                                         Polyster
                                             40%
                                                         Soda Ash

                      22%                                Paints

                                                         Life Sciences

                                  19%                    Chemicals




                                  Turnover by Business

                             7%
                                          22%
                       13%
                                                         Polyster

                                                         Soda Ash

                                                         Paints
                       29%                               Life Sciences
                                           29%
                                                         Chemicals




COMSATS Institute of Information Technology, Lahore.                         - 42 -
                                Balance Sheet
                    For the year ended 31st December, 2007


                                                       Amount in Rs. „000


ASSETS                                     2007                   2006
Non-Current Assets:                           8,506,736             8,343,260
Property Plant and Equipment                      39,737                 71,774
                                              8,546,473             8,415,034
Deferred Tax Assets – Net                       354,456             1,029,589
Long-term investments                           582,500               212,500
Long-term Loans                                 204,867               175,687
Long-term Deposits and                            59,888                 72,919
prepayments
                                              1,201,711             1,490,695
                                              9,748,184             9,905,729
Current Assets:
Stores and Spares                               605,480               705,639
Stock-in-Trade                                2,311,336             2,347,790
Trade Debts                                   1,049,464               730,676
Loans and advances                              137,680               174,039
Trade deposits and short-term                   343,570               287,159
prepayments
Other receivables                               658,489               549,933
Taxation recoverable                            337,032               437,468
Cash and Bank Balance                         3,615,056             1,791,151
                                              9,058,107             7,023,855
TOTAL ASSETS:                             18,806,291              16,929,584




COMSATS Institute of Information Technology, Lahore.                          - 43 -
                         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                      (2,943,274)           (2,373,570)
discounts
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 &                             12.86                 10.49
diluted)




COMSATS Institute of Information Technology, Lahore.                           - 44 -
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



      Year        Ratio                3

      2003         2.95               2.5

                                       2
      2004         2.04
                                      1.5
      2005         1.84                1

      2006         1.71               0.5
                                       0
      2007         1.85                     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 operations have been financially efficient.In five years Total Asset
Turnover has a negative trend butafter in 2007, it showed a positive increase.



COMSATS Institute of Information Technology, Lahore.                           - 45 -
PROFITABILITY RATIOS:


1)     Gross Profit To Sale:
       Formula = (Gross Profit / Net Sales) x 100

      Year         Ratio               25

      2003       14.70%                20

      2004       15.62%                15

      2005       18.14%                10

                                        5
      2006       20.86%
                                        0
      2007       20.87%                     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               20

      2003        4.22%                15

      2004       16.13%
                                       10
      2005       12.19%
                                        5
      2006        7.43%
                                        0
      2007        7.74%                     2003   2004   2005   2006   2007




COMSATS Institute of Information Technology, Lahore.                           - 46 -
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



      Year         Ratio               250

      2003        55.20%               200

      2004       205.06%               150

      2005                             100
                 162.33%
                                        50
      2006       104.87%
                                        0
      2007       128.58%                     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.




COMSATS Institute of Information Technology, Lahore.                            - 47 -
MARKET RATIOS:



1)     Market Price per Share:

      Year       Price per             200
                  share
      2003          85                 150


      2004         89.65               100

      2005        140.50                 50

      2006        115.50
                                          0
                                              2003   2004    2005   2006   2007
      2007        196.65


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       Earning                 25
                 per share
                                         20
      2003         5.52
                                         15
      2004         20.51
                                         10
      2005         16.23
                                          5
      2006         10.49                  0
                                              2003    2004     2005    2006       2007
      2007         12.86



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.


COMSATS Institute of Information Technology, Lahore.                                       - 48 -
                                        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.


          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




COMSATS Institute of Information Technology, Lahore.                            - 49 -
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.




COMSATS Institute of Information Technology, Lahore.                           - 50 -
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


COMSATS Institute of Information Technology, Lahore.                           - 51 -
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.




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          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.




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      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.


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      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.




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                                    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.



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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



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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.




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                                     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.




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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.



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                             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.



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                       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


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   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.




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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




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