Live case interview

MR. SHOAIB SIDDIQUI
Premier Mercantile Services (pvt.) ltd

PRESENTED BY: Quratulain Riaz (146.06) Mehreen Raza (419.06)

The Entrepreneur:
– Name: Mr. Muhammad Shoaib Siddiqui – Age: 50 – Work Experience: about 35-40 years. – Education: BA (private) from Pakistan, ITC (Inter transport course), ICD Course from UN and CILT (Chartered institute of Logistic & Transport) – Designation: Director Operations of Premier Mercantile Services, – Other companies started: Started Al-Hamd International in partnership with a foreign company but left it after a few years; Plans to establish another Inland Dry Port in Lahore.

The company
– Founded by Mr. Haleem Siddiqui and his younger brother Mr. Muhammad Shoaib Siddiqui in 1964. – PMS has been engaged in providing cargo handling services at the Karachi Port since its inception in 1964. – PMS was one of the first companies in Pakistan to invest in modern container handling equipment. – PMS is the oldest and largest stevedore and Terminal Operator working on Karachi Port – PMS Provides on-board stevedoring service to over 30,000 Container Units per month – PMS is the only company in the history of KPT to have its own State of art Shed for the handling and storage of export cargo. – PMS had Most modern equipments, and Skilled and efficient staff for the handling of cargo as well as containers.

Source of the idea
• The inspiration and idea to start the project came from Karachi port trust – which lacked in efficiency and productivity. • The brothers felt the need of private stevedoring and terminal operating company to capture the large market – by providing better services, – improved quality and efficient handling by installing modernized equipments and latest machines; – and by installing a computer based system.

Funding:
– All the initial investment was made by obtaining loans from banks.

Locations:
– The company’s first office was on rent in Writer's Chamber, – with the passage of time, the company moved its offices at Business Center; – now the company has huge offices and plans to establish a separate building for PMS.

Basic competitors:
– In general there are 30 other stevedoring companies but following are the two major competitors of PMS: – M/S Badaruddin Stevedore – M/S Friends Corporation Stevedore (pvt) ltd.

EFFECT OF ECONOMICAL CONDITIONS
• • • • • The economy of Pakistan plays a vital role in the stability of the company. the import and export of the country depends on the economy of the country, Presently the export and import of the country has reduced up to 35%, which has also affected the company. In such conditions, the export and import reduces, which lessens the number of containers eventually. The number of containers due to the present situation has reduced from 60,000 to 40,000.

To Maintain Stability:
• • • Does not downsize, the company cuts the number of equipment for handling of the cargo on port. The company avoids making any additional investments in the period of recession.

Problems Faced
• The company has faced many hurdles from time to time; – the interference of brokerage – And the government; • the involvement of the government refrained the company from bringing change in terms of modernization of equipments. • The company had to fight with the government for permission in this regard for 15 years (1980-1995) . • The delay in the modernization and installation of new equipments effected the growth of the company. – Legal obligations. • The company is bound by law that they have to hire DLB (dock labor board).

Competitive Advantage
• The company has large amount of latest equipment. • They have the expertise in this field.. • Services
– – – – Efficient handling of cargo Prompt delivery Reduce chances of damages Compensation of damages

• They charge relatively low prices.

Future plans
• Mr. Siddiqui plans to start a mega project; an inland dry port in Lahore in the August 2009.
– Challenges of the new project
• Mr. Siddiqui had planned Lahore inland dry port about 5 years ago, but Government has delayed the project. • which in turn caused delay in receiving loans from the banks.

– Strengths of the new project:
• Government has dry ports but does not attract customers due to lack of marketing. • This new dry port would offer efficiency and reliability to the customers. • They would provide guaranteed transit time, no fluctuation in freight charges, no need of security deposits, one window operations; • they would offer direct custom documentation.

– Marketing for the future project:
• Personal marketing • Newspaper and magazine advertisement in “Murad Shipping Advertisement”.

Success Factors
• Mr. Siddiqui believes that three factors play a significant role in company’s success.
• Services • Commitment; • And honesty.

Qualities Of An Entrepreneur
• • • • Patience. Time Management. Commitment. Avoid Hastiness and Rapid Success.

Thank you!!

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