AL-FAIZ RICE MILL

FAIZ GROUP OF INDUSTRY

CORPORATE PROFILE:
Faiz group of Industry is known for its best processed products in all over the region of South Punjab. It was established in 1985 by Mr. Sheikh Faiz Rasool who was a well-known land lord and turned into good business man. Faiz Group of Industry deals in Cotton, Rice and Flour and consists on following four mills.

1. Two Cotton mills 2. One Rice mill 3. One Flour mill

All these mills have their suppliers as well as distributers in all over Pakistan by providing best quality final product and supporting the agriculture sector in South Punjab region.

1.1.

AL FAIZ RICE MILL:

The Rice mill is an initiative of Faiz Group of Industry to get the competitive advantage of dealing in all major crops in South Punjab which gave them a major extension in their profit boundaries. Al Faiz Rice Mill was established on 21st of November, 2005. The recent owner of Faiz Rice Mill is Mr. Kashif Rasool (son of Mr. Faiz Rasool).

AL-FAIZ RICE MILL

CORPORATE STRATEGY
The corporate strategy of Faiz Group of Industry is simple and can be defined in a way that Make the BEST out of the BEST Which shows the raw materials should be chosen which are best cultivated and their processing will be so effective and efficient that the final product will be the best among the competitors in the market because QUALITY means everything.

2.1. VISION:
The rice quality should be on the optimum level and there will be no compromise regarding the quality of the final product or raw material. There should always be the balance between the price and quality of product and consumer will always get the hygienic product.

2.2. MISSION:
Regarding the five year project, the mission is constructed on annual basis. To get the maximum suppliers without exceeding the budget. To increase the processing power with the development of machinery Training of labor should be ideal because the labor comes for only a year.

AL-FAIZ RICE MILL

CORE COMPETENCIES
The management of Al-Faiz rice mill believes that the core competency is all about maximization of rice quality against the competitors which are: Chand Rice Mill Al-Haider Rice Mill Thal Rice Mill Akhtar Maqbool Rice Mill

To maximize the rice quality, they heat the BROKEN to its final stage and take out all its dampness and by polishing it they made it more nourished and durable for a long time. They adopt following techniques of the combination of cost efficiency and increase efficiency of machinery to maximize the quality of rice:

3.1. COST: They reduce the cost of the labor by giving the tender to get the labor. The
person who provides the labor in fewer prices will get the tender and they also negotiate prices with their suppliers to be cost efficient in the market. Thus the process becomes cost efficient. The amount of cost of project in a year is approximately 1-1.5 million rupees when the season is on.

3.2. TIME: Time is an essential factor when it comes to the core competency of the mill.
The usual rice mills take a week to take the whole process to complete. However, AlFaiz Rice mill take 5 days for the completion of the process of rice until its polishing which gives them a clear competitive edge in the market.

3.3. WORKFORCE: To achieve their level of core competency, the manager took the
decision to hire 300 labors every year by tender. The number of labor is more than competitors but essential at every point of process. The more labor means boost the process in no time. The labor is paid up according to conditions of the tender.

3.4. SYSTEM AND TECHNOLOGIES: The machinery of the mill is installed at the
time of establishment (21-11-2005). The maintenance of the machines checked and repaired on mid of every scheduled year. The machines are upgraded on regular basis by modern gears and have both automated and manual system which make them more effective and efficient than their competitors. As to be a local mill, they lack the formal hierarchy of management in the system which causes the system flexible as well as vulnerable but due to most work is automated that weakness does not affect very much.

AL-FAIZ RICE MILL

PROJECT DESIGN
4.1. PROCESS DESIGN:
The rice mill adopts the standard way to process the rice like everyone else.

This process however needs efficient machinery and skilled labor to complete in time. The mill also uses the specific way to dry final product by using drying technique in the process.

AL-FAIZ RICE MILL

4.2. ENGINEERING DESIGN:

The engineering design of machines mostly consists on automation and provides the boiling, drying and polishing facilities. The following figures provides both outer and inner look on the engineering design of the used machinery.

AL-FAIZ RICE MILL

4.3. FINANCING ARRANGEMENTS:

The mill has specific financial arrangements when the investments are considered. The whole finance is divided into two parts, one is owners equity and other is debt from banks. The ratio between the equity and debt can be different according to circumstances. The ratio can be like these ways: 1. 2. EQUITY 60% 70% DEBT 40% 30%

AL-FAIZ RICE MILL

PROJECT FACTS:
The project is based on the following facts.

5.1. LOCATION: The rice mill is located on the Multan road which is purchased by Mr.
Sheikh Faiz and it provides the facility to easily use the transport and be very near to market as well as to some initial suppliers. The location is also open which gives a favorable climate to labor to work on a great competency.

5.2. PROJECT COST: The project has a time period of 5 years which approximately worth
7.5 million rupees.

5.3. MAIN SUPPLY: The main supply of rice to the mill comes from:
Rana Shahid (Karor) Malik Khalil (Karor) Jam Riaz (Kot Sultan) M. Iqbal Qureshi (Kot Sultan) Ahmad Ali (Kot Sultan) Ahmad Khan (Dera Ismail Khan) Mian & Co. (Sargodha)
7

AL-FAIZ RICE MILL

5.4. COMPLETION PERIOD: The completion period of the process is 5 days. The whole
project takes 100 days to complete.

5.5. FIRST INPUT IN PRODUCTION: The first input in the production process is
BROKEN straight from the rice crops.

5.6. FINAL PRODUCTS: The following products from the firm are:
Aeri 6 Super Fine Super Banaspati Super Karnal

5.7. TRANSPORTATION: The transportation used by the suppliers and distributers are
usually private ones.

CAPACITY:
The capacity of the firm indicates its progress efficiency and the ability to deliver the good when they are needed the most. The capacity can be determined by two ways:

6.1. PROCESS UNIT CAPACITY: Every sack of rice is of 60 kilograms. In 24 hours,

the machines processed 1300-1400 sacks. So, it is 78000-84000 kg in 24 hours.

AL-FAIZ RICE MILL

6.2. STORAGE UNIT CAPACITY: The rice mill has the capacity to store 35000 sacks
at a time. To store, the mill is using the same old traditional method of storage like everyone else.

6.4.

FORECASTING:

The forecasting method is adopted by the manager is to maximize the input for every next possible year but the situations always remains uncertain to predict because of change in weather conditions like no rains or floods and uncertainty in political and economic conditions.\

AL-FAIZ RICE MILL

6.5.

SUPPLY CHAIN MANAGEMENT:

The Supply chain management shows the flow in the following way.

10

AL-FAIZ RICE MILL

DISTRIBUTERS

RICE MILL
SUPPLIERS

Rana Shahid (Karor) Malik Khalil (Karor) Jam Riaz (Kot Sultan) M. Iqbal Qureshi (Kot Sultan) Ahmad Ali (Kot Sultan) Ahmad Khan (Dera Ismail Khan) Mian & Co.

Mula Ilahi Baksh (Swat) M. Sajid (Karachi) Mian Hafiz Karim (Islamabad) Iqbal Rice Mill (Chiniot) M. Imran & Brothers (Faisalabad) Mian Arslan (Rawalpindi) Delta International (Karachi)

As the figure shows, the rice mill takes the input from suppliers and processed it to make it nourished and further give final product to distributers. The delivery to distributers can be done directly or through agents but the mill prefers directly go to distributers to avoid the commission because it affects the prices in the market.

SWOT ANALYSIS:
7.1. STRENGTH
11

AL-FAIZ RICE MILL USP's (unique selling points): Perfection until execution. Resources, Assets, People. Marketing - reach, distribution, awareness. Innovative aspects. Reasonable Price, High quality sustaining the values.

7.2. WEAKNESS
Cashflow, Recovery from clients. Effects on core activities, distraction.

7.3.

OPPOTUNITIES
Market developments. Industry or lifestyle trends. Technology development and innovation. Business and product development. Information and research.

7.3.

THREAT
Political effects. Legislative effects. Employment market.

12

AL-FAIZ RICE MILL

CONCLUSION:
Al-Faiz Rice mill is providing high quality, nourished and durable rice at an affordable price. They are benefiting both farmers and consumers by maintaining a balance in price. They are getting competitive advantage by providing high quality product by their processing, drying and polishing techniques. The weak link which was found at time of visit was that they did not have a proper management structure in the mill because of absence of management hierarchy and centralized management system which provide the ultimate authority to owner and because of that there will no check and balance over the decision making. Anyhow, they are doing good to benefit the customer by providing high quality product and benefit themselves by getting a big profit margin and market share from their competitors.

13