PACKAGES (LTD.

)
Pakistan’s Best Packaging Company

Group Members
Hassaan Ahmad
Maham Nadeem
Afia Rasheed

Date: 13/03/19
Contents

The Packaging Industry ................................................................................................................................. 3

Packages Limited........................................................................................................................................... 4
Reviewing the Market ................................................................................................................................... 5
Consumer Product Division (CPD) ................................................................................................................. 6
CPD Productions ....................................................................................................................................... 6
CPD Marketing .......................................................................................................................................... 7
 Syed Babar Ali son of Syed Muratib Ali was born in Lahore in 1927. Muratib used to
invest a lot in land as he owned different shops in the Walled City of Lahore. His shops used to
supply goods related to logistics to the British army. His mother also belonged to a family of
landlords and his grandmother belonged to a royal Afghan family.

He qualified in intermediate and secondary education from Atchison College and for
higher education he went abroad and studied in Michigan University at Ann Arbor. After
completing his education abroad, he came back to Lahore in 1947 which was a post-partition
Pakistan. The business was in bad times as before the partition the business was all about
dealing with the British military but after the partition the British were leaving and the business
had to create a new customer base. The industry of the new country had no major business
except for textile which had only 3 to 4 mills.

In the early 1950s, Babar inquired from his Karachi office if there were any letters from
the Scandinavian states that could lead to any business opportunities in Pakistan. As he was
planning to visit Sweden where he had got to know about a business opportunity regarding a
packaging deal. He got invited to Lund, which is a small university town in Sweden. He visited
the factory in Lund where a new business deal was made which was a joint venture in Pakistan
that laid the foundation of Packages Limited.

Syed Babar is also one of the leading founders of major business schools in Pakistan. He
set foundations for training of teachers of primary and secondary schools. He is the owner of
different multi-nationals from different industries. He believes in the philosophy of running
businesses as joint ventures and majority of his businesses are joint ventures. In Prime Minister
Zulfiqar Ali Bhutto’s regime most of the private industries were nationalized which effected
Syed Babar’s businesses and only Packages Limited was left.

(What makes Babar Ali tick May 13, 2018) (A man who loves to 'learn from others' February 22,
2016) (Peace the only way forward February 22, 2016)
The Packaging Industry

According to the recent stats, Pakistan’s packaging industry is growing at an annual rate
of 15%. Aamer Khanzada, the managing director at Pegasus Consultancy, an international firm
that aims to put buyers and seller together, said that the packaging industry in Pakistan had
contributed 1.69% to the annual GDP during the year 2015-16 and contributed Rs. 7.5 billion to
national output. He also said that approximately 49 percent of the total investment in the
plastic sector is from foreign companies.

Food and packaging industries are closely related, and the food industry in Pakistan is
the second largest. Packaging industry having companies like Packages Limited, Roshan
Packages, Merit Packaging, Pack Tech, Blue Group of Companies and many more like these
enjoy benefits of food industry being the second largest in the country after textile industry.

Pakistan’s food processing industry is one of the most important in South Asia. The
processed food of near $1.4 billion is traded a year. Pakistan’s agro-food products contribute 21
percent to the country’s GDP, and it is the primary source of livelihood for 45% of the country’s
population.

There is immense competition in the country’s dairy, and juice packaging sector as
Chinese carton packaging companies has entered the market. According to official stats,
Pakistan has a huge milk market with 55 billion liters of production, making Pakistan the second
largest milk producer in the world. About 45% of the total milk produced is traded, and the rest
is kept for own consumption and calf feeding. The 8% of the traded milk is packaged and the
share of liquid packaged milk is about 5%. 90% of the traded milk is sold loose which is the
biggest competitor and a growth opportunity for the milk packaging sector. Therefore,
Pakistan’s packaging industry is expected to enjoy very high growth rates in the near future.

Packaging industry is not just limited to food and beverage packaging, it is also
connected to the tobacco industry and tissue and hygiene industry. The consistently growing
consumer markets open up many ways for packaging industry of the growing country Pakistan.
(Limited 2016)
Packages Limited

Packages Limited came into being in 1957 in the form of a joint venture between Ali Group of
Pakistan and Akerlund & Rausing of Sweden. The purpose behind this venture was to transform
paper and paperboard to packaging for the consumer industry. Currently, Packages Limited is
amongst the leading packaging solution providers of Pakistan, which functions on a B2B model.
Packages Limited has over 2000 employees who have executed sales of about US $141 million.

Two main business units that are working under the packaging division include flexible
packaging and folding cartons. The folding cartons unit does package for food & beverages,
pharmaceuticals, chemicals, tobacco, personal care, and hygiene sectors. The flexible packaging
unit works on graphics, multi-layer blown film extrusion, lamination for plastic films, aluminum
foil, paper, standalone spout inserted bags, ice cream cones, and sleeves.

Packages introduced a new product line of tissue papers in 1982 under the brand name
“Rose Petal”. Rose Petal currently occupies 70% of the market share, making it one of the
leading tissue paper brands. Their tissue paper products include facial tissues, table napkins,
toilet rolls, kitchen rolls, pocket packs and party packs.

In the previous year, Packages Limited devoted Rs 540 million to the upgradation of the
flexible packaging unit and Rs 105 million on the operations of slitting, bag-making and
lamination. A mall by the name of Packages Mall was also established. The mall provides offers
180 brands, Carrefour, food court and a cinema. Previously, Stora Enso had 35 percent shares
of the subsidiary Bulleh Shah Packaging (pvt.) limited. Packages bought these shares and made
it a fully owned subsidiary.

Presently, OmyaPack (Pvt) Limited, which is a joint venture, is establishing a commercial

production facility. This facility would start working in the 2nd quarter of the current financial
year. The purpose behind this facility is to provide a variety of ground calcium carbonate
products, to cater to local as well as regional markets. (Business Recorder 2018)
Mission Statement:

“To be the market Leaders we serve our clientele by providing quality products and
services, while encouraging feedback to ensure even higher standards. To be a Company that
relies on continuous enhancements of its technological competence to seek innovative
solutions for customer needs. To be an organization that attracts and retains outstanding
professionals by maintaining a culture of openness and innovation, by promoting individual
growth and by rewarding initiatives and performance.”

“To be a company that offers profitable growth for its investors by bringing together its
people, management systems, technology and opportunities. To be a company that strives to
serve the society by setting the highest possible standards for corporate ethics.”

Vision:

“One of the hallmarks of our success is continuous research to refine our offerings.
Through our joint ventures with some of the world’s biggest names, we constantly improve
productivity and augment customer value.”

Innovation

“We are at the forefront of new developments in the packaging industry and have
pioneered several innovations, including the use of wheat straw as a raw material for paper and
board manufacture.”

Development

“We provide comprehensive packaging solutions worldwide through creation and

development of impactful designs that build stronger brands.” (Company Profile)

Reviewing the Market

For over 5 decades in the packaging industry Packages has been one of the leading
providers of packaging solutions in Pakistan. With further research and development, Packages
strives for perfection in quality. Packages has given the packaging industry in Pakistan a wide
range of products and packaging solutions. They include folding cartons and flexibles and they
also provide service of technical expertise. Packages supplies its clients and various industries
folding carton packaging solutions that are also customizable. With modern machinery and
skillful workforce, Packages contributes with innovative and efficient ways of operating in the
market. Flexible packaging, which another major part of their product line is an every day use
by millions of consumers. Packages provides its clients with high quality printed packaging. In
this way Packages plays a cost-effective role for its clients by being a one stop solution in the
market. Packages consists of state-of-the-art machinery relating to cutting, packing, printing,
laminating, flexographic printing, laser cutting etc. and apart from its divisions i.e. folding
cartons and flexible packaging, the company has a number of key brands which consist of a
signature brand Rose Petal.

Consumer Product Division (CPD)

This department is a very unique and flexible business unit of the organization which has
a variety of products such as tissues, napkins and other hygiene products that are directly
important for consumers.

This department of the business is divided into two important categories that are:

1. CPD Productions
2. CPD Marketing

CPD Productions

This department is directly in charge of handling activities relating to generating

packaging goods and creating products that are directly associated with finished goods
handling.
CPD Marketing

CPD Marketing plays variety of roles in relation to order/account generation and

management and product positioning/marketing and other different types of modes of making
ad posts and promoting products to generate revenues. This department is further divided into
two more sub-divisions that are,

 Sales
 Branding

Sales

It is a sub-division of CPD Marketing that is under the supervision of a Consumer

Products Sales Manager. Sales department activities are controlled by a team of area managers
who are led by a regional sales manager. Two key factors are used to identify the functionality
of this department, that are;

 Sales Department Operations

 Responsibilities

Functions

Activities and functions such as account management, sales quota management, client
support and management, after sale queries and services, sales forecasting, managing
campaigns for promotions, inventory management, costing, ensuring the availability of product
in the market and competition analysis among various products which help top managers to
make healthy decisions.

Responsibilities

There are eight to ten Areas Sales Managers, out of which four regional team leads are
allotted for distributional capacity in Lahore district, and every territory project lead is given
one distribution plan in Lahore. These regional project leads report legitimately to territorial
team lead. Their duty is to guarantee the revenue, accessibility of the item at the distribution
points and to ensure that it manages demand and supply in the market. Further two area
project heads are given various institutes everywhere throughout the country and they are in
charge of creating deals through introductions and exhibits at different business and non-
business institutes to induce deals and fulfill client needs through custom products and
services. One zone project head is given a task to deal with their major retail clients by
collaborating with the merchandiser who keeps up a specific level of stock at the stores.
Constant meetings are held between region project head and merchandiser to try and achieve
competitive advantage and revenue strength at the stores. One region project head is involved
in tasks regarding exports of various products and directly reports to the manager for
international relations.

Branding

Branding is a key sub-division of CPD Marketing which is under the responsibility of a group
branding heads. There are three key principals associated with branding:

 Leadership of Branding Management

 Responsibilities
 Performance Orientation

Leadership

Stating the objectives of branding, focusing on the service and quality of the brand while
maintaining its development. Using market dynamics as the indicator in order to make
decisions accordingly.
Responsibilities

Brand managers are responsible for the performance of their respective brands. The
flagship brands of the company include Rose Petal and Tulip. There are many different sub
variants of both of these brands for which the brand managers are responsible.

Performance Orientation

All brand managers observe practices such as the number of tissues in a particular
packing, the size of the packing, designing and printing of the packing with respect to different
events and occasions, balancing and application of proper communication mix, complete
quality controls, customer feedback and evaluation, promotional campaigns, brand positioning
and brand management, advertising and promotional activities.
Bibliography

Akbar, Agha. May 13, 2018. "What makes Babar Ali tick."

Business Recorder. 2018. Packages Limited. Business Recorder.

n.d. Company Profile. https://www.packages.com.pk/company-profile/.

Limited, Pegasus Consultancy (pvt.). 2016. Plastics/packaging industry in Pakistan is growing with
annual rate of 15 percent. www.businessnewpakistan.com.

Raza, Ahsan. February 22, 2016. "A man who loves to 'learn from others'."

Sheikh, Ammar. February 22, 2016. "Peace the only way forward."