Final Project PDF

1
Summer Internship Program 2019
SUBMITTED TO,
ADMINISTRATOR PUJC
SUBMITTED BY,
KAINAT KHURSHID
SESSION: 2015-2019
BBA-F15-02 (M)
UNIVERSITY OF THE PUNJAB JHELUM CAMPUS
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Preface
The essential requirement for the completion of BBA (Hons) degree is to take Six to Eight
weeks internship training with an organization so I prefer Pakistan Tobacco Company
Jhelum. Then I was attached with marketing Department, which first they took us to
distributor warehouse named The Distribution Company Jhelum which was located near
UBL Rohtas road. Then I did Analysis of automation system. At that time distribution
company was going to covert in automated system. After that I had been given a task to
observe that how DR distributes stock to wholesalers and retailers. Then, I keenly analyzed
devices and applications that were launched for automation. After completing my previous
task I went for a market visit. I came to know what 121 engagement is. How this project is
helping company in increasing its sales. Then I went for warehouse visit. My core project
was automation and 121 engagements. During my internship time, I have gained a lot of
Knowledge. Based on the outcomes of my project, I gave recommendations which will be
implemented in future and I will be glad and enthusiastic if my services are needed. I tried
my best to complete the task.
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Certificate of Approval:
It is to certify that I have read Pakistan Tobacco Company Report by Kainat Khurshid. And
that in my opinion this work meets criteria for approving the internship report submitted in a
partial fulfillment of the requirement for BBA at the University of the Punjab.
Internship Coordinator
Tabassum Riaz HOD, Business Administration
Department of Business Administrator
University of the Punjab, Jhelum Campus
Administrator
Dr. Muhammad Mudassar Ghafoor
University of the Punjab Jhelum Campus, Jhelum
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LETTER OF TRANSMITTAL:
25/04/2019
Mr. Tabassum Riaz
HOD, Business Administration.
University of the Punjab Jhelum Campus
Subject: Submission of Internship report
Respected Sir,
This letter is regarding the submission of my internship report, which is mandatory
requirement of my degree, entitled “Pakistan Tobacco Company”. I was in PTC for 6 weeks. I
tried heart & soul to provide as much as information from different resources. I would like to
thank you for your supervision and also helping me throughout the internship report
completion program for the completion of my BBA degree. This internship program has
given me opportunity to know about this organization and to explore one of the latest and
unexplored areas of business in context of a developing country like Pakistan. It was
delightful experience to working an organization on like PTC. This gives me an opportunity
to understand the corporate culture which will help me for my future professional career. I
have also found the experience of working with this report challenging & interesting. I hope
this report will meet the expectations and standard. I would be great pleasure if this report can
serve its purposes.
Sincerely,
Kainat Khurshid
BBA (hons),
Session 2015-2019
BBA-F15-02
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Acknowledgement
Firstly I would like to thank Allah Almighty who is the most beneficent and merciful who
gave me the opportunity to work in a professional environment and who always blessed me
with countless favors. This internship has been completed due to the support of many people
and we wish to acknowledge them here.
I would like to thank my teachers who cultivated in me those seeds that really proved fruitful
for me. They were the one who illuminated my life with their teachings and through their
guidance.
My gratitude will always remain due to the Punjab University Jhelum Campus and
especially PTC (Pakistan Tobacco Company Jhelum) for increasing my knowledge and
experience by providing me such an opportunity. Both these prestigious institutions will have
a lasting impact on my life.
BBA (Hons) 8th semester

Punjab University Jhelum Campus
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Abstract
The report comprises of the key learning, projects and experience gathered during the Six
weeks long attachment in marketing department of PTC Jhelum Factory. I will be
highlighting the knowledge that I gained regarding Pakistan Tobacco Company with specific
reference to the operations in-Jhelum Factory. After that I will be moving on to the projects
that I accomplished during my attachment with the prestigious organization.
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EXECUTIVE SUMMARY:
This report is about my internship that I have undergone at Pakistan Tobacco Company. The
main purpose of this internship is to learn, by working practical environment and to apply the
knowledge acquired, during the studies, in a real-world scenario in order to tackle the
problems. The objective of this report is to fully describe my internship program and sharing
my practical experience of Pakistan Tobacco Company to my teachers and other students’
have divided this report in different section. First section is about the introduction and history
of Pakistan Tobacco Company in which I have discussed vision, mission, core values and
goals. Second section is about business administration; in this I have explained organization’s
structure, management, corporate information, organization’s chart and departments of
Pakistan Tobacco Company. Third section explains the business strategy in which SWOT
analysis, competitive strategy and business analysis process. Fourth section is about
marketing in which I have discussed marketing strategies, target markets and promotional
strategies. Fifth section is about finance. In this section, ratio analysis and financial analysis
are discussed. Sixth section is about HRM in which HR policies, functions and practices are
discussed. Seventh section is about suggestions and recommendations.
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Table of Contents
Table of Contents ............................................................................................................................ 10
INTRODUCTION: .............................................................................................................................. 14
1. BACKGROUND OF STUDY ................................................................................................. 14
2. PURPOSE OF THE STUDY ............................................................................................... 14
METHODOLOGY OF RESEARCH ............................................................................................... 15
1. Primary Data Collection: ......................................................................................................... 15
2. Secondary Data Collection: .................................................................................................. 15
History of the organization: ............................................................................................................. 16
1 INTRODUCTION TO THE ORGANIZATION........................................................................ 16
2. PAKISTAN TOBACCO COMPANY BACKGROUND .............................................................. 17
ESTABLISHEMENT: ..................................................................................................................... 18
ESTABLISHMENT: ................................................................................................................... 18
EXPANSION: ......................................................................................................................... 18
LEADING ON TECHNOLOGICAL FRONT: ................................................................................ 19
THE COMPUTER DEPARTMENT: ........................................................................................... 20
PERSONAL COMPUTER: ..................................................................................................... 20
EXTENSION OF MSD DEPARTMENT TO FACTORIES:............................................................ 20
R&RS SYSTEM: ........................................................................................................................ 20
A NEW ERA OF TECHNOLOGY: ................................................................................................. 20
Vision And Mission& Strategic objectives Of Pakistan Tobacco Company ...................................... 21
VISION: ...................................................................................................................................... 21
MISSION STATEMENT: ....................................................................................................... 21
Department Of PTC:........................................................................................................................ 22
Diagram 1: Vision, Mission, and key Objectives of PTC .................................................................. 23
Organizational Structure: ................................................................................................................. 23
COMPETITORS ANALYSIS ......................................................................................................... 24
MAJOR COMPETITORS ................................................................................................................. 24
PTC Jhelum Hierarchy: ..................................................................................................................... 26
Blends of PTC: ................................................................................................................................ 27
BRANDS PRODUCTION IN PTC: ........................................................................................................ 27
NEW HEALTH WARNING: ............................................................................................................. 28
PTC BRAND PORTFOLIO: .................................................................................................................. 28
Premium: .................................................................................................................................... 28
ASP premium: .......................................................................................................................... 29
. BRANDS ......................................................................................................................................... 29
Departments .................................................................................................................................... 31
Engineering Department: ................................................................................................................. 32
Supply chain Department: ............................................................................................................... 33
Primary Manufacturing Department (PMD): .................................................................................... 35
Lamina Side .................................................................................................................................... 36
Lamina Processes through the following steps: ............................................................................ 36
Stem Side ........................................................................................................................................ 38
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PMD Layout: .................................................................................................................................... 41

Secondary Manufacturing Department (SMD): ................................................................................ 42
Filter Maker: ............................................................................................................................... 43
Filter Shooter: .......................................................................................................................... 43
SMD Layout: .................................................................................................................................. 45
Working Order: ........................................................................................................................... 46
Quality Assurance: .................................................................................................................. 47
Responsible for:........................................................................................................................... 47
Like all multinational organizations, PTC too has a lot of emphasis on maintaining its high standards
of quality to ensure customer satisfaction. Absolutely no stone is unturned in their quest to produce
the best quality cigarettes with zero defaults. ................................................................................... 47
Security Department: ....................................................................................................................... 48
Logistics: ........................................................................................................................................ 48
Secondary Logistics in Pakistan Tobacco Company: .................................................................... 49
Operations Skills Development Centre: ........................................................................................... 50
Environment, Health & Safety (EH&S) ........................................................................................... 50
Environment, Health & Safety (EH&S) Policy: ............................................................................ 53
Repair & Renewable Spare Store: .................................................................................................... 53
Aim of R&RS store: .................................................................................................................... 54
Monthly Checklist Of fire & safety Equipment: ............................................................................... 54
CORPORATE SOCIAL RESPONSIBILITY:.................................................................................. 56
SWOT Analysis .............................................................................................................................. 57
STRENGTHS:............................................................................................................................. 57
WEAKNESSES:...................................................................................................................... 57
BCG Matrix: ................................................................................................................................... 59
PEST ANALYSIS: ............................................................................................................................... 59
MARKETING................................................................................................................................. 62
MARKETING ANALYSIS ......................................................................................................... 62
TRADE MARKETING: .................................................................................................................. 64
Route to Market: .......................................................................................................................... 64
Sales Automation:.................................................................................................................... 65
Scientific methods of market research: ..................................................................................... 65
REGIONS: ...................................................................................................................................... 66
121 ENAGANGMENT: .................................................................................................................. 66
PTC 121 ENGANGMENT: ......................................................................................................... 66
CONSUMER CONTACT: .......................................................................................................... 67
PURPOSE: .................................................................................................................................. 67
AREA MANAGER: ................................................................................................................ 67
TERRITORY EXECUTIVE: ................................................................................................... 68
FSO (field sales officer): .......................................................................................................... 68
BRAND AMBASSADOR: .............................................................................................................. 68
BRAND AMBASSADOR’S FOLDER:....................................................................................... 69
 Cycle instruction .............................................................................................................. 69
 FCP ................................................................................................................................. 69
 Pitch ................................................................................................................................ 69
SWAPPING: ................................................................................................................................... 69
HIERARCHY: ................................................................................................................................ 70
AUTOMATION: ............................................................................................................................. 70
HOW DR USES AUTOMATED DEVICE: ................................................................................. 71
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RCS8 MODULES: .......................................................................................................................... 71

1) Search: .................................................................................................................................. 71
2) Data Entry........................................................................................................................ 71
3) Route Setup...................................................................................................................... 72
DR’S SELLING PROCESS: ........................................................................................................... 72
TYPES OF CHANNELS: ................................................................................................................ 73
RETAIL CLASSIFIED METHODOLOGY: .................................................................................... 73
TYPES OF SALES: ........................................................................................................................ 74
PRODUCT ...................................................................................................................................... 75
Benson & Hedges: ....................................................................................................................... 75
JOHN PLAYER GOLD LEAF: ............................................................................................... 75
PROMOTION ................................................................................................................................. 76
INDUSTRY ANALYSIS ................................................................................................................ 80
1. FINANCIAL ANALYSIS: .......................................................................................................... 82
2. OPERATIONAL ANALYSIS: ................................................................................................ 83
3. ............................................................................................................................................. 83
SAP (SYSTEM APPLICATION PROGRAM) ................................................................................ 83
3C Analysis (Corporate, Customer and Competitor Analysis):........................................................... 84
Michael Porter’s 5 Forces Analysis: ................................................................................................. 84
Rivalry among Competitors: ........................................................................................................ 84
Potential Entry of New Competitors ......................................................................................... 84
........................................................................................................................................................ 85
Potential Development of Substitute Products .................................................................................. 85
Marketing Mix ................................................................................................................................ 86
HUMAN RESOURCE .................................................................................................................... 87
MANAGEMENT ............................................................................................................................ 87
Human Resource Department: ..................................................................................................... 87
DIMENSIONS OF HUMAN RESOURCE .................................................................................. 89
FINANCE ....................................................................................................................................... 93
Finance Department:.................................................................................................................... 93
Production Expenses:................................................................................................................... 94
Cash Section: ........................................................................................................................... 94
KEY FINANCIAL INDICATORS .................................................................................................. 99
FINANCIAL STATEMENTS ANALYSIS ................................................................................... 101
RATIO ANALYSIS .................................................................................................................. 101
LIQUIDITY MEASURES: ........................................................................................................ 101
LONG TERM SOLVENCY MEASURES: ............................................................................ 101
HORIZONTAL AND VERTICAL ANALYSIS: ........................................................................... 103
INCOME STATEMENT: .............................................................................................................. 103
Financial Highlights ........................................................................................................................... 103
Horizontal & vertical Analysis: .............................................................................................................. 104
Profit & loss account: .................................................................................................................... 104
Summary of Cash flow
...................................................................................................................................................... 105
Statement of Financial Position ................................................................................................... 106
As at June 30, 2018 ....................................................................................................................... 106
PROFIT & LOSS ACCOUNT 2018: ............................................................................................. 107
GRAPHICAL REPRESENTATION: ............................................................................................ 108
Rs (million) ................................................................................................................................ 108
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EARNING PER SHARE & DIVIDEND PER SHARE: ............................................................. 109

FINANCIAL POSITION ANALYSIS ........................................................................................... 110
LIQUIDITY ANALYSIS: ............................................................................................................. 111
CONTRIBUTION TO NATIONAL EXCHEQUER: ................................................................. 111
PROFIT DISTRIBUTION & RESERVE ANALYSIS ................................................................... 111
OPERATIONS REVIEW: ............................................................................................................. 112
MARKETING REVIEW: .............................................................................................................. 112
Monitoring Actions: ...................................................................................................................... 113
NOISE LEVEL MONITORING.................................................................................................... 115
DUST LEVEL ................................................................................................................................... 116
GASEOUS EMISSION LEVEL ............................................................................................................ 117
LIGHT LUX LEVEL ........................................................................................................................... 118
Core Project: ................................................................................................................................. 122
121 ENAGANGMENT: .................................................................................................................... 122
PTC 121 ENGANGMENT: ............................................................................................................ 122
CONSUMER CONTACT:........................................................................................................... 123
My learning’s:................................................................................................................................ 123
AUTOMATION: .............................................................................................................................. 123
HOW DR USES AUTOMATED DEVICE: ......................................................................................... 124
MARKET VISITS DURING INTERNSHIP: ............................................................................................ 124
Types of activities: ......................................................................................................................... 125
What happened in Chaos activity? ............................................................................................. 125
What Happened in Virtual activity?........................................................................................ 125
SWAPPING: ................................................................................................................................... 125
BRAND AMBASSADOR’S FOLDER: .................................................................................................. 126
 Cycle instruction ............................................................................................................ 127
 FCP ............................................................................................................................... 127
 Pitch .............................................................................................................................. 127
RECOMMENDATIONS:.............................................................................................................. 127
CAMPAIGN FOR SMUGGLING OF FOREIGN CIGRETTES ................................................ 127
ACTION AGAINST NON-TAX PAYING CIGRETTE MANUFACTURS: .......................... 128
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INTRODUCTION:
1. BACKGROUND OF STUDY
Punjab University Jhelum Campus requires its student of business administration to undergo
Six-Eight-weeks internship program. Selection of organization depends upon the interest of
the student as well as the field of specialization. This Six weeks practical experience is then
documented in the written form known as “Internship Report” which is based on theoretical
and practical learning of the internee. Student gets the opportunity to match their knowledge
with the actual happening of the fields.
Internship program is the exposure for the students to the real working condition, and the
chance to learn the practical work and know about the culture, working conditions, processes,
and procedures of an organization to fulfill the demand of a job. All these things are very
important for the student to pursue a good career.
2. PURPOSE OF THE STUDY

The purpose of the report is to study the management practices, processes and procedures
followed by PTC. The study is intended to analyze PTC in terms of its strength and
weaknesses and also other factors affecting the organization either positively or negatively.
The purpose of study and report is to fulfill the requirements of Bachelors in Business
Administration at Punjab University Jhelum Campus.
3. SCOPE OF THE STUDY
The reader can have a brief introduction to the PTC Jhelum Factory form this report. It
encompasses the operations of different departments, projects carried out during study and
the SWOT analysis of the company, and recommendations. The method for data collection is
central theme of the study. No study is completed without using the scientific and systematic
ways to get latest knowledge about the study. So the methodology for data collection is based
on the traditional categorize,
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4. LIMITATION OF THE STUDY

Up-to-date information is one of the limitations of the study because the information, which
is available, is not sufficient to fulfill the requirement of the report, and as all know PTC is
such a large organization and the span of operation is too big so to cover it in little time is one
of the limitation of the study, because it is very difficult to cover each and every aspect of an
organization in allotted to me. The internship program was limited to the Akora Khattak
Complex only so the review section only contains data about the AKF Complex and does not
cover the whole of the organization
.
5. DELIMITATION OF THE STUDY
The report has authentic data of managerial position of the company, and this analysis will of
great usage to management, creditors, investors and the students of management sciences and
for those who are interested in management particularly
METHODOLOGY OF RESEARCH
The method for data collection is central theme of the study. No study is completed without
using the scientific and systematic ways to get latest knowledge about the study. So the
methodology for data collection is based on the traditional categorizes.
Primary Data Collection.

Secondary Data Collection.
1. Primary Data Collection:

In primary data collection I used the techniques of:
i. Personal observation.
ii. Briefing and discussion during the internship with BSO’s and MTO’s departments.
iii. Unstructured interview technique is also used when I faced any problem during work.
2. Secondary Data Collection:

In secondary data collection method I get information from:
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i. Annual reports of different years.

ii. Brochures for information to customers.
iii. Inter organization memos.
History of the organization:
1 INTRODUCTION TO THE ORGANIZATION
The company was formed in 1902, when the United Kingdom’s imperial tobacco company
and United States’ American tobacco company agreed to form a joint venture, the British
American tobacco company Ltd. James Buchanan Duke became company chairman and
business begun in countries as diverse as Canada, China, Germany, South Africa, New
Zealand and Australia.
By 1910, its operations had extended to the West Indies, India, Ceylon (now Sri Lanka). East
Africa, Java, Malaya (now Malaysia) and Nigeria. BAT got listed on the London Stock
Exchange in 1912 and British investors acquired most of its American parent’s shares.
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BAT held strong market positions around the world and had leadership in more than 50
markets. Since 1994, the group has grown global market share from 10.7% to over 15%.
BAT has 86 factories in 64 countries. BAT uses more than 700 million kilos of tobacco and
has 25 leaf growing projects and 23 leaf processing plants, with over 300 brands in BAT
portfolio and a market share of 15 percent, make the cigarette chosen by one in seven of the
world’s one billion adult smokers. BAT differentiated portfolio of brands included well
established international brands such as Dunhill, Benson & Hedges, Capstan by Pall Mall.
John Player Gold Leaf (JPGL).
2. PAKISTAN TOBACCO COMPANY BACKGROUND
Pakistan Tobacco Company Limited (PTC) is a subsidiary of the British American Tobacco
(BAT). The Company was incorporated in Pakistan in 1947 making it one of the first
multinationals in Pakistan. Starting from a single warehouse near Karachi port, the Company
is now the largest cigarette manufacturer in Pakistan. Pakistan Tobacco Company Limited is
one of the largest manufacturing concerns operating in Pakistan. It is a subsidiary of British
American Tobacco Company (BATCO). The Head Office of BATCO is located in London,
England. BATCO has about 65% shares in Pakistan Tobacco Company. The Head Office of
PTC is situated in Islamabad. Pakistan Tobacco Company has got two cigarette
manufacturing facilities located at
 Jhelum
 Akora Khattak
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It had three branches - Karachi, Jhelum and Akora Khattak, but Karachi factory however has
been closed since 1992 due to heavy losses and some other reason.
In 1952, a development project was initiated in N.W.F.P. and the top quality American
Tobacco found way to Pakistan. A factory was established in 1955 at Jhelum, and PTC
became a Public Limited Company in the same year. Pakistan Tobacco Company has divided
the whole country into 5 regions (Central Punjab, Southern Punjab, Northern Region, Lower
Sindh and Upper Sindh ). Within each region, there are four to six areas, and each area is
further sub-divided into retail and wholesale.
By being instrumental in designing and driving state-of-the-art agricultural and industrial

processes, they have managed to stay resilient through-out their Supply Chain. There has
been a ceaseless effort to modernize the Company’s operations by introducing new and
innovative concepts, optimal processes and cutting-edge technology. PTC’s systems and
processes are considered benchmarks by other businesses and they have also been able to
transfer international best practices to the local business partners in trade and distribution.
ESTABLISHEMENT:
1947-1950s:
ESTABLISHMENT:
The 40s and 50s were periods of crop and curing infrastructure establishment. During this
era of establishment, PTC kept striving for embedding good tobacco crop growing, grading
and bailing practices to establish the crop and make it a viable farmer option. It
simultaneously set up model of contracted farming.
1960s:
EXPANSION:
The 60s was characterized by crop expansion. By this time extension services network spread
throughout the country as it made farmer base superior examples of economic uplift.
Company established the first Conditioning and Classifying (CnC) lines for green leaf
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processing spanning this era, a major mechanical transformation where transitioned from
redrying to tobacco threshing.
1970s-1990s:
SEEKING NEW AVENUES:
This period was characterized by spreading footprint in the premium leaf belts. Leaf spread
into Mansehra and Swat Regions growing different tobacco types. Today Mansehra and
Buner are the main areas for premium tobacco in Pakistan.
2000-2008:
SUSTAINING:
Company spread into the Punjab province in the late 2000s.They also adopted the global
green leaf grading model at this time, beginning the exercise of internal grading for consistent
blends in all Leaf Depots. They upgraded Green Leaf Threshing (GLT) at this time as well,
by introducing a second line and installing four new classifiers increasing processing
capability to 16 tones/ hour.
2009-2017:
TRANSFORMATION:
They transformed the Leaf Sustainability space, by fully transitioning from Social
Responsibility in Tobacco Production (SRTP) to the industry wide Sustainable
Tobacco Program (STP). Here working very closely with farmers on elements of
Crop, Environment and People. They are running dedicated programs on Farm Safety,
curbing Child Labor in Tobacco, disposing hazardous waste, protecting natural forest
cover and precious land and water resources.
LEADING ON TECHNOLOGICAL FRONT:

1971-1988:
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THE COMPUTER DEPARTMENT:

In 1971, this department was established by PTC to process Payroll, Leaf, Shares and
Wrapping Material using ICL Punch Cards / Verifier Machines on Hollerith Paper Cards to
capture data.
1981-1982:
PERSONAL COMPUTER:
First four computers, Model 2 XT with floppy disk and 10 MB hard disk were introduced in
Finance and Human Resources. With this, first Voucher Record Book (VRB) and Trial
Balance System were deployed.
1984-1985:
MANAGEMENT SERVICES
IBM server system was introduced to process Payroll System, which was developed in
COBOL language.
1988:
EXTENSION OF MSD DEPARTMENT TO FACTORIES:

In pursuit of data processing decentralization, 4 IBM S/36 systems were introduced in the
Head Office and three of our factories.
1992-2005:
R&RS SYSTEM:
Spare Inventory and Durations System (R&RS) was developed and installed at Lahore
engineering Office, IBM S36 module 5360. One dedicated console through which all
operational commands could only be executed.
2007-2013:
A NEW ERA OF TECHNOLOGY:

o After 2006, IT became a core driving tool for Company business activities:
o Global Wi-Fi for Head Office
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o HOT backup site
o New high-tech Head Office building with centralized printing solutions, audio
meeting facilities and state of the art VC room
o Telepresence + video conference solution
o Consecutive three years satisfactory rating ITGC Audit
2014 TO DATE...
o Tao Implementation, with warehouse management system for both factories

o Consolidation of servers
o Move to Azure Cloud
o Microsoft Outlook implemented
o Microsoft O365 implemented Telepresence in factories
Vision And Mission& Strategic objectives Of Pakistan Tobacco Company
VISION:
1st choice
For
Everyone
MISSION STATEMENT:
“Transform PTC to perform with the speed, flexibility and enterprising sprite of
an innovation, consumer-focused company”
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STRATEGIC OBJECTIVES:
Our strategy reflects our vision, being the champions of growth, Productivity, Responsibility
and the wining organization.
Department Of PTC:
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Diagram 1: Vision, Mission, and key Objectives of PTC
Organizational Structure:
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PTC
Akora
Jhelum
Khattaq
Supply Quality
Training Finance HR SMD PMD Logistics marketing
chain assurance
COMPETITORS ANALYSIS
MAJOR COMPETITORS
 LACKSON TOBACCO COMPANY (LTC):
LTC is PTC‟s largest competitor and the second legal cigarette manufacturer in the
Pakistan besides PTC. Marlboro and Red & White are a few of its brands. LTC used to be
affiliated with Phillip Morris, the giant in the global cigarette market; however, this
Association was dissolved few years ago. Its market share is actually greater than PTC,
around 46.2%. The main goal of LTC is money making and it believes in short-term gains
rather than long-term benefits. Surprisingly, LTC uses quite unethical marketing strategies–
for example – a number of “under -the-table” deals are made with the retailers to convince
Them to take off PTC‟s merchandize from their store, and to accept LTC‟s merchandize.
This obviously results in a huge loss to PTC as it costs around Rs. 100 000 to fully
merchandize a small shop.
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 MARDANWALLAS:
These brands are manufactured in Mardan and thus are called the “Mardanwallas.”
These are normally low category cigarettes (under Rs. 10) for example Gold Street. The goal
of the Mardanwallas is solely money-making, and is not concerned about acquiring a strong
position in the market. These are also 100% tax evaded. The government has made legislation
Regarding this issue; however, nothing has been done so far. Secondly, their factories are
located in the northern areas so tax evasion becomes very easy. No proper marketing
structure or strategies exist for these brands. Their ATL activities, which include electronic
and print media, are extremely low. These brands usually survive on BTL activities, which
mainly consist of posters.
 COUNTERFEIT / OTHER TAX EVADED BRANDS
Counterfeit brands emerge as a threat for PTC, and later become competition as well. In
Pakistan, the concept of copyright laws and its implications is almost non-existent. As a
result, these brands are manufactured without any fear. As a result, PTC has suffered a huge
loss in the recent years as its premium brand Gold Leaf, has been copied in three different
qualities with three different prices for each. These brands are normally sold in thickly
populated villages to uneducated and low-income people, and at interchanges and
motorways. There are also other tax evaded – that is– smuggled brands in the market. These
are called ITBs (International Transit Brands). These are usually smuggled from Peshawar
through Afghanistan or Dubai.
 Market Share:
Market Share of PTC and its competitors
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Pakistan Tobacco 45.70%
Lackson Tobacco 44.20%
Mardanwalls 2.20%
Counterfeit/other 1.8%
Tax evaded brands 5.90%
PTC Jhelum Hierarchy:
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Blends of PTC:
PTC Blends is a fast moving consumer good company and hence it drives its inspiration from
the consumers. The consumer preferences are looked into and then adhered to. PTC intends
to produce cigarettes which exceed the expectations of its consumers. Different brands have
been produced to cater for the relatively diverse economic background of the people. From
the very low-priced Embassy to expensive brands such as Dunhill form the varied nature of
PTC Brands. There are two brand categories.
BRANDS PRODUCTION IN PTC:

Major brands produced by Pakistan Tobacco Company are:
 Dunhill Lights
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 Dunhill Switch
 Gold Leaf Full Flavor
 Gold Leaf Special
 Benson & Hedges Lights
 Benson & Hedges Full Flavor
 Capstan By Pall Mall
 Capstan Filter
 Gold Flake Full Flavor
 Wills International
 Embassy Filter
NEW HEALTH WARNING:
Pakistan has increased the pictorial health warning from 45% to 85% next year.
PTC BRAND PORTFOLIO:

Premium:
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ASP premium:
VFM:
LOW:
. BRANDS
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 DUNHILL:
Dunhill, a premium global brand, celebrated its centenary in 2007. 2008 was an exceptional
year for Dunhill in Pakistan as the brand witnessed exponential growth; fueled by its re-
launch in July. Going forward, Dunhill is poised to strengthen its foothold in the DUNHILL
 BENSON & HEDGES:
In 1873, Richard Benson & William Hedges started a partnership in London. Benson &
Hedges was launched in Pakistan in March 2003 and has since been able to build strong
brand loyalty among its consumers showing excellent year on year growth. Two brands of
B&H are being produced in the facility namely B&H FF and B&H Lights.
 JOHN PLAYER GOLD LEAF:
The story of John Player Gold Leaf has to start from the story of its founder, John Player. An
enterprising businessman, John Player, started a small tobacco selling business in 1877 and
turned it into a thriving cigarette company, John Player and Sons.
There are huge sales of Gold Leaf in Pakistan. According to estimation, 20 to 25 cartons are
being sold daily in Jhelum area. And 1 carton includes 10,000 sticks. This is high price brand
targeting high income people.
 CAPSTAN BY PALL MALL:
30 | P a g e
Capstan has a rich heritage, originating in Britain in the 19th century; the brand was created
under the auspices of W.D. & H.O. WILLS at Bristol and London.
Capstan by Pall Mall is one of the favorite brands of consumers. It involves high quantity of
nicotine and tar. This brand is targeting middle class consumers. In Jhelum area, around 60
million Capstans by Pall Mall are being sold in a month. Its tagline is “ kar lo enjoy har
lamha”
 GOLD FLAKE:
Gold flake is targeting farmers and truck drivers. A huge amount of
advertising is spending on gold flake and it has increased the sales volume. This brand targets
rural area consumers. Its tagline is “Jandar mazy ka nishan, Bana lo apni pehchan”. A bike is
displayed on packaging that shows that this brand is moving towards more consumers.
 EMBASSY:
It is VFM (value for money) brand targeting low class consumers.
Departments:
Pakistan Tobacco Company houses eleven departments in all including those involved
indirect manufacturing e.g. PMD and SMD, as well as supporting departments like IT and
Security, Roles and responsibilities of each department are discussed as follows:
The list of departments is as follows:
i. Engineering Department
ii. Supply Chain Department
iii. Primary Manufacturing Department
iv. Secondary Manufacturing Department
v. Quality Department
vi. Security Department
vii. Logistics
31 | P a g e
viii. Operations Skills Development Centre

ix. Environment, Health and Safety Department
x. Repair & Renewable Spare Store
xi. Human Resource Department
xii. Information Technology Department
xiii. Finance Department.
Engineering Department:
Responsible for:
i. Responsible for keeping a stock of machines.

ii. Maintaining goods Receiving Register for keeping a track of goods received.
iii. Ensuring that all machines are in working condition.
iv. Providing engineering supports functions that are required to manufacturing
departments.
The components managed by the Engineering department are
i. SMD Services Area

ii. PMD Service Area
iii. Panel Rooms
iv. Generator Room
v. Boiler Room
vi. Residential Area Maintenance and Development
Engineering department which as you can call the backbone of the whole structure it keeps
the production running. Engineering department is further divided into two departments one
is engineering project and other is engineering services.
The Basic Purpose of the engineering services includes of the following:
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Basic Engineering tasks that include the knowledge of:
i. Electrical Engineering
ii. Mechanical Engineering
iii. Civil Engineering:
iv. Technical support to all the other departments in form of maintenance and up keep.
v. Uninterrupted supply of the basic utilities to up keep the production that includes
electricity, gas and steam.
vi. Contractor management
Engineering
Manager
Facilities
Projects and Utilities
Manager
Manager
Projects Manufacturin Incharge

Engineer gservices Civil
engineer
Primary Secondary Electrical Electrical

Incharge
Services Services Making Packing
Electrical
Incharge Incharge Officer Officer
Supply chain Department:
33 | P a g e
Responsible for:
i. Production planning to meet requirement of market.

ii. Procurement of all materials other than W.M, Leaf and machinery
iii. Managing effective inventory control of WM and tobacco leaf.
iv. Arranging timely dispatch of finished Goods.
v. Running and maintenance of Company’s fleet of vehicles.
Supply chain is complex and dynamic demand-supply network. A system of org

anizations, people, activities, information and resources involved in moving a pr
oduct or service from supplier to customer. Supply Chain department in Pakista
n Tobacco Company is working efficiently in order to maintain its supplies and
production as per demand of consumers in order to retain maximum yield
34 | P a g e
Primary Manufacturing Department (PMD):
Responsible for:
i. Lamina Conditioning, Cutting and Drying

ii. Stem Conditioning, Cutting and Drying.
iii. Cut tobacco storage (CTS)
iv. Converting bale of tobacco into blend
v. Adjusting moisture level in tobacco
vi. Treating both stem and lamina of tobacco
vii. Flavor mixing and preparing cut tobacco.
Cigarettes that a customer buys from a retail shop had to undergo numerous conditioning and
processing before it comes to its final transformation as the final product. One of the most
35 | P a g e
important component of a cigarette is the Tobacco it contains, which is treated so that a

smoker gets his desired taste, flavor and of course feeling. Hence the tobacco undergoes
many sophisticated and complex processing to achieve these desired qualities. This treatment
is done at Primary Manufacturing Department or PMD.
PMD (also known as the kitchen of PTC) is the area where the raw form of tobacco is
processed to be used in the production of cigarettes. Green Leaf Threshing Plant (GLTP) in
Akora Khattak separates the tobacco leaves in two forms known as Stem and Lamina. These
two raw forms are processed separately in the PMD area and then mixed together to produce
the final blend of the tobacco. For every brand of cigarettes a different type of tobacco leaf is
acquired and processed in the PMD. The final product is stored in the storage area with a
preserved moisture level for longer storage purposes.
In PMD we have the main process regarding the tobacco. The tobacco reached to PTC Jhelum is in to
forms stems and leaves. Tobacco leaf is processed initially, being divided into parts:
i. Lamina Side
ii. Stem Side
The whole plant is divided into these two categories. The process taking place in PMD
basically consists of three basic steps:
i. Conditioning
ii. Cutting
iii. Drying
Lamina Side
Lamina Processes through the following steps:

1. Bale loading and Slicing:
Lamina in the form of bales is carried by the FLT from warehouse to the conveyer in the
PMD for processing the lamina. First of all slicing of the bale is done, where it is passed
36 | P a g e
through horizontal bale slicer to cut it into three slices and is transferred to the Direct
Conditioning and Casing Centre (DCCC).
2. Conditioning and casing:
In the DCCC steam is applied to increase the moisture content of the cigarette from 11% to
20% and temperature up to 60-70°C. Side by side casing is prepared in the casing kitchen is
applied at 230 l/hr. in the DCCC. This is to develop the taste in the Cigarette blends. There
are different casing formulas for each of the different brands made at PTC-JF.
3. Blending and Bulking:
There are three blending bins in PMD and each been having capacity of 6000kg. Minimum
time for lamina bulking time is 1hour to make sure that casing is uniformly spread in the
lamina.
4. Sieving, cleaning and cutting :
Sieving is done to extract the small particles of lamina (under ¼”) through the vibratory
sieve. Small particles are extracted and airlift to bypass the lamina cutting as it is already very
small. Rest of lamina is cleaned from foreign matters and metal through some detectors and
airlift to the feed control area. Here auto feed and metering tube sets the optimum rate at
which cutting will be done. Lamina cutting is done by the KTC (KT2) cutter at the rate of
6000 kg/hr making 28 cuts per inch.
5. Drying and Mixing:
When cutting is done lamina is send to the dryer at the rate of 5600 kg/hr to reduce the
moisture level back to 14.5% as recommended by Quality department. Processed stem from
the other side of PMD is air lift and is mixed with lamina to form the final blend.
6. Final blending and Storage:
37 | P a g e
Final blending is done in the FP silos to ensure the proper mixing of stem and lamina. There
are four silos in PMD and each can store 10000kg of tobacco. This final blend is then stored
in the MCBs, this blend is now ready for the making of a cigarette at SMD.
Conditioning Bulking Cutting Drying Blending Storing
Stem Side
Process taking place at stem side adds a step of expansion and rest of the process
is all same.
7. Stem feeding and cleaning:
Stem from the ware house is being brought and put in to the feeder, which works at the rate
of 1200 kg/hr. This feeder transfers the stem at vibratory sieves for the removal of bits and
dust. Airlift is used for the removal of the foreign materials, which are disposed off along
with the dust. Feed rate control system is then setup to ensure the proper feeding of the stem
for proper conditioning and casing.
8. Stem Casing and Conditioning:

9.
Stem conditioning is carried out in ad moist fed through a weigh on, rotating at 5 rpm, has 3
nozzles used to spray water to increase moisture and to spray casing. Stem is a hard material
hence conditioning is done in the Ad moist to increase the moisture level up to 40% for
proper cutting. On the other hand casing is done for developing some taste in the blend. This
ad moist runs at the rate of 1200 kg/hr.
10. Blending and Bulking:
38 | P a g e
Conditioned stem is transferred in the blending bins for the proper blending and spreading of
the casing uniformly throughout the stem. Minimum time for the stem bulking is 2 hours as it
is much harder than the lamina. There are 6 stem bins where about 2 hr bulking period is
given after conditioning to provide uniform distribution of moisture across the blend.
11. Metal removal and Stem Cutting:
After two to three hours of bulking stem is passed through the metal detectors for the removal
of metal particles (if any) and are then disposed off. Stem is then processed through the KT2
stem cutter at the rate of 3000 kg/hr. which gives 160 cuts per inch and giving very fine form
of the stem. The stem cutter is designed to produce tobacco in different cutting widths from
stems. Stem is cut at 160 CPI.
12. Expansion:
After cutting if the stem is low on moisture it is again processed through the small
conditioning drum to increase moisture level, and if moisture level is optimum stem is
bypassed from the drum and is expanded. This expansion is for the decreasing manufacturing
cost as less amount of expanded stem can be used to fill the cigarette rod. Stem expansion is
done in conjunction with wetting cylinder and STS before going through the drying process
in Fluid Bed Dryer. Watering cylinder provides additional moisture after stem cutting and
STS cause expansion of stem.
13. Cut stem Drying:
Before it can be mixed with lamina its moisture level is to be decreased. So stem is passed
through the dryer to reduce its moisture level back to 14% in the CPS Dryer at the rate of
1200 kg/hr. When optimum moisture level is reached final bulking is done and the stem is
stored in the 3 CPS silos each having capacity of 2000 kg. After expansion in STS, stem is
passed through Fluid Bed Dryer to achieve the target moisture by drying the stem.
14. Storing:
39 | P a g e
There are 3 CPS bins where are the cut stems are stored after drying.
15. Lamina and Stem Mixing:
This is the final processed stem, which is then sent to add back station for its mixing with the
lamina and formation of the blend. When the lamina of a particular operation starts coming
out of ITM dryer, dried stem of that operation is delivered form CRS bin through a weigh on
so that stem is uniformly mixed in the blend.
16. Storing of Tobacco in FP Silos:
After mixing of lamina and stem, they are finally deposited in the 4 Final Product Bins.
17. Tobacco transfer to SMD Feeder Area:
The tobacco is finally delivered to CTS in Meter Cube Boxes having capacity of 175 Kg
each. Tobacco is delivered from the box filling station.
Bulking Expansion Blending
Conditioni
Cutting Drying Storing
ng
40 | P a g e
PMD Layout:
41 | P a g e
Secondary Manufacturing Department (SMD):
PTC-Jhelum Factory has two major departments that are mostly related to end product-
Primary Manufacturing Department (PMD) and Secondary Manufacturing Department
(SMD).
SMD (Secondary Manufacturing Department) is responsible for making the complete
cigarette and its packing. The SMD floor has nine makers and nine packers with each line
associated with one maker and one packer. There are two maker machines, Logas and Protos.
There are 6 Logas and 3 Protos present on the floor. There are different models available in
the packer machines too that are GD-X1, X2 and X3.
SMD has ODMS area and Case-packer area on either side. ODMS provides all the material
used in cigarette production and the case-packer is packing the outers into CBCs.
The SMD floor also has a quality office maintaining the quality of cigarettes and the packs
being produced.
SMD works in four shifts with three shifts at work one single day. It is a 24-hour working
department. Each shift is headed by a production manager who is supported by a team leader.
Then there are the machine operators working tirelessly to produce the required number of
cigarettes. They are helped by various casual workers who look into the menial jobs on the
floor. There are four parts of processing in SMD.
i. Filter Maker
ii. Filter Shooter
iii. Cigarette Maker
iv. Packer
42 | P a g e
Filter Maker:
Filter maker makes a Filter Rod for the cigarettes. One filter maker machines produce
3000/3700 filter rods per minute. Each rod contributes to six sticks of cigarettes (four sticks
in case of Gold Leaf Special).
Filter Shooter:
Filter shooter is the machine which deliver filter to the cigarette making machines. These
machines are called Filtromat. These machines receives filter through filter trays which are
filled by Filter Maker and shoot the filter through steel pipes
Maker:
The maker is provided with the tobacco from the feeder areas through pneumatic fans. The
maker is responsible for the making of cigarette sticks which (on average) produces 8000 and
some machines produces 10000 cigarettes per minute per machine. Maker machines receives
tobacco from feeder and filter from filter shoots and makes different types of Cigarettes
Packer:
The sticks produced by the maker are divided into segments of 20 and moved towards the
packer. Each segment is then passed through various sensors to ensure its quality of firmness
and consistency. Then each packet is filled with the segments of 20 cigarettes each and
formed into a cigarette box which is later laminated. 10 boxes are then stacked together and
laminated to form a complete outer and then further pushed to the CPC to be available for
distribution. The packer is on the wage of producing 500 cigarette boxes per minute.
Case Packing:
Case packing is the shortest procedure in the whole manufacturing. Outer from the outer belt
and outer conveyor enter the case packing machine. It carries lift hopper with 5 sensors up
and 5 sensors down. The sensors make sure that a bundle of 25 outers enter the CBCs at a
43 | P a g e
time. Two bundles of 25 are sent to the CBC. Ceiling of solution tape on both sides is applied
and finally a CBC carrying 50 outers enter the finished goods warehouse.
Filter Making
1111111
44 | P a g e
Filter Making
Plug Wrap,Tow,Glue,Plastisizer
Maker
Cigrette Paper, tipping
Filter Tobacco
Paper
Packer
Catrill, Blank, Poly Prop, Ribbon, Foil(Golden or
Cigarettes
Aluminium)
Case Packer
SMD Layout:
45 | P a g e
Working Order:
Processed
Tobacco from SMD Process Finished Goods
PMD
46 | P a g e
Quality Assurance:
Responsible for:
i. Consistent monitoring of product and services to meet the quality standards set by
BAT.
ii. Monthly quality briefings
iii. Introduction of ever-improving quality standards through programs that enable
employees to do their job first time every time.
Like all multinational organizations, PTC too has a lot of emphasis on maintaining its high
standards of quality to ensure customer satisfaction. Absolutely no stone is unturned in their
quest to produce the best quality cigarettes with zero defaults.
Policy:
Quality Excellence is the foundation for the Management of our Business & Key stone of our
goals of customer satisfaction; it is, there for, our policy to:
i. Consistently provide products & services that meet the Quality expectations of our
customer.
ii. Actively pursue ever improving quality programs that enable each employee to do his
or her Job right the first time.
iii.
There are basically two indices through which the finished product inspection is done:
i. Manufacturing Quality Index(MQI)

ii. Product Quality Index(PQI)
The different parameters through which the Quality Officers measure a product’s quality are:
i. Cigarette Circumference
ii. Cigarette Length

iii. Print Density
47 | P a g e
iv. Loose Ends

v. Pressure Drop
vi. Leakage
Moreover, there are online quality checks carried out every hour by the operator and the
quality officers. These include the following steps:
i. See if the outer is properly closed

ii. Make sure the outer is not loose
iii. Outer ribbon to be seen
iv. There should not be any wrinkles on the outer
v. Check the pack code date
vi. Gum is properly applied to the inner frame and bundle
vii. Check cigarette cutting
Security Department:
Ensuring safety of company’s No doubt PTC has top security no one other than authorized
person enters into the PTC without permission. PTC have online attendance machines when
workers entre into the PTC first of all through finger print they mark their attendance.
Security department checks the workers for security purpose. No mobile Phones are allowed
for the workers. Workers are strongly prohibited to take the cigarettes out of PTC. Security
department works for emergency if some accident is happened alarms starts and whole PTC
employees come in the ground and stand with their departments.
Logistics:
Logistics is management of flow of things between point of origin/production and the point
of its consumption in order to meet requirement of customers or corporations. The logistics of
physical items involve integration of information flow which is material handling,
production, packaging, inventory, transportation, warehousing and often security. Simulation
48 | P a g e
software is used utilized to model, analyze, visualize and optimize the complexity of
logistics.
Logistics can be further differentiated into two kinds depending on their responsibilities.
Primary/Inbound logistics concentrate on purchasing and arrangement of materials, inventory
and other supplies from supplier to production line; furthermore it includes shipment of
finished goods from production line to warehouses. Whereas, Secondary or Outbound
Logistics is related to storage and movement of final product to customers. Secondary
Logistics is department responsible for acting upon demands and sales orders and includes
shipping the finished product from warehouses to distributors/customers.
Warehouse management is also an aspect of secondary logistics and supply chain. It includes
shipping, receiving, put away and picking. Furthermore, physical warehouse infrastructure,
safety measures tracking systems and communications between product and stations is also
accountability of secondary logistics.
Precisely, it involves receipt, storage and movement of finished product to customers.
Automatic identification and data capture and technology like bar-code scanners are utilize to
monitor storage and flow of products.
Secondary Logistics in Pakistan Tobacco Company:
Secondary logistics department in Pakistan Tobacco Company is supposed to perform

number of activities following the logistics policies of the company.
Some procedures and policies defined for secondary logistics are mentioned below.
i. Sales Order Processing and Accounts Receivable.

ii. Stock Duration Policy.
iii. Security Procedures.
iv. Environment, Health & Safety Policy and Checklist.
v. Warehouse Inspection Report.
vi. Beetle Infestation Control Guideline and Measures.
vii. Truck Inspection Report.
viii. Product Handling Procedure.
ix. Shelf Life Policy
49 | P a g e
x. Code Date Schedule.

xi. Fire Response Policy.
xii. Excise Documentation Handling Procedure.
Warehouse’s Humidity and Temperature Maintaining Policy
After learning all the processes like sales order receiving, shipment, warehouses
management, storage, handling policies and other aspects of Logistics, I was assigned a
project for working on it.
Operations Skills Development Centre:
Operations Skills Development Centre is responsible for arranging training sessions for the
employees of the factory. The OSDC has been closed its operations in 2009 and reopened in
May 2014 by Athar Sultan as Operations Skills Development Manager.
After re-opening, the department begins its operations from the initial stage and had to do
work hard to run its operations smoothly. At beginning stage, they have made the training
calendar with the coordination of all departments which are operating in the factory. This
calendar will help the department to arrange training sessions for the employees on timely
basis. In this department the trainings are conducted on the basis of that result which is
derived through training need analysis.
Aimed at that analysis the department filled training need assessment forms from the
employees. Once the forms are filled the employees derive the results by applying some
codes and procedures, after the results of that analysis is derived the employee is placed in
that particular training which fulfill his need.
In Operations Skills Development center training is of both technical and managerial
according to the need of the employees. There is a set budget for the department which is
made to perform the operations efficiently
Environment, Health & Safety (EH&S)
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The Environmental Health and Safety Department (EHS) provide the EHS
policy of Pakistan Tobacco Company. The EHS rules and regulations on work practices
ensure our safety and best of health while on duty.
Being fully alive to its role as a responsible corporate citizen PTC has implemented a well
structured EH&S program in addition to embedding internationally recognized best practices.
PTC’s commitment to EH&S was further strengthened during 2006 as PTC achieved
significant improvements on the EH&S road map. Both its production facilities were rectified
with ISO 14001 earning the “Evergreen” status. PTC has consistently sustained edits
accreditation in last seven surveillance audits with zero major and minor points. PTC’s efforts
has further been sustained with National Forum for Environment & Health awarding PTC the
Annual Environment Excellence award on “Health, Safety and Environment” for second
consecutive year in 2006.Throughout the company’s history, it has maintained a strong stance
on corporate and social responsibility, it strongly believes in building effective and
constructive partnership with communities by helping address various EH&S issues.
51 | P a g e
GLOBAL ENVIRONMENTAL
LAB
AUDIOMETERY REPORT OF PAKISTAN TOBACCO COMPANY JEHLUM
FINAL REPORT DEC,2015
Sr. EMPLOYEE
NAME DEPARTMENT RIGHT EAR LEFT EAR
No NO.
MODERATELY
1 SAJAD MAHMOOD 3297 SMD SEVERE HEARING MODERATELY SEVERE
LOSS HEARING LOSS
MILD HEARING MODERATELY SEVERE
2 SABIR KHAN 3338 SMD
LOSS HEARING LOSS
MODERATE MODERATELY SEVERE
3 LATIF BLOCH 2722 SMD
HEARING LOSS HEARING LOSS
MODERATELY
MUHAMMAD
4 3221 SMD SEVERE HEARING MODERATELY SEVERE
SAGIR
LOSS HEARING LOSS
MODERATELY
5 PERVAIZ MALIK 656 BSO SEVERE HEARING MODERATELY SEVERE
LOSS HEARING LOSS
MODERATELY
6 LIQAT ALI 1424 BSO SEVERE HEARING MODERATELY SEVERE
LOSS HEARING LOSS
MODERATELY
7 TANVEER AHMED 28113 MF SEVERE HEARING MODERATELY SEVERE
LOSS HEARING LOSS
52 | P a g e
Environment, Health & Safety (EH&S) Policy:

PTC’s Policy to:
i. I Provide and maintain a safe and healthy working environment including use of
cleaner technologies and safe systems of work for all its employees and non-
company personnel on the company premises.
ii. l Pay due regard to all impact of its activities on the physical environment.
iii. l Comply with all applicable National laws and regulations and BAT policy
pertaining to Environment Health and Safety.
iv. l Establish procedures to regularly assess and reviewing the EH&S impact of its
present and future and seek continuous improvement to it’s EH&S performance.
Repair & Renewable Spare Store:
R&RS store is a crucial part of the factory operations. The department is entrusted with the
task of maintaining an adequate inventory of spare part. The part must be stored properly to
avoid any damages and the inventory should be managed in an efficient manner. R&RS
stores many spare parts, operating supplies, electronic items and lubricants that are using in
production and manufacturing area as per user and machine requirements
53 | P a g e
Aim of R&RS store:

The basic and primary aim of R&RS store is to maintain accurate and timely
availability of spare parts and etc. that is demanded by users and machinery. R&RS
store keeps the spare parts, operating supplies, electronic items and lubricants and also
update the store as per need. R&RS store is using SAP system. SAP is the
standardized system and process that is used to improve the efficiency, effectiveness,
safeguarding and tracking the R&RS store.
Monthly Checklist Of fire & safety Equipment:
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MONTHLY CHECKLIST OF FIRE AND SAFETYE EQUIPMENT 52/CL/EH/08
Month: _ _ _ _ _ _ _ _ 2017
EVACUATION EVACUATION ES CAPE EMERGENCY EMERGENCY
S NO DEPARTMENT Tag No. REMARKS
TAG PLATE TAG ROUTE DUTY LIS T EXIT
1 FINANCE 1 Done Done Done Done Done

DEPARTMENT
2 F. M. OFFICE 2 Done Done Done Done Done
3 H.R.D 3 Done Done N.A Done N.A
4 I.T 4 Done Done Done Done Done

DEPARTMENT
5 OPS. ROOM 5 N.A Done N.A N.A N.A
6 UNION OFFICE 6
7 ENGG. OFFICE 7 Done Done Done Done Done
8 CONFERENCE 8 Done
ROOM - - - -
9 Q.A.D 9 Done Done Done Done Done
10 TRAINING 10 Done Done Done N.A Done

CENTRE
11 ROHTAS CAFÉ 11 N.A Done Done Done Done
12 P.M.D 12 Done Done N.A N.A Done
13 ENGG. STORE 13 Done Done N.A Done Done
ELECTRIC
14 14 Done Done N.A Done Done
SECTION
15 S.M.D 15 Done Done N.A N.A Done

SUPPLY
16 CHAIN MAIN 16 Done Done N.A Done N.A
OFFICE
17 SHIPPING 17 Done Done N.A Done Done
18 LEAF 18 Done Done N.A Done N.A

BOILER
19 HOUSE 19 N.A Done N.A Done Done
20 IWS OFFICE 20 Done Done N.A Done Done
21 MAINTENANCE
21
SHOP
ENGG
22 SERVICES
22 Done Done N.A N.A Done
OFFICE
23 Watch & Ward 1 Done Done Done Done Done
55 | P a g e
CORPORATE SOCIAL RESPONSIBILITY:
The Company has been one of the pioneers of Corporate Social Responsibility (CSR)
programs in the country. For PTC these initiatives are aimed at caring for and working with
communities where it operates, creating sustainable agriculture and uplifting the rural
communities. Efforts during the year were also recognized and won 9 CSR awards in
different categories.
Listed below are the key highlights of initiatives undertaken over the course of the year:
1. SUSTAINABLE ARGICULTURE:
The main water source in Buner, a region in the Khyber Pakhtunkhwa Province (KPK), is
through the lift irrigation scheme which requires power supply, however, frequent power
outages led to lack of water availability in the region for irrigation purposes. To address this
issue, PTC signed a Memorandum of Understanding (MoU) with the Irrigation Department
KPK and provided 4 generators to support lift irrigation projects for uninterrupted irrigation
water supply. These projects cover more than 1,000 hectares of land improving the farm
productivity of that area.
1. MOBILE DISPENSARY UNITS (MDUs):
Through this initiative PTC contributes to the provisioning of free medical assistance and
advice in rural communities. PTC operates 7 MDUs in different areas of KPK which treated
78,000 people.
2. CLEAN WATER PROVISION:
56 | P a g e
In 2016 PTC installed another water filtration plant (Ghari Shahu), in addition to its existing
three plants. According to PTC’s survey these four water filtration plants have benefitted
more than 2.8 million people in just 2016.
3. AFFORESTATION:
In 2016, PTC started adding to its existing afforestation efforts and began developing 642
acres of land in Barakahu, Islamabad, together with the Ministry of Climate Change. The
Barakahu nursery is already operational and PTC has started issuing saplings there. PTC has
already distributed 3.5 Million saplings free of cost.
SWOT Analysis
STRENGTHS:
i. Continuous learning and improvement.

ii. Sustainable growth.
iii. Environmental standards achievement.
iv. Market leadership in the world.
v. Diversified workforce and environment.
vi. Technologically advanced machinery and equipment.
vii. Good salaries packages.
viii. Focus on health and safety on the company premises.
ix. Training and development of its employees.
WEAKNESSES:
i. High conversion cost.

ii. Improper distribution of work.
iii. Downsizing and refreshment.
57 | P a g e
iv. Salaries difference between workers who work more and the one who put minimum
efforts.
v. Technological advancement would decrease the workforce and unemployment efforts.
OPPORTUNITIES:
i. High demand.
ii. No fierce competition.
iii. Greater opportunity of promoting lower brands in rural region.
iv. PTC has the potential to further improve the cost reduction method.
v. Focus on its key brands i.e. high growth like Gold Flack this year’s growth was
around 27%.
vi. Export of premium brands
THREATS:
i. High rate tax.

ii. Competition.
iii. Govt. policies.
iv. Anti smoking campaigns.
v. Limitation of their product.
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BCG Matrix:
High High Low
Dunhill Embassy
Benson
Gold Leaf
Capstan by Pall Mall
STAR Question mark
Market
Growth Capstan Filter Wills International
Rate Gold Flake
Low COW DOG
RELATIVE MARKET SHARE
PEST ANALYSIS:
1. Political:
Pakistan’s political situations have always been in fluctuation. Even then PTC is long since
contributing in the country’s wealth in terms of taxes and providing employment to hundreds
of people. Although it is never denied that tobacco is hazardous to health but PTC’s aim is
59 | P a g e
not to create more customers but to provide quality of tobacco to those who are already
addicted.
Marketing Standards: PTC has long accepted that smoking is risky.
“Its business is not about persuading people to smoke; it is about offering quality
brands to adults who have already taken the decision to smoke”.
2. Economic:
As a company it understands that its roots are firmly embedded with the nation’s, it has been
the part of industrial development in the country. Pakistan tobacco has maintained its growth
momentum during the years scaled new heights with the achievement of millstone and made
progress in the every facets of its business.PTC has contributed RS 26,472 m in year 2007 in
the form of government levies and taxes which is the indicator of how PTC is contributing in
the economic development of the country along with the job creation and installation of
advanced and sophisticated machinery and equipments.
In Pakistan, continuous excise led price increases over the years widened the price gap
between legitimate and non-legitimate cigarettes hence making legal cigarettes very
expensive for the consumer. The huge price differential resulted in creating an uneven
playing field for tax compliant legal industry and consequently dealt heavy losses to both
national exchequer and the taxpaying industry. This situation gave an opportunity to the duty
non-paid cigarettes to flourish and gain market share.
The Government of Pakistan, acknowledging this trend, formed a dedicated task force to curb
illicit trade of cigarettes called the Inland Revenue Enforcement Network (IREN).
This task force, coupled with fiscal measures taken, was instrumental in the implementation
and enforcement of tax laws across the country during its first year of operations.
The consistency of these measures needs to continue more effectively in order to reduce illicit
trade in cigarettes so as to enable legitimate industry and Government revenue sustainability.
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Stricter laws and penalties also need to be introduced and implemented against these tax
evaders.
•Political Instability •Fiscal & monetary

•Pricing Regulations policy
•Prohobition on Ads •heavy tax imposes
•Restricitions of sale of
tobacco
P E
S T
•Tobacco production •R&D cost is too much
damages •High cost of
environment. machinery
•Indoor advertising
expenses are high.
3. Sociological:
PTC’s marketing is not designed to “sell smoking”. It is marketing in a longest abolished,

mature product category, where people already know what the basic product is. There would
be no commercial sense in trying to market to informed consumers who do not want the
product. Its marketing is about its brands: retaining the loyalty of the consumers to the
brands, and winning consumers from competing brands. Wherever British American Tobacco
markets, its takes the greatest care to ensure that its advertising and promotion complies with
local laws, regulations and voluntary agreements. As a company with long international
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traditions and roots, PTC is also sensitive to local customs and cultures. It is working
with other companies in the tobacco industry to establish a common basis for clearly
understood conduct, which would set the baseline for acceptable tobacco marketing
worldwide. Following are the key features of the Voluntary Code of Conduct:
i. No TV/Radio advertising of the products before 2130 hrs.
ii. No advertising designed to appeal specifically to minors (<18 years of age).
iii. No advertisements in the magazines and newspapers, which are directed principally
towards minors.
iv. No models under 25 years of age to be used to promote the products.
v. No promotional events of particular appeal to minors.
vi. Celebrities not to be used for promotional purposes
4. TECHNOLOGICAL ANALYSIS
IT is the backbone of every business, without it concept of successful business is becoming

impossible in modern business environment. Process Technology:
System Application Program (SAP)
MARKETING
MARKETING ANALYSIS
Marketing at PTC is divided into three further categories: marketing research, brand
marketing and trade marketing. The marketing research department carries out its surveys
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and other such activities to find out the demand for each brand, and to discover the
potential cigarette market. The brand-marketing department comprise of brand managers
who have the responsibility for success and health of their individual brands. Each brand
manager designs and executes promotions to increase the sale of his brand. Advertising
through different media’s and sponsorships of event is also the job of brand marketing. The
trade marketing staff works direct in the field and interacts with the distributors,
wholesalers, retailers, and the customers.PTC has been consistently meeting consumer
expectations for the past ten years with the popular international brand names like
Benson and Hedges, John Players Gold Leaf, Wills, Capstan, and Embassy
which is the largest selling brand in the market. PTC, through 343 distributors, services a
very large retail and wholesale network across the country.
PTC has always been looked upon as one of the most dynamic organizations with its
exuberance to quickly adapt to the changing needs of the market. PTC has also been a
harbinger in establishing scientific methods of marketing research to focus on the changing
consumer requirements. As part of this tradition, the company recently conducted a
detailed urban and rural retailer census, a gigantic task never undertaken by any business
outfit in Pakistan. The census facilitated in determining the volume of business, region
wise requirements/demands and also helped in streamlining PTC’s current distribution
network thereby reducing costs. Total of about 270,000 retailers and over 7000 wholesalers
were surveyed. PTC is also a pioneer in introducing filter cigarettes in Pakistan as early as
1955. More recently, keeping in view the shift towards light, gold leaf lights has been
introduced in the market representing the house of gold leaf as a truly international offer
keeping with the times and remaining in tune with the changing needs, and tastes of PTC’s
consumers.
PTC is one of a very few companies in Pakistan which is paying a great deal of attention to
the retail marketing. It started a retail excellence program, which is a set of structured
presentations covering subjects such as business ethics, trends, customer focus and how to
satisfy customer needs profitably. It enables PTC to develop and roll out best-practiced
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retailer methods, which will enhance retailer profitability and their relationship with the
company in order to regain market leadership in the future. The focus is how to provide a
“world-class” service to consumers, sharing company information and plans, and
gaining feedback. PTC holds numerous trade meetings with its distributors and retailers,
which no doubt helps to strengthen the relationship and be responsive to their requirements
better than any other FMCG company in the market place. These meetings are held at high
quality venues and a gift from PTC is given to each retailer as a token of appreciation for
their attendance.
This is a unique concept in the market as PTC is the only company in Pakistan to embark
on such a program for retailers working in line with the company’s vision to be “first
choice for everyone”. The intention is to transform PTC’s field staff role into business
advisor rather than a mere salesman. In short, the program focuses on business building as
a whole rather than a propaganda forum for selling cigarettes. PTC stresses the
importance of expanding customer base through good service and the removal of
counterfeit cigarettes from the market. Overall, the key goal is not to deceive a trusted
consumer for short-term goals.
TRADE MARKETING:
When it comes to Trade Marketing & Distribution (TM&D), PTC stands out as the
benchmark organization. It has sound foundations laid down 70 years ago when PTC had the
honor of becoming one of the first multinationals in Pakistan. Over the years PTC has shown
great progress by adopting valuable interventions that have helped the business progress
steadily. Pall Mall led from the front yet again, registering record-breaking growth to secure
its highest market share to date. In 2017, the number 1 Brand of Pakistan consolidated its
formidable equity through its largest campaign to-date, delivered nationwide through
excellence in both campaign planning and execution.
Route to Market:
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From 1947 till 1984, RTM evolved gradually. The core focus is on an active distribution
model to ensure right stock levels across retail and wholesale. This was achieved by
expanding distribution footprint and focusing on key elements like: number of distribution
points, resource deployment, and proper trade coverage, frequency of service and right load
of outlets per salesman. Other than service frequency, salesmen were also equipped with state
of art distribution tools like motorized vehicles from push carts and bicycle vans. Every 5
years TM&D team carries out a comprehensive 360 degree evolution of its operating model
to make it future fit for the next five years. As the market is evolving, TM&D is also evolving
by embracing latest solutions to increase its speed and scale of service.
Sales Automation:
For the past many years, they have been trying and testing the applicability of an automated
sales management system where details of sales are available to all relevant people and are
available instantly. By the end of 2017, PTC successfully piloted the Sales Automation
program. It was a long and challenging process; training people first who trained the
distributors and then the distributor’s sales force. Before implementation, proper month-long
testing was scheduled with distributors from where we strategized and launched pilot projects
in various markets to see the response. As the response was so positive, company launched it
nationally and they are benefiting from an automated sales force.
Scientific methods of market research:
Since the start of the new century, in order to better understand and accordingly respond to
ever-changing consumer base, company decided to get regular market research surveys done
from an independent international research agency called Nielsen. It helped company better
divide brands market wise and gave knowledge on what exactly the consumer trends are. On
ground, it helped with the numeric width, the share drop or share increase, which brand is
performing better than others and where. This helped in streamlining processes to an extent
that company made a sub function of marketing which is solely drawing conclusions and
trends from the data we receive directly from one end of its supply chain – retailers.
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REGIONS:
There are four regions covered by PTC
Regions
covered by PTC
Southern
region Northern Sindh &
Central region
region Balochistan
121 ENAGANGMENT:
121 engagements is the action or the process in which company
directly engaged with the consumer to provide information of their product or brand through
word of mouth. 121 engagements is about encouraging the consumer towards your own brand
on the basis of information and experiences a company shares.121 engagement increases the
value creation and consumer remains loyal towards brand.
PTC 121 ENGANGMENT:

As government of Pakistan has banned advertising of
tobacco, PTC is involved in 121 engagement strategy in which it builds a communication
between a brand and a consumer. The aim of this engagement is to occupy the consumer
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mind by their own brand in order to increase sales in future.PTC is performing two kinds of
activities for two brands which are:
1- VIRTUAL activity for Capstan by pall mall
2- CHAOS activity for Gold flake
CONSUMER CONTACT:
B.A contacts with consumer in this way:

 B.A targets only a smoker. He goes to consumer; introduce his self and company and
shows his card.
 Then he asks name and age of consumer and demands his ID card to confirm that he
must be above 18.
 Then, he asks consumer; do you smoke? Which brand do you smoke? If he says yes
than B.A continuous his dialogues by saying do you know the meaning of that sign
“Pause”.
 If consumer says no than B.A says “This is sign of pause sir! And it gives you
message that “enjoy every moment.”
 Than B.A shows him some videos of capstan by Pall Mall by his permission and say
good bye.
PURPOSE:
 To build the brand equity.

 As consumer mind is a black box and advertising or promotion of brand
persuades consumer to buy that product or brand again and again. This is one of
the purposes of 121 engagements to persuade consumer to buy company’s
product again and again.
 To persuade the consumer to stay loyal towards company’s brand.
AREA MANAGER:
Aftab Ahmad Khan is the area manager of PTC Jhelum factory.
An area manager has overall responsibility for a number of stores in an allocated area. He
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will be responsible for staff and work closely with other senior managers and
department managers. Duties will include:
 Setting sales targets.

 Maximizing sales and profitability.
TERRITORY EXECUTIVE:
Iftikhar Hameed is T.E of Jhelum area.

The territory sales manager is responsible for all managing all sales activities within a defined
geographical territory. He reports to area manager.
FSO (field sales officer):
FSO reports to T.E.He have responsibilities to overlook team

leader and brand ambassadors too. He also checks distribution and DRS’.
TEAM LEADER:
Team leader is a unified platform of CRM (Customer relation management),

invoicing and project planning. Activities of Brand Ambassadors are controlled by team
leaders.
BRAND AMBASSADOR:
Brand Ambassadors are the persons who are hired by the

organizations to represent the company or brand with positive information of that brand or
company in order to increase the sales of that specific brand.PTC has hired about 42 brand
ambassadors who are confidently promoting the Capstan by Pall Mall and Gold flake through
positive word of mouth. Brand ambassadors are given gadgets by the company through which
they actively encourage the consumers with entertainment.
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BRAND AMBASSADOR’S FOLDER:
CYCLE
FCP (fixed
INSTRUCTIO PITCH
coverage plan)
NS
 Cycle instruction are the directions to brand ambassadors that to which market or
area they have to be entered to promote the product daily, weekly or monthly.
 FCP is the fixed coverage planned which is grant by the company includes
instructions about changing the poster pictures.
 Pitch includes some dialogues which are allotted by the company which are spoken
by the brand ambassador of the company to introduce the product so that they can be
aware of the brand or the company.
SWAPPING:
Swapping refers to the exchange of one brand for another. Brand
Ambassadors of PTC are involved in swapping. They take some brand of
competitor’s Company from the consumer of that company and give him the cigarette
of their own company. B.A of gold flake is being involved in swapping process.
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B.A gives Gold flake

B.A of
Gold Flake
DNP’s
Consumer
Consumer gives kisan
H
HIERARCHY:
HEAD
ives B.A’s OFFICE
Kisan
R.M
Area
manager
T.E1 T.E2 T.E3 T.E4 T.E5
AUTOMATION:
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Automation is the creation of technology and its application in order to

control and monitor the delivery and sale of various goods and services. It performs task that
were previously performed by humans.
HOW DR USES AUTOMATED DEVICE:
 The name of application is RCS8 and version is 8.

 I’D and password is given to every DR. He enters his I’d and password in application
and starts his day by marking attendance.
 GPS coordinate is captured.
 Quantity of all the brands is mentioned in app in outers.
 DR hits the beat. He visits DD channel thrice a week and VDD channel twice a week.
 He recorded sales and receipt of bill, generated by a printer, is handed over to retailer.
 He receives the cash against that receipt.
 He then turns back to distribution and matches his sales with manual sales register
whether they are same or not.
 The variance in the sales can only be corrected before the internet is connected. Once
internet is connected, the variance cannot be sorted more.
 In closing his day, he enters his stock returned and defective units.
 He then goes to cashier; deposits cash to him and close his day.
RCS8 MODULES:
There are five modules of this software.
1) Search:
 Data can be searched.
2) Data Entry:
 Difference is only in data entry that after putting code of DR, the outlets can
be shown with address and name of outlets to which DR is selling stock.
 Customer classifications (direct sales or urban sales, urban or rural).
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3) Route Setup:
 Routes are planned and beats are updated.

 It shows which DR went to which outlet?
 On which day he visits that outlet?
4) Distribution Portal:
 Distributor portal includes stock issued, stock returned, inventories.
5) Utilities:
 Utilities include all reports.
DR’S SELLING PROCESS:
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issues stock
Deposits cash to from
cashier and warehouse and
closes his day records stock in
device.
Reaches back to
warehouse and visits market and
compares device hit the beat
data the manual
Sale is recorded
in device and bill
receipt is handed
over to retailer
TYPES OF CHANNELS:
i. Direct Sales Delivery (DSD OR DD): This channel includes retail shops that are
located in urban area and DR visits these shops thrice a week as per beat.
ii. Village Direct Sales Delivery (VDSD): It involves retail shops that are located in
rural areas and DR visits those shops twice a week as per beat.
iii. Wholesale (WS): Wholesale shops that are located in urban areas.
iv. Village Wholesale (VWS): Wholesale shops that are in rural areas.
v. Key Account: Army station shops and canteens are included in key accounts.
vi. Shop Sale: A channel from where retailers can directly buy from distributors.
RETAIL CLASSIFIED METHODOLOGY:
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It is the third party survey of market. It contains complete data of each shop. The volume
classification of shops is done with the help of RCM. According to the 2018 RCM survey, the
volume classification is as follow:
Vol 1 Sales above 56M

Vol 2 28M-56M
Vol 3 14M-28M
Vol 4 6M-14M
Vol 5 3M-6M
Vol 6 2M-3M
Vol 7 1M-2M
Vol 8 0.300M-1M
Vol 9 0-0.300M
FREQUENCY
1 Packet= 20 sticks
1 Outer= 10 packets or 200 sticks
1M= 50 packets or 200 sticks
1 CBC= 50 Outers
TYPES OF SALES:
There are three types of sales:
o Primary sales: When the company’s warehouse issues or sells stock to distribution, it
is called primary sales.
o Secondary sales: These are the sales from distribution to wholesaler and retailers.
o Off-Take: These are sales from retailer and shops to consumer.
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PRODUCT
PTC has always considered it-selves a consumer-focused company. They aim to offer a
product that excels in all aspects and exceeds the expectations of the consumer. In this
section, you will find the story of our brands and their origins. PTC has particular emphasis
on its five national drive brands.
Benson & Hedges:
In 1873, Richard Benson & William Hedges started a partnership in London. From the
very start, the idea was to make Benson & Hedges a style statement, which is why the
business started from London’s fashionable West End. PTC launched Benson &Hedges in
Pakistan in March 2003. Made with the finest handpicked golden Virginia tobacco from
across three continents, the brand is packed with perfection to seal its freshness. The
objective of introducing this brand is to establish the locally manufactured B&H Lights as
the most preferred offer amongst consumers, in the premium lights segment and to add
image to the B&H family by offering a wider product range. It was launched in the three
metros of Karachi, Lahore and Islamabad/Rawalpindi.
JOHN PLAYER GOLD LEAF:
The story of John Player Gold Leaf has to start from the story of its founder, John Player.
An enterprising businessman, John Player started a small tobacco selling business in 1877
and turned it into a thriving cigarette company, John Player and Sons. With a distinct
lifebuoy and sailor trademark, John Player Gold Leaf has an identity entrenched in sailing
and maritime adventure. Thus staying true to John Player’s very first big brand -Player’s
Gold Leaf Navy Cut cigarettes. Gold leaf is the key value and volume contributor for PTC.
It remains the most aspire brand in Pakistan. From 2000,the brand is showing continuously
growth.
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PROMOTION
The different types of marketing activities are:
1. ADVERTISING Packaging
By packing the product in the different packs and in different quantity to meet the demand
of the different and segmented consumer
2. Point of Purchase Display
By placing products trail packs on the different shops to promote the sales.
3. Posters and Leaflets
Display posters and fliers in fronts of shops.
4. SALES PROMOTION
By giving the incentives to the distributors, whole sellers and retailers like to get the
product on credit and sell to the consumer and enhance their and the Company sales.
5. Contests and lotteries
PTC uses different schemes, providing gifts in the packs and by giving winning prizes by
means of lotteries to promote sale and to beat competitor. But now this is Banned in
Pakistan.
6. Rebates
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They usually provide the rebates to the retailers and whole sellers who want to establish
their business on their own or who usually contact with them directly.
7. SP’s Objective:
Toping up:
Talking with shopkeeper, tell them about their company, brand and advantages of the
brand. The SP will bring awareness, if the shopkeeper did not know about the company and
their brand. Pack Display/Pack facing: Small 4 or 3 row displays at hotspots in which
prescribed plaogram is implemented.
Brand Availability:
To conform from the shopkeeper that all the brands are available or not, means to ensure
all time availability of the stocks in the respective beats by doing the exercise of toping up.
Consumer Contact:
It is the SP activity that he will contact the consumers and will write their names, complete
addresses, phone no and will also write the competitors brand which the consumers use and
will also get the consumers feed back after testing their own brand.
Market Intelligence:
The SP is also responsible to note the competition Activity of their competitors and look at
their promotional tools they use. And also give market intelligence report to TMO about
the competitors which they use in the market.
Temporary Merchandizing Activity:
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The following tools include in temporary merchandizing activity.
i. Posters
ii. Stickers
iii. Bunting
iv. Mobile (Rounder)
Permanent Merchandizing Activity:
i. Facia
ii. Tube
iii. Shade
iv. Modular
v. Counter
vi. Tailor – made
Direct Sales Delivery (DSD):
As my third tour with DSD, salesman is consider the backbone of the company because he
produce demand and distribute the brands of the company in an efficiently way, the DSD
will cover a beat of (50-60) shops per day but salesman also visit daily shops, some
salesman also cover three beats the reason is that demand is not too much.
Five Steps for DSD:
Every salesman must care these steps when they go on beat.
1. Preparation
The company prepare short term and long term plan, these plan are yearly, monthly,
weekly and daily bases.
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Steps in preparation:
i. Decide your target/set your target first.

ii. Analyze the current situation.
iii. Set your aim for achievement of your aim study all aspects and arrange your view.
iv. Before meeting Review your aim and remember of its details and try to make the
meeting personal, consider it first where you are going to perform work each and
check that every necessary resources are available.
v. Before contact Prepare your aim and make list of activities by the help of previous
contact information, make sure that you have fulfilled the promise which you made in
the previous meeting with your consumer or shopkeeper
2. Approach
The duration of meeting/toping up, the salesman must study the surrounding area of the
meeting; he must collect such information before meeting which can be helpful during
meeting with shopkeeper. The salesman must put on shoes of consumers and must see that
which one method is most attractive to attract him. Salesmen also study the internal
environment of the store and an
3.Stock check
Salesman will check the stock every time and must sure that the stock is according to beat
demand, he will also notice the competitor’s brands (Port Folio) with shopkeeper that how
much stock he buy and how much is available now.
4. Presentation
During this stage salesman will present his brands to shopkeeper and he must present his
brand in such a way that the shopkeeper doesn’t refused their brand.
Marketing Research
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Recently PTC has launched their new designed, new packed and quality improved product
of gold flake. For this new launched product they have conduct a survey form people and
in the first stage of the launch they distribute their product through their three areas all over
the Pakistan. They selected the Bahawalpur, Shukkar and Sahiwal. In these areas they first
introduce their product on the basis of their segmentation and the use of that product.
Research work
For this research purpose they get the services from the AC Neilson research company. It is
a retail audit company. There services range from finding brand equity, market shares and
conducting market research. This company is usually conducting their business in
marketing research and development.
INDUSTRY ANALYSIS
1. Business principles:
PTC follows three fundamental business principles:
i. Mutual Benefit
ii. Responsible Product Stewardship
iii. Good corporate Conduct
Each Principle is supported by a series of core Beliefs, which are explained below
2. Mutual Benefit:
The principle of mutual benefit is the basis on which we build our relationship with
our stakeholders. We are primarily in business to build long term shareholder value and we
believe the best way to do this to understand and take account of the needs and desires of
all our stakeholders.
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3. Core Beliefs:
i. Creating long term shareholder value

ii. Engaging constructively with our stakeholders
iii. Creating inspiring work environment of our people
iv. Adding value to the communities in which we operate
v. Ensuring that suppliers and other business partners have the opportunity to benefit
from relationship with us.
4. Responsible product stewardship:

The principle of responsible stewardship is the basis on which we meet consumer demand
for legal product that, put simply, is cause of serious disease. Therefore,
our products and brands should be developed, manufactured and marketed in a responsible
manner. We aspire to develop tobacco products with critical mass appeal that will, over time,
be recognized by scientific and regulatory authorities as posing substantially reduced risks to
health.
5. Core Beliefs:
i. Provision of accurate, clear health messages about risks of tobacco consumption.

ii. Reduction of the health impact of tobacco consumption whilst respecting the right of
informed adults to choose the products they prefer.
iii. Continued availability of relevant and meaningful information about our products
iv. Underage people should not consume tobacco.
v. Responsible marketing of our brands and products and directed at adult consumer.
vi. Appropriate taxation of tobacco products and elimination of illicit trade.
vii. Regulation that balances the interests of all sections of society, including tobacco consumers
and the tobacco industry.
viii. Approach public smoking in a way that balances the interest of smokers and non-
smokers.
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6. Good Corporate Conduct:
The principle of Good Corporate Conduct id the basis on which all our business should be
managed. Business success brings with it an obligation for high standards of behavior and
integrity in everything we do and wherever we operate. These standards should not be
compromised for the sake of results.
7. Core Beliefs:
i. Our business upholds high standards of behavior and integrity

ii. High standards of corporate social responsibility to be promoted within the tobacco industry
iii. Universally recognized fundamental human rights to be respected
iv. Tobacco industry to have a voice in the formation of government policies affecting it.
v. Achieving world class standards of environmental performance
1. FINANCIAL ANALYSIS:
i. By doing the financial analysis of the statements it has been observed

ii. That in 2010 firm is better utilizing its assets and profit margin is also high.
iii. In our common size balance sheet we see that our long term assets increased from previous
year and most definitely this increase occurred due to increase property, plant and equipment.
While other long term assets remained almost the same.
iv. Our current assets decreased from previous figure. This decrease had occurred due to
decreased in inventory by too much.
v. On the equity & liabilities sections we see that our equity didn’t change by too much.
vi. Our noncurrent liabilities had increased which is because of increase in Differed Taxation.
vii. Our current liabilities also increased by a large figure.
viii. Common size income statement shows decreased trend in the cost of sales, because of
that gross profit had increased.
ix. The firm’s operating profit didn’t change by small amount.
x. Firm’s EBT has increased that’s because our
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xi. financing cost has decreased from previous year but our net income had increased by almost
a tiny amount
2. OPERATIONAL ANALYSIS:
Jhelum Factory manufactures cigarettes according to the demand of the marketing

department. JF also keeps in mind the machines capacity. JF change sits machine by
increasing and lowering the capacity as per the. Recently Jhelum Factory establishes GDX2
machines in its production department, which produce10, 000 cigarettes per minute.
3. ENVIRONMENTAL ANALYSIS:
PTC is promoting itself as an environmental friendly organization by adopting “tree

plantation” campaign. PTC planned 3 million trees* annually in different areas of
the country.
Majority of the population of Pakistan belongs to the low class and has low purchasing
power. The taxes imposed by the govt. on tobacco industry are also very high that causes a
significant increase in the prices of cigarettes which takes the quality brands away from the
reach of the majority. So for this segment (lower1class) PTC has introduced “Embassy” and “Gold
Flake”. For lower middle there is “Capstan” and “Wills” and for high and upper class there is
“Gold Leaf” and “Benson and Hedges”
4. TECHNOLOGICAL ANALYSIS
IT is the backbone of every business, without it concept of successful business is becoming

impossible in modern business environment. Process Technology:
System Application Program (SAP)
SAP (SYSTEM APPLICATION PROGRAM)
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The company undertook the mammoth task in 2004 to replace the existing enterprise resource
planning (ERP) system with SAP, world leading ERP system. A smooth implementation
across the organization, in short period it was possible though excellent cross functional
efforts by the projecting the Sap will greatly facilitate the achievement of further efficiencies
In all key business process.PTC is the pioneer of using latest technology in Pakistan. The
machine they use to manufacture cigarettes “GDX2” can produce 10,000 sticks per minute.
Everyone knows that technology has a significant effect on company’s production
Capabilities. Use of this technology (GDX) enables PTC to fulfill the market demand well in
time and more efficiently.
3C Analysis (Corporate, Customer and Competitor Analysis):
Michael Porter’s 5 Forces Analysis:
Rivalry among Competitors:
Pakistan Tobacco Company has only having one big competitor which is Lackson Tobacco
Company. Approximately 92% of the total market share is captured by these two firms.
Potential Entry of New Competitors
The industry is rated 3 on this parameter. Industry is safeguarded from the potential
entrants due to government lawful barrier for setting up new tobacco industry, high capital
investment, economies of scale, brand Image, and specialized know-how, existence of
learning and experience curve effect, brand preference and customer loyalty. But the
introduction of the operation of an international tobacco company like Marlboro in
Bangladesh is really a big threat for BATB. This is an external threat over which BATB
has no control. However, the company should take steps to increase its market share to
combat Marlboro. Overcoming Communication Barrier through Corporate Social
Responsibility of British American Tobacco Bangladesh Page 67 of 106
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.
Potential Development of Substitute Products
The industry is rated is as follows:
1. Low price segment (High)
The industry is rated 4-5 on this parameter. Price, quality, performance, perceived value of
the product and brand image are the key factors for brand substitution. In the low price
segment readily available and attractive priced substitute creates competitive pressure. Biri
may be a substitute for cigarettes in the low segment.
2. Mid-price segment (Moderate)
The industry is rated 3-4 on this parameter. But in the mid-price segment the key for the
substitution is the cost as well as quality. Product with more and new attributes can create
product substitution in this segment.
3. High price segment (Low)
The industry is rated 2 on this parameter. In the premium price segment quality and
product image is key for the substitution. Customers in this segment are brand loyal. BATB
has no threat for the substitute products as there is no substitute in terms of cigarette with
other product in the industry.
4. Bargaining Power of Suppliers
The industry is rated 3-4 on this parameter. As the products are classified as Fast Moving
Consumable Goods and produced in all over the world, all the firms have the leverage to
choose the wrapping materials from anywhere in world. These materials are cigarette paper,
aluminum foils, boards, filter papers, cellophane paper etc. Tobacco for medium and low
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price segment cigarette is grown in Bangladesh and is capable of fulfilling the entire
industry demand. Tobacco for premium priced cigarette are also grown in Bangladesh and
around 18 – 20% high quality tobacco is imported from different tobacco Overcoming
Communication Barrier through Corporate Social Responsibility of British American
Tobacco Bangladesh Page 68 of 106 growing countries, where tobacco is surplus compared
to its consumption. Therefore, suppliers tend to have less leverage to bargain over price and
quality.
5. Bargaining Power of Consumers
The industry is rated very low 2 on this parameter. Low substitutes and a very close
pricing of the competitors in the industry leave very low bargaining power for the buyers,
especially in the low priced segment. But in the medium priced segment, quality and price
are factors key for substitution and therefore, different brand preferences are available in
the market and the market share of each competing rivals tend to shift in very significant
margin. But it is not very relevant scenario for the premium segment, where most of the
customers are loyal to their brands. 4.4.1.5 The Degree of rivalry among Competitors
(Low) The industry is rated 2 on this parameter. Rivalry depends on mostly in terms of
price and quality. International brand image, major competitors consists of domestic
manufacturers are accounted for the rivalry. The industry is still growing opening the
door of opportunity for augmented business as consumers are up coming from Biri to
cigarette. Rivalry in this particular segment is very intensive in terms of price rather than
quality.
Marketing Mix
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Marketing mix element properties:
Marketing mix Marketing Objectives Demarketing Objectives

Element
properties:
Product New Product Restrict availability of tobacco products

Me-too products Increase availability of tobacco-surrogate
Quality/value products (e.g. , nicotine gum)
Diversification highlight product harm
Eliminate products Decrease product attractiveness
Price Sales growth increase taxes

Stable pricing Increase pricing
Target pricing
Ligeral credit
Extensive Service
Place/ Customer satisfaction service Decrease consumption spaces

Distribution Mass distribution Decrease distribution space
Extensive outlets Impede purchase of tobacco
Retailer power No sales to minors
Promotion promote Promote anti-smoking/health themes

Consumption theme
Sales-oriented Decrease advertising space for tobacco
Salesmen companies
Task-level budgets Mandatory warning labels
HUMAN RESOURCE
MANAGEMENT
Human Resource Department:
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The Human Resources department bears primary responsibility for creating and sustaining a
winning environment in Pakistan Tobacco Company. They do this by providing
opportunities for talented employees to feel the satisfaction and fulfillment gained by being
members of a responsible, winning team; where they are rewarded and recognized; where
their efforts are encouraged; their careers are developed; where they understand the vision
and strategy of the company; and they know where they fit into the bigger picture.
The HR arena within Pakistan Tobacco Company includes:
i. Managing performance
ii. Managing organizational learning and development
iii. Resourcing
iv. Managing careers and development
v. Managing employment relations
Every organization is comprised of people. Acquiring their services, developing their skills,
motivating them to high levels of performance, and ensuring that they continue to maintain
their commitment to the organization are essential to achieving organizational goals and
objectives. Human Resources Department is the part of the organization that is concerned
with the people dimension. It is a staff or support function in the organization. Its role is to
provide assistance in HR matters to line employees or those directly involved in producing
organization goods and services. The main functions of HRD are to resolve the workers
grievances and care of disciplinary procedures, misconduct, faults and omissions. The HR
department provides an opportunity for the employee and performance manager to discuss
development goals and jointly create a plan for achieving those goals. Development plans
should contribute to organizational goals and the professional growth of the employee.
Core Function of HRD:
i. Industrial Relationship
ii. Recruitment
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iii. Selection
iv. Training & development
v. Placing
vi. Promotion
vii. Transfer
viii. Salary statement
ix. Agreement with Collective Bargaining Agents
x. Occupational health program
xi. Legal affairs
DIMENSIONS OF HUMAN RESOURCE
1. Mission:
According to the board of Human Resources Department, the mission of the Human
Resources Department is;
“To attract, recruit, develop and remunerate the best suitable talent at all levels
And build a culture that triggers our corporate values in order to achieve the
Company’s overall objective.”
2. Product:
According to the Department, the product of the Human Resources Department
dispassionate, skilled, confident and excellent employees.
3. Customers:
Customers of Human Resources Department are, Finance Department, Engineering
Department, Information Technology Department, Production Department, Leaf Department,
Green Leaf Thrashing Department, Materials Management Department, and
Marketing Department.
4. Processes:
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The processes of Human Resources Department include Recruitment, remuneration &

benefits, training and development, industrial relation, recreation& welfare, and record
management. Human Resource Department is the most important asset of each organization.
The role of this department is like the backbone in the organization. It provides the most
competent people to the organization to get their strategic goals and to get loyalty for
the organization.
5. Composition of Employees
In PTC JF, there are 37 grades. Out of these 37 grades,

Grade 1 to 10 includes general workers to senior supervisors and clerks
From 30 to 33 includes BSO's (Business Support Officers)
From 34 to 37, MOM's (Members of Management).When an employee of grade 10 gets
promotion he directly jumps to grade 30 and is designated as Business Support Officer.
6. CLASSIFICATION OF WORKERS
The workers employed in PTC Jhelum Factory and Leaf areas are classified into two
categories:
i. Permanent or non- seasonal workers.

ii. Temporary or seasonal workers.
7. Permanent Workers:
Permanent workers are hired by HRD. The factory employs them directly on permanent
basis. Therefore, they are required to meet all the requirements that the company has
established for a worker. New workers when hired are properly trained and closely watched
at work during the early period of their job.
8. Temporary Workers
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The temporary workers are hired by HRD as seasonal workers. They are on the job for six
months in a year i.e. from July to December now this period has declined to only 3 months.
At depots they are hired for buying tobacco and doing other jobs in the Leaf areas. At factory
they are hired normally for GLT services.
o Have worked for at least 25 years at PTC.
o Arrangement of Bara Khana on any major achievement.
o Eid Millan programs.
o Arrangement of retirement parties.

o Maintenance of Factory Mosque.
o Scholarships for dependents of the workers
o Enrolment of workers with Employees Old Age Benefit Institute &Employees Social
Security Institute.
9. HEALTH AIDS:
First aiders are trained from Alshifa their presence is around the clock for each shift,
common, red and green. They help in medical checkups typing health records.
Medical examinations for workers twice a year January/July treatment allowance in pay. For
a new recruit the doctor who is medical officer of the factory does health checkup. For
canteen workers laboratory checks like urine, blood, hepatitis, x-ray is done.
10. PRERPARATION OF ID CARDS
: When a person is employed in any section of grade, even contractors are issued security
cards with date of validity, passport size photograph, and NIC number and signed by issuing
authority duly by HR Department.
11. INTERNSHIP HANDLING:
Commonly internship period is six weeks but it may vary subjects to the requirement of the
institution. When applications are found legible, the students are informed with the joining
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latter, when they report they are dealt accordingly and paid duly at the end of the internship if
successful, they are given certificates.
12. INDUSTRIAL RELATION:
To keep good and friendly working atmosphere aiming healthy towards production is
necessary to have cordial relation with workers, whenever a issue, problem, grievances or
misunderstanding is developed between management and unionized staff it is taken over by
understanding, reforming and stress relieving manner through a specifies process. The
industrial relations officers follow the industrial relations ordinance 1969.
13. MUTUAL INDUSTRIAL ISSUES:
The department looks after following issues:-

i. Steadfast singing of documents without writing them.
ii. Illegal strike
iii. Stoppage of work.
iv. Wages, rent, allowance
v. Meal regulation.
vi. Special attendance allowance.
vii. Hajj allowance.
viii. Leaves.
ix. Financial assistance.
x. Basic pay increase.
14. VOLUNTARILY SEPARATION SCHEME (VSS):
The company has a scheme for voluntary separation, under this scheme the employees has
the opportunity of early retirement, and he is paid more percentage of his salary plus
provident fund. The %age of salary to be paid to them depends upon the years remaining to
his retirement. The percentage is as below:
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i. Up to 5 years 75%
ii. Up to 8 years 40%
iii. 9 to 10 years 36%
iv. 11 to 15 years 25%
v. 16 to 20 years 18%
vi. 1 to 25 years 15%
FINANCE
Finance Department:
Finance department deals with keeping the company in a good financial position. They have
the responsibility of book keeping and providing information to assistant managers in making
strategic decisions. They are responsible for all day to day transactional accounting for the
business; this includes the tracking of all transactions and management of any government
reporting. It is responsible to create budget for the company every year. They also provide
finance for different operations of the company. Finance department is also responsible for
management of the organization’s cash flow and ensuring there are enough funds available to
meet the day to day payments.
The major functions of this department are:
• Performance measurement and reporting

.• Excise management.
• Funds management.
• Strategic planning input.
• Investment analysis.
• Payments to suppliers.
• Receipts from customers.
• Planning and financial management.
• Import and Export management.
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• Risk management.
• Internal audit.
• Maintenance of financial records.
• Fixed assets management.
The Finance department of the AKF has been divided into seven major sections:
1. Production expenses.
2. Cash.
3. Variable cost and Excise duty
4. Ledger.
5. The Leaf section.
6. Fixed assets.
7. Payroll
Production Expenses:
This section of the finance department deals with the recording of all the expenses that are
related to the production. The expenses are recorded by the concerned person of the
production expenses section and punched into the CS/3 system, which transfers the data
directly into the general ledger. When these expenses are verified any rectification required
takes place and posting into the trial balance is done. The production expenses are divided
into three basic categories.
i. The process related expenses

ii. Supporting expenses
iii. Other expense
Cash Section:
Cash is one of the important sections of finance department. It deals with all the incoming
and outgoing cash in the AKF. Any kind of entry related to cash is punched into the CS/3
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system, which makes a direct recording into the ledger account and then recorded in the trial
balance. The inflow of cash in the AKF is basically done through three sources. It either
arrives through the sales revenues, auctions or through selling. The sales revenue is generated
through the sales department situated in Bahawalpur, Faisalabad and Peshawar. They transfer
their reserves to the AKF. Other sources of cash include the auction. There are certain items
that are either wasted to protect the rectification and ensure the security. These items are put
to auction by the MMD and the cash is sent to the Finance department. Similarly some
products that cannot be auctioned like dust, wastes of wrapping materials etc are sold to
different parties. That amount is also sent to the cash section of Finance department. The
Finance department makes payments of cash to the Leaf grower. This section also pays the
different expense incurred by different people in the AKF. These expenses are called PETTY
CASH. It is allowed to make payment up to five lacks. Amount greater than five lacks is paid
through the head office.
Variable cost and excise duty:
Talking in terms of Finance, variable cost means the cost on those items, which can be varied
in order to increase or decrease the production level. The AKF has kept a separate section in
the Finance department that deals with the variable cost. This section deals with the wrapping
material and the excise duties. The company pays excise duty on Tobacco and cigarette to the
government. When the trucks are leaving the shipping Go down AR (application for removal
of consignment) is made according to the excise rate.
The excise rates per ten cigarettes are as follow:
i. If retail price of locally produced cigarettes exceed 13 Rupees per cigarettes. 63 %of the retail price
ii. If retail price of locally produced cigarettes exceed Rs 5.74 per 10 cigs but does not exceed Rs 13 per
10 cigs. Rs 2.45 per ten cigs plus 69 % per incremental Rupees or part thereof
iii. If retail price of locally produced cigarettes does not exceed Rs 5.74 per 10 cigs Rs2.45 per ten cigs
After that a summary of shipment is send to the finance department through AR-1 to inform that how many
cigarettes are manufactured. AR-1 shows sales tax in addition to excise duty.
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Ledger section:
The main function of this section is the closing of all accounts at the end of the month and the making of the
trial balance. The activities and the information from all the departments are transferred to this section either
through the CS/3 system or it is done manually. This information is then recorded and after verification it is
entered into the trial balance, which is then, sent to the head office
The Leaf Section:

This section of the Finance department is concerned with the purchase and the payment of the green leaf .
A. The Purchase Process:

PTC has some verified depots where tobacco is grown and then it is purchased from those growers on the
basis of an agreement. In the purchase of tobacco a rule namedMLO783 is followed. Thos rule has two basic
and clear points.
i.The company cannot purchase less quantity of tobacco from a grower than that of the
previous year
ii.If the Company has bought some tobacco from a grower and some of the tobacco of that
grower is left UN purchased, then the Company is bound to purchase the same percentage
of remaining tobacco. Whether they need it or not. E.g. the Company buys 46 %. 10% of
the grower’s tobacco is left UN purchased. Now the Company is bound to purchase 46 %
of that 10 %.
The VFC, which is grown, is Mansehra is considered the best tobacco in Pakistan. After the
tobacco is purchased its physical inspection takes place and it is brought to the GLT for
processing the moisture level at this point of time is 13 to 14 %, which is brought down to 12
% in the GLT.In every 100 kilo gram of leaf, there is 70 kg of Lamina, 20 kg of stem, 2 to 3
kg of dust;2 to 3 kg of by products and 2 to 3 kg is loss. Thus the price revaluation is also
done in the GLT, which is a necessary process as nearly 10 kg of leaf is wasted in the
process.
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B. Cost Revaluation
The total cost of 100 kg is divided by 70 kg, which increases the cost per kg. The cost of stem
is fixed for all type of tobacco e.g. Rs 8 per kg is the cost of FCV, is also added with the per
kg cost and thus the average per kg adjusted cost is calculated.
C. The Payment Process
The payment to the growers is done within seven to thirty days of the purchase through the
DPLV account. The special feature of this DPLV account is the credit allowed by the bank of
about 20 million. This gives the Company the flexibility in making the payments. The
payments of the other expenses of the Go downs in depots are also paid through banks.
D. The Process
The introduction of the Galaxy software has made the process of leaf (purchase and payment)
quite simple. After the issuance of the agreement to the growers the crop of each grower is
placed on the belts and six bale cards are issued to the grower. After the physical inspection is
done, the rejected bales are returned to the grower while the accepted bales are moved
further, where its price is shown on the big screen. If the grower rejects the price he takes his
bales back, otherwise they are moved further. Butte grower least took their bails back. The
computer then issues a voucher one copy of which is given to the grower and the other is
send to the Pakistan Tobacco Board. It also issues from ‘A’. The copies of which are given to
the AKF, Bank and the concerned depots respectively. The grower in order to get the
payment takes the voucher to the bank that on the presentation of that voucher pays the
amount to the grower and issues token along with the form ‘B’ to the depot. This verifies the
document and transfers them to AKF Finance department.
The Fixed Assets:
This is a very important section of the Finance Department. The major jobs of this section
are:
i. Acquisition of Assets.
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ii. Disposal Of assets.

iii. Transfer of Assets.
iv. Depreciation.
Payroll section:
Payroll section is responsible for providing timely wages to workers and maintaining their
records. Wages are paid at the last day of the month. Last two days of the month are very
critical for the wage department. They have to prepare a statement, which will clarify the
exact amount to be paid. This is done through the help of time office, which closes its whole
monthly time cards. Summing up the wages to be paid to each one is then known and the
wage department is sure that the required amount to be paid is assessed and so the amount to
be draw from the bank is cleared. The amount drawn (which will actually be done at the e
second last working day of the month) arrives at the office. The money is then placed in the
envelops which are colored for the purpose of identification. The picks are filled in by the
office staff and then actually distributed. Payroll includes the following documents
i. Payroll control and change summary.

ii. Pay slips.
iii. PF balance.
iv. Over time.
The different allowances given in the payroll section are as follows:
i. House rent allowance: 100% of basic

ii. Medical allowance: 7% of basic
iii. Smoking allowance: 100 rupees
iv. Funeral allowance: 15000/ incidents.
v. Utility allowance: 5% of basic.
vi. Uniform allowance n: 2500/ annum.
vii. Special incentive allowance: 1500/month.
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viii. Attendance allowance: 500/ month

ix. Lunch disturbance allowance: Rs 39/incident.
Government Levies:
In almost all of the civilized countries of world there is the concept of Govt taxes, and where
there is Govt there has to Govt levies or taxes are in different forms. Being a Pakistan we are
than liable to pay certain taxes. Tax bracket of cigarette in Pakistan is in one of highest in the
world. It pays the 2nd largest amount of money in government exchequer in form of different
taxes.
The main heads or main forms of taxes as follows.
i. Central excise duty

ii. General sales tax
iii. Custom duty
iv. Employee old age benefit and social security.
Only to last one is not directly paid to the government. All Though Govt still gets its share
from it. For payment of the each of the above-mentioned levies there is set pattern provided
by the government to units of the factory. These patterns are to be strictly followed by the
companies. If the company does not follow its one part it will be liable to the Govt fury, it is
the form of penalties. Being an ethical company PTC pays its all levies with utmost sincerity.
Its AKF, branch pays the most tax an N W F P and together the whole PTC gained pays the
most taxes after oil sector.
KEY FINANCIAL INDICATORS:
Despite overall declining tobacco consumption in the country, business performance of PTC
for the first half of 2018 reflects the strength of PTC’s brand portfolio, its efforts to address
consumer affordability needs and winning up-traders through strong in-market execution. All
this coupled with enforcement activities by relevant authorities has enabled PTC to retain its
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market leadership in the legitimate sector and to deliver a 22.5% increase in government
revenue collections in fiscal year ending June 2018. Although, market share of the illicit
sector dropped to 33.2% in May 2018 compared to 40.8% in June 2017, it continues to be
alarmingly high. PTC continued its strategy of strengthening its brand portfolio through
focused marketing campaigns across its brand spectrum. In the premium segment, the
Company introduced a pack and product upgrade for Dunhill in line with BAT’s global
standards. In the Value for Money (VFM) segment, rural focused activation was executed for
Gold Flake. This segment was further strengthened through a journey towards modernization
with the introduction of a new pack for Capstan by Pall Mall. Consistent focus on trade
marketing continued through progressing further with sales data automation and customized
training programs.
Key financial indicators of PTC are:
RS ( MILLION)
JAN_JUNE 2018 JAN-JUNE 2017

GROSS TURNOVER 63778 49830
NET TURNOVER 26269 15750
COST OF SALES 13045 9882
GROSS PROFIT 13216 7688
OPERATING PROFIT 9378 4774
PROFIT BEFORE TAX 9685 4809
PROFIT AFTER TAX 634524.83 2976
EARNING PER SHARE 24.83 11.65
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FINANCIAL STATEMENTS ANALYSIS
RATIO ANALYSIS
LIQUIDITY MEASURES:
Current Ratio: (current Assets / current liabilities)
2016 20015 2014 2013

1.52 1.20 1.06 0.96
There is slight decrease in the current ratio but this ratio is acceptable for the creditors
because the standard ratio for any efficient firm is 1.
Quick Ratio: (current Assets - inventory / current liabilities)
2016 2015 2014 2013

0.28 0.12 0.10 0.11
LONG TERM SOLVENCY MEASURES:
Debt-Equity Ratio : ( Total Debt / Total Equity)
2016 2015 2014 2013

0.01 0.12 02.11 01.69
ASSETS MANAGEMENT / TURNOVER MEASURES:
Inventory Turnover : ( Cost of goods sold / Inventory)
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2016 2015 2014 2013

1.62 1.74 1.91 2.18
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HORIZONTAL AND VERTICAL ANALYSIS:

INCOME STATEMENT:
Financial Highlights
2016 2015 2014 2013 2012 2011
PROFIT & LOSS

Volume Million Sticks 36,065 42,716 44,006 42,872 40,615 39,795
Gross Turnover Rs million 129,278 125,013 107,218 89,929 75,531 67,492
Excise & Sales Tax Rs million 84,412 82,105 70,599 59,306 49,651 44,542
Net Turnover Rs million 44,867 42,907 36,619 30,623 25,880 22,950
Gross Profit Rs million 22,774 18,555 13,847 10,610 8,446 6,241
Operating Profit Rs million 15,000 10,335 7,087 4,602 2,729 661
Profit Before Tax Rs million 15,382 10,579 7,188 4,667 2,655 559
Profit After Tax Rs million 10,361 7,046 4,850 3,124 1,728 364
EBITDA Rs million 16,087 11,324 7,921 5,415 3,514 1,435
Dividends Rs million 8,176 4,599 2,299 1,852 1,035 537
BALANCE SHEET
Paid up capital Rs million 2,555 2,555 2,555 2,555 2,555 2,555
Reserves Rs million 10,422 7,811 5,456 2,857 1,552 779
Property, Plant & Equipment Rs million 8,629 9,185 8,713 7,085 5,695 6,100
Net Current Assets/(Liabilities) Rs million 5,756 2,601 761 (392) (426) (1,713)
Capital Expenditure during the year Rs million 579 1,491 2,249 1,887 421 1,167
INVESTOR INFORMATION
Return on Assets % 41.32 30.18 24.64 19.95 12.74 2.84
Return on Equity % 79.85 67.98 60.54 57.73 42.08 10.91
Return on Capital Employed % 71.83 59.61 50.99 46.50 32.65 8.24
Earnings per share After Tax Rs 40.55 27.58 18.98 12.23 6.77 1.42
Price-Earning Ratio Rs 35.34 40.39 55.82 46.02 9.99 38.98
Dividend yield ratio % 2.23 1.62 0.85 1.29 6.00 3.79
Dividend payout ratio % 78.91 65.27 47.40 59.28 59.88 147.61
Break-up value per share Rs 50.79 40.57 31.36 21.18 16.08 13.05
Market value per share at year end Rs 1,433.0 1,114.0 1,059.7 562.7 67.6 55.5
Highest Market value per share during the Rs 1,433.3 1,169.0 1,539.0 562.7 72.6 116.0
year
Lowest Market value per share during the Rs 950.0 742.9 567.8 55.5 46.0 55.5
year
Gross profit ratio % 50.76 43.24 37.81 34.65 32.63 27.19
EBITDA Margin % 35.86 26.39 21.63 17.68 13.58 6.25
Net Profit Margin % 23.09 16.42 13.24 10.20 6.68 1.59
Inventory Turnover Ratio 1.62 1.74 1.91 2.18 2.41 2.59
Creditor Turnover 2.92 3.13 4.19 7.14 6.97 4.65
Operating Cycle 100 93 103 116 99 63
Total Assets Turnover Ratio 5.09 5.05 4.89 5.16 5.44 5.10
Fixed Assets Turnover Ratio 14.98 13.61 12.30 12.69 13.26 11.06
Current Ratio 1.52 1.20 1.06 0.96 0.95 0.81
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Quick / Acid Test Ratio 0.28 0.12 0.10 0.11 0.11 0.07
Dividend Per Share Rs 32.00 18.00 9.00 7.25 4.05 2.10
Dividend Cover Ratio 1.27 1.53 2.11 1.69 1.67 0.68
Debt to Equity Ratio 0.01 0.12 0.07 0.45 0.30 0.53
Interest Cover Ratio 336.64 148.21 73.56 65.80 20.17 4.98
Govt levies as a percentage of turnover % 69.69 69.18 68.77 68.61 67.91 67.23
GOVERNMENT LEVIES
Customs, Excise Duties & Sales Tax Rs million 84,849 82,690 71,273 59,930 50,167 45,036
Local Taxes and Other Duties Rs million 192 243 226 175 143 137
Income Tax Rs million 5,059 3,556 2,239 1,594 984 199
Horizontal & vertical Analysis:
Profit & loss account:

Gross turnover 129,278,304 125,012,583 107,217,617 89,928,975 75,531,228 67,491,816
Excise duties 64,976,204 63,290,222 54,447,161 46,110,971 38,854,830 34,719,661
Sales tax 19,435,596 18,815,170 16,151,379 13,195,201 10,796,089 9,822,181
Net turnover 44,866,504 42,907,191 36,619,077 30,622,803 25,880,309 22,949,974
Cost of sales 22,092,836 24,351,991 22,771,684 20,012,587 17,434,790 16,709,273

Gross Profit 22,773,668 18,555,200 13,847,393 10,610,216 8,445,519 6,240,701
Selling and distribution expenses 4,743,638 4,854,542 3,877,112 4,022,635 3,516,601 3,129,938
Administration expenses 2,185,061 2,434,574 2,398,881 1,716,314 1,381,918 1,321,713
Other operating income 353,070 137,176 166,415 129,129 90,400 53,967
Other operating expenses 1,198,205 1,068,191 650,753 397,959 908,888 1,182,363
Operating profit 14,999,834 10,335,069 7,087,062 4,602,437 2,728,512 660,654
Finance income 428,143 315,866 199,795 136,487 65,057 39,160

Finance cost 45,829 71,862 99,056 72,019 138,533 140,539
Profit before taxation 15,382,148 10,579,073 7,187,801 4,666,905 2,655,036 559,275
Taxation 5,020,796 3,532,639 2,337,656 1,542,596 926,578 195,490

Profit for the year 10,361,352 7,046,434 4,850,145 3,124,309 1,728,458 363,785
Earnings per Share - basic and diluted 40.55 27.58 18.98 12.23 6.77 1.42
(Rupees)
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Summary of Cash flow
( Rs. million) 2016 2015 2014 2013 2012 2011

Cash flow from Operating 10,485 5,179 6,375 2,373 1,775 2,151
Activities Cash flow from 113 (1,015) (1,982) (1,665) (119) (1,089)
Investing Activities (8,400) (4,917) (2,430) (1,985) (1,081) (536)
Cash flow from Financing
Activities
Net Change in Cash and Cash 2,198 (753) 1,963 (1,278) 575 526
Equivalents Beginning Cash and (1,166) (413) (2,376) (1,099) (1,674) (2,200)
Cash Equivalents
Ending Cash and Cash Equivalents 1,032 (1,166) (413) (2,376) (1,099) (1,674)
Cash and Cash Equivalents comprise

Cash and Bank Balances 1,127 53 150 60 139 110
Short Term Borrowings (95) (1,220) (563) (2,436) (1,238) (1,784)
1,032 (1,166) (413) (2,376) (1,099) (1,674)
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Statement of Financial Position

As at June 30, 2018
Note June December

30, 2018 31,
2017
Assets
Property, plant and equipment 12 8,539,503 8,630,814
Long term investment in subsidiary 13 5,000 5,000
company
Long term deposits and prepayments 34,006 32,319
Non-current assets 8,578,509 8,668,133

Stock-in-trade 11,173,68 14,460,89
6 0
Stores and spares 718,803 593,909
Trade debts 2,341 2,636
Loans and advances 14 440,165 72,685
Due from government agencies 15 5,592,847 -
Short term prepayments 185,290 212,747
Other receivables 16 871,374 968,996
Short term investments 2,521,950 6,763,842
Cash and bank balances 17 705,241 390,128
Current assets 22,211,69 23,465,83
Total assets 30,790,20 32,133,96
Equity 18 2,554,938 2,554,938

Share capital
Revenue reserves 15,590,89 14,356,26
Total equity 18,145,83 16,911,19

3 8
Liabilities
Finance lease obligation 19 234,995 260,050
Deferred tax liabilities 1,051,046 1,108,225
Noncurrent liabilities 1,286,041 1,368,275

Finance lease obligation 19 141,506 165,245
Accrued interest / mark-up 3,106 3,414
Trade and other payables 21 7,688,693 10,796,86
5
Other liabilities 1,901,112 2,226,659
Current income tax liabilities 1,623,915 662,310
Current liabilities 11,358,33 13,854,49
Total liabilities 12,644,37 15,222,76
106 | P a g e
Total equity and liabilities 30,790,20 32,133,96

6 6
Contingencies and commitments 22
PROFIT & LOSS ACCOUNT 2018:
Quarter Ended Half Year Ended
2018 2017 2018 2017

Rs '000 Rs '000 Rs '000 Rs '000
Gross turnover 31,962,25 27,865,01 63,778,35 49,830,16
4 2 2 0
Excise duties (14,162,339 (13,301,82 (27,756,81 (24,708,67
) 3) 1) 2)
Sales tax (4,896,402) (4,289,077) (9,752,135) (7,551,721)
Net turnover 12,903,51 10,274,11 26,269,40 17,569,76
3 2 6 7
Cost of sales 7 (6,718,403) (5,721,425) (13,053,77 (9,881,634)
3)
Gross profit 6,185,110 4,552,687 13,215,63 7,688,133
3
Selling and distribution (1,002,820) (725,201) (1,879,581) (1,383,242)
costs
Administrative expenses (583,495) (683,679) (1,229,667) (1,111,488)
Other operating expenses 8 (367,015) (250,012) (839,022) (444,108)
Other income 9 78,334 23,885 102,710 24,263
(1,874,996) (1,635,007) (3,845,560) (2,914,575)
Operating profit 4,310,114 2,917,680 9,370,073 4,773,558
Finance income 10 173,877 41,449 330,027 62,011

Finance cost (7,229) (15,498) (14,994) (26,894)
Net finance income 166,648 25,951 315,033 35,117
Profit before income tax 4,476,762 2,943,631 9,685,106 4,808,675
Income tax expense 11 (1,782,378) (1,482,558) (3,340,595) (1,832,196)
Profit for the period 2,694,384 1,461,073 6,344,511 2,976,479
Earnings per share - basic 10.55 5.72 24.83 11.65

and diluted (Rupees)
107 | P a g e
GRAPHICAL REPRESENTATION:
Gross Turnover ) GOVT LEIVES:
Rs (million)
90,100
86,489
125,013
73,738
107,218
67492 75251 8990 100776 125013 129783 45372 51294 61699 71733 85499 9010
2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016
108 | P a g e
EARNING PER SHARE & DIVIDEND PER SHARE:
40.55
32.00
27.58
18.98
18.00
7.25
4.05
9.00
2.10
12.23
6.77
1.42
2011 2012 2013 2014 2015 2016
Cost of sales has remained stable with inflationary increase offsetting the impact of reduction
in volume. This is in line with Company’s objective to manage costs effectively with
increased production efficiency.
109 | P a g e
Selling and distribution cost has also remained stable despite inflationary pressures and
investment in sales force automation. This was possible through effective cost management
and smart resource allocation.
Other Operating expenses have decreased primarily because of reduction in profit based
statutory charges.
Net Finance Income has reduced vs. Last Year because of lower availability of funds for
investments trickling down from lower revenue in H1’18.
Income Tax Expense has reduced vs. Last Year. This is the direct impact of decline in sales
volume resulting in decline in taxable income for the year.
FINANCIAL POSITION ANALYSIS
Property, plant & equipment has remained stable year on year as the impact of new capital
expenditure was offset by asset disposal of obsolete & fully utilized assets and depreciation
for the year.
Stock in trade has increased on account of annual statutory increase in tobacco leaf price.
Other receivables have decreased because of realization of receivables from other group
companies.
Cash & Cash Equivalents, encompassing net position of short term investments, cash &
bank balances and short term running finance, have increased because of availability of
higher funds in H2’18 on account of better sales inflows and working capital management.
Current Liabilities have increased because of increased revenue and timing of capital
expenditure as compared to last year.
110 | P a g e
Share capital & reserves have increased because of profit retained in the business for
organic reinvestment.
LIQUIDITY ANALYSIS:
The Treasury function is responsible for raising finance for the company, managing cash
resources and financial risks arising from underlying operations. Clear parameters have been
established, including levels of authority, on the type and use of financial instruments to
manage the financial risks facing the Company. All these activities are carried out under
defined policies, procedures and limits which are reviewed and approved by the Board or
delegated for execution to the Finance Director and the Treasury Committee.
CONTRIBUTION TO NATIONAL EXCHEQUER:
PTC remains one of the largest tax contributors in the private sector in Pakistan. PTC
contributed PKR 38 billion in the H2’18 (Up by PKR 5 billion vs. SPLY) and a total of PKR
72 billion in 2018 to the National Exchequer in the form of excise duty, sales tax, customs
duties and income tax. The Company continues to stress the detrimental impact of sales of
duty-evaded cigarettes on the sustainability of government revenues and legitimate industry.
However, they expect that the continuous law enforcement efforts by relevant authorities
together with the trend of business recovery carrying over from H2’18 will bring about
sustainable growth in government revenues.
PROFIT DISTRIBUTION & RESERVE ANALYSIS
PTC carried reserves of Rs. 10.422 billion at the start of the year of which, final dividend of
Rs. 2.810 billion was approved by the shareholders for 2017. During 2018, the Company
earned a net profit of Rs. 9.574 billion and declared an interim dividend of Rs. 2.555 billion
translating to Rs. 10.00 per share.
111 | P a g e
OPERATIONS REVIEW:
PTC with a full seed to smoke business encapsulating two factories and one of the largest leaf
operations in BAT group companies remained focused on enhancing productivity throughout
the value chain. This was ensured through effective cost management, delivering lean
operations and continuous modernization of the machinery footprint.
PTC manufacturing is the heart of the Operations and a key function to ensure 100% On
Time in Full. In 2017, manufacturing achieved 75.8% Optimum Equipment Efficiency (OEE)
which is one of the highest in the BAT Group Companies. The Company’s aim is to
constantly modernize its operations by introducing innovative concepts, optimal processes
and the latest technology. PTC Operations continued the journey towards manufacturing
excellence through the Integrated Work System (IWS) program. Manufacturing has been
delivering outstanding results in IWS and has set new benchmarks. Significant awareness and
infrastructural improvements have been made in relation to Environment, Health & Safety
(EH&S) processes and procedures at the manufacturing plants on the back of the launch of
the EHS Pillar under IWS. Further, a focus on consumer centric quality of the product has
ensured a significant reduction in consumer complaints during the year. PTC manufacturing
has been globally recognized in BAT Group for the efforts and outstanding results delivered
through this drive for excellence. Operations have also supported the diversity agenda in the
Company to support a fit for future organization. Female talent was placed in most critical
roles in the factories across both sites and people were moved within the sub functions to
create a diverse pool of talent ensuring readiness for future opportunities.
MARKETING REVIEW:
PTC continued its legacy of building the best tobacco brands for its consumers. In the
premium segment, it continued to invest in flagship brand, John Player Gold Leaf (JPGL)
with the right marketing interventions and equity campaigns. It launched limited edition
packs that were widely appreciated by consumers. JPGL remained the leading brand within
the premium segment with a segment market share of 82%. In the Value for Money (VFM)
segment, Capstan by Pall Mall Original (CbPMO) further strengthened its position as the
112 | P a g e
biggest volume brand of the Pakistan tobacco industry, registering exceptional growth to
secure its highest market share to date of 26.1% of the total tobacco market at the end of
2017.
The trade marketing team also stood up to the business challenge of growing illicit trade in
first half and winning up-traders in second half of the year. The team led an aggressive
winning strategy in the market throughout the year to deliver excellence of execution.
Monitoring Actions:
The PTC used to perform different types of monitoring. There monitoring are done by the
company GLOBAL ENVIRONMENTAL LAB.
THE ACTIVITIES INVOLVE IN THE PTC MONITORING PLAN ARE FOLLOWINGS:
Activity Frequency
Noise Survey 6 Monthly
Light Survey 6 Monthly
Dust Level Survey Once a Year
Boiler Emission Monthly
Generator Emission Yearly*
Gaseous Emission Quarterly
67,492
i. Noise Survey
ii. Light survey
iii. Gaseous Emissions
iv. Boiler Emissions
v. Generator Emissions
113 | P a g e
These activities have different monitoring parameters like LUX for light survey and Dust
concentration for dust monitoring. The frequency of these monitoring are Quarter and Annual
based.
My recommendation is to castrate into relevant department for timely action and expedites as
a way forward action to be taken against these nominees.
My completion results are as under:-
i. Noise Level.
ii. Dust Level.
iii. Gaseous Emission Level.
iv. Light Level.
,278
114 | P a g e
NOISE LEVEL MONITORING
We recommend that where noise level is above 80, Ppe’s ear plugs are mandatory and where
the noise level is above 90 Db, Earmuffs should be used. And Ppe’s must be standardized
115 | P a g e
DUST LEVEL
It is recommended to wear Dust mask at dusty places. Where dust level is on higher side. Dus
t musk is mandatory.
Legends Within PEQS

Out of PEQS
January 03. 2017
Sr. # Sampling Points Unit Results Limits as per PEQS

3
1 MMO3 ug/m 737 500
2 MPO3 ug/m3 >1000 500
3
3 MMO4 ug/m >1000 500
4 MPO4 ug/m3 704 500
3
5 MMO6 ug/m 554 500
6 MPO6 ug/m3 349 500
3
7 KDF ug/m 342 500
8 CTS ug/m3 138 500
3
10 PMD Dust Recovery ug/m >1000 500
3
11 SMD Dust Recovery ug/m 437 500
12 Nomatic Fan Dust Recover ug/m3 459 500
116 | P a g e
GASEOUS EMISSION LEVEL
GASEOUS EMISSION
31-May-17
Boiler 7249 (6 Ton)
PARAMETERS UNIT NEQS Reading 01 Reading 02 Reading 03
CARBON MONOXIDE(CO) mg/m3 800 725 719 726
SULPHUR DIOXIDE(SO2) 3
mg/m 1700 46 47 47
OXYGEN (O2) % 4.83 4.83 4.83
NITROGEN DIOXIDE(NO2) mg/m3 12 12 12
NITRIC OXIDE (NO) mg/m3 83 85 85
COMBINED OXIDES OF NITROGEN (NoX) mg/m3 600 95 97 97
CARBON DIOXIDE(CO2) % 9.66 9.66 9.66
SMOKE R.M 2 0
Scale
PARTICULATE MATTER Mg/Nm3 300 67.8
GENERATOR # 01 (1100 KVA)

6-Jun-17
PARAMETERS UNIT NEQS Reading 01 Reading 02 Reading
03
CARBON MONOXIDE(CO) mg/m3 800 489 491 496
SULPHUR DIOXIDE(SO2) mg/m3 1700 121 125 126
OXYGEN (O2) % 12.4 12.4 12.4
NITROGEN DIOXIDE(NO2) mg/m3 47 48 48
NITRIC OXIDE (NO) mg/m3 109 111 111
117 | P a g e
COMBINED OXIDES OF NITROGEN mg/m3 600 156 159 159

(NOx)
CARBON DIOXIDE(CO2) % 4.1 4 4
SMOKE R.M 2 1
Scale
PARTICULATE MATTER Mg/Nm3 300 124.29
LIGHT LUX LEVEL
To reevaluate the Lux level as per standard, as the level of light is decreased so if we increase
the level of light by adding more lights.
LIGHT LEVEL PAKISTAN TOBACCO
COMPANY
SR NO LIGHT LEVEL SMD Method/Technique Unit Result Status

1 MM-01 Illuminance Meter LUX 167.6
2 MP-01 Illuminance Meter LUX 186.3
7 MM-04 Illuminance Meter LUX 162
8 MP-04 Illuminance Meter LUX 217
9 WALK WAY OPP MP-01 Illuminance Meter LUX 160
10 WALK WAY OPP MP-02 Illuminance Meter LUX 125.3
118 | P a g e

26 KDF-01 Illuminance Meter LUX 174.3
28 KDF-03 Illuminance Meter LUX 178
31 CASE PACKER AREA RIGHT Illuminance Meter LUX 180.6
32 CASE PACKER AREA LEFT Illuminance Meter LUX 205.6
33 TEAM LEADER OFFICE Illuminance Meter LUX 267.3

34 QUALITY LAB Illuminance Meter LUX 252
35 SMD TEAM ROOM Illuminance Meter LUX -----
36 ODMS Illuminance Meter LUX 426.6
37 WM NEW OFFICE Illuminance Meter LUX 143.3
Legends Within PEQS

Out of PEQS
LIGHT LEVEL PAKISTAN TOBACCO COMPANY
SR Method/
Time LIGHT LEVEL PMD Unit
NO Technique Results Status
1 20:25 PMD Stem Bin Stair Enter Illuminance Meter LUX 89 100
2 20:27 PMD Step-in Stair Mid Illuminance Meter LUX 76 100
3 20:31 PMD Stem Bin Stair End Illuminance Meter LUX 49 100
4 20:33 KT-2 Extern Stair Illuminance Meter LUX 62 100
5 20:35 CAT Walk KT-2 Stair Illuminance Meter LUX 102 100
6 20:37 CPS Dyer Stair #01 Illuminance Meter LUX 115 100
9 20:43 ITM Stair Illuminance Meter LUX 174 100
10 20:45 ITM Conveyer Stair Illuminance Meter LUX 72 100
119 | P a g e
Lux Level
200
180 174
160
140
115
120
100 100 100 100 102100 100 100 100 100 100
100 89
76 76 72
80 66
62
60 49
40
20
0
PMD PMD PMD KT-2 CAT Walk CPS Deyer CPS Deyer CPS Deyer ITM Stair ITM
Stemp Bin Stemp Bin Stemp Bin Extter KT-2 Stair Stair #01 Stair #02 Stair #03 Conveyer
Stair Stair Mid Stair End Stair Stair
Enter
Results Status
120 | P a g e
WEEK ACTIVITY
Week 1 1. Information about trade marketing.
2. Analysis of Distribution house Jhelum.
3. Analysis of DR’s in distribution house.
Week 2 vi Learnt about what is automation?
vii Analysis the process of conversion of Distribution house from

manual to automated system.
viii Opening & closing at Distribution Company.
Week 3 1. Analysis 121 engagement.

 Virtual Activity
 Chaos Activity
2. Understood channels
3. Visit Mirpur distribution house.
121 | P a g e
Week 1. Visit Lala Musa Mandi.

2. Visit Brand Ambassadors’ that were promoting the brand.
4-5 3. Visit Warehouse in PTC.
Week 6 1. Worked on retail report and finalized report.
Core Project:
Automation and 121 engagements.
121 ENAGANGMENT:
121 engagements is the action or the process in which company
directly engaged with the consumer to provide information of their product or brand through
word of mouth. 121 engagements is about encouraging the consumer towards your own brand
on the basis of information and experiences a company shares.121 engagement increases the
value creation and consumer remains loyal towards brand.
PTC 121 ENGANGMENT:

As government of Pakistan has banned advertising of
tobacco, PTC is involved in 121 engagement strategy in which it builds a communication
between a brand and a consumer. The aim of this engagement is to occupy the consumer
mind by their own brand in order to increase sales in future.PTC is performing two kinds of
activities for two brands which are:
3- VIRTUAL activity for Capstan by pall mall
4- CHAOS activity for Gold flake
122 | P a g e
CONSUMER CONTACT:
B.A contacts with consumer in this way:
 B.A targets only a smoker. He goes to consumer; introduce his self and company and
shows his card.
 Then he asks name and age of consumer and demands his ID card to confirm that he
must be above 18.
 Then, he asks consumer; do you smoke? Which brand do you smoke? If he says yes
than B.A continuous his dialogues by saying do you know the meaning of that sign
“Pause”.
 If consumer says no than B.A says “This is sign of pause sir! And it gives you
message that “enjoy every moment.”
 Than B.A shows him some videos of capstan by Pall Mall by his permission and say
good bye.
My learning’s:
i. Personal Information gathering Form Employees.

ii. Analysis of 121 engagements.
iii. Analysis of Automation.
iv. Did market visits to understand that how PTC is going through Indoor Advertising.
v. Analysis of Warehouse.
vi. Analysis of Distribution Company Jhelum.
vii. Understood how BA deals with consumers.
viii. Analysis of advertising.
ix. Check retail census for 2018.
AUTOMATION:
Automation is the creation of technology and its application in order to control and monitor
the delivery and sale of various goods and services. It performs task that were previously
performed by humans.
123 | P a g e
HOW DR USES AUTOMATED DEVICE:
 The name of application is RCS8 and version is 8.

 I’D and password is given to every DR. He enters his I’d and password in application
and starts his day by marking attendance.
 GPS coordinate is captured.
 Quantity of all the brands is mentioned in app in outers.
 DR hits the beat. He visits DD channel thrice a week and VDD channel twice a week.
 He recorded sales and receipt of bill, generated by a printer, is handed over to retailer.
 He receives the cash against that receipt.
 There is an add option for visiting other outlets.
 Timing is updated.
 He then turns back to distribution and matches his sales with manual sales register
whether they are same or not.
 The variance in the sales can only be corrected before the internet is connected. Once
internet is connected, the variance cannot be sorted more.
 In closing his day, he enters his stock returned and defective units.
 He then goes to cashier; deposits cash to him and close his day.
MARKET VISITS DURING INTERNSHIP:
1) Visited distribution company Jhelum and checked their selling process.

2) Visited Sultania hotel and super Awan hotel to see 121 engagement and dhaba
activity.
3) Went to Lala Musa Mandi and visited traders in mandi and came to know that it is the
2nd largest mandi in Pakistan. Razzaqiya traders sell 45 million sticks in a month.
124 | P a g e
4) Visited company’s finished goods warehouse and learnt about local orders and route
orders.
5) Went to The Distribution Company to understand the automation.
6) Went to chaos activity of gold flake to understand automation.
Types of activities:
There are two types of advertising activities:
1) Chaos activity
2) Virtual activity
What happened in Chaos activity?
Chaos activity is arranged for Capstan by Pall Mall in which following questions are asked to
consumers.
1) What is your name?

2) Are you above 18?
3) Do you smoke?
4) Can I have your CNIC?
5) If consumer agrees to give B.A his id then the advertising video is shown to him.
6) Otherwise, B.A says Good Bye to consumers.
What Happened in Virtual activity?
1) Gadgets are given to B.A

2) They have special uniform
3) They asks question about name, CNIC to consumers
4) Then, B.A shows video to consumers
5) He also swipes PTC brand to other local brands.
SWAPPING:
125 | P a g e
Swapping refers to the exchange of one brand for another. Brand Ambassadors of
PTC are involved in swapping. They take some brand of competitor’s Company from the
consumer of that company and give him the cigarette of their own company. B.A of gold
flake is being involved in swapping process.
B.A of B.A gives Gold flake DNP’s

Gold Consumer
Flake
Consumer gives kisan
H
BRAND AMBASSADOR’S FOLDER:
ives B.A’s Kisan
CYCLE
FCP (fixed
INSTRUCTIO PITCH
coverage plan)
NS
126 | P a g e
 Cycle instruction are the directions to brand ambassadors that to which market or
area they have to be entered to promote the product daily, weekly or monthly.
 FCP is the fixed coverage planned which is grant by the company includes
instructions about changing the poster pictures.
 Pitch includes some dialogues which are allotted by the company which are spoken
by the brand ambassador of the company to introduce the product so that they can be
aware of the brand or the company.
RECOMMENDATIONS:
 Device which is provided to DR’s gets hang, due to which DR is facing issue
in selling the brands.
 There must be alternative of Samsung devices so that time consumption can be
reduced.
 The gadgets which are provided to B.A’s are really expensive and there is no
as such security for them, there is high risk of snatching in market.
 B.A is root of the 121 engagment. He does not have enough knowledge about
brands and their production. Couching classes must be set up for them so that
they can completely satisfy all consumers.
 Motivation is really compulsory for sales force in order to catch up more
consumers. Money isn’t only factor that keeps them motivated. Sales force
must be motivated by full support, recognition, respect and foremost training.
 Last but not least, an action must be taken for smuggled brands. These brands
aid to decrease the sales of Pakistan tobacco company brands
CAMPAIGN FOR SMUGGLING OF FOREIGN CIGRETTES:
PTC must initiate a vigorous campaign for curbing the growing menace of smuggling of
foreign cigarettes into the local market. And since NWFP has the notorious reputation for
127 | P a g e
being the hub of smuggled and contra banned goods in the country as most of smuggled
brands sneak into the country through Afghan border therefore, it is incumbent on officials at
the Area Sales Office to go out of the way in a bid to put an end to this trade. For this the
company should collaborate with the retailers and custom officials to pin point such elements
who are engaged in this trade and through Concerted efforts uproot them.
ACTION AGAINST NON-TAX PAYING CIGRETTE MANUFACTURS:
Likewise, a large number of non-tax paying cigarette manufacturers are into the business in
the province that must be taken to task and their operations are halted.
128 | P a g e
REFERENCES:
 http://www.ptc.com.pk/group/sites/pak_ampc26.nsf/vwPagesWebLive/DOANGKM8
/$FILE/medMDB3LDEX.pdf?openelement
 http://www.ptc.com.pk/group/sites/pak_ampc26.nsf/vwPagesWebLive/DOANCKYV/
$FILE/medMDAXBLAU.pdf?openelement.
$FILE/medMDAPSHSM.pdf?openelement
$FILE/medMDAP SHSM.pdf?openelement
129 | P a g e

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1

Summer Internship Program 2019

UNIVERSITY OF THE PUNJAB JHELUM CAMPUS

Tabassum Riaz HOD, Business Administration

Department of Business Administrator

University of the Punjab, Jhelum Campus

Dr. Muhammad Mudassar Ghafoor

University of the Punjab Jhelum Campus, Jhelum

BBA (Hons) 8th semester

PMD Layout: .................................................................................................................................... 41

RCS8 MODULES: .......................................................................................................................... 71

EARNING PER SHARE & DIVIDEND PER SHARE: ............................................................. 109

2. PURPOSE OF THE STUDY

3. SCOPE OF THE STUDY

4. LIMITATION OF THE STUDY

Primary Data Collection.

1. Primary Data Collection:

2. Secondary Data Collection:

i. Annual reports of different years.

History of the organization:

1 INTRODUCTION TO THE ORGANIZATION

2. PAKISTAN TOBACCO COMPANY BACKGROUND

By being instrumental in designing and driving state-of-the-art agricultural and industrial

SEEKING NEW AVENUES:

LEADING ON TECHNOLOGICAL FRONT:

THE COMPUTER DEPARTMENT:

EXTENSION OF MSD DEPARTMENT TO FACTORIES:

A NEW ERA OF TECHNOLOGY:

o Global Wi-Fi for Head Office

o HOT backup site

o Telepresence + video conference solution

o Consecutive three years satisfactory rating ITGC Audit

o Tao Implementation, with warehouse management system for both factories

Vision And Mission& Strategic objectives Of Pakistan Tobacco Company

Diagram 1: Vision, Mission, and key Objectives of PTC

 LACKSON TOBACCO COMPANY (LTC):

 COUNTERFEIT / OTHER TAX EVADED BRANDS

Market Share of PTC and its competitors

Pakistan Tobacco 45.70%

Lackson Tobacco 44.20%

Tax evaded brands 5.90%

PTC Jhelum Hierarchy:

BRANDS PRODUCTION IN PTC:

NEW HEALTH WARNING:

PTC BRAND PORTFOLIO:

 BENSON & HEDGES:

 JOHN PLAYER GOLD LEAF:

 CAPSTAN BY PALL MALL:

It is VFM (value for money) brand targeting low class consumers.

viii. Operations Skills Development Centre

i. Responsible for keeping a stock of machines.

The components managed by the Engineering department are

i. SMD Services Area

Basic Engineering tasks that include the knowledge of:

Projects Manufacturin Incharge

Primary Secondary Electrical Electrical

Supply chain Department:

i. Production planning to meet requirement of market.

v. Running and maintenance of Company’s fleet of vehicles.

Supply chain is complex and dynamic demand-supply network. A system of org

Primary Manufacturing Department (PMD):

i. Lamina Conditioning, Cutting and Drying

important component of a cigarette is the Tobacco it contains, which is treated so that a