HinoPak Motors (Pvt) Ltd

Presented By:
M Shakir Mukhtar

Company Profile
Formed in 1985
Hino Motors Limited, Toyota Tsusho Corporation, Japan, AlFuttaim Group, UAE and PACO

Market Leader in Bus and Truck Segments

76% in bus, 53% in Medium trucks and 49% in light-duty truck
Current Sales : Rs. 389 Mn

Industry Background
82 vehicle assemblers

Employment : 192,000
Total investment : Rs.98 billion

Contributes $3.6 billion to the economy

Annual foreign exchange savings of over $ 1 billion

Truck segment Growth : 13%

Bus segment Growth : -7%

Vision, Mission Statement

Vision
Total Customer Satisfaction, a set vision for the company. In
pursuit new concepts have been introduced such as a mobile
workshops, 3S/2S dealership facilities, and training and free
service camps for the vehicle owners and drivers.
Mission
The mission of Hinopak Motors Limited is to provide the
society with safe, economical, comfortable and
environment friendly means of transportation by
manufacturing and supplying commercial vehicles and
services".

Internal Environment Analysis

Market leadership
Largest installed production capacity in Pakistan
Kaizen and The Toyota Way concepts and processes
Excellent product support and after sales service

Under utilization of production capacity

Ineffective lobbying
Dependence on imported components
Lack of skilled labor

External Environmental Analysis

Demand for CNG and fuel efficient buses
Export potential to Saudi Arabia and African
countries
Gawadar Port
New entrants (Tata Daewoo, Photon)
Rising fuel prices
Import of Chinese, Indian and smuggled buses

Financial Highlights
2004

Sales - Net

2005

2006

2007

2009

2010

5,521.80 6,367.61 6,392.28 7,826.78 12,151.02 11,127.55

Gross Profit

770.09

661.51

834.58 1,387.64 1,279.14

Operating Profit

509.40

435.06

560.18

967.78

794.35

15.29

Profit / (Loss) after Tax

335.73

242.96

323.88

590.05

69.92

-148.07

Total Net Assets

389.48

1,386.37 1,527.56 1,797.75 2,238.83 1,989.99 1,857.56

Issued, Subscribed & Paid up

Capital

124.01

Reserves / Accumulated Profit

900.10 1,043.51 1,298.84 1,764.55 1,544.04 1379.97

Long Term / Deferred tax Liabilities

60.01

124.01

63.64

124.01

84.36

124.01

65.59

124.01

44.44

124.01

81.79

Financial Analysis
2004

2005

2006

2007

2009

2010

13.95%
6.08%
10.00%
32.78%
0.05
1.34
0.46
52.79
31.40%
5.95
1.62
8.09
3.11

10.39%
3.82%
7.70%
20.81%
0.05
1.42
0.31
8.13
30.60%
8.58
2.01
7.64
3.19

13.06%
5.07%
7.80%
22.76%
0.05
1.39
0.36
11.57
40.20%
5.90
1.54
7.39
2.66

17.73%
7.54%
12.00%
31.24%
0.03
1.50
0.54
15.32
50.44%
12.57
1.59
8.79
2.62

10.53%
0.58%
1.40%
4.19%
0.02
1.34
0.53
1.17
31.04%
50.13
2.43
12.74
4.42

3.50%
-1.33%
-2.58%
-9.85%
0.05
1.23
0.47
0.1

Financial Ratios
Gross profit ratio
Net profit margin
Return on Assets
Return on Equity
Debt equity ratio
Current ratio
Quick ratio
Interest cover ratio
Dividend payout ratio
Price earning ratio
Total assets turnover ratio
Fixed assets turnover ratio
Inventory turnover ratio

-14.75
1.94
12.08
4.02

Major Problem
Forex Risk of Raw Material Import
Decreasing Availability of CNG
High Oil and Diesel Prices

Minor Problem
Resistance to Technological Change
Technical Competence of the recruits

Resignation to environmental factors

Need for Young Blood
Lack of willingness for personal growth
Sense of insecurity amongst workers

Strategic Alternatives
involve workers at all levels of the strategy
formulation process

Strategic Choice
Involve workers at all levels of the strategy
formulation process.
Sense of mission and ownership for the
organization.

Utilize their full potential for the achievement

of the organizational goals.

Strategy Implementation & Execution

start a communication campaign
attractive markets such as Saudi Arabia and
the African countries