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University of Central Punjab
Table of Contents
Mirza Groups Profile ................................................................................................................. 4 Rice and Rice Industry Profile .................................................................................................... 5 Definations: ............................................................................................................................ 7 A) RICE: ............................................................................................................................. 7 1) Cargo Rice: ..................................................................................................................... 7 Major Exporters of Rice .......................................................................................................... 8 Aroma Rice International Traders ............................................................................................. 11 Vision Statement ....................................................................................................................... 12 Mission Statement .................................................................................................................... 12 Departments and their functions ................................................................................................ 13 Procurement Department ....................................................................................................... 14 Front Office Department ....................................................................................................... 15 Finance Department .............................................................................................................. 15 Quality Department ............................................................................................................... 16 Testing Lab ........................................................................................................................... 17 Inventory Controller Department........................................................................................... 18 Engineering Department ....................................................................................................... 18 Export Department ................................................................................................................ 19 Domestic Trade Department .................................................................................................. 20
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Beside this portfolio Mirza Group is also involved in real estate business. Mr. Mirza Fazal Karims son, Mr. Mirza Mehboob Alam with his keen eye on the future is now guiding the Mirza Group to enter the field of Information Technology (IT). The Group is constantly on its forward march. Mr. Mirza Mehboob Alams Vision knows no bounds and it will be difficult to predict as to what will be his focus of attention tomorrow. Mr. Mirza Mehboob Alam runs Fazal Karim Foundation whose sole objective is to engage in humanitarian projects in support of social and cultural causes and for the uplift of the deprived. Through this Foundation he not only fulfils his corporate responsibilities but also more importantly his commitment to promoting the good of common man.
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subsequent crops including wheat. Miller's interest is high head rice recovery. Traders prefer attractive physical appearance (shape and size), whiteness and uniform grain size.
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For consumers, quality encompasses a complete range of visual, sensory and palatability criteria that include impressive appearance of raw as well as cooked rice texture in terms of stickiness/flakiness and appealing aroma. Rice grain quality depends on intrinsic quality of rice variety (appearance, milling quality and cooking characteristics), environmental conditions (temperature, humidity, rainfall) and management practices such as use of healthy seed; optimum sowing time; balanced and timely application of fertilizers; proper harvest and post-harvest operations, use of modern milling and polishing machinery etc.
Definations:
A) RICE: means milled rice which includes cargo rice, white rice, glutinous rice and boiled rice, whether it be whole grain, head rice, big broken, broken or small broken. 1) Cargo Rice: (BROWN RICE, HUSKED RICE) means rice obtained from paddy of which only the husk has been removed. This includes its whole grain, head rice, big broken, broken, and small broken. 2) Plain or White Rice: means rice obtained from paddy which has been husked and milled while by removing its bran layers. This includes its whole grain, head rice, big broken, broken, and small broken. 3) Parboiled Rice: may be husked or milled rice processed from paddy or husked rice that has been soaked in water and subjected to a heat treatment so that the starch is fully gelatinized, followed by a drying process. B) GRAIN CLASSIFICATION: means the proportional mixture of rice of difference classes to form a grade
Rice Kernal is divided into four classes namely: 1) Extra Long Grain: shall be the head rice/whole grain having the average grain length of 6.90 mm or more. 2) Long Grain: shall be the head rice/whole grain having the average grain length of more than 6.0 mm but not more than 6.90 mm. 7
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Rice is the second largest food item of the Pakistani households after wheat flour. During the last decade, the production of rice in Pakistan has been around 5 million tons per annum. Around 2.9 million tons of rice is available for domestic consumption of Pakistan. The per capita availability of rice in Pakistan is 20.78 kg. Pakistan has scattered population of rice eating people throughout the country. In most of the urban and rural areas of the Punjab, people eat rice at least once a week. In Azad Kashmir, the entire households consume rice in their daily meals. In Sindh province, particularly Karachi, people eat rice 3-4 times a week.
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ISLAMABAD: Pakistans top rice export body said it aims to export 4 million tonnes in fiscal year 2010/11, about 1 million tonnes more than previous estimates made after destructive floods in August. Irfan Ahmed Sheikh, chairman of the Rice Exporters Association of Pakistan (REAP), said total rice production would be nearly 6 million tonnes. A senior food ministry official on Tuesday, however, low-balled REAPs estimate and said output would be about 5 million tonnes. We dispute the governments figure, Sheikh told Reuters. Our assessments are that the production will be nearly 6 million tonnes. We are now aiming to export about 4 million tonnes of rice this year on good global demand. REAPs export target tops previous trader estimates by almost a million tonnes. The government in September estimated losses of up to two million tonnes from the August floods. Before the floods, the food ministry expected 6.1 million tonnes for the 2010/11 crop. The countrys eight-month-long rice season runs from April to November and final estimates of the crop size will not be available until late December. The reason for the increased estimate, Sheikh said, is that the monsoon floods, which devastated more than 2.4 million hectares of farmland, did not affect the rice crop in the Punjab province, which produces 60 percent of the total national output. Production losses in the second-largest rice growing province of Sindh were estimated at about 500,000 tonnes, but that would largely be offset by the better yield in Punjab, Sheikh said. The president of the Agri-Forum Pakistan agreed with the REAPs production estimates.
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Aroma Rice International Traders is a subsidiary of Mirza Group and a third Rice Mill in the group. The organization has a big share in the total revenue of the group and earns much foreign exchange for the government.
The management at Mirza group has gathered valuable experience in Rice Export through trading to Europe and Middle East since 1992. After assessing high demand for premium quality Pakistani Basmati Rice, in the international market, management decided to set-up a state-of-theart processing plant of its own.
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As a member of Mirza Group, Aroma Rice International Traders enjoys an exceptional advantage in financial matters, sales, logistics, research and development.
Vision Statement
The company is committed to serve the humanity by providing the most hygienic food so they can live a healthy life
Mission Statement
To be a market leader in rice industry ensuring the highest quality of the product and building employees career, serve the society and earn foreign exchange for the country by exporting and establishing the quality image of Pakistani rice in outer world
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This department is responsible for purchasing the paddy of desired quality. The employees of this department have special and expert level knowledge of paddy because it is the most sensitive part of the business. If wrong type of paddy is purchased or undesirable quality of paddy is purchased then its going to be a big mess.
Teams are built among these 18 employees and then regions and territories are allotted to them, and each team is responsible to go to their particular area and achieve the purchase target from that area. Keeping quality of the paddy is the first thing these employees have in their minds.
Procurement is really a tough job because when rice crop comes in the market, the duration is only 1 month. You have to purchase within one month. Because this is a seasonal product so it only comes once in the year. Employees have to achieve their purchase targets within one month so they have a huge responsibility.
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Guests of employees and management are also warmly welcomed by this department. Any person comes in the firm first tells the issue to the front office, front office then calls to the corresponding person and informs him about the issue then a meeting is arranged or an appointment is set and issue is solved. All phone calls are also first received by the front office staff.
Finance Department
Finance department is the hub of the organization. This department has many things to do. How to float capital Arranging payrolls Arranging wages Maintaining cash flows Making budgets Calculating costs Setting prices
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Budget is prepared which is the most complex thing, how to spend, where to spend, when to spend and how much is to spend. Cash flows are generated and it is tried that cash flows are maintained as they were projected at the beginning of the fiscal year.
Costs of different varieties of rice are calculated and the price is set by keeping both markets, domestic and international market. Labor is given wages on weekly basis and rest employees are given salaries and payrolls within the first seven days of the month. It is ensured that Cash InFlow should meet the timings when the expenditures are to be incurred.
Quality Department
The first and foremost responsibility of Aroma Rice International Traders is the customers satisfaction by providing them highest quality. We pursuit for the highest quality standards and its philosophy of quality product deliverance as only reiterated its mission statement.
We seek satisfaction for our customers by making our products and services worthy of them through our commitment, teamwork and an efficient ever-improving quality management system.
Company is committed and endeavoring to do environment-friendly and pollution-curtailing rice processing business while continually improving its Green Practices and complying by all applicable national and other standards. Company is focused to consistently interact with and address the concerns of all interested parties.
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This process is closely watched by highly trained and experienced personnel. Management maintains most moderns testing laboratory equipped with mini mill.
Detailed laboratory analysis form part of the routine control. Testing is regularly performed by our experienced and highly qualified analyzers right from raw rice to finished end product to ensure that product delivered to customer conforms to the given specifications.
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Barkat Rice Mills has been awarded ISO-9001:2008, ISO-14001:2004, HACCP, ISO22000:2005, BRC Global Standard- Food(Issue 4).The company has designed its Quality Management System in line with ISO 9001 and HACCP. Top management brings its experience in Quality management Systems from member companies having successfully implemented such systems.
Engineering Department
Engineering Department is responsible for the smooth flow of operations in the plants and machinery. Engineering department has a complete schedule and plan of when to repair and when to conduct maintenance.
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Export Department
70% of the revenue of the company is generated by this department. All the Export orders and tenders are gained by the personnel working in this department. This department is responsible to fulfill export orders at time and win tenders from different countries.
60% of rice produced is exported to following countries: Dubai Saudi Arab Iran Qatar Behrain Oman Kuwait Jordan England Sweden Australia Spain
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Two types of rice is sold locally: Extra Long Finest Rice By Products of Rice Extra Long Finest Rice This is the finished product which is sold domestically as well as internationally. It has following types: 86 Non Basmati Rice Super Kernal Extra Long Basmati Rice
Par-Boiled Super Kernal Extra Long Basmati Rice Par-Boiled 1121 Qayenaat Extra Long Rice
By Products of Rice Processing, husking and milling of rice leaves many By-Products which are scrap and sold separately. The selling of by-products also contributes much to the total revenue of the organization.
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University of Central Punjab
The kinds of by-products are given as follow: Husk of Rice (Toh) Bran (Powder of Rice) Broken Tip (Nakku) Broken Rice (Totah) Damaged Rice (Dhaghi Daanay) So Domestic Trade Department is also responsible for selling of these by-products as well in the market.
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Paddy Cleaner
Pre-Steaming
Double Steaming
Drying
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Paddy Cleaner
Drying of Paddy
Husking
Husk Seperation
Paddy Seperation
Polishing
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Shining
Destoning
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Shifting
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Width Grading
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Length grading
When selling domestically only this procedure is followed, in local market only normal rice, both Basmati and Non-Basmati is sold. This type of rice is neither par-boiled nor it is reprocessed. It because the domestic market doesnt have enough demand for par-boiled and re-processed rice thats why company do not pay much attention here. It only sales non par-boiled and non reprocessed rice locally.
If rice is further to be exported then the following procedure which is known as re-processing is done to make it of export quality.
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Cleaning
Width Grading
Shinning
Water Polishing
Shifting
Length Grading
Color Sorting
Final Grading
Packing
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File sorting;
I also used to sort out and index files in the office area. Locally sold by-products invoices and expense invoices were sorted out in the corresponding files
Attending Calls:
Few days I also worked in front office where I answered the calls and transferred to the concerned department.
Labors Inquiry:
Took the inquiry of any labor worker working on any machine within the unit to the corresponding person.
Supervision on Loading/Unloading:
When by-products were loaded in trucks/containers, it was my job to count how much the bags are loaded. Counting them and making a report was my job.
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Strengths:
y y y y y y y y Aroma Rice International Traders has strong foundation regarding finances In local as well as international Markets, Aroma Rice is a name of quality Goodwill in terms of commitment and delivery on time of an order Have expert personnel in each department Latest and advanced automated machinery Power Back-ups It has Low cost cheaper labor Cameras are installed everywhere for monitoring
Weakness:
y y y Organizational structures nature is not decentralized. Only Export related documents and accounts are computerized Procurement department has less staff than required
Opportunities:
y y More share in exports can be captured because still there is a lot of room It can go for related diversification as Biscuits can be made from its by-product (Bran/Powder) y y From Its Husk Tip and Bran, Rice Canola Oil can also be produced Putting the product into its own brand, can create new markets and profits
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Threats:
y Threat of new entrants is really high. Many new units are being installed and competition is becoming tougher y Threats from political scenario is very much high. As exporters are not trusting on Pakistani parties y If river/water issue is not resolved, then there could be a shortage in crop due to lack of water and depression may come.
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University of Central Punjab
I noticed that the structure of the organization is centralized, its not decentralized due to which process is slow because every decision has to first go at upper level then theres a wait of approval and then the action is executed. If the power is decentralized and authority is give to employees then the decision making can be more efficient and the process can become quick.
All documents including domestic trade as well should be computerized and reports should be generated on computers. This will reduce the time of reports generation and furthermore it will reduce the chances of error. If any error happens then it can be immediately rectified on computer while on the other hand it is very difficult to find it and then correct it on manual books.
The duration of paddy procurement is only one month, and the procurement department has only 18 employees working in it. Purchase targets are so high that in this one month employees are overloaded and it is very difficult for them to achieve targets because they also have to achieve the quality levels. If more employees are hired then it will ensure the quality level as well as the fulfilled purchase targets within the time duration.
Since Aroma Rice International Traders is involved in business to business market, I also recommend that Aroma Rice should also put some of their production in their own brand and market it, If they can commercialize their own brand/product they can earn more on the same sales.
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University of Central Punjab
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REAP online sources: http://www.reap.com.pk REAP is Rice Export Association of Pakistan, an exporters body where national and international level decisions are taken.
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