Shazan International ltd.

Shazan International ltd.

Table of Contents

Dedication..3
Acknowledgement4
Executive summary..5
History & Background..6
Mission8
Vision..8
Company products9
Corporate structure..11
SWOT Analysis.14
Corporate sale department.18
Internship Activities.28
Learning31
Overall Summary..32

Shazan International ltd.

Dedications
To my honorable teachers and friends
Who Showered their wisdom and
Knowledge to enabling me to come
to grips with the worldly life and attain my
Objectives.

Shazan International ltd.

Acknowledgment

I am extremely grateful to Allah Almighty for granting me the opportunity and

determination for handling the internship at Shezan Internatinal ltd for the August
september 2015 duration. I paid many thanks to head of account department CFO Mr.
Faisal Nisar FCA and manager of shezan international, who was very cooperative with
me and guided and help me during my internship program. I also wants thanks to
assistant manager and whole account department to increase my knowledge and for his
time to explain me. They guided me in performing in all activities and obtaining practical
knowledge of corporate account and finace. They supervise my all activities and give
me suggestions to complete the assigned training task in efficient and effective manner.
I also thanks to my institute and my professor Mr farhan ahmad for giving me .the
opportunity of internship program during my degree that build me professional and
enable me to doing creative work be a successful corporate man in a practical life.

Shazan International ltd.

Executive Summary

I have performed as intern at Shezan International for the duration of 6 weeks (3rd Aug
to 12th sep). I made this report on working of Shezan int especially of corporate account
department. The whole staff was cooperative and professional, I have learnt a lot from
this corporation which I have mentioned in the report.
This report will give the information to reader about history and background of shezan,
its products, its corporate structure, its corporate account department and its process
performing . This report also included useful suggestions and recommendations for this
organization.
The object of this training is to learn practically that whatever we have studied in the
course. So its make me enable to work as a practically in any organization.

Shazan International ltd.

History & Background

Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan.
In 1956, the Company was set up by Malik Brothers in technical collaboration with M/s
AEG of Germany ("AEG") to manufacture transformers, switch-gear and electric motors.
AEG relinquished their share of PEL to the Malik Brothers in the late 1960s, which was
subsequently acquired by the Saigol Group of Companies in 1978.
Since its inception, the company has always been contributing towards the
advancement and development of the engineering sector in Pakistan by introducing a
range of quality electrical equipments and home appliances and by producing hundreds
of engineers, skilled workers and technicians through its apprenticeship schemes and
training programs.
Until the acquisition by the Saigol Group, PEL was solely catering the power equipment
market. The Company ventured into home appliances market in 1981 after acquisition
as a part of the Group's long term strategy of diversification.

Saigol Group

The Saigol Group or "Sehgal Group" is a group of companies owned by one of

Pakistan's wealthiest families, the Saigols/Sehgals. The family and its companies are
based in Lahore, Pakistan.
The Saigols originally hail from Chakwal. The group is managed by three Saigol
brothers: Tariq, Nasim and Taufeeq. Also part of the family is Sister Naz Saigol, now
married to Mian Muhammad Mansha Yaha. Amin Saigol was the founder of the Saigol
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Shazan International ltd.

dynasty where he started a Calcutta shoe shop, the shop eventually led the Bihar
Rubber Works in 1938. Amin had a son called Yusuf who is the father of this business
Trio.
In 1948, the Saigols migrated from Calcutta and initiated their business in Faisalabad,
the textile city of Pakistan, under the banner of Kohinoor Industries Limited.Tariq Saigol
is the eldest brother, he is head of Kohinoor-Maple group, which owns the Kohinoor
textile mills and Maple-Leaf Cement. He is known to be openly critical of the Pakistani
governments lack of interest in the textile sector. Nasim Saigol heads PEL and
Kohinoor industries. Rafiq is the youngest brother, he takes care of the groups other
business interests. There is a village in Pakistan called [Saigolabad - 7 KM from
Chakwal City], named after this influential business family.
List of companies under the Saigol Group:

Kohinoor Industries.
Kohinoor Mills Limited.
Kohinoor Textile Mills.
Pak Elektron Ltd. (PEL).
Kohinoor Power Company.
Faisalabad Grammar School (FGS).
Kohinoor Energy
Saigol Computers (Private) Limited
Kohinoor Motor Works Limited
Saigol Motors
Sajeel Sehgal ltd

Shazan International ltd.

Vision Statement:
To Excel in providing engineering goods and services through continuous
improvement.

Mission Statement:
To provide quality products and services to the complete satisfaction of our
customers.
To maximize returns for all stake holders through optimal use of resources.
To promote good governance ,corporate values ,and safe working environment
with strong sense of social responsibility

Slogan:
Change your life.

Shazan International ltd.

Company products
The company compromise on two divisions.
1. Appliance division
2. Power division

1) Appliance division
Appliance division has following products

Microwave Oven
Air Conditioner
Refrigerator
Deep Freezer
Water dispenser

Microwave Oven:
PEL the trustful company name in home appliances all over the country, now introduced
all new models of "PEL Silver line" Microwave Ovens.
Air Conditioner
PEL presents Cool life Split AC which is a technologically advanced model especially
designed for Pakistani market. This masterpiece from PEL provides maximum cooling
even at very high temperatures while minimizing electricity consumption.

Refrigerator
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Shazan International ltd.

Refrigerators are one of the most needed home appliances and have been evolved a
lot. Whether you are buying it for the first time or replacing the older unit, you should
consider the ideal aspects to select a unit which is best suited to the needs of your
family, matches your performance expectations. Considering the new developments,
innovations in the refrigerator technology and a wide range of size, type, colors and
other features, PEL in order to create value for money has introduced new innovative
and state of the art features in its Refrigerator series.

Deep Freezer
PEL has introduced its deep freezer which meets all the present and future demands of
a perfect kitchen! So Stock & Save more with our Deep Freezer!

Water dispenser
Water dispensers are a welcome addition to PEL range of home appliances. Our Silver
line and Life-Stream water dispensers make life a little easier and fridge space a bit
more plentiful.
2) Power division
The Power Division of PEL has following products

Distribution Transformers
Power transformers
Energy Meters
Switchgears
Epc

Corporate Structure

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Shazan International ltd.

Chairman
HR

IR

Managing
Director

Finance
&
Account

R&D

Power
Division

Applianc
es
Division

Product
ion

Director
Operation
s

Admi
n

Sales

11

Marketi
ng

Networki
ng

Product
Developm

Shazan International ltd.

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Shazan International ltd.

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SWOT Analysis
The strengths, weaknesses, opportunities and Threats of PEL are discussed below:
Strengths:
PEL has more strong position in the following areas than its competitors:
Strong Dealers network
Strong Brand image
Number 2 in Refrigerators in Pakistan
Free Customer Service

Strong dealers network:

It is very important advantage of PEL that it has created a strong dealers network in the
market. The dealers of PEL are always trying to sell the products of PEL because they
get high margin on the sale of PEL products. Apart from margin Pel gives other
incentives to the dealers so through that they remain motivated and guide customers to
purchase the products of PEL.
Strong Brand Image:
PEL has established a positive image in minds of the customers since 1956. Pel has
created a positioning its a higher quality with low price product. So everybody knows
about Pel as PEL target middle Income group so whenever a middle income customer
wants to buy a product they prefer PEL than other competitors.
Number 2 in Refrigerators in Pakistan:
As Dawlance is at number 1 in the sale of refrigerators but PEL is continuously striving
to become number one it is now at number 2. But now Pel introduce built in stabilizers
in the refrigerators and also introduce a wide range of refrigerators with different styles
and colors that is now becoming very much famous in the market so through this Pel
will become a market leader.

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Shazan International ltd.

Free Customer Service:

As Pel know the importance of Intangible product, Pel provides one year free service to
its customers, so because of this customer prefer to buy the products of Pel to get free
after sale services.

Weaknesses
Apart from positive aspect PEL has some problems in their operations, so if PEL
overcome these following problems it can become market leader:

Lack of Effective Advertisement

Lack of Product Range
Financial problems

Lack of Effective Advertisement:

The PEL just believe on their dealers it does not focus on advertisement of its products.
In a year hardly an advertisement of Pel customers see. Its other competitors like Hair
and Dawlance etc can be seen in different market campaigns and customer become
aware of that brands and go directly to dealers of that brands.
Lack of Product Range:
As Pel is successful in other home appliances like air conditioners and refrigerators but
it have very small range of home appliances. Now customer demands other machines
to make their lives easy so if there is a demand then Pel have to make these products
to increase its cash flows and can solve its financial problems.
Financial problems:
Most of the time Pel faced financial problems because too much stock is piled up in the
store and it can be sold as estimated so this create shortage of cash flow. So many
times company sells on its products on credit with high margin that turns the profit of the
company into loss.

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Shazan International ltd.

Opportunities
PEL have some opportunities to expand its operation in the following aspects:

Exploration of Market in Pakistan

Increase in Product range
Export Opportunity

Exploration of Market in Pakistan:

Although PEL has introduce its products in all over country but there are some areas
like tribal area of NWFP, Norton area of Punjab and NWFP which have potential to buy
the PEL products and these areas are consider in the target market of PEL.
Increase in Product Range:
As Pel is successful in other home appliances like air conditioners and refrigerators but
it has very small range of home appliances. Now customer demands other machines to
make their lives easy so if there is a demand then Pel have to make these products to
increase its cash flows and can solve its financial problems.
Export Opportunity:
As PEL is successful in Pakistan so now PEL is able to go beyond the market of
Pakistan it can sell in countries like UAE, Saudi Arabia and African countries. Through
this the Pel can increase its Market share and due to high production it can reduce its
cost of production.

Threats
PEL have the following threats in the competitive environment:

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Strong Competition
Slow Growth rate in Pakistan
Instability of Government

Shazan International ltd.

Strong Competition:
There are strong competitors like Dawlance and Heir are existing in the market. And the
way how these are focus on its R&D and making aware to its customer the share of
PEL is getting low. Due to this price war is started and PEL is not able to low its price
because it is facing financial problems also.
Slow growth Rate in Pakistan:
Due to inflation the purchasing power of customer is getting low so through this it just
increases its stock and it just create the burden for the company.sio this is very major
threat for all companies.
Electricity Problem:
As electricity is the major problem of Pakistan due to power shortage the PEL cannot
use its full capacity of its production plants. So most of the time Pel is not able to
complete the order of the customers.

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Shazan International ltd.

Corporate sale department

There is a separate department which sells products to organizations factories
businesses only. It has no link with dealers in the market to sell companys products to a
single consumer. This department follows the corporate sale process which is defined
as below:

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Shazan International ltd.

Follow
up of
Invioces

Enquiry

Execution of
Insstallation

Pr-qualification

Stream
of
Corporate Business

Deliveries

Step -1
Enquiry:

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Quotati
on

Shazan International ltd.

Direct
Approach
of
Customer

Through
Advertise
d
T
eanders
Teanders

Enqui
ry

Visits of
Maket
Institutio
ns

Old
Refrenc
es

The first step of the corporate sale is customer hunting. For this the sale officer checks
news papers for tenders offered by the companies for purchasing the products. The sale
officer can also contact different organizations and ask to them to purchase the product
of Pel. Apart from this sometimes the customer itself contacts with the company to
purchase products or a customer which have purchased the products in the past and he
became satisfy so that he can also ready to purchase more products of Pel Company.

Step-2
Pre Qualification:

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Shazan International ltd.

Commercial
&
Administarti
ve

PreQualificatio
n
Specificati
ons

Tecnical

After contact with the customer a meeting is arranged with the customer, in this meeting
the sales officer try to create a good image of company in the customers mind. The
officer tells about the financial soundness certificates, Annual reports, and Company
profile and also shows the list of clients which already purchased the products of Pel. In
this meeting customer get informed about the specification of products in detail so the
customer can able to explain the products in his company so on behalf of that company
can make a decision to purchase the products.

Step-3

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Quotation:

Product
Comapris
ion

Survey of
site for
installati
on

Quotation

Stock
Availabilt
y

Prepratio
n of
Tender
Documen
ts

After meeting the sale officer is asked to submit a quotation to sell the products.
Quotation is a written document which shows the willingness to sell to products to other
company. In the quotation the products is compared with other products so that the
company can check the difference between products. In quotation the price of products
and terms and condition of the company is mentioned. In case of tender the lowest price
is offered and most of the terms and conditions mentioned in the tender are offered so
that the company can get the tender.
Some time the purchasing company do not know how much units of products they need
so that the sale officer make a survey before installation and mentioned the exact
amount of units in the quotation.

Step-4
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Negotiations:

Revisions
of
Quotation
s

Negotiatio
ns

Approval
from
Manageme
nt for
Discounts

After successful getting the tender or quotation is being approved by the purchasing
company. There is meeting held between sales officer and client, in that the officer try to
negotiate with client on prices and terms and condition by giving solid reasons like due
to increase in tax the price of products become high so the company cant not sell the
products on same rice mentioned in the quotation. So the client parent the revised
quotation to its management so if they approved this quotation then process moves to
next step.

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Shazan International ltd.

Step-5
Purchase Order:

Purcha
se
Order
So when client decide to purchase the products then the purchase order is made. A
purchase order is a commercial document and first official offer issued by a buyer to a
seller indicating types, quantities, and agreed prices for products or services.
Acceptance of a purchase order by a seller forms a contract between the buyer and
seller, so no contract exists until the purchase order is accepted. It is used to control the
purchasing of products and services from external suppliers.

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Shazan International ltd.

Step-6
Deliveries:

Inspecti
on at
Site

Follow
up with
Dispatch

Deliveri
es

Issuance
of
Inspecti
on Note

Checkin
g of
Stock
availabili
ty

After purchase order the company started production of units. So the company checks
the stock available in ware house and dispatches it and make sure no error is in the
stock. Then this stock is sent to the purchase company. A note is sent with the stock
which contains the detail of quantity of units and other accessories required in the
installation of products.

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Shazan International ltd.

Step-7
Execution of Installation:

Supervis
ion
of
Installati
on

Executio
n
of
Installat
ion

Awardin
g
of
Installat
ion

After delivery the work in not over a person from Pel company is sent with the supplies
which supervise the work of installation, because the purchasing company have not
such technical staff who is expert in the installation work. After installation the units were
powered on to check that the units are working properly. When the client checked the all
units working properly then they issue a clearance note which contains details about the
working of products.

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Shazan International ltd.

Step-8
Preparation of Invoice:

Preprati
on of
Invoices

After when all installation work is done an Invoice bill is sent to the purchasing company.
An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to
a sale transaction and indicating the products, quantities, and agreed prices for
products or services the seller has provided the buyer.
Payment terms are usually stated on the invoice. These may specify that the buyer has
a maximum number of days in which to pay, and is sometimes offered a discount if paid
before the due date. The buyer could have already paid for the products or services
listed on the invoice.

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Shazan International ltd.

Step-9
Follow up Invoices:

Follow
up of
Invoic
es
Some businesses give a customer two weeks past the due date, while others give them
one week. There are even those that contact the customer before the due date, just to
remind them its close.
As the first means of contact, most businesses start with email. Its a low stress solution
and it might be a quick fix. After all, your email may spur the customer into action.
Maybe it is something simple like a spam filter issue. The customer reads your
reminder, feels bad, and sends you the check that same day.

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Shazan International ltd.

Internship Activities

Week: 1
5 Hours, July 11- Friday
I have joined the corporate sale department and learned the corporate sale process. On
Friday I learned the first step of process that is Enquiry that how company contact with
their corporate customers, I reviewed different tenders and their major clients.
6 Hours 30 Minutes, July 12-Saturday
Second day I have learned about the discussion of meeting between company and their
customers to convince them for purchasing their products. I reviewed different
documents of company through that company can create positive image in the mind of
customers.
6 Hours 30 Minutes, July 14- Monday
This day I have learned about major document of Quotation. I learned what are polices
and price of different products of the company; I learned how company make quotation
to get tenders of different companies or advertised by the PAPRA.
6 Hours 30 Minutes, July 15- Tuesday
Thais day I have learned about Negotiation after getting the tender. After getting the
tender the customer can negotiate with the company to reduce more price so I have
learned how to negotiate with customer to remain on that price mentioned in Quotation.
6 Hours 30 Minutes, July 16- Wednesday
This day I reviewed the purchase order of different companies. I reviewed different
payment options demand by the customer.
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Shazan International ltd.

6 Hours 30 Minutes, July 17- Thursday

This day I learned how company delivers their supplies to their customers. It includes
inspection of site before and after installation and getting review of customer about
product after installation.

Week 2:

5 Hours, July 18- Friday

That day I have learned execution of installation that how an authorized person went at
site and supervise the installation of products that the company had delivered before.
6 Hours 30 Minutes, July 19-Saturday
That day I have learned how to develop invoice of products that have delivered to
customer. Invoice is the bill that includes price that must be recovered from the
customer.
6 Hours 30 Minutes, July 21- Monday
That day I have learned how to follow up of invoices because every company do not
pay on delivery mostly companies pay after 30 days of receiving invoice. So after that
day company have to contact with the customer to receive amount against invoice cash
bill.
6 Hours 30 Minutes, July 22- Tuesday
That day I have assigned to marketing department. That day I made design Eid card
that have been sent to the employees to Pel companies.
6 Hours 30 Minutes, July 23- Wednesday
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Shazan International ltd.

That day I was busy in packaging of Eid cards that I designed previous day. I packed it
then attracted the address on the envelops which were sent to employees of Pel outside
Lahore.
6 Hours 30 Minutes, July 24- Thursday
That day I have also assigned to the packaging duty but that day we supervise the
packaging of Eid gift that have been sent the loyal dealers of the Pel.

Week 4 & 5:

8 Hours, August 04- Monday

That that we have visited the whole factory area and check which and products are
made in factory in this Ferozpur road factory only following products are made

Refrigerators
Transformers

8 Hours, August 05-Tuseday

That day we met with the price control manager and ad get to know about his duty, he
how they keep eye on their dealers to maintain one price in the market.
8 Hours, August 06-Wednesday
That day we have met with marketing officer and know about his duty. He is engaged on
duty of a promotion of products. We learned how company hires different promotional
companies to advertise and promote the products in the market.

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Shazan International ltd.

8 Hours, August 07-Thrusday

That day we were assigned to corporate sale executive and that day we review the
corporate sale process in his words.
8 Hours, August 08-Friday
That day we were assigned supervise the work of carpenters, which were busy busy in
decorating the show room of Pel products situated I the factory area.
8 Hours, August 09- Saturday
That day we were sent to common store where we learned how inventory moves in the
company and learned about its record maintain.

Learning:

32

I learnt the way to work in corporate environment where I behave in much

respected way to the senior and junior staff.
I learnt the dressing required in a corporate structure.
I learnt the way of reporting to seniors.
I learnt how to collect, arrange and report information.
I improved my communication skills.
I learnt selling and sale management techniques.
By visiting departments I have learned knowledge about working of different
departments.
I have learnt how to prepare for an interview, how to sit in front of interviewer,
how to dress up and how to answer the questions.

Shazan International ltd.

Overall Summary
My overall experience at Pel was good. I have a lot of things which I thought it can help
me in through out of my life. Now I have such professional skills which I think it can help
to work in any organization. Pel is recognized organization but it has some problems
which I mentioned above. If Pel considers these problems then Pel can achieve
maximum market share and become market leader.

Special Thanks
I was not alone in making this report people were involved directly and indirectly
involved in this effort. Where ever I went to get information about pel I get the positive
response. In the organization there were many persons who should be getting words of
thanks from my side.
I am very grateful to the following persons for helping me to complete my internship
under their guidance nad supervision:

http://pel.com.pk/
Zia Chouhdary ( Head of Department)
Mr. Kahlid Shareef baig( CS Executive)

Above all I specially thanks to God who always helped me in tough time and also in
compiling this report.

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