“A Project Report On Unilever Pakistan Lmt ”

By

Zain Khan Chandio (2111158)

&

Mubeen Mustafa

Submitted to:
Sir Ahsan Shaikh

Subject:
Operation Management

BBA (6)

Shaheed Zulfiqar Ali Bhutto Institute of Science & Technology (SZABIST)

 Acknowledgements

We extend our heartfelt gratitude to Sir Ahsan Shaikh for his invaluable guidance and expertise
in the field of Operations Management. His mentorship and support have been instrumental in
shaping this report and ensuring its alignment with the course objectives.
 Introduction

Unilever, an Anglo-Dutch multinational company, stands as one of the world's largest and most
prominent multinational corporations. It initiated its expansive business endeavors by
establishing its first factory in the Netherlands back in 1890.

With a presence in Pakistan spanning over four decades, Unilever aims to significantly enhance
the quality of life by providing top-quality products to its customers. The fact that over 90% of
Pakistanis use Unilever products speaks volumes about the company's success.

Their wide range of offerings includes household care, fabric cleaning, skincare, oral hygiene,
hair care, personal grooming, and tea beverages, all under globally recognized brands. Unilever's
brands are available in 190+ countries. 3.4 billion people use their products everyday and The
company had €59.6 billion turnover in 2023
Unilever Pakistan, with 70.4% equity owned by Unilever, stands as the largest Fast Moving
Consumer Goods (FMCG) Company in Pakistan. It also ranks among the largest multinational
operations in the country. Unilever Pakistan Ltd, a subsidiary of the Unilever Group, has been
operational in Pakistan since 1948. The company's primary business lines encompass soap and
detergents, personal care products, cooking oils and fats, packaged teas, and ice cream.
Unilever Pakistan is a 70-year-old organization- almost as old as our country.

Amir Paracha is the Chairman and Chief Executive Officer of Unilever Pakistan Limited.
He joined Unilever Pakistan in 2000 and has held various senior management positions in
Pakistan and North Africa Middle East cluster over his 20 years with the Company. Prior to
taking over as the CEO, in his role as VP Customer Development, he helped deliver solid results
and maintained a strong growth mindset, successfully inspiring a transformative vision for the
future.
 History

Lever Brothers Pakistan Limited is a big company that is part of a multinational organization
called Unilever PLC London. Unilever is based in Europe, with its main office in London, and
its shares are traded on stock exchanges in different European countries. They make lots of
different things like food, cleaning products, and personal care items. Unilever has branches in
over 80 countries all around the world, where they share their knowledge and resources.

The story of Unilever goes back to William Lever, who started as a grocer in England in 1827.
He founded Lever Brothers, and their first product was Sunlight soap, which was one of the first
branded products ever. At the same time, Margarine Uni was started in the Netherlands by
Simon Van Berg and Anton Jurgen’s. Both companies had problems making profits because of
the cost of raw materials and selling their products.

So, in 1930, they decided to merge. They combined their businesses and called the new company
Unilever PLC. They took the "UNI" from Margarine Uni and "Lever" from Lever Brothers.
Their headquarters were set up in England and Rotterdam.

Unilever has 500 companies in 80 countries. They have 0.3 million employees and make sales of
23,000 million pounds. Most of their business, 60%, is in Europe, while 20% is in North
America and 20% in other parts of the world. There is a group of directors who oversee the work
of all the subsidiary companies around the world.
Lever Brothers Pakistan Limited started working in 1948. They merged with Sadiq Vegetable
Oils and Allied Industries, which was in Rahim Yar Khan, and HVM Company in Karachi. This
merger created Lever Brothers Pakistan Limited as a separate company under Unilever in 1955.
The company is listed on the stock exchanges in Karachi, Lahore, and Islamabad. Lever Brothers
Pakistan Limited has about 1900 employees in Pakistan.

Vision And Mission Of Unilever

Vision
The staffs of Unilever are driven by their purpose: to make sustainable living commonplace.
Furthermore, their Vision statement state as follows:
"We want to do more good for our planet and our society – not just less harm. We want to act on
the social and environmental issues facing the world and we want to enhance people’s lives with
our products.
We’ve been pioneers, innovators and future-makers for over 120 years – we plan to continue
doing that. And we plan to do it sustainably."

Mission
Unilever Pakistan's mission is to improve the quality of life of people in Pakistan by providing
them with high-quality products that meet their needs and expectations. The company is
committed to sustainability and has set ambitious goals for reducing its environmental impact
and improving the livelihoods of people across its value chain.
 Strategic Goals

Unilever believes that the winning businesses of tomorrow will be those which anticipate and
respond to the huge changes shaping people’s lives across the world.

 The businesses that will have the greatest success are those which capitalize on the power
of data and biotechnology; adapt to shifting consumer needs; and contribute to tackling
the twin challenges of climate change and social inequality.

 Unilever has a long tradition of being a responsible and pioneering business. It goes back
to the days of their founders, including William Lever, who launched one of the world’s
first purposeful brands, Sunlight Soap, more than 100 years ago. And it is at the heart of
how they run the company today.

 Unilever strives to do more good for the planet and society – not just less harm. They
want to act on the social and environmental issues facing the world and they want to
enhance people’s lives with their innovative, sustainable, and high-quality products. This
is how Unilever will grow it's business.
 Unilever Location Selection And Plants

Unilever Head Office is based near Saddar, in the heart of the city, Karachi. Karachi
is the largest city and the industrial and financial power house of the country and just like
this city, Unilever Head Office drives the strategy for the entire business. They have
colleagues coming in from cities across Pakistan. There office offers a future-fit and an
agile layout that fosters collaboration and connectivity.

UNILEVER PRODUCTION UNITS

Different factories of Unilever are operating in different areas of Pakistan. Brief
information about these

Units is given below:

RAHIMYAR KHAN
The largest and the oldest of Unilever production plant is situated in Rahim Yar Khan.
Basically at this factory personal
products, soaps, glycerin and dish wash bar are manufactured.

KARACHI TEA FACTORY

This factory was established in 1950 and it is situated in west Wharf area. Formerly it
was owned and
managed by Lipton Pakistan Ltd. In the last 43 years many modifications are made here.
And the
factory has expanded considerably. In this factory only tea is produced and packaged.

KARACHI EDIBLE FACTORY

It is situated on Hub River in S.I.T.E. A&B Oil Industries established the factory in 1958
and the
production of the vegetable oil began in 1962. In 1965 Lever acquired the factory.
Banaspati,
cooking oil and margarine are produced here and distributed all over the country.

ICE CREAM FACTORY

This is recently established on Multan Road in district Kasur. The plant was
commissioned in 1994
having the most modern and latest machines installed. Walls Ice cream is being
manufactured here.
BEST FOODS FAISALABAD
Recently LBPL has acquired Rafhan Maize Products from Best Foods International.

TEA PROCESSING PLANT (MANSEHRA)

The new Lever Black Tea Processing Plant has been set up at Dhodial, 12 km north of
Mansehra on
the main Karakoram Highway on 2.5 acres of land with the Processing Plant built-in area
of 11,800
sq. ft. The plant is expected to process 50 kg per hour or approximately a ton of made tea
a day.
The plant has cost Rs. 11 million whereas Rs. 12 million has been spent on the building
and
infrastructure. The plant has been inaugurated on 7th of September, 2001.

Lever Brothers Pakistan Limited (Rahim Yar Khan Factory)

Lever Brothers Pakistan Limited (Rahim Yar Khan Factory) is situated at Leghari road
near the main city. The factory deals in major three types of products, which are
categories as under:
Personal Wash
Personal Products
Laundry and Detergents
Personal wash has a wide range of soaps

LOCATION
Location is the process of determining a geographical site for a firm‘s operation.
Organizations must weigh many factors when assessing the desirability of a particular
site that can be
Proximity to customers
Proximity to suppliers
Labor costs
Transportation cost.
Unilever Rahim Yar Khan Factory is situated in the middle of the city. It was established
in 1948. The
main reason for choosing this location for the factory was:

 The land for the factory was donated by the NAWAB of the Bahawalpur State.
 It was the ideal location to cover the Indo-Pak border areas.
 It was the central location of Pakistan so it was a convenient location from the
distribution point of
view.
 Availability of the cotton seeds because south Punjab is cotton area.
 Government tax free area
 Availability of inexpensive labor

PROXIMITY TO MARKETS
The site of R.Y. Khan Plant was chosen in 1948. The main reason was its central
location.
This location is the middle of Lahore and Karachi that were the main markets at that
time. So the company can easily cover whole market from Karachi to Lahore.

PROXIMITY TO SUPPLIERS AND RESOURCES

At that time the company was only producing oil for which cotton area was suitable. This
site was
suitable for processing the raw material that was cotton and R.Y. Khan was main cotton
area.

TAXES AND REAL ESTATE COST

It was the tax-free area. The land was gifted by the ABBASI family, so there was no real
estate cost.

TRANSPORTATION COSTS
Transportation cost is also a major determinant, which directs the location decision.
Transportation
cost is a major factor not only in terms of the raw material but also in terms of raw
material. As R.Y Khan is situated at the center of Pakistan, the movement of finished
goods cost minimum here across
Pakistan. R.Y. Khan Railway Station is situated along with the factory so transportation
through rail
is very easy.