1

Shahrah-e-Roomi P.O. Amer-sidhu,

Lahore-54760,
Pakistan

Internship Report

Presented By :
Ayesha Ashraf
Roll No :
1106
Session 2005-2009
Presented To:
Department
Economics
Lahore
College
Women University

LCWU

Jail Road Lahore, Pakistan

Of
for

INTERNSHIP REPORT OF
PACKAGES LIMITED

Submitted By: Ayesha Ashraf

Supervisor (Coordinator):
Mrs. Riffat Saqlain
Dean of Arts and Social Sciences

DECLARATION
An internship report submitted to the Dept of ECONOMICS, Lahore College For Women
University Lahore, in partial fulfillment of the requirement for the degree of BA. (HONS)

DEDICATION
I am proud to dedicate all my work to my beloved parents my father Mr. Muhammad
Ashraf Shafi and my mother Mrs. Farzana Ashraf. I cannot forget their love, care and
cooperation, which helped me a lot throughout my internship.

ACKNOWLEGEMETS
All the praises and thanks for ALLAH ALMIGHTY who is the entire source of all
knowledge and wisdom to mankind.
Special praise is for the HOLY PROPHET MUHAMMAD (P.B.U.H) who forever is the
source of knowledge and guidance for humanity as a whole. On the successful
completion of this project. I am extremely thankful to my University and PACKAGES
Limited, for providing me such a great opportunity.
I am extremely thankful to Miss. Amna Iqbal, and Mr. Waqqas Zaffar for their support.
I am sincerely thankful to Mr. Mohsin Masud (AMM) and Mr.Shahid Javaid (KAM), for
providing me the chance to get training as an internee.
I am extremely thankful to Mr.Noman Zaffar (Regional Sales Manager), Mr.Omer Ejaz
(Key Accounts Manager), Mr. Muhammad Naveed (Assistant Sales Manager), Miss.
Mehreen Bilal (Assistant Sales Manager), Mr. Suleman Arshad Pall (Assistant Sales
Manager), Mr. Omair (Assistant Sales Manager), Mr. Shamayal Shariq (Assistant Sales
Manager), Mr. Faraz Alam (Assistant Sales Manager), and Mr. Muhammad Abid Shafi,
Miss. Sumaira and Mr. Hussain (Support staff of the Industrial marketing department)
who have shown great cooperation and provided guidance during these six weeks. I can
never forget their friendly treatment and professional guidance.
And special thanks to all my teachers.

Table of Contents
Section 1
Introduction
Dedication
Declaration
Acknowledgements
Executive Summary
Introduction
History & Background
Company Profile
Packages Today
Quality Focus
Business Methodology
Objectives of Packages
Vision Statement/Mission Statement
Packages logo
Market Standing

05
05
06
07
08
09
11
13
14
16
17
19
22
23

Section 2
Management System
Organizational Chart
Corporate Structure
Managerial Hierarchy
Policy Formation Process
Managerial Policies

26
27
28
29
31

Section 3
Marketing Mix
Product
Price
Place
Promotion

32
34
36
37

Section 4
Swot Analysis
Strengths
Weakness
Opportunity
Threat

42
42
43
44

Section 5
Training Programme
Divisional or Departmental detail
Activities of intern
Projects Completed

45
61
99

Section 6
Findings and Analysis
Problems and Recommendations
Suggestions and Recommendations
Conclusion

103
104
105
106

Executive Summary
This internship report presents the results of various activities that take place in Industrial
Marketing Department.
My report gives a detailed overview of packages limited. I have discussed all the working
divisions or business lines of packages
This report answers all the questions that have been assign to me by the coordinator and
also it deals with those questions that came into my mind .In this project, I have started
with the introduction of PACKAGES LIMITED throwing highlights on its salient
features of development and progressive mode. After introduction I have given some
detail about
Mission statement, Quality statement, EH&S statement, Board of directors,
global partners, Organizational Structure of PACKAGES LIMITED, its
certifications, Culture and key success features of PACKAGES LIMITED.
I would welcome any correction and suggestion to minimize the errors.

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SECTION 1:
INTRODUCTION:
Contents:

History & Background

Company Profile
Packages Today
Quality Focus
Business Methodology
Objectives of Packages
Vision Statement/Mission Statement
Packages logo

11

Market Standing

History and Background

Packages was established in 1956 as a joint venture between ALI GROUP of Pakistan
And Akerlund and Rausing of Sweeden, who later founded Tetra Pak.
PACKAGES LIMITED is the number one firm in Asia. It is the market leader at this
time.
In the beginning 22 Swedish Experts came to Pakistan to run the factory and to train the
Pakistani staff. The main reason of developing PACKAGES LIMITED is to convert
paper and Paperboard into packaging for consumer industry, in 1958 production of
packaging cartons for different industries started. Packaging. Cartons include soaps,
biscuits, cigarettes, tea, and pharmaceutical products and many others.
SYED BABAR ALI
Over the years company enhanced its facilities to meet the growing demand of packaging
product. Additional capital was raised from sponsors, financial corporations and from
public in making the total paid up capital to Rs 3.1 million in 1965.

RUBEN RAUSING
At first Packages commissioned its own paper mill in 1968 with production capacity of
24000 tons paper and paperboard based on waste paper, wheat straw and kahi grass.
Since 1982, Packages limited has a joint venture in Tetra Pak Pakistan Limited with
Tetra Pak International to manufacture paper for liquid food packaging and to sell Tetra
Pak Packaging equipment.
The main industries covered by Packages:
Soap Industry
Shoe Industry
Tissue Industry

12
Tea Industry
Tobacco Industry
Food Industry
Sweets & Confectioneries

In Tetra Pak Pakistan Limited Packages Limited has 45% shares, 6% shares owned by
Syed Baber Ali Shah and 49 % owned by Tetra Pak International.

Since 1957, Packages has been producing ink for its own consumption. In 1993, the
Company agreed to joint venture with equity participation from Coates Lorilleux, worlds
largest ink manufacturer. Packages have transferred its ink manufacturing facilities to
another company by the name of Coates Lorilleux Pakistan Limited.
In 1963 a joint venture was signed with Mitsubishi Corporation of Japan for the
manufacturing of polypropylene films at the industrial estate in Hatter, NWFP. This
project, Tri-Packs Films Limited commenced production in June 1995.
In 1996, a joint venture agreement was signed with Print care (Ceylon) Limited for the
production of flexible packaging in Sri Lanka. This project Packages Limited Lanka
(private) Limited commenced production in 1998.Packaged owned 62% of this
company.
In 1999-2000 Packages Limited has successfully completed the expansion of flexible
packaging line by installation of new rotogravure printing machine and the expansion
of the carton line by a new Leman tic rotogravure inline printing and cutting creasing
machine. The machine is in production since December 1999.
The Company is at advanced stage of implementing SAP, an Enterprise Resource
Planning System, which through common database allows the company to fully
integrated and be live in respect of all at business information. This will enable the
Company to serve its customers better.
The Rubber Division working under the Research Development & Control
Department is also selling its products in the local market as well as selling to the
Defense Authorities apart from providing services to its own department.
Another important service department of the Packages Limited is its Power Plant. In
1967 they set up 6 MW power plants, but to ensure a continuous and dependable supply
of power for its production lines. It has also established its own power plant with 10 MW
power in 1991, the cost of which was 180 million rupees.
.In the field of CONSUMER PRODUCT, Packages Limited has shown tremendous
potential and commendable talent. Consumer Product Division provides 12% share of the
Packages total sales. The consumer product of the company is Rose Petal Tissues. The

13
production of Rose Petal was the first introduction to tissues paper industry in Pakistan.
Through Packages has introduced various brands of tissues. Rose petal is now the market
leader in tissue paper industry in Pakistan. Its has more then 75% share of tissue paper

industry. Other consumer products includes paper cups, paper plates, paper napkins,
paper hot cups, wet tissues of Rose Petal have been introduced in their market in 1992.
Tulip Tissues are also the important consumer product produced by Packages Limited.

Company Profile
Established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund
and Rausing of Sweden, Packages Limited provides premium packaging solutions for
exceptional value to individuals and businesses. We are the only packaging facility in
Pakistan offering a complete range of packaging solutions including offset printed
cartons, shipping containers and flexible packaging materials to individuals and
businesses world-wide. Our clientele includes illustrious names such as Unilever and
Pakistan Tobacco Company, who have been our customers for over 50 years. We employ
over 3000 people and had sales of over US $ 100 million in 2004.
Listed on all three stock exchanges in Pakistan, Packages Limited has maintained a longtime credit rating of AA. Our joint ventures and business alliances with some of the
world's biggest names reflect our forward-looking strategy of continuously improving
customer
value
through
improvements
in
productivity.
Packages has always been at the forefront of new developments in packaging research
and has pioneered several innovations, including the use of wheat straw as a raw material
for paper and board manufacture. Our on-site paper and board mill, established in 1968,

14
has constantly increased its production capacity. A new plant with even greater
capabilities is planned for the near future.

Packages Today
Now Packages Limited is exporting in managerial skills & technical expertise to the third
world countries like:
Indonesia
Tanzania
Kuwait
Saudi Arabia
Nigeria
Zambia
Somalia
Russia
It also started export of tissue to countries
Iran
Bangladesh
Srilanka
Indonesia
UAE
Maldives

Packages have a large workshop for repairing and replacing the damaged parts. R& D
control department was established to ensure quality and standard of product.
Started with only 500 workers now it has more then 2782 employees working in different
departments.

15
Today Packages is considered as one of the leading packaging firm in Asia.

ISO Certificate

What Does Being ISO Certified Mean?

Enhanced products quality and reliability at a reasonable price.
Reduction in the number of models and thus reduction in cost
Greater compatibility and interoperability of goods and simplification for
improved usability.
Improved health, safety and environment protection, and reduction waste.
Increased distribution efficiency, and of maintenance.

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ISO 9001
In compliance with worldwide standards, the ISO9001 Certificate has been awarded to
the Flexible, Carton Division of Packaging and Paper and Board Division.

ISO 14000
Groundwork for implementing ISO 14000 (Environment Management Standards) has
been started and it will be achieved in due course of time.
Packages Limited is a quality conscious organization, emphasis always remains on
quality. For this reason they have employed quality seeking management. And because of
this reason it got the certificate for quality in five departments:

Flexible Department
Carton line
Corrugated division
Consumer product division
Paper & board mill

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Business Methodology

At the heart of our corporate methodology is the certainty that every customer
relationship is unique. While every process is customized for each customer, business
methodology embodies a set of core principles. Whether you need a readymade carton or
a complex custom made solution, the consulting process starts with a thorough
understanding of the customer's objectives. Requirements are defined, environmental
interests considered, and deadlines and costs determined to ensure a clear understanding
of the issues involved. Custom orders are headed on to the Art and Design and
Research and Development (R&D) departments, which provide a complete design
solution
based
on
customer
needs.
Product realization requires interaction with one or more of the product business units paper/board, corruwal, carton, or flexible. Inputs for the manufacturing process come
from our paper and board mills.

Services After The Sale

Service does not end once the contract has been signed: The Customer Services
Department (CSD) follows new orders from pre-press up to final delivery to make sure

18
that product exceeds customers expectations. CSD arranges development activities and
provides comprehensive technical and after-sales support to customers. Customer
complaints are followed by proper feedback and management reporting. With these
activities, customers are given due attention and the essential quick response all the time.

To strengthen our supply chain, we provide VMI (Vendor Managed Inventory) facility to
our key customers. We maintain stocks ourselves and deliver on short notice according to
customer requirements.

Technical Collaborations
Packages Limited have ongoing technical collaborations with AMCOR, the largest
group of Flexible Packaging in Europe. AMCOR provides Packages Limited technical
support in new product development. Packages Limited have had licensee and technical
agreements in the recent past with renowned companies like Kimberly Clark and SCA.
Moreover, Packages Limited have excellent relationships with leading suppliers of raw
packaging material and equipment.

Objectives of Packages Limited

Objectives are the ends towards which activity is aimed. They represent not only the end
point of planning but also the end towards which organizing, staffing, leading and
controlling are aimed. It works with objective of increased sales, profit and expansion
programs.
The objectives for which the company is established
1. To carry on business of manufacturing and printing of cartons, packages, special
containers for various commodities, utensils, and other articles, printers,
lithographers, type founders, stereotype, engravers, die sinkers book binders,
designers, paper and ink manufacturer and dealers in or manufacturers of any
other articles or things of a character similar or analogous to the foregoing or any
or any of them or connected therewith; manufacturer importers, exporters, and
dealers in raw material, articles and things required for purpose of manufacture
and printing of cartons, packages, specialized containers for various commodities,
and to establish and maintain showrooms for this purpose; and of distributors,
suppliers and sellers of the said articles and contractors for supplying them.

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2. To carry on all or any of the business of the manufacturer of and dealers in paper
and board of all kinds and Tetra Paper for making Tetra Pak of any type,

description and dimensions, straw board, plain and corrugated duplex board, chip board,
card board, box board, veneer board, mill board, wall and ceiling paper, and

Articles made of paper, pulp, paper board specialists and board in all their branches.
3. To carry on business of stationers, printers, publishers, fancy good dealers, bill
posters and advertising contractors.
4. To carry on business as producers and processors of and dealers in poultry, dairy
produce of all kinds and other liquids of every description.
5. To carry on business of manufacturers and dealers in chemical of all kinds, paints,
varnishes, printing inks and all other things which can be conveniently
manufactured or dealt in either wholesale or retail and either as principles or
agents.
6. To purchase and provide machinery and equipment for the purpose here in before
as well as here in after set out and to manufacture or assemble such machinery.
7. To establish laboratories R & D center perform such research and development, as
the company may deem advisable.
8. To train workers and personnel both in Pakistan and abroad to obtain technical
proficiency various fields.
9. To enter in to an arrangement with any government, state or authority, central or
provisional, railway, municipal, local or otherwise, that may seem conductive to
the companys object, or any of them and to obtain from any such government,
state or authority any rights, privileges and concessions.
10. To sell and dispose of the undertaking of the company or any part thereof or such
consideration as the company think fit, and in particular for shares, debentures, or
Securities of any other company having objects altogether or in part similar to
those of this company.
11. To invest and deal with the money of the company not immediately required in
such manner as may from time to time be determined.

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12. To develop and build local skills and competence in a sophisticated industry order
to make the country self sufficient in its need for packaging.

Mission Statement

To be leader in the market Packages serves by providing quality products and superior
services to their customers while leaning from their feedback to set even higher
standards for our products.
To be company that continuously enhances its technological competence to provide
innovative solutions to customer needs.
To be a company that attracts and retain outstanding people by creating a culture that
fosters openness and innovation promotes individual growth and rewards initiate and
performance.
To be a company which combines its people, technology, management system and
market opportunities to achieve profitable while providing fair return to its investors.
To be a company that endeavors to set the highest standards in corporate ethics in
serving the society.

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Quality Policy

We at Packages Limited are committed to producing quality products, which confirm

to our customers requirement and strengthen our position as Quality-manage
Company. Our pledge is to provide the market with the best quality products at
competitive prices through a customer-driven and service-oriented, dynamic
management team. To meet this obligation, the Company will continue updating of
employee skills by training, acquisition of new technology, and regular re-evaluation
of its quality control and assurance system. Appropriate resources of the company will
be directed towards achieving the quality goals through employees production.

22

Environment, Health and Safety (EH & S) Policy

The Management of Packages Limited realizes that we live in a world where resources
are finite and the eco-system has a limited capacity to absorb the load mankind is
placing on it. That is why it is our belief that we must do everything practically possible
to lessen the load we place on the environment and make every effort so that
sustainable development becomes a reality. Packages Limited has formulated its
environment, health and safety (EH&S) policy to address these issues in a more
effective way. It is very clear to us that these objectives cannot be realized by the efforts
of the Management alone. While the general directions are to be provided by the
Management, the help of all the employees will be required to transform these
ambitions into reality. It is expected that all the employees will do their best to
implement the policy in its true spirit
To see the quality policy as well mission statement we can conclude that Packages
Limited is Customer s oriented which gives importance to its customers and solve
problems to the customers at their door step.

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Packages Logo
In the packages logo, the letter P in the triangle signifies a depth and range of
Meanings that is:
Progress
People
Prosperity
Productivity
Power
Patience
Particularity

Market Standing

Market Share of Packages Limited in Packaging Industry

Market Share Of Packages Limited In Packaging

Industry (Percentage)
Packages Limited
Others

25%
75%

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Packages' Market
Share
80%
60%
40%
20%
0%
Packages Limited

Others

But there is no any competitor, who has more than 10% market share. The Packages
Limited has an edge over competitors in different factors:
Packages has own Paper & Board Mill
Modern Machines & equipment
Printing quality of products
Provides help in designing
Almost 91% of the sales of Packages Limited comprise of Industrial Products. Packages
Limited is the marketing leader of the packaging industry of Pakistan. Packages Limited
produces the wide range of packaging material in the country. It manufactures materials,
which cover paper & board, corrugated board, plastic packing. The major industries
whose packaging requirements are being fulfilled by Packages limited are as follows:

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Cigarette Industry
Tea Industry

Shoe Industry
Match Boxes Industry
Toffee and Candy Industry
Food Industry
Tooth Paste Industry
Garments Industry

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Section 2
Management System
Contents

Organizational Chart
Corporate Structure
Managerial Hierarchy
Policy Formation Process
Managerial Policies

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Organizational Chart of Packages Limited

Board Of Directors

Advisor

Managing Director

Executive Board

General Manager

Deputy G.M
Production
Manager

H.R.D
Manager
Commercial
Manager

R&D
Manager

Marketing
Manager

Mechanical
Manager

Store
Manager

I.R
Manager

Admin
Manager

E.H & S
Manager

Cost & Tax

Manager

Mill Manager

Finance
Manager

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Corporate Structure

Packages Limited has three main manufacturing divisions:

The Paper and Board Division, which manufactures paper and board from
a mixture of wood, pulp and other raw materials, and treats effluent
The Packaging Division, which takes materials from the Paper and Board
Division
and
converts
customer
ideas
into
finished
products
The Consumer Products Division, which manufactures off-the-shelf branded
consumer products
Packages Lanka is a joint venture between Packages Limited and the Print Care Group of
Sri Lanka, and DIC Pakistan a joint venture between Packages Limited and Dainippon
Ink and Chemicals, Inc. of Japan.

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Managerial Hierarchy

Deputy G.M
Marketing Manager

D.M Manager

Industrial Marketing
Department

A.M.M
Karachi

Consumer
Product

Division

A.M.M
Lahore

A.M.M
Islamabad

South
Zone
Sukkar
Zone

Senior Sales
Manager

Multan
Zone

Regional Sales
Manager

Central
Zone
Assistant

Sales
Executive

Assistant
S.M

Sales
Executive

North
Zone
Faislabad
Zone

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Managerial Policies

The managerial policies as adopted by Packages limited are as follows:

The price of companys product is same in all areas pf Pakistan.
In case of consumer Product Company pays freight.
Priced can be changed by the company without any prior notice.
The Company accepts only large orders of high monetary value.
An order, which has been once confirmed by the customer, can only be cancelled
at the will of company and not the customer.
In case of consumer product, agreement with customer is made once and for all.
No discounts are offered to customers.
Goods are sold against 100% advance payment.
The company doesnt pay freight when its industrial products are shipped to the
customer.
Punctuality is strongly emphasized.
All the designed and original work done inn preparing the packages of any
product will remain the property of the company.
Procurement is made directly with producers so that the middlemans profit is
eliminated.
Once the goods are in transit, they become the property of customers.
For routine matters multiple suppliers are maintained to reduce dependency on
any one particular supplier.

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An alteration in the approved sample shall be charged extra.

Workers are encouraged to produce more through well-organized incentive
system.
Selection of executive s is done strictly on merit bases and no approach is
entertained in this regard.
Investment is made in that project which is outside the line of company but is
expected to improve the sales of the company.
In all production processes both quality and quantity are taken emphasized.
Workers are encouraged to reduce waste and costs.
Only those workers are recruited who have some relationship with the current
employs of the company.
Smooth relationship between supervisors and the subordinates is emphasized.
Company makes capital investment equal to the depreciation every year.
Swiftness in the performance of duties is encouraged.

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Section 3
Marketing Mix
Contents

Product
Price
Place
Promotion
Publicity

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Products

Product Lines

Packages

are

producing

the

following

industrial

and

consumer

products .

Industrial Products:
The main industries where packaging needs are being fulfilled by the company's
products are as follows:

1.
2.
3.
4.
5.
6.
7.
8.

Cigarette Industry
Tea
Soap and detergent industry
Tooth paste industry
Garments industry
Shoe industry
Food industry
Match industry

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9.

Pharmaceutical industry

The following different categories of packaging material are being produced by

Packages.

1.
2.
3.

Cartons
Printed wrappers and labels
Corrugated Board Containers

Critical Analysis
Success and Failure of Different Products
Packages Limited is actually serving other industries and provides them packaging
material. Thus the possibility of failure of any product is out of question. Sometimes it
does happen that the customer rejects certain design or material, but it is redesigned or
corrected according to the demand. Basically they produce according to the orders
therefore never met any failure. Packages Limited is such a big organization that it
introduces everything new, which needs huge investment, and being not introduced by
anyone else in the market. For example, Packages and no another company in Pakistan as
well as in Asia using this printing only introduce Rotogravure printing.
In tissue and other consumer products also there is no major failure of any product.
Every product-met success accepts a tissue named COTTONELLE, which was printed
tissue, it could not get required response. The reason for its failure was the tissue was
imported and cost was high, so at the higher price people were not willing to buy.

35

Price
Pricing Strategy
Pricing Policies
Everything has a price. It is very much obvious when you buy something to satisfy your
need, you have to pay some price for it. But on occasions prices are decreased in the
larger interests of the company. The basic objective is to reap long-term gains.

Price Determination
The basic formula for price determination is:

COST + PROFIT = PRICE

The first aim is to cover the cost. After this a reasonable amount is charged in the name of
profit.

Factors Affecting Profit Margin

There are certain factors, which affect this, profit margin. These are:
a)
b)
c)
d)

Quantity of the order

Number of color to be used in printing
Time of completion
Future prospects

36

Area Pricing
The company has the policy to charge ex-factory prices. They are not concerned with the
freight charges. All such costs are borne by buyer.

Pricing Policies for Consumer Products

The basic objective behind the price determination of consumer products is to maximize
the market share. The company actually wants a higher turnover. The marketing people
set prices by considering the following factors.

I)

Cost Of Production

Every organization strives to sell its goods on maximum profit. But the first objective is
that to cover the cost of production or to sell at the break-even. Packages Limited also
first seeks to cover the cost of production while the profit margin is set in order to
maximize the market share.

II)

Consumer Purchasing Factor

This is also very significant while determining the final price. Marketing manager
has to pay attention on the purchasing power of the target customers. Again the objective
or philosophy behind the whole pricing concept is the maximization of market share.

III)

Pricing Policies Of Competitors

The price charged by the competitor is very important particular in case of consumer
products. Since price is the basic factor, Marketing department always keep an eye on the
track and move made by competitors. If the company starts charging high price as
compared with the competitors, then definitely it is going to loose its market share.

IV)

Government Taxes

37
Another factor, which affects the pricing policy, is the taxes imposed by the government.
Packages Limited has a policy to increase the prices with the increase in the taxes.

v) Area Pricing
Packages Limited has the policy to charge a homogeneous price for all of its consumers
products through out the country. In this regard, enough margins are kept to cover the
freight and other district taxes.

Placement
Distribution Strategies
We know that channel of distribution means:
"The sequential linkage of the organization and relationship through which a product
flows from the producer to consumer".

Distribution Policy for Industrial Products

In case of industrial goods no middleman is involved. Company's sales force directly
goes to the final customer and gets order form them. In this regard, Packages Limited has
a direct marketing approach. Packages people believe that direct marketing is quite cheap
for industrial goods. The reason, which they quote, is that we have enough sales force all
over the country and which can cover the industry more economically. Mainly it consists
of personal selling. Nominally the sales force obtains new orders. In case of repeated
order or routine job the customer can acknowledge his order through phone, fax etc.

38

Distribution Policy for Consumer Products

So far as the consumer products are concerned, Packages Limited uses dealer or
distributors. The company believes that the use of middleman is much more economical
for the consumer products. Packages Limited has a network of distributors, which covers
the whole country. At present Packages Limited have more those 100 distributors, in
more than 100 cities. Only in Lahore, there are two distributors. Company has a policy to
sell its products to all those cities having population more than 200000 through its
distribution system. Packages Limited supplies its consumer products to the distributors
against cash. The distributor then, supplies these products to the whole seller, who in turn
supplies the stuff to the retailer. And finally, the retailer sells the product to the final
consumer.

Promotion

Promotional Strategies
It is the job of Marketing Department to promote the business of the organization. In
Packages Limited, marketing people have different promotion plans for industrial and
consumer products.

Promotional Policies for Industrial Products

So far as the promotion of the industrial goods is concerned, Packages Limited has not
assigned any budget for it. And in a way they don't promote the industrial sales. But no
organization can survive without promotion. The only promotion, which they under take,
is that of personal selling. For this company need not to fix any promotional budget
because it is the job of sales officers. Moreover, The Industrial Sales Division is

39
successful enough to keep the production process always working, so the management
thinks that there is no need for any other promotional activity.

Promotional Policies for Consumer Products

Without promotion, no consumer product can be successful. Promotional
activities are an integral part for marketing consumer products.
The objectives behind the promotional activities are:

Increase the sales

Out pace the competitor
Increase the market share
Higher turnover
Informing the consumer
Building of good will

The management fixes the promotional budget. The basic premise is that whether the
organization can afford the budget or not. Apart form this fact, there are a lot a of other
factors which the marketing people have to consider, these are:

Cost of media
The number of products already in the market
The number of new products the company is going to launch

Allocation of the Promotional Budget

There are number of tools that are used to promote a business. These include:

Advertising
Personal Selling
Public Relations

40

i)

Advertising

Advertising accounts for about 80% of the total promotional budget. This is
because of the fact that all the products are of CONVENIENCE TYPE and hence,
require frequent advertisement. Infect, advertising is the most popular and effective
media to the advertising campaign of Packages Limited and which includes the following
a)
b)
c)

Broad cast media

Print media
Out door media

a) Broadcast Media
The largest share of advertising budget is allocated to the media because it is the
most interesting media with far reaching effects. Although, it is the most expensive
media, but the nature of the products requires its use. It includes:

TV
VCR
Radio

Packages Limited extensively uses the TV and VCR. While radio is not used very
much. The ad about the facial tissues (Rose Petal) consists of 15 seconds and it runs on
Both the TV and VCR (that is in movies). The budget for TV and VCR is about 65% of
the advertising budget.

b)

Print Media
Print media is also an important part of promotional technique. it includes:

Newspapers
Magazines
Direct mail etc.

41
Packages Limited only places its advertisement in the magazines. Normally,
newspapers are not used. It accounts for about 20% of the total advertising budget.

c)

Outdoor Media

Marketing people normally don't prefer its use because they think that it is not very
effective. it has a very nominal share in the budget. it includes billboard, road side signs
etc.

ii)

Personal Selling

Personal selling is also included in the promotional mix of Packages Limited. It

basically aims at the distributors. It constitutes about 10%. It includes;
*
*
*

Sampling
Gifts
Cent off schemes

iii) Public Relations

Public relations has become and integral part of any promotional mix. Every
company tries to build its image. Packages limited also under take some activities in the
name of public relationing but its share is very nominal.

42

Section 4
Swot Analysis
Contents

Strengths
Weakness
Opportunity
Threat

43

Strengths

One roof Customer service operation

50 years of heritage

Equipped with latest Technology.

Strong financial backing

Own power generation plant.

Strong relationship with customers.

Environment conscious.

Strong HRD function

Fully integrated company.

Recycling plant to minimize the toxic effect from the water waste.

Skilled and professional employees

World most excellent inter company communication Software (SAP) is being

used

Implication of Quality Standards i.e.(ISO 9000, EMS 14000, BEST, GMP &
GHP, HACCP)

Employee growth opportunities

Weaknesses

Too much Dependence on imported material.

Less facility to workers.

Communication gap between management and workers.

Flat structure and overlapping of responsibilities.

Favoritism is found.

44

Delivery Lead time is too high (at least 4 weeks)

Weak Reward system

Red Tapism

Slow decision making

High customer turn over due to high price quotations

High dependence on foreign technical staff for operations.

Opportunities

Emergence and growth of consumer products.

Trends toward high quality of packaging.

Demand is greater than supply.

Market share is 22%.

Gaining more market shares after WTO implementation

Customer retention through cheaper packaging material

To create economy of scale and decreasing per unit cost

Threats

High and ever increasing cost of raw material.

High energy cost in Pakistan

Increased environmental awareness.

Devaluation of Pakistani Rupee.

Global Competition (WTO)

High customer turn over due to high price quotations

45

Threat of new entrant

Threat of bargaining power of supplier

Threat of bargaining power of buyer

Section 5
Training Programme
Contents

Divisional or Departmental detail

Activities of intern
Projects Completed

46

Departments of Packages Limited

Packages Limited is divided into ten departments which are as follows

A. HR Department & personal Department

B. Pre-press planning Department
C. Research and Development Department
D. Production and Planning Department
E. CPD Marketing
F. Technical Department
G. Quality Control Dept (Covering packaging Div and Consumer product division)
H. Industrial Marketing department
I. Finance Department

Other Facilities
There are many other additional facilities provided by Packages Limited for its
Employees and Labor. They include:
Library
Mosque
Mess
Rest room
Canteen

47

Divisional or Departmental detail

I worked as an internee in the Industrial Marketing Department of Packages Limited.

Here is some detail related to my department.

INDUSTRIAL MARKETING DEPARTMENT

PACKAGES LIMITED
Industrial Marketing Department
Customers forget what they have bought or good what they bought was. But they
never forget how they were treated.
(Lynda R. Paulson)

48
We are living in an age of Marketing. Its a famous adage; You don't sell what you
make rather you make what you can sell. Today in any organization, Marketing
Department is of paramount importance. Because it plays a link between the consumer
and the manufacturer. The function of the Marketing Department is to ensure that

Consumers receive what they need. If marketing department works effectively and
efficiently, the whole organization is on a smooth run. The Marketing Department plays a
key role in the operations of the organization. The Marketing Department of the Packages
Limited is headed by the Marketing Manager who is responsible for all the marketing
Operations in all three offices in Lahore, Karachi & Islamabad. Packages Limited has a
very effective Marketing Department, which is acting a vital role in the working of the
Company. This department is responsible for the sale of industrial & consumer products.
Planning Division of the Production Department works closely with the Marketing
Department to ensure the meeting of established targets. Packages Limited has divided
into the four regions i.e. Lahore, Karachi, Multan and Islamabad. Area Marketing
Managers, who are third in the line of authority, direct under the Deputy Marketing
Manager, are the heads of these regions. Marketing Manager also looks after the
Consumer Products Division. Each region is responsible for the sales of its area. A team
assists all Area Marketing Managers, consisting of Regional Sales Managers, Assistant
Sales Manger and Sales executives. There are two Regional Sales Managers under the
Area Marketing Manager. One for industrial sales and one for the consumer products.
Then there are Regional Sales Managers and Sales Executives. The Marketing Manager
for important managerial decisions concerning Marketing Department also among the
Board of Directors of Packages limited often consults the Deputy General Manager who
is. The job of Area Marketing Manager is just like a Supervisor. He checks the
performance of each officer. He, some times, visits the customers and asks them whether
they are satisfied with the services of the officer concerned. The Regional Sales Manager
acts as a coordinator between the Sales Executives and the Area Manager. Each Sales
Executive is allocated a certain number of customers. The respective Executive will deal
with these customers and solve their problems. In case of some trouble, the Area Manager
does involve and tries to settle things. His advice is especially taken while developing,
launching and pricing of new products or amending the prices of existing products and so
on.

Structure of Marketing Department

Number of Employees
Packages Limited has almost 48 employees in their Marketing Department. Out of these
some are performing sales activities and others are in different direct marketing activities.

49

Marketing Operations
Packages Ltd. has been departmentalized on functional basis. The major functions of
Marketing Department are discussed as below.

Marketing department is responsible for carrying out all the activities necessary to market
the company products; this includes sales promotion coordination and evaluation of the
performance of its sales force and formulating marketing policies and strategies. They
also carry out market surveys for new as well as existing products.
The Marketing Department is becoming more and more powerful in modern
organizations. Because it acts as a link between the consumer and the producer. The
function of the Marketing Department is to ensure that consumers receive what they
need. The Marketing Depart Packages Limited has a very effective Marketing
Department which is playing a vital role in the over all working of the company. The
Marketing Department of Packages limited, also known as the Sales Department is
believed to be the bread earner of the company. This department is responsible for the
sale of industrial as well as consumer products. The Marketing Department of Packages
limited is headed by the Marketing Manager, Mr. Sulat Said. Packages Limited has
divided the country into three regions that is Lahore, Karachi and Rawalpindi. Lahore
region is responsible for the sale in Lahore and its civility. Rawalpindi region covers
Rawalpindi, Islamabad, NWFP, and Azad Kashmir. While the Karachi Region covers
Karachi, Sind and Baluchistan. Every regional office is headed by a Area Marketing
Manager. There are two Regional Sales Managers in Lahore under the Area Marketing
Manager. One for industrial sales and one are for the consumer products. Then there are
Senior Sales Officers and Sales Officers. Every year, fresh graduates are hired as
management trainees. After the selection they have to under take extensive training. After

One year of probationary period they are confirmed as Sales Officers. Sales Officers is
also responsible for the promotion of the products.

Marketing Philosophy
The marketing philosophy of Packages Limited in general and Industrial products in
particular, moves around the policy to provide strength in:

50
Service
Quality
Dependability

In simple words, providing good services to the customers. Also along with good quality
and services. The dependability means, the customers should have trust in Packages. By
making strength in quality, goods and services and being trustworthy, gaining the market
share is the philosophy of Packages Limited.
Another marketing philosophy is not only to satisfy the existing customers but also by
doing this to attract new customers.

Methods of Marketing
Face-to-face meetings
Telemarketing
Through E-mail
Through Fax
Group meetings

Prospecting For New Customer

According to my discussion with the Senior Sales Manager, Ms. Humaira Shazia, that
how they do prospecting for new customers. She told that first we see our production
lines i.e.

Carton Line
Flexible Line
Corrugated division
In which division or line we need new customers and the existing customers are not
fulfilling our requirements of that particular line. Then we select our target market. The
selection of target market may be through market surveys. From that target market we
select the potential customers, means the customers with which we can do business. Then

51

these prospected customers are sent free counter samples. The customers use these
samples and if the samples are matched with their standards. They contact with the
Industrial Marketing Department for further negotiations. For their standards and
satisfaction, the strength in quality, services and trustworthy are the base.

Functions of Sales Executive

Customers identification
Customers services
Customers satisfaction
Development of new jobs
Having an eye on competitors activities
Market knowledge
Collection of payments
Maintenance of time

Top Three Customers of Industrial Marketing Division

Pakistan Tobacco company PTC
Unilever
Nestle

52

There are two divisions of marketing department in Packages Limited:

The Industrial Marketing Division
The Consumer Product Division
The performance of marketing activities of the Company has increased due to this
segmentation of division. Following are the important factors that differ between these
two divisions:
Distribution channels are different.
Target market is different.
They both have their own competitors.
Marketing policies are different for each division.

Industrial Products Division

Industrial Products Division

Working Of Industrial Marketing Department

The basic job of Marketing Department is to make sales and to satisfy the customer's
needs.

Allocation of Customers
At Packages Limited every sale Executive and Sales Managers are allocated customers
and they are held responsible for dealing with them. Every Sales Executive has a
complete record of his customers and pays regular visits thus remaining in regular contact
with them. On average a Sales Executive has to deal with more than 10 customers.

53

Daily Meeting
In the Marketing Department, a meeting of all the Sales Managers and Executives is held
every morning. The Area Marketing Manager heads this meeting. Each Sales Officer
explains the current situation of his customers and the development in the new prospects,
if any. The Sales Officers also inform the Area Marketing Manager about what they did
the previous day. They are then guided as to what should do, and are assigned certain
duties regarding the mode of action they are to adopt. Sales people also provide current
information about market. The sales people are also responsible for getting the payment
from the customers. In the daily morning meeting, they have to show that how much
payment they have got from their customers and how much amount is still outstanding
with their customers. The Area Marketing Manager sees that which sales person is
lagging behind in receiving the payments and then guides him to speed up his efforts for
getting the payments from the customers.
In this morning meeting, the daily dispatch report is also discussed. The Area Marketing
Manager discusses with each Sales person, the status of the order delivery of his
customers. If the orders are not executing according to the schedule given by the planning
department, then the Area Marketing Manager, himself contacts with the planning
department and asks them to speed up the delivery process of the late orders.

Developing New Customers

Every organization aims to satisfy its present customer and at the same time tries to
increase the number of its current customers. But with Packages Limited the task is
slightly easier, since it is the largest packaging concern in Pakistan and off course the
most reputed one. In order to find out the potential customers, it is the duty of every Sales
person to remain well informed about the market and grab every opportunity as and when
it arises if it seems profitable. Hence, the sales persons are required to carry out an active
search for potential customers and have to make sure that they miss no opportunity to
strike a deal that can be profitable to the organization. As a matter of fact, it is the job of
sales force to track new opportunities for the organization. Although it is not an easy
task, but the good repute of Packages Limited about its quality oriented production serves
as a promotional tool and helps the Sales staff. Sometimes, some prospective customers
directly contact the organization. The reason is the highly strong market position of
Packages Limited.

54

Procedure for Getting a New Order from the Customer

Like any marketing department, the marketing people here too are supposed to attract the
new customers and get the business from them. Fortunately, the Packages Limited has
very loyal customers, who have been purchasing from them for a long time. So we can
say that, more or less, the Packages Limited has fixed number of customers. Thats why,
except Area Marketing Manager, every sales person has assigned certain number of
customers. The sales Executive has to make all the dealings with his allotted customers.
But this does not mean that in Packages Limited, attention is not given to the new
customers. The point is that the old and loyal customers have become the permanent
customers of the company. The other thing is that the company is operating at full
capacity in case of carton and corrugated divisions. Only in flexible line they are below
their capacity. So, mostly, they focus their attention to attract the customers in the flexible
line. If a new customer comes, then he may be assigned to any sales Executive.
Now there is a certain procedure through which the new order from either a new
customer or the old customer is executed and final product is dispatched to the customer.
The flow chart of this process is given next:

55

Process Flow Chart

Customer
Order
Confirmation

Industrial
Marketing dept.
dept

Confirmation of
ISO

Art Department
Black & white
mechanical

Planning dept.
for confirmation

Approval

ISO Issuance

Color Print

Customers
order

Approval

Approval

Sample Proof

56

Description
Process flow in Industrial Marketing Department is as follows:
First of all there is contact between the customer and the sales department. The contact
may be in two ways:
Customer contacts the marketing department
Sales executive contacts the customer.
Now if the customer has any idea, he gives specification about the required product i.e.
size, material, design etc. and also tells about the approximate order.
The marketing department sends the specification to the Art Department to convert the
idea into a shape. If the customer has no idea then it is the work of Art Department to
make a design.
The Art Department makes blank sample to the concerned sales executive. The sales
executive also gets pre-costing report and then sends the blank sample along with
quotation to the customer.
The blank sample is sent to the customer to get approval of four things:
Size
Material used
Structure of packaging
Construction
At the same time, the quotation is also given to the customer. On quotation, the following
information is given:
The price of the product according to the size and quantity
Terms of payment
The expected lead time
The material to be used to manufacture the product
The printing mode
Then the customer approves the blank sample and also agrees to the
quotation.
Then the marketing department sends a color print to the customer for
approval of:
Text on the packaging
Space coverage
Color combinations
Color usage

57

After the approval of color print, a sample proof is sent to the customer. This sample
proof is an original product according to the requirement of customer. Till now the main
work was done by Art Department.
After the approval of sample proof, the marketing department issues Internal Sale Order
(ISO), one copy of ISO is sent to Planning Department for the confirmation of:
ISO number
Product quality
Product quantity
Date of issuance
Time duration
Printing mode
Dispatch date
The planning department confirms the ISO, and bulk Production starts. After getting the
confirmation from planning department, the marketing department sends order
confirmation to the customer and by the process between the customer and the
marketing department completes.

58

Documentation Flow in Industrial Products Division

From
Sales

Information

To
Production

Pre costing

Pre costing report

Sales executive

Sales

Quotation

Customer

Customer

Document

Purchase Order

Sales

Order confirmation

Sales

ISO

Planning

ISO Confirmation

Sales
Customer
Planning
Sales

Planning

Job Card

Sales &
production

Sales

ISO amendment

Planning

Production

Transfer note

Dispatch

Dispatch

Dispatch note

Sales

Accounts

Credit note

Customer

Accounts

Debit note

Customer

59

Description
Before the documentation flow, the customer has made the contact with the Industrial
Marketing Department.
The sales manager/executive gets information from the customer and decides
whether the order can be done or not.
If it can be done, then the pre-costing department prepares the pre-costing report
and sends to executive.
From this pre-costing report the sales executive fills a quotation form and sends
to the customers.
From this quotation, the customer gives, the purchase order, if he is agreed with
the quotation.
Now if the purchase order is according to the standards and requirements of
Packages, the sales executive sends the order confirmation to the customer.
Now the sales/industrial marketing department issues an Internal Sale Order
(ISO). One copy is sent to the planning department.
The planning department issues the ISO confirmation slip to the Industrial
Marketing Department.
Then the planning department issues Job Card. One copy is sent to the
production department and the other one is sent to marketing department.
Now if there is any amendment in the purchase order, required by the customer,
the Industrial Marketing Department makes an amendment form and sends to
the planning department so as before production this amendment can be made.
After the completion of job, a transfer note is made by the production, which is
sent to Dispatch section.
The Dispatch Section issues the dispatch note to the marketing department to
confirm the completion of job.
The Account Department issues invoices, means debit and credit notes to the
customer.
The receipt of payments from the customer is the duty of marketing
department.

Shortfalls and Weakness of Marketing Department

60

PACKAGES, at present is functioning without any Marketing Manager, because

Marketing Manager. For the last three months Deputy General Manager is looking after
the affairs of marketing department.
Marketing department is over conscious about the exercise of rules. It accepts only big
orders and dont entertain small orders. This behavior creates an environment of dissatisfaction among small or medium size customers and the feeling of, as if Packages
Limited looks down upon low-income people.
The products of Packages Limited are perceived as highly expensive, which motivate
small clients to buy the products from the companies with fewer prices.
Marketing personnel of Packages Limited very rightly claim that they have implemented
the marketing plans very effectively resulting in getting 80% market share for the
consumer products. However to maintain their market share they especially to advertise
the paper products using the services of media.
Another important factor which can be considered as a shortfall is, that in Consumer
Products Division (CPD) only one Product Manager and two Asst. Product Managers
have been appointed. Generally organization, which produces consumer products,
requires a big supporting marketing team. That is why; being market leaders in tissue and
other consumer products they should have more marketing personnel.
Despite achieving the predetermined targets, Packages Limited rarely offers incentives to
the employees, which may adversely effect their commitment and motivation.

Packages Main Customers

61

Unilever Pakistan

Nestle Pakistan

Pakistan Tobacco Company.

Lakson Tobacco Company

Reckit & Benkesier

Procter and Gamble

Colgate Palmolive

Tapal

National Foods

Rupali Group

Murree Brewery

Coca Cola

KFC

FFC

PIA

CAA

Pizza Hut

Target Marketing
Packages Limited focuses its selling efforts mainly on large customers. Due to
high over head Costs Company prefer big orders and usually pays less attention on the
small customers. The whole Pakistan is included in the target of the company. In short we
can say quality conscious instead of Price.

62
Packages Limited has defined and identified its target market for its consumer
products. Target market for facial tissues includes all classes. Market for napkins and
tissues includes all the restaurants, hotels and some industrial markets. Paper cups and
plates are aimed for the people who are either at picnics or engaged in some sort of
recreational activities. Feminex is aimed at the women belonging to middle and upper
Middle class.

My Activities At Packages As An Internee

During My Internship at Packages Limited I visited all the business lines of Packages.
These lines are:
1. Business Unit Carton Line
2. Business Unit Flexible Line
3. Paper And Paper Board
4. Corrugated Line
5. Consumer Product Division
BUSINESS UNITS

In the beginning days I learned about the basic difference between the Industrial
Marketing and Consumer Marketing.
Broadly marketing can be described as:

Industrial Marketing
Consumer Marketing

Industrial Marketing

Purchase decision is typically made by a group of people not one person

(buying team).
One-to-one in nature, identify a prospective customer and build a face-to-face
relationship.
This type of marketing involves selling of goods to organizations to be used
directly in their own service-delivery operations.

63

Consumer Marketing

One-to-many in nature
Greater reliance in distribution
More reliance on advertisement + tools of administration and advertisement

Marketing Vs Sales
Marketing
Consists of measures you use to research and persuade your prospects that you
are the company for them. Its the message that prepares the prospects for sales.

Sales
Sales process consists of interpersonal interaction. A one-to-one meeting, cold calls
and networking often do it. Engages you with the prospect/cost, on a personal level
rather than at a distance.

My visits to different production lines

Business Unit Carton Line

64

Introduction
The carton business unit is an integral part of the manufacturing facilities at Packages.
The foundations of this business line were laid about 50 years ago with the formation of
the offset printing department.

Mission Statement
To make business unit carton the number one preferred supplier of printed cartons to national
and international partners

Overview
Carton line planning starts right from the receiving of ISO till the execution of the job.
Constant improvements in technology help customers exert exact control over each stage
of the manufacturing process. Customized packaging and consistent quality also give the
cartons superior shelf visibility.

65
The Carton Business Unit's technical competence is reflected through two modes of
printing: offset and rotogravure. The former is a high-end tool for more complex design
themes while the latter consistently services high volume orders. Packages expanded the
line through installation of a new Lemanic rotogravure printing and inline cutting
creasing machine in the year 2000.
Carton Business Unit production experts work closely with pre-press and technical staff
to deliver a durable, aesthetically pleasing and technically sound package to the customer.
The total board consumption of the carton line is around 12 - 14 tonnes per month for
Lemanic and 6-7 tonnes per month for Offset.
Standard Lead Time for a new job is 4 weeks whereas for a repeat job it is 3 weeks.
However, due to better relations with suppliers and backward integration within
Packages, lead time has decreased to reach the present where previously it used to be
quite long such as a month and so.
Types Of Construction
Straight cartons
Taper corners cartons
4 corners cartons
6 corner cartons
Top and bottom cartons
Shell

Industries Catered To:

Tobacco

58 %

Food & Beverages

13 %

Tea

08 %

Soap & Detergent

Pharmaceutical

Others

06 %
04 %
11 %

66

Market Position:

12%

8%

10%
4%

7%

0%
local carton
industry organic
growth

carton line growth

67

Divisions
The Carton Business Unit consists of two main divisions; Rotogravure or Lemanic and
Offset line. They are based on the difference in their printing process.

ORGANOGRAM

68

PLANNING
THE

JOB REACHES CARTON BUSINESS UNIT WHEN THE MARKETING DEPARTMENT ISSUES
AN INTERNAL SALES ORDER (ISO) AGAINST A PURCHASE ORDER. THE ISO IS
GENERATED USING SAP AND IT INCLUDES ALL THE DETAILS PERTAINING TO THE JOB
THAT HAS TO BE UNDERTAKEN WHETHER BY FLEXIBLE LINE OR THE CARTON LINE. IN
SHORT, ALL THE ZBOM SPECIFICATIONS CAN BE SEEN ON THE DOCUMENT.

THE ISO

THEN REACHES THE CARTON PLANNING DEPARTMENT, WHICH WORKS OUT

THE ACTION PLAN BEGINNING AT PLANNING THE AVAILABILITY OF RAW MATERIALS
TO ENTIRE PRODUCTION DISPATCH SCHEDULE. HOWEVER, THE CSD PLANS THE
DISPATCHES OF THE TOP TEN CUSTOMERS. PLANNING IS DONE ON THE BASIS OF
PROJECTIONS AND ROLLING SALES FORECASTS (REFINED FORM OF PROJECTIONS).
REVERSE WORKING IS DONE, I.E. PLAN BACKWARDS STARTING FROM THE TIME
WHEN CUSTOMER REQUIRES DELIVERY AND THUS TIMELY BEGIN THE PROCESSES TO
MEET THE DEADLINE.

THUS,

BASED ON THE ISO THAT REACHES THE PLANNING DEPARTMENT, JOB CARD IS
PREPARED. IT MENTIONS TWO IMPORTANT THINGS:

BILL OF MATERIAL (BOM)

ROUTING
THIS

JOB CARD IS FORWARDED TO EACH SECTION, GIVING THEM INSTRUCTIONS AS TO

WHAT MATERIALS TO USE, WHEN TO START AND WHEN TO FINISH. LOADING CHART
IS ANOTHER IMPORTANT SCHEDULE PREPARED BY THE PLANNING DEPARTMENT.
SUPPLIERS ENSURE AVAILABILITY OF RAW MATERIALS AND OTHER INPUTS THAT
WOULD BE NEEDED ACCORDING TO THIS SCHEDULE. ALSO IT MENTIONS THE
PRIORITY GIVEN TO DIFFERENT JOBS. THUS, IN OTHER WORDS, MACHINE ALLOCATION
ALSO DETERMINED.

69

Lemanic Division
Rotogravure process is a type of intaglio printing process; it involves engraving the
image onto an image carrier. In gravure printing, the image is engraved onto a copper
cylinder, like flexography, it uses a rotary printing press. The vast majority of gravure
presses print on reels of paper, rather than sheets of paper. Rotary gravure presses are the
fastest and widest processes in operation, printing consistent and fine quality from narrow
labels to wide cartons. It is preferable to use rotogravure printing if feasible when brand
quality and image is important since it is reflected through the products packaging.

Printing Process
Special printing cylinders are used in which the printed area is engraved in the form of
small microscopic cup shaped cells. These cells act like a water wheel and pick up the
ink from an ink tank. A doctor blade is mounted which wipes off all the extra ink just
leaving behind the ink in the cup shaped cells, which ultimately throws the ink on the
board forming the required printing. For each color to be used on the job there is an
independent printing unit.
It adopts the concept of inline processing and direct printing, i.e. all the processes;
printing, varnishing, cutting and creasing and embossing are done in the same machine.

Materials Used (Input)

The board for rotogravure printing comes from Packages Paper Store. The
type used is Coated White Bleached Board (CWBB); uncoated is hardly
used due to inferior printing results. Thus, the strong backward integration
within the Packages value chain has given this division of the carton line a
competitive edge in terms of backend material availability. Prompt material
availability reduces turnaround time and ensures timely delivery. The
material is fed into the machine in form of reels.

Machines
2 machines come under Rotogravure; Lemanic and Riveria (latest acquisition). The sequence of
process is same in both; reels of paper are used which then pass through different inking units
with each unit having a separate cylinder, then the process of cutting, creasing and embossing
takes place and final output is in the form of a carton ready for construction.

70

Input

Processes

Output

Lemanic
This machine was acquired by Packages in the year 1999. Lemanic uses a flatbed for
cutting and creasing. The upper bed is called Male while the lower bed is called
Female. The male bed has cutting and creasing blades attached to it where the creasing
blades are blunt, whereas the female bed has cuts to in it to accommodate the blades. The
sheet settles in between the two beds and the male bed moves up and down whereas
female bed is fixed. After cutting and creasing, the sheet moves onto the next unit for
embossing.

Male
Female

Speed:

Actual speed of Lemanic is 240 meters/minute but the machine is set at

140 meters/minute. It is never actually set at its actual speed.

Cost (die):

The dies are initially imported but the blades are changed at Packages in
its die making section i.e. once they go blunt. The blades however are
imported but updating it on premises costs only Rs. 15 lac as compared to
Riverias high cost of dies. On the other hand, the life of these dies is only
approximately 1 month.

71

Riveria
This machine was acquired by Packages in the April 2006.
Riveria uses rotary technology for cutting and other
processes. Same as Lemanic, the upper cylinders rotate
whereas the lower ones are fixed. The upper ones are
rotated with the help of motors and thus operating speed can
be very high.

Cutting

Creasing

Embossing

Speed:

Actual speed of Riveria is 275 meters/minute and it is currently operating

at its optimal speed.

Cost (die):

One drawback of Riveria is its high cost. The dies are not made locally
and have to be imported from Holland. Importing these cylindrical dies
costs Rs. 10 million. However, o these cylinders have a longer life as
compared to Lemanics dies.

Printing Inks
Lemanic allows printing in 8 colors but currently machine set up to print in 7 colors.
Riveria, on the other hand, allows printing in 10 colors but at present machine set to print
in 7 colors.
Metallic Colors, for example on Dunhill packs, are produced using silver and gold
pigments in the ink.

72

Production Capacity

Machine
Lemanic

20s Pack
4 million

10s Pack
5 million

Riveria

6 million

9 million

Printing Hurdles
Rotogravure printing lays emphasis on precision and accurate calculations hence it is a
complex science in itself. Even a 0.1 mm difference to the right or left during the printing
process can blur the printing or not give the required output. Along with this, the machine
cannot be shut down in between, thus if an error in registration occurs then thousands of
sheets are gone to waste.

73

74

Main Customers
Lemanic department is mainly reserved for tobacco packaging such as Gold Leaf, Benson
& Hedges, and so on. Packages cater to about approximately 80% to 90% of PTC
(Pakistan Tobacco Company) requirement. Thus, it generates 65 % of its carton
business units business from PTC.

Offset Division
Offset printing is a commonly used printing technique where the inked image is
transferred (or "offset") from a plate to a rubber blanket, then to the printing surface.
When used in combination with the lithographic process, which is based on the
repulsion of oil and water, the offset technique employs a flat (Plano graphic)
image carrier on which the image to be printed obtains ink from ink rollers, while
the non-printing area attracts a water-based film (called "fountain solution"),
keeping the non-printing areas ink-free.

Printing Process
It is also known as the indirect method of printing. It adopts the concept of offline
processing, i.e. the processes, however in sequence, are done on separate machines.

Materials Used (Input):

The materials used for offset printing are:
Art Paper (mainly used for labels)

White Duplex Board (Coated and uncoated) e.g. food cartons, tissue cartons, etc

Bleach Board e.g. cosmetics, cigarettes, etc

Coated White Cardboard e.g. ice cream cartons, paper cups, take home cartons,
etc

Film Laminated Boards (Transparent or metallized) e.g. Lactogen Gold

The sources of the above mentioned materials are:

Art Paper
-->
Imported

CWDB
machine

-->

Mainly from market and then off Packages PM-1

75

CWC

-->

Packages paper store

Printing Inks:
Printing facility is available from two to six colors in the offset division. These machines
use oil-based ink. Prime colors are being used to develop new colors; they are cyan,
magenta, yellow and black (CMYK).

Production Capacity
10 to 11 million sheets per month

Major Jobs

PTCs dummy packs

Other tobacco companies, especially those which export

Nestle

Unilever

Export Orders
Cartons are also manufactured for export. Main customers for that are Servis cartons,
Chenab cartons, tobacco companies, etc.

Main Areas
The offset department is principally divided into 4 areas according to its function.
They are:
1. Printing
2.

Cutting and Creasing

3.

Folding and Gluing

4.

Paper Cups

Each department is discussed in detail further on in the report.

76

Efficiency Analysis
Job Waiting
No job waiting all year round in offset line which is not the case in Rotogravure, for example, the
Lemanic line is not in operation at the time of budget and thus loses out on 2 months worth
production.

Quality Emphasis
Emphasis on quality improvement and error and defect minimization is one of the cornerstones of
Packages. In this regard, it has initiated a zero defect supplies (zds) project with Unilever one of
the major customers of carton line. It involves packaging suppliers corresponding with the
company under consideration and resolve packaging issues that arise. There are two levels of
certification; 1st level certification is awarded when supplies are consistent and delivered on time
whereas 2nd level certification is awarded when the cartons are run on Unilevers machines and
no runnability issue occurs. Agreed protocol of this joint project is that if it exceeds 1% then
formal complaint launched, which may eventually lead to cancellation of the certificates.
However, if below 1%, then Packages monitors at its own end. To ensure zero defects, two best
machines are used, which are also called zds machines. Currently, it has been in full effect at
Unilevers ice cream factory (WALLS), tea factory and cosmetics (Fair & Lovely, Ponds, etc).
Till 2008, 100% zds level was achieved, however then paper cups certification was cancelled due
to complaints pertaining to sealing, which caused leakages, in WALLS cups and burns on
cartons. Another issue was that the cups were oval shaped rather than round. These problems
have been addressed and currently no complaints have been lodged. From Unilevers end, it is
required that they provide accurate and prompt feedback and supply managers at their end
provide sufficient amount of transparency in their processes.

Customer Complaints
Customer rejections, like at any other production factory, are also incurred at Packages.
They are mainly due to:
Shade variations

Blur printing

Creasing defects

Weak gluing

Open seams

Mishandling (Damage during delivery)

Burns during flaming

77

Key Indicators of Success

Invoicing
Delivery Conformance currently approximately 94% for top ten customers

Printing Section
Machines
Name of Machine

Features

Roland 800
Roland 706*
Planet
MAN 2

05 colors + W.B
06 colors + U.V & W.B
02 colors
Offline coating

Number
Machines
02
02
01
01

of

*These are German machines that allow 6 color printing plus water-base and ultra-

violet varnish and flexo metallic colors availability. The state-of-the-art Roland 706 with
twin coating has enabled Packages to introduce innovative printing with special effect
coating and gold coatings.

Cutting And Creasing

After the sheets have been printed, they need to be cut and crease in order to prepare
cartons in flat form. Then either they are dispatched or if customer requires constructed
cartons, then forwarded to folding and gluing section.

Machines
There are 6 machines in total for cutting and creasing. They all have the same functionality,
except for one, SPERIA 102, which also allows hot foil stamping. Otherwise all the machines are
used for cutting, creasing and embossing and the main difference remains of the size and how
latest they are.

Production Capacity
7000 sheets per hour per machine.

Machine Process
The first process is to prepare the die that will be used for a particular job for cutting and
creasing. The die is made in the die making section (the whole procedure is described later.)
The cutting and creasing machine has a flat bed and above it die is placed. A creasing sheet is
used which is placed in below the sheet. It has set channels which allow the creasing blades to
press sheet in those channels in order to make the creases.

78
One of the main concerns is setting the appropriate creasing pressure that has to be applied since
if that is not proper, it can cause problems at customers end and lead to rejection of the order.
This is especially the case if the customers plant is automated as run ability issue can arise. Also
when customer has high processing rates at their production plant, this can become a matter of a

Concern. For example, some tobacco companies process their packing line at 350 packs
per minute, while others at 1000 packs per minute. Thus, it is bigger concern for those
processing at 1000 packs/min, as smoother creasing is required.

MANUAL BREAKING

After breaking, all the trim waste is blown back and collected. This is further used as raw
material for making of fluting and liners.

Die making section

Die making section set dies for cutting and creasing machines and prepares dummy packs and
blank samples.
The commissioning of the new in-house CIM Line has made advanced counter milling, laser
cutting, and blade bending machines available for high quality die making. Customers can now
take advantage of even higher precision and consistency in cutting and creasing.
It is mainly divided in two sections:
Development Section
Die Making Section

Development Section
Here the blank samples are cut and creased. It is either done according to the
specifications and measurements given by the customer or prepares different types of
constructions (ways in which carton can be cut and folded) for the customer to choose
from. The sample is prepared for the customer, especially those who have automated
plants, to check whether the carton can be fed into the machine and run smoothly without
any running issues. Also, customer might want variations in cartons via different
construction in order to gain an edge over its competitors in packaging. For example,
CAPRI soaps needed 200 construction samples, HL needed 300 construction samples,
and so on.
Process: Before proceeding towards bulk, sample is prepared to be approved by the
customer. First, design is prepared on software called Artioscad, which is
only used for samples. After the design has been made, it is electronically
transferred to the plotter plate. Konsberg XL 20, a latest German machine is

79
used to cut and crease the sample. A blank sheet is spread on the plotter and
machine given the command. First the creasing head makes the creases and
then the cutting tool uses blade to cut the sheet.

Value Additions

Emboss and Deboss:

Embossing involves pressing an image into paper so that it will create a raised relief. Debossing,
on the other hand, involves pressing the substrate into the surface of paper with a die and thus
creating depressions.

Hot Foil Sampling

One of the value addition processes in this section is
that of hot foil sampling. It can be done only on 1
machine i.e. SPERIA 102. When this procedure has
to be carried out, cutting and creasing function is
switched off (i.e. because only one type of die can be
set at a time.) In case of two color foil stamping, if
distance between both colors is quite wide then in one
operation both the foil reels can be fed into the
stamping unit, however if overlapping or hardly any
distance apart, then need to do double operation; i.e.
first one color foil stamping done and then another.
Process:
In the hot foil stamping section in the machine, there is a heater on the top, then
die, then foil and then the sheet. No mechanical pressure is applied; instead to stamp
the foil the plate is given a push upwards. The foil is melted at 120.
Foils: Different foils are used for different jobs where the main difference is in colors i.e.
whether the customer requires blue, silver or gold. Further variations are in shades of
these colors. These foils are imported and mainly acquired from Korea, Europe and
Taiwan.
Dies: Imported CNC (one sheet engraving) is used in case high speed and quality is required.
Local dies are used for proofing mainly. For local dies, etching system is used. It
involves a chemical process, two sheets and engraving on the top layer. However, if
need to emboss + foil, then use imported dies only.
Jobs: Caprice, Surf Excel (eco. Pack), Pasha Fabrics, Rose Petal, Golden Pearl, Fair and
Lovely

80

Piles Folding and Gluing

after
C.CR

C.CP

Breaking Operation

Job Setting

Folding
&
Gluing

Job Setting

Window
Patching

C.CP

Quality
Control

Dispatch
C.CP

81

Depending on customer demand, i.e. if they want the final output in the form of carton,
then after cutting and creasing, the sheet is forwarded to the folding and gluing
department, otherwise delivered to customer in sheet form.

Machine Process
Folding & Flame Sealing (M/C 21402):

82

Folding & Gluing (M/C 21404):

Window Patching
The purpose of window patching unit is to glue the poly at the internal side of the cartons. The
window serves the purpose of displaying the product and thus a tactic employed by several firms
when introducing a new product. This helps in communicating to the customer as to what is
packed within for example Kolsons spaghetti or soaps. It also could be built in for necessity for
example in case of tissue cartons.
The process of window patching is that the feeder is set according to the width of the cartons and
then the conveyor chains are set according to the carton alignment. The stereo is set according to
the window of the carton and BDM 195 glue is applied using glue pod; it basically sticks poly to
the side of the carton where the window is supposed to be. After glue application, poly is cut with
the help of two cutting blades which are pressed down at the carton. After this, mechanical
pressure is applied at the carton so that the poly is strongly fixed with the carton.
Different types of poly used are:
Low Density Poly Ethylene (LDPE): This is of a little milky shade, not transparent. It is
mainly used for tissue boxes. Its rummage is 39 gms and
comes in different sizes such as 80 mm, 110 mm, etc.
Bio Oriented Poly Propylene (BOPP): This is absolutely clear and is used for those packaging
where need is to display the contents clearly, for
example Kolson Spaghetti.
PVC:
Used in manual window patching since machine does
not have provision for this. It is mainly done so on big
cartons.
Approximately 40,000 window patches can be done within 8 hours.

83

Paper Cups
This section deals with making paper cups for drinks and ice cream

Machines
There are a total of 5 machines out of which 4 are currently operating. From the total, 4 machines
are from Germany and 1 from China.

Input
Paper cup skillets are given to paper cup section. These come into form after cutting and
creasing process has been performed on the printed sheets. Coated and uncoated white
cardboard (CWC/WC) is used for paper cups. Coating basically prepares the surface for
printing and thus better results are obtained on coated surface as compared to uncoated.
Also imported material is being used for example McDonalds drink glasses.

84

Process

Output
Right now the paper cup unit is making cups in the following sizes:
100 ml
125 ml
500 ml

Major Customers
Unilever
Engro Foods Omore

85

Business Unit Flexible Line

Introduction
Industries
Soap

Tea
Food
Diary Ice-Cream
Milk powder
Confectionery
Shampoo
Pesticide
Pharmaceutical

Table of Contents
REPRODUCTION
EXTRUSION
ROTO GRAVURE PRINTING
FLEXO GRAPHIC PRINTING
LAMINATION
SLITTING
FLEXIBLE PLANNING

86

Flexible Planning
Manage, coordinate and plan
Acts as a representative of BU Flexible
Issuance of the daily production plans
Issuance daily program for the transference and dispatch of materials
Ordering of the raw materials based on RSF
Realization of invoice targets and commitments dates
Materials Used
PE
PET
OPP
PVC
PVDC
BOPP
CPP
MCPP
MBOPP
Al-Foil

(Polyethylene)
(Polyester)
(Oriental Poly Propylene)
(Poly Vinyl Chloride)
(Poly Valadine Chloride)
(Bi Oriental Poly Propylene)
(Casted Poly Propylene)
(Metallised Casted Poly Propylene)
(Metallised Bi Oriental Poly Propylene)
(Aluminum Foil)

Reproduction
Cylinder Making
Stereo Plate Making
Cylinder Making
Nickel Plating of 7-8 mic
Copper Plating of 300-400 mic & Rough Cut
Fine Cut on Polish Master
Soft copper plating
Engraving on machines from X-Rip Files
Chrome Plating of 8 mic
Finishing & Polishing on finish Star
Proofing in Proof Press

87

Stereo Plate Making

Exposing
Etching & Processing
Drying
Finishing
Extrusion
Melting the polyethylene raisins to make the reels.
Specialized Oil Films, Ghee Films and Detergent Films.

Printing
Two kinds of printing:
Flexographic Printing

Rotogravure Printing
The modes of printing can be
Direct or

Reverse
Flexograhic Printing

Involves the use of photopolymer or stereo plates.

Printing is done on OLD FLEXO and NEW FLEXO machines
Mode of printing is Direct

88

Rotogravure Printing
Involves the use of Engraved Cylinders

Printing is of very high quality with excellent resolution

Mode of printing is Reverse
Printing is done on 1Rotomegor 3 Cerutti machines that offer 6, 8 and 10 color
print jobs

Flexographic

Rotogravure Printing

Engraved cylinders are inserted in their respected ink sections

89

Film passes through each ink unit and impression is transferred

Ink dries in the drying unit and moves on to the next color section

Lamination
Important process, carried out after the printing stage of rotogravure jobs

Done to control certain barriers with respect to the materials being packed.
1.Moisture Barrier
2.Light Barrier
3.Germs Barrier
4.Aroma Barrier
Increases the shelf life of the packed products.

Kinds of Lamination
Solvent based: For jobs involving more than 2 colors
Solvent Less: For jobs involving 2 or less colors

Slitting
Printed reels are sent to the slitting sections if required. Some customers require direct
jobs in reel form, hence no slitting is required.
oThe machines are all the same for rotogravure jobs and Flexographic Jobs.
oThe trimming margins are cut and removed, and packaging is cut according to the
customers requirements.
Paper And Paper Board

90

Packages are producing high quality paper and board since 1965 using environment
friendly manufacturing processes. Also specialize in making a variety of duplex boards
and paper. Its products are tested for high performance in terms of strength, stiffness and
gloss.
From coffee cups to the books we read, from Tetra Pak juice containers to huge shipping
containers, paper and board products touch our lives in a thousand ways every day.

Paper

High gloss writing paper

Machine glazed / special poster paper
Fluting paper
Liner for shipping cartons
Corrugating medium paper
Wood-free writing/printing paper

91

The clients determines paper quality and weight specific requirements and Packages
ensures this is carried out to the exact specifications provided.
Paper is available in the following weights:
Type of Paper
Test liner
Corrugated medium Paper/Fluting
Wrapping Paper
High gloss writing paper
Poster Paper

Weight (g/m2)
125-220
120-170
70-90
58-68
40-90

Board

We manufacture several types of board. Food Board, a basic raw material in liquid food
packaging, is being manufactured since 1979 for Tetra Pak Pakistan Limited. This
material is used in making aseptic packaging for milk, cream, oil, fruit juices and other
perishable
food
items.
Some of our board products are:

92

Liquid packaging board

Food grade board
Duplex board / chipboard
Bleached board
Tobacco board and cardboard
Liner board

Board is available in the following weights:

Type of White Board

Weight (g/m2)
Bleached Board
Duplex Board
Cardboard
Liquid Packaging Board
Poster Paper

195 - 205
150 - 450
160 - 250
150 - 290
40 - 90

Technical Expertise
Our production capacities exceed 100,000 tonnes per annum, from four main paper
machines of different capabilities. Two pulp mills and a chemical recovery and
effluent treatment plant along with allied support services support these paper
machines.
Packages Limited is among the first companies in the world to manufacture paper &
paper board using a pulp mixture of wheat straw, kahi grass, cotton linter, recycled

93
pulp and wood pulp. These environment-friendly processes use fewer
chemicals, resulting in improved strength properties and increased stacking strength
of containers.

Corruwall Business Unit

Introduction
For large-scale packaging, Packages Limited has been manufacturing Corrugated
Cartons since 1971. These cartons are produced in different sizes and are used for
transporting consumer products from manufacturer to retail outlets. The share of
Corrugated Department in Packages Limited total sales is almost 20%, which is second
after the Carton Line. Corrugated cartons vary according to customer demand, size, raw
materials used, and colors.
Corrugated cartons are of great value to the diverse portfolio of customers for secure
transportation of their products to local and international markets. Packages have the
capability of producing seven million corrugated cartons to cater to the ever-increasing
demand of high quality shipping cartons.
The corrugated finishing division can print in up to three colors. Customers have the
flexibility to choose from regular slotted containers (RSC), glued, RSC stitched or die cut
cartons.
After customer feedback and extensive research, Packages has developed special liner
and fluting that gives extra strength to containers, in particular increasing their stacking
strength and their resistance to bursting.

Industries

94
The industries that the Corruwall Business Unit caters to are:

Textile
Food
Tobacco
Soap & detergent
Pharmaceuticals
Electrical & Engineering.

Types of Corrugated Sheets

Liners

Liners are the top layers of the corrugated boxes. These sheets are made such that their
outer layer is water resistant.
The different sorts of liner sheets that are available are:

KLB (Kraft Liner Board)

The Kraft Liner Boards are stronger than Fluting sheets. The sheets are made out of
recycled materials. One side of the liner is water resistant and the other is absorbent.
The different available grams are: 91g (which is available in Hard Size), 111g, 125g,
151g, 165g, and 200g

PKL (Pure Kraft Liner)

95
Sheets of the Pure Kraft Liners are made out of 100% virgin wood pulp and both sides of
the sheets are water resistant.
The sheets are available in 130g (Locally made) and 275g (Imported)

WDB (White Duplex Board)

The White Duplex Board is made of two layers. The first layer is made if Wood Pulp
while the second is made of recycled materials.
The sheets are available in 150g and 200g weights.

Fluting

Fluting sheets are also termed as CMP (Corrugated Medium Paper)

Flute is basically the curved / wrinkle shape of paper made from the impressions of
corrugator role. Basically these flutes help in increasing the strength of the carton. Paper
already contains some moisture and when passed through corrugator roles of any kind of
flute type, it gets the same shape.
Corrugator roles are heated with heaters and steam and specific pressure is applied on the
rollers and the paper sheet to get the efficient results. After passing through this roller, the
paper forms stiff and strong structure, which is then laminated with the liner paper to
create single facer sheet.
Flutes come in several standard shapes or flute profiles (A, B, C, E, F, etc.). A-flute was
the first to be developed and is the largest common flute profile. B-flute was next and is
much smaller. C-flute followed and is between A and B in size. E-flute is smaller than B
and F-flute is smaller yet.

Types of Corrugated Constructions

96

Single Wall

This is a 3-Ply construction, usually consisting of 2 liners and one fluting. The
combination would be: Inner Liner + Flute + Top Liner.
Flutes could be B, C or E.

Double Wall

This is a 5-Ply construction, usually consisting of 3 liners and 2 flutings. The

combination would be: Inner Liner + Flute + Liner + Flute + Top Liner.
Flute combinations could be C+B, C+E or B+E.

Raw Materials

Wood Pulp
OCC Imported (Old Corrugated Cartons)
Old Corrugated Waste
Wheat Straw
CTMP (Chemically treated Mechanically Processed)
Newspapers
PCW (Imported)
Tetra Board
Duplex Boards
IST Quality (Local)

97

PROCESS FLOW OF MAKING CORRUWALL (CWCS) SHEETS:

Reels/ liners

Flute Plant

B Flute

C Flute

Double
Baker

Heating &
Gluing

Cutting &
Creasing

Printing/Die
Cutting

Dispatching

98

The Bulleh Shah Project

The Bulleh Shah Project

In 2005, Packages Limited started a new pulp and paper mill project in Kasur located 50
km south of Lahore. The Greenfield site spread on 42 hectares is known as Bulleh Shah
Paper Mill coined after a famous Pakistani poet from this region.
The Greenfield site comprises of two modern paper machines PM6 and PM7 that will
enable us to increase our paper and paperboard production from 100,000 to 300,000 tones
per
year.
PM6 already in operation since 2007 manufactures containerboard.

PM7 which is expected to start production by end of 20008 is a completely rebuilt 4.5m
Voith machine shall produce writing printing paper
In addition to the paper machines, there is a modern pulp mill, coater and a corrugators
plant installed at the Greenfield site as well.

99

Consumer Product Division

A range of products for those annoying problems in life: our consumer products
feature great ideas for making everyday living easier and more comfortable, both
indoor and out.
Tissue
Personal

Products
Hygiene

Paper Products
Reflecting our core values of exceeding customer expectations through innovation,
leadership and teamwork, the Rose Petal and Tulip brands continue to hold over 80% of
the domestic market share of the tissue paper market in Pakistan. We also have a leading
market share in the away-from-home business: we supply custom-printed boxes, table
napkins, coasters and paper cups to institutions such as hotels, fast food chains,
restaurants, businesses and the airline industry.

100

101

Projects Completed

I was assigned the Industrial Marketing Department of Packages Limited, Lahore. It

is managed by SIR ATHAR RASHEED BUTT (MM). The SALES Department is
headed by Mr. Mohsin Masude. There are some sales managers and assistant sales
mangers in this department along with the support staff.
I was assigned to do a project of collecting samples of different categories like carton
line, flexible line and poly. Therefore I visited several related departments for the
fulfillment of my project. On the very first day I visited the biggest line in packages the
carton line. There I saw the working of different machines, how they print. We saw two
machines for printing. One is old and the other is new. The new one is known as lemanic
and only PTC jobs are running over there. How cutting and creasing is done manually
and automatically through different machines, then how folding and gluing is being one
on the cartons according to the customers requirements. I noted all the working there and
noted all the important points. Then at the end of the day I report to my manager, asked
related questions.
Then after completed carton line I visited flexible line. Flexible packaging was
introduced in 1986 .the flexible packaging is basically made from the poly grains which
gives the salivary effect of packaging. Flexible packaging is used for the shopping bags,
food products, garments, cigarettes, biscuits, pharmaceutical goods, tooth paste.
Cosmetics, toilet soaps etc. I collected different samples of flexible line and note down
their material combinations. I made a complete round of the production house and saw
the procedure of the production of flexible line.
I visited Art dept and saw the designing of the wrappers of different products of all the
three lines from the chewing gum to the surf. Then I saw the making of mechanicals of
different new designs which is the sample design of any new product which has to
approve by the respective customer and the packages as well.
I was assigned to do a project of rice bags production information. This project was
assigned by Mr. Suleman Pall(Assistant Manager Sales). He advised to collect all the
details related to the production of rice bags and give me two rice bags as a sample
which was required by a customer. Those rice bags were originally produced in INDIA. I
then visited Flexible Line (Production and Planning sides) and gathered all the
information related to the production of those rice bags. After getting the related
information it was found that Packages can produce those rice bags according to the
customer requirement. The details required for my project are given below.

102

Rice Bags Production Information

Falak Banaspati
Materials Used
PE and Polyester
Bag Size (without Cut Off)
Single side width: 316mm
Single side length: 497mm
Can be produced with the same specified size and material combination of given sample
Maximum of 5 kg can be produced.
Ideal size that can be produced
Width 390mm
Length 500 mm
Also depends upon material size and density
Maximum Reel Width
2000mm
Number of Bags on one reel: 2000mm*316mm =632000
Best Options for Rice packing materials
PE, polyester and aluminum foil in lamination.
Maximum colors
8
Kindly punch can also produce. It is currently being made in the centre but can also be
produced at the side as in the given sample.

Kitchen Glory Royal Basmati Rice

Materials Used
PE, polyester and aluminum foil and Polyester
Bag size (without Cut Off)
Single side width: 264mm
Single side length: 450mm
Can be produced with the same specified size and material combination of given sample
Maximum of 5 kg can be produced.
Ideal size that can be produced
Width 390mm
Length 500mm
Also depends upon material size and density
Maximum Reel Width
2000mm
Number of rice bags on one reel: 2000mm*390mm =78000
Best options for Rice packing materials
PE, polyester and aluminum foil ion lamination.
Maximum colors
8

103

Industrial Marketing Department

MR.Mohsin
Masude
(Area Marketing
Manager)

Mr.Shahid
Javaid
(Key Accounts
Manager)

Mr. Nauman
Zaffar
(Regional Sales
Officer)

Mr. Omer Ejaz

(Key Accounts
Manager)

Miss Mehreen
Bilil
(Assistant
Manager Sales)

Mr. Suleman
Pall
(Assistant
Manager Sales)

Mr. Omair
(Assistant
Manager Sales)

Mr. Muhammad
Naveed
(Assistant
Manager Sales)

Mr.Abid Shafi
(Support staff)

Mr. Faraz Alam

(Assistant
Manager Sales)

Mr. Hussain
(Administrator)

Mr. Shamayal
Shariq
(Trainee)

Miss. Sumaira
(Support staff)

104

Section 6

Contents

Findings And Analysis

Problems And Recommendations
Suggestions and Recommendations
Conclusion

105

Findings and Analysis

Packages Limited, Lahore is a good organization in terms of discipline,

cleanliness and infrastructure.

It has a well-established structure.

Delegation of authority is not a common practice. Centralized decision-making is

there.

Line of authority is followed throughout the organization.

There are various employees benefit programs such as Workers Participation

Fund, Social Security, Employees Old Age Benefits Schemes, Group Insurance,
Provident Fund, Workers Children Education and Federal Education Fee
Scheme.

There is low accident rate because safety of environment is maintained at every

step of production.

Various entertainment facilities are provided to the employees such as Basant,

Rose Festival, Library facility, gymnasium arrangement etc.

A well-managed mess is there in the companys premises providing clean and

hygienic food to all the employees and internees as well.

Continuous improvements of employees skills and knowledge through

Management Training programs conducted in association with LUMS and
through In House training.

Packages have highly motivated employees.

It has well-developed system of distribution.

It is an environmentally conscious company

Packages has strong financial backing

It is market leader in Packaging industry

It has strong relationship with suppliers

106

It has huge production capacity

It is having its own power generation plant

Advanced technology is a big strength of the company

Fully integrated operations

Opening up of the Asian economies is a big opportunity for Packages Limited

Packages Limited is an ISO certified company.

Problems and Recommendations

Here are recommendations for the Packages Limited:
There should be photocopy machine in every department where the extensive work of
photocopies is so as to reduce the wastage of time and energy of the employees.
Mobile phones should be provided to sales executives so that other customers should not
embarrass when the sales executive is on to another customer visit.
There should be arrangement for the residence of worker so as to attract the employees
outside the Lahore.
Packages Limited should increase advertising to attract customers.
All the supporting equipment like phones, fax machines, computers etc should be in
working position as soon as possible after they got damaged, so that customers and
employees should performs their duties more efficiently.
In marketing department all the customers should get informed in case if sales executives
not in the office.
There is a need of downsizing of management staff because there is overlapping of
responsibilities in management Refreshes courses for labors to promote ethical values
among themselves.
Management should motivate floor management and labors.
Incentives should be given to employees whenever the Company got the exceptional
achievements. Let the employees to know about the cost of parts of machines, which
assembled after repairing so that they realize about the value of those parts, and
consequently they will use that in sophisticated manner.
Management should motivate all the labors to reduce variable cost.
Management should create an atmosphere of competition among different departments.
Management should tell the employees about requirements of their customers.
Management should emphasize on 3Ms.

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Suggestions and Recommendations

Packages Limited is one of the biggest organizations in Pakistan and also
The market leader of its products. Although it is quite difficult to suggest some
Thing to such established organization but there is always a room for improvement.
Suggestions for Packages Limited based on the analysis are as following:
Packages Limited is a very big organization and has centralized structure. Although it has
allowed decentralization in certain trivial matters but still it functions in a highly
bureaucratic manner and hence discouraging innovation.
It is recommended that the matter of decentralization may be looked into.
In case of consumer products, the Consumer Products Department (CPD) does not give
sufficient importance to proper media marketing. Concrete steps may be taken in this
regard otherwise they might reduce their market share.
Advertising budget should also be increased. It seems that advertising strategy followed
by Packages Limited is not up to the mark. It is suggested that a major nation wide
multimedia advertising campaign may be launched, for all the consumer products as well
as the packaging material.
It is also suggested that the organization may provide credit facility to small and medium
sized retailers, motivating them to sell the products of Packages only.
At present the organization accepts the orders from big customers. It is recommended that
the orders from medium size customers may also be entertained.
Though there exists a marketing department in the organization but its activities are
limited, and needs enhancement.

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Conclusion
Packages Limited is a leading packaging manufacturing company of Pakistan. One has to
put in a lot of efforts to understand the complete working of this great organization as an
internee. One needs a lot more time to study such a multidimensional organization.
The fascinating experience of internship provided the internee the opportunity to learn
about the functions of Packages Limited. The most informative part of the training was
the application of theory. It gave a sense of satisfaction and achievement to learn about
the policies and practices of the firm, and especially to observe the theoretical concepts
being implemented practically.
Packages is engaged in different activities that is, manufacturing of paper & board,
converting it into packaging, printing, consumer products, marketing, distribution,
financial activities, personnel management etc. It was very difficult to manipulate all sort
of information, but the cooperation of the employees of the organization made possible
the preparation of this report.
Packages Limited is working in a highly professional manner, adhering to fair trade
policies and following rules of the game. It also has one of the largest Paper & Board
Mill of Pakistan. The daily operations and working of the organization is running very
smoothly. The management is practicing good policies which are evident from the fact
that shareholders as well as the workers are very much satisfied with the performance of
company.
These characteristics have raised the organization to the exalted position of being,
market leader of their products. On the basis of these tangible facts, it can be safely
predicted that Packages Limited has a very bright future.