Internship Report

On

Submitted to:

Sir Usman Ahmed

Submitted by:

Farhan Saeed
BBA-s12-039

Department of Business Administration

University Of The Punjab.
Jhelum Campus

In The Name

ALLAH

of
The Most Gracious,
The Most Merciful

Dedication
I dedicate this report to my Parents.
Without their Patience, understanding, support,
and most of all their love and prayers, the
completion of this work would not have been
possible.

ACKNOWLEDGEMENTS

In the name of Allah, the most Gracious, the most merciful

Internship remained a great experience for me as it added a lot to my knowledge.

However completion of Internship Report was not an easy task. It requires
continuous hard work and zeal. I think that there are many people who contributed a
lot to this report and completion of this report would have not been possible with out
the support of all these people, my respected teachers, my friends and my well
wishers. I would like to mention that Mr. Abdul Jabbar Athar, who was Material
Manager at ICI has been very kind and supportive through out my stay at there.
I would like to pay my gratitude to all my respected teachers for their guidance and
assistance in the completion of this report.
My gratitude will always remain due to the COMSATS Institute of Information
Technology and especially ICI Pakistan Ltd., Soda Ash Business for increasing my
knowledge and experience by providing me such an opportunity. Both these
prestigious institutions will have a lasting impact on my life.
May Allah Bestow His Blessings on All of Us

Farhan Saeed

TABLE OF CONTENETS

Part One
Introduction of ICI

.........................................................

History

.........................................................

Vision Statement

.........................................................

Mission Statement

.........................................................

Objectives of ICI

........................................................

Goals and Strategies ........................................................

Part Two
Company management system ......................................
Organizational chart

....................................................

Part Three
Administrative style ..............................................................
SWOT Analysis

...............................................................

PEST Analysis

.............................................................

BCG

................................................................

Part Four

Production facilities ....................................................

About Products

....................................................

Part Five
Company Marketing Mix
3C Analysis
Marketing Mix

...............................................................
.............................................................

Marketing Mix Strategies

...........................................

Part Six
Training Program .........................................................

Part Seven
Conclusion
................................................................
Recommendation
......................................................

Part Eight

Work done by me ..............................................................

Introduction of ICI

ICI was established in 1926, while it started it Pakistan chapter by establishing Soda
Ash Plant at Khewra, Distt. Jhelum in 1944. It is one of the oldest and fully
automated companies of Pakistan. ICI has currently five business in Pakistan in
which Soda Ash Business is the oldest and important one.
ICI was incorporated in 1953 and listed on Karachi Stock Exchange in 1957 as
Khewra Soda Ash Company and this name was changed to ICI Pakistan Limited in
1987. Now ICI is operating as a subsidry of AkzoNobel which is the chemical
industry leader around the globe.
Main purpose the internship was to extract practical knowledge by working in a
dynamic organization in order to apply the knowledge acquired during MBA
programme. Report include in depth analysis of the organization and carry financial,
technical, managerial and strategic aspects which have been evaluated to analyze
the current position of the organization.
I have evaluated the company by techniques like financial ratio like Profitability,
Activity and Debt ratios. These ratios are showing constructive signs for the future
prospects of the company. Management is capably utilizing the assets of the
company in order to generate sales. Overall financial position is adequate. Further
supportive material regarding the financial situation of the company is also included
in the report.
I am sure that this report will provide you a complete and clear image of
organization.

Our History
The history of ICI Pakistan predates the formation of Pakistan. From a
small trading concern with a single manufacturing unit, over the decades,
the company has transformed into one of the largest industrial
conglomerates of the country enjoying an iconic stature.

Company from Foundation till Now

Year
1944
1953
1957
1965
1966
1966
1968
1970
1973
1979
1980
1982
1982
1985
1987

Achievements
It establishes its first manufacturing site for the production of
Soda Ash at Khewra.
The Khewra Soda Ash Company is Incorporated as a Public
Limited Company.
The Khewra Soda Ash Company is listed on Karachi Stock
Exchange (G) Limited.
ICI Plc acquires 50% shares of Fuller
The name of Khewra Soda Ash Company changes to ICI
Pakistan Manufacturers Limited.
ICI Pakistan Manufacturers Limited increases capacity of Soda
Ash Plant to 45,000 tons.
ICI Pakistan Manufacturers Limited commissions its Speciality
Chemicals Plant at Karachi.
ICI Pakistan Manufacturers Limited sets up its Pharmaceutical
Processing Unit in Dhaka (formerly East Pakistan)
Fuller changes its name to Paintex Limited.
ICI Pakistan Manufacturers Limited increases capacity of Soda
Ash Plant to 65,000 tons.
ICI Pakistan Manufacturers Limited is listed on Lahore Stock
Exchange (G) Limited.
ICI Pakistan Manufacturers Limited sets up Polyester plant at
Sheikhupura with a capacity of 12,000 tons.
ICI Pakistan Manufacturers Limited Commissions new Dense
Ash Plant at Khewra.
Imperial Chemicals Industries (Pakistan) (Private) Limited and
Paintex Limited merge into ICI Pakistan Manufacturers Limited.
The company name changes to ICI Pakistan Ltd.

1987
1991
1991
1991
1991
1992
1993
1993
1994
1994
1995
1995
1995
1996
1997
1998
1999
2000
2001
2002
2004
2006
2006
2006
2006

ICI Pakistan increases capacity of Polyester Plant to 19,000

tons.
ICI Pakistan PowerGen Limited is incorporated as a Public
Limited Company.
ICI Pakistan launches its Seeds Business.
ICI Pakistan Foundation is registered as a charitable trust.
ICI Pakistan increases capacity of Soda Ash Plant to 100,000
tons.
ICI Pakistan Business introduces Dulux Range of natural white
colours with added fragrance.
ICI Pakistan commissions a plant for manufacturing of
specialized automotive .
ICI Pakistan adds Polyol blending facility to its Speciality
Chemical Plant.
ICI Pakistan increases capacity of Soda Ash plant by 50,000
tonnes to 185,000 tonnes.
ICI Pakistan marks the 50th anniversary of Soda Ash production
at Khewra.
ICI Pakistans operating profit crosses the one billion rupee
mark for the first time.
ICI Pakistan commissions Sodium Bicarbonate plant.
ICI Pakistan launches SHE (Safety, Health & Environment)
Challenge 2000.
ICI Pakistan increases Polyester fibre capacity to 60,000 tonnes
and polymerization capacity to 91,000.
ICI Pakistan Limited is listed on Islamabad Stock Exchange (G)
Limited.
ICI Pakistan commissions its PTA plant.
ICI Pakistan is awarded second position for Best Corporate
Accounts in the non-financial sector for its 1998 Annual Report
by the South Asian Federation of Accountants.
ICI Pakistan PTA Business demerges into a separate entity,
Pakistan PTA Limited.
ICI Pakistan launches ERP (SAP) implementation.
ICI Pakistan increases capacity of Polyester Plant by 44kpta
completed through Fayzan Manufacturing Modaraba.
Zestril of ICI Pakistans Pharmaceutical Division become the top
selling ace-inhibitor in Pakistan.
As a part of an asset modernization and improvement plan the
Polyester Business commissions a sixth processing line.
ICI Pakistan launches seven core values set of belief and
principles, which the employees live and work by.
ICI Pakistan crosses the Rs. 2 billion mark in operating result
for the first time.
ICI Pakistans Pharmaceutical Division enters the anti-infective
segment with its first branded generic Icef.

2006
2006
2007
2007
2007

2007
2007
2008

ICI Pakistan achieves compliance with Section 404 of the

Sarbanes Oxley Act.
ICI Pakistans business launches is first super premium range
5 in 1 technology brand Dulux Pentalite Classic.
ICI Pakistan completes 50kpta expansion of its Soda Ash Plant.
ICI Pakistan announces 65kpta expansion of its Soda Ash
Plant.
ICI Pakistan is awarded the Third Best Corporate Report award
for the year 2006 by the Institute of Chartered Accountants of
Pakistan an the Institute of Cost and Management Accounts of
Pakistan.
ICI Pakistan completes 50 years of continuous listing on
Karachi Stock Exchange (G) Limited.
ICI Pakistan constructs and hands over a Girls Primary School
at Bararkot Near Garhi Habibullah to Earthquake
Reconstruction and Rehabilitation Authority.
Akzo Nobel becomes the ultimate holding company of ICI
Pakistan Limited.

VISION STATEMENT

ICIs vision is to be the industry leader in creating

value for customers and share holders. ICI will succeed
by operating at the highest levels of excellence,
acquiring unrivalled knowledge of key markets and
using technology creatively. The result will be products
which deliver greater benefits for the companys
customers,

higher

returns

for

increased rewards for employees.

shareholders

and

MISSION STATEMENT

We will remain market leaders in Soda Ash and

derivatives business in Pakistan by strengthening our
customer base while being the lowest cost producer in
the region and the most reliable supplier of quality
products.

Strategies of ICI:

Business Strategy
Employee Communication
Specialist Help
Change Management
Dispute Resolution
Diversity Management

Organization and workforces Requirement

Succession Planning

Part Two:
Company Management System :
Right People
Reward and Recognition
Management
Structure

Right Time
Right Motivation

Job Profiling

Qualification
Skills
Experience
Competencies

Before we discuss the management structure of the Soda Ash Business, it is

important that we first observe the board structure of the whole company.
Performance
Board ofManagement
Directors:

Recruitment Appointment
Carrier Development
Potential
Appraisal
ICI Board consist of ten members, headed by the Chairman
of the board.
Currently

is comprise of sixPeople
non-executive
directors and four executive directors. Mr. M. J.
Performing to Full potential
Training
Jaffer
(non-executive directors) is the current chairman of the board and Mr. Waqar

Learning And

A. Malik
is the chief executive of the company.
Education
Main responsibilities of the board is to guide
Employee
the company
Information
and system
form policies
consistent with objectives of the company i.e. being the industry leader in creating
Output Aligned to Business Objectives

value for the customers and shareholders.

Executive Management Team:

The management of ICI is done through an executive team headed by the Chief
Executive of the company. Team includes head of the management team from each
business (generally Vice President or General Manager) and also includes Chief
Financial Officer and G.M. Human Resources. So the team of eight members is
formed which manage the overall business of the ICI Pakistan Ltd.
The Executive Management Team is responsible for delivering the Groups two
major strategic thrusts of driving performance and reshaping the portfolio. The
members of the team have an in-depth experience of managing complex

ORGANIZATIONAL
CHART
international businesses
and functions within ICI and
other leading companies.
SODA ASH BUSINESS

Organizational Chart:

VICE
PRESIDENT

Operations
Manager
Marketing
Manager

Production
Manager

Medical
SuperinFinance
tend
Manager

H.R
Manager
Technical
Manager

Materials
Manager
Engineering
Technical

Accounts &
Stores

Finance dept.

IT Dept.

Part Three :

SWOT ANALYSIS
SWOT Analysis is a simple framework for generating strategic alternatives from a
situation analysis. It is applicable to either corporate level or the business unit level
and frequently appears in marketing plans. SWOT stands for Strengths,
Weaknesses, Opportunities and Threads. The SWOT framework was described in
the late 1960s by Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews,
and William D. Guth in Business Policy, Text and Cases (Homewood IL: Irwin, 1969).
As far the SWOT analysis of ICI is concerned, situation show the following facts:
Strengths:

Strong Brand Name

Good reputation among customers

Cost advantage from proprietary know-how

Exclusive access to high grade natural resources

Favourable access to distribution networks

Resources, Assets and People

Innovation Aspects

Experience, Knowledge & Data

Quality process and procedures

ICI enjoys a good reputation not only in Pakistan but across the globe. Further
recently it is acquired by Akzo Nobel which is also chemical industry leader in the
world. So it strengthen the image of Soda Ash business. Further resources are
readily available in Khewra which is situation among the Salts, Lime Stone and Coke
mines. Innovation and quality control also have been a success for the ICI. Business
has a team of experience people and has a powerful distribution network across
Pakistan.
Weaknesses:

Timescale, Deadlines and pressure

Reliability of Data, plan predictability

Location of the business

Along with the strengths, Soda Ash business also has some weaknesses. First one
is the pressure and deadlines for the plant. Plant is operating at its full capacity and
company cannot afford the breakdown or shutdown of the plant because demand is
always on the higher end. Plant is in remote area, thats why in case of any
emergency, when expertise and not available in Khewra, it takes time to repair any
damage to the production. Further production at remote area, also increased
transportation cost to the different areas of the country.
Opportunities:

Market Development

An unfilled customer need

Arrival of new technologies

Loosening of regulations

Removal of international trade barriers

Information and Research

Partnership, Agencies and Distribution

Volume, Production and Economies

There are a lot of opportunities for the Soda Ash Business. Due to high growth of
industry in Pakistan, demand of the Soda Ash is increasing day by day as it is an
important raw material for different industries like glass, textile, paper etc. Further
economy of scale is also an important opportunity. There is only one competitor for
the ICI in Soda Ash and ICI has hold on more than 70% of the market. New
technologies are also helping in order to reduce cost of production.
Threats:

Emergence of substitute products

Political Effects

Shift in consumer tastes away from the firms products

Loss of key staff

Environmental Effects

Competitors Intentions

New regulations

Soda Ash business is also facing some threats in process of conducting business.
Soda Ash is mainly used as raw material in different industries. Due to growth of
production and new technologies, it is possible to substitute some products from
others. So business faces this threat that in future their products can be replace by
some other low cost products. Due to situation if far area, many employees leave the

job when they got an opportunity in some other sector in main city or move to some
other business of ICI in Lahore, Karachi etc.
Further competitors can also expand their capacity or adopt some better technique
in order to produce more quality goods. Thats also another threat for the business.
Environment effects are also important one. Awareness regards CFCs is also
increasing day by day. Although business has adopted a strategy in order to reduce
CFCs but it has to make it fast.
Further political situation effect the business a lot, especially the multi national one.
Falling price of rupee against dollar, inflation, increase in raw material, shortage in
electricity are also threats for the industries.

PEST ANALYSIS
Political-Legal factors:Political Instability: Since the independence in 1947, Pakistan has continuously
faced political instability. The political instability has led to uncertain environment in
the country, which is a threat for any business including ICI Paints.
Inconsistency in Rules & Regulations: The rules and regulations are changed quite
frequently due to changes in the government that affects the business flow for any
company. E.g The last government had introduced subsides for the chemical sector
but now the current government is planning to finish all subsides.
Law & Order Situation: The law and order situation is crucial as it has causes
serious disruption on business activity. The suicide bombing and military operations
have had an adverse effect on the confidence of foreign investors.
Taxation Laws: The government is providing relief to the paint industry. There is a
10% reduction in the central excise duty on paint products. Economic factors:Economic Situation: Economic conditions are not very sound. The rising political
instability has led to economic instability as well.

Inflation: Inflation remains the biggest threat to the economy. The surge in global
petrol prices and thus local petrol prices hurt the buying power of consumers that
reduced the demand for products. Due to inflation the cost of doing business has
also gone higher. If Pakistan keeps on getting better grants and loan waivers or if
any other economy boosting factors such as controlled inflation rate and economic
growth take place, it will benefit the entire industry including ICI Paints.
Unemployment: The unemployment rate is going up and up which has increase the
level of poverty thus further reducing the buying power of the people.
Social-Cultural factors:Western Life Style: Increasing globalization has amplified the influence of Western
Culture in Pakistan. The lifestyle of Pakistani people is changing rapidly. People
are more conscious about their houses presentation.
Population: To meet the demands of a rapidly increasing population, there is an
increase in the number of construction projects in Pakistan which is a positive sign
for ICI Paints.
Technological factors:Latest Technologies: Companies have technology with which they can have a
competitive advantage in the Pakistani market. Companies are investing in the their
infrastructure to not only expand but also to upgrade their existing structure.
Paint Industry Technology
The current focus in paint industry is now on creating paints and coats that preserve
and protect the environment while beautifying our surroundings.

BCG Matrix
The BCG matrix categorizes brands according to two parameters, the rate of market
growth andthe relative market share. There are four categories under which brands
may fall:
Star:
High market growth & high relative market share.

Cash cow:
Low market growth & high relative market share.
Question mark:
High market growth & low relative market share.
Dog:
Low market growth & low relative market share.
The market positioning of ICI Weathershield and its direct competitors is shown in
the diagram below. As it can be seen ICI Weather shield has high market share and
high relative market share, therefore it is categorized as Star.
The purpose of the BCG matrix is to help devise a strategy in order to help resolve
the problemof increasing the market share from 60% to 70%.
Strategies under BCG matrix:
The various strategies available to improve the market position of a brand are
as below:
Differentiation Strategy:
Differentiation strategy is that the company differentiates its products or services to
those of other companies.
Cost Leadership Strategy:
Under this strategy the product or service is provided at the lowest possible cost so
that it higher margins may be earned by the company.
Focus Strategy:
This strategy gives importance to focus on the customer/ target market; identifying
and

serving

them

better.

ICI

Weathershield

is at present following

the differentiation and focus strategies. Although controlling costs is an important

matter, ICI Weathershield does not believe in comprising its quality. That would be
detrimental to its leadership position in the market. Also the number of household
users is greater than the number of corporations within the country and
contractorsalways use the brand demanded by their consumers. For this reason the
brand employs

differentiation

and

focus

strategies.These strategies suit the present situation of ICI Weathershield and theref
ore should becontinued.

PORTERSS FIVE FORCES MODEL OF COMPETITION

Although products such as distemper (choona), wallpaper, tiles etc are available
but customers are not likely to substitute them for paints as it would compromise on
quality and at the same time would not server the purpose.
The growing share of companies in the unorganized sector provides a low price
substitute. The threat of the entry of new competitors
With regard to the paint industry in Pakistan, there is a high threat of new entrants.
The main reason for this being low entry barriers, as there is no requirement of high
capital investment to enter the paint business.
Also, there are no proprietary product difference and low switching costs which puts
the phrase brand loyalty into jeopardy.
What make the paint industry attractive for newcomers is also the ease of acquiring
skilled people, material and supplies. Moreover, lack of long term contracts also
contributes towards the attractiveness of the industry for the newcomers.

However, there are established brand identities as well as consolidated distribution

channels to be accessed which would result in strong retaliation to be faced by the
newcomers.
Such is an example of Nippon who set up its business in Pakistan recently. The
Bargaining power of customers
Bargaining power of the intermediaries is high because the industry is divided into
the structured and unstructured market and does not act as a unified whole to
leverage the bargaining power in its favor.
Therefore the more the channel sells each product, the higher the margin they
keep for the company.
The bargaining power of end users however, is low because there a large number
of buyers, each with relatively small purchases.

 In addition to this, the organized paint sector has also accepted branding which
creates loyalty and decreases the price sensitivity, resulting in low bargaining power
of buyers. The Bargaining power of suppliers
Bargaining power of suppliers is low in the decorative segment as inputs required
are commodities and there a number of suppliers available who is fighting for a small
market.
However, since big companies fight on the quality dimension and cannot switch
their suppliers are in a position to negotiate their terms upon providing the desired
raw material which makes the overall bargaining power of suppliers moderate. The
Intensity of competitive rivalry
The paint industry can be characterized as a fragmented industry divided into the
organized and unorganized sector.
The unorganized structure is the biggest threat for established brands.

Part Four:
Production Facilities:

Products:
Soda Ash Plant manufacturers three type of core products:

Light Soda Ash (Na2CO3)

Dense Soda Ash (Na2CO3)

Sodium Bicarbonate (NaHCO3)

Production System:
ICIs Soda Ash production plant is situation in Khewra Distt. Jhelum. In this system,
main raw materials are Salt, Lime Stone, Coke and Ammonia Anhydrous. Due to

location of the plant in Khewra most raw materials are readily available. Further ICI
has his own quarry for limestone production.
In Soda Ash production, these raw materials are converted into Soda Ash through
different processes. Currently plant is operating at a capacity of 235,000 tons per
year and an expansion project of 50,000 tons is recently completed.
Further ICI Pakistan Ltd has further started expansion of its Soda Ash plant by an
additional 65,000 tons. This further investment in Soda Ash is fully in line with ICI
Pakistans continued commitment towards the development of import substitution
industries to cater to the local demand.
The total nameplate capacity of the plant after completion of the current expansion
will be around 350,000 tons in 2009. ICI conveyed the information to investors
presumably under the listing regulations of the stock exchangers.

Solvay Process for Soda Ash Manufacturing

Raw Materials:
Salt (NaCl): Salt is the main raw material for the Soda Ash production. So salt is
purchased main from the PMDC (Pakistan Mineral Development Corporation) in
Khewra and some portion is also purchased from the private mines in Khewra and
nearby areas. Further ICI also has an agreement to collect the rain water that is
accumulated in the pools of the Salt Mine of Khewra. This saves a lot of time and
working for the plant.
Lime Stone: Lime stone is partially collected from the own Quarries at Tobar & Dandot.
ICI has acquired the quarries in order to get the high quality lime stone timely and rest is
purchased from the local contractors and miners. 30-35 days buffer stock is always
maintained at the work.
Coke: Coke is purchased from Pakistan Steel Near Karachi on Advance payment
through Karachi Head Office. Steel is purchased and handed over to contractors for
processing as this coke is 80mm in size. They process it and required size coke (3035mm) is sent to the plant. 35-40 days stock is always maintained at the plant.
Ammonia Anhydrous: It is purchased from the fertilizer plant having surplus stock. It is
generally purchased from M/s Dawood Hercules & Pak China Fertilizers, Haripur.
Other Chemicals: Further some other chemicals are also involved which are

Sodium Sulphide

Ammonium Sulphate

Hydro Caloric Acid

Nalco Water

These chemicals are first purchased from the local market. Some of them are not
available in Pakistan. So these are purchased from foreign countries.

Manufacturing of soda ash through Solvey process

Main Raw material:

1. Lime Stone (CaCO3)
2. Coke (C)
3. Rock Salt (i.e.) Sodium Chloride (NaCl .H2O) as brine
4. Ammonia (NH3)
Solvey Process consists of the following steps:
1. Preparation of Ammonical Brine
Brine is pumped into tower and a steam of ammonia gas is passed through it. The brine
becomes saturated with ammonia. At the same time calcium (Ca) and magnesium (Ma).
Are precipitated as carbonates and allowed to settle down.
2. Carbonation
The sodium chloride salt (NaCl) and ammonia mixture is passed into carbonating tower
(solvey tower) it is consists of a large number of superposed cylindrical compartments.
The bottom of each compartment has a large circular hold covered with a preferated
sieve the object of which is to break up the carbon dioxide (CO2) into small bubbles to
obtain maximum absorption of the gas.
The carbon dioxide (CO2) is pumped in at the bottom of the tower and the ammonical
brine is admitted from the top. In such a way as to fill the tower almost completely. The
absorption of carbon dioxide (CO2) by the ammonical solution forming ammonium
carbonate and then ammonium carbonate liberates considerable heat which is
removing by cold water coils in the lower section only.

During the reaction the temperature is kept at 30-40*C but near completion the
temperature is reduced to about 15*C, to ensure maximum separation of sodium
carbonate. Carbon dioxide is obtained by ignition of the sodium bicarbonate and by
heating calcium carbonate in special kiln.
3:

Filtration

The solid sodium bicarbonate is filtered off, washed with a little water dried and heated
in ovens to get Na2CO3.
2NaHCO3

Heat

Na2CO3 + H2O + CO2

Carbon dioxide produced is used again.

4:

Recovery of ammonia

As ammonia is much more costly than sodium carbonate, so great care can be taken to
recover as much of ammonia as possible. The liquid, from the filters contains nearly all
the ammonia as ammonium chloride and ammonium carbonate.
The free ammonium is distilled off in steam. Lime obtained from lime kiln is added to
ammonia recovery tower steam is blown in so as to generate ammonia for next use.

Ca (OH)2 + 2NH4Cl

CaCl2 + 2NH3 + 2H2O

(NH4).2CO3 + Ca (OH) 2

CaCO3 + 2NH3 + 2H2O

The information about the process is given from the text book of chemistry-11. The
original process used in the manufacturing of soda ash based upon 10 steps which are
confidential but these are also based upon these lines.
Use of Computer / Technology in the Production Environment:
There is a lot of computer technology involved in the production. There is a control room
form where production activities are observed and controlled. Further system is greatly
influenced by the computer and robot technology and some process are based on
Mechatronics technology which is automated robot system controlled by the centre
control room.
Quality Assurance System:
Quality assurance is an important part of the productions. Quality Insurance Team make
is sure that processes are as per quality standards. Production is also observed and a
fixed portion of each batch is tested in order to assure quality. ICI have high quality
standards and never compromise on quality.
Warehousing and Storage:
Ware house is also located at the site area. When Soda is manufactured, it is packed
and labelled. Then these bags are brought in the ware house where they are recorded
and stored and then sent to the different destinations in the country and outside the
country.

SSH&E Programme (Safety, Security, Health & Environment)

Goal of ICI is to be the industry leader in the production and sale of products, which
benefit society. They provide a safe and healthy work place for both staff and

contractors, and act responsibly towards the communities and environment in which
they operate.
This is achieved by the continuous improvement of their first class SSHE performance
through corporate leadership, the dedication of their staff and the application of the
highest professional standards in their work.
SSHE Logo:
Good, safety, health and environmental performance
are essential to the long-term success of ICI.
Recognizing this and to build on the progress already
made, the SHE symbol has been developed to
encourage a unity of purpose across the Group.
There are three key elements to the symbol:

Unity of Purpose: Represented by the sculptures form of a circle to signify the

common SHE goals of the businesses and the ICI Group worldwide.

People: Depicted by the face, representing ICI staff, all intent on improving all
aspects of safety, health and environment, and supporting strong ethical values.

Care: The hand represents care for oneself, for others and the environment. It
shows personal responsibility.

SSHE Policy:

ICI will ensure that:

(a)

Its activities are conducted safely;

(b)

The health of its employees, its customers and the public will be protected;

(c)

Environmental performance will meet contemporary requirements;

(d)

Its operations are run in a manner acceptable to the local communities;

(e)

Employees, capital, information and other assets will be protected from

deliberate harm, damage or loss.

SSHE OBJECTIVES:

Safety

Health

Energy

Greenhouse Gases

Ozone Generators

Water use

Aquatic Oxygen Demand

Hazardous Waste

Non-hazardous Waste

Bio diversity

Land Assessment

Reduce Hazardous Substances to Air

Acid Gases

Systems

Distribution Incidents

Suppliers

Part Five :
Company Marketing Mix :

Corporate , Customer and Competitor Analysis :

Competition:
Soda Ash is produced on the base of mass scale production in order to achieve
low cost because in this sector, low cost matters a lot. Thats why it is not such a
segment in which many producer enter because if this happen, every one will have
either surplus production if he operates on mass production or have high cost in he
operates as per demand of the market. Thats why in this sector, mainly there are two
industries which are production Soda Ash. First one is the ICI Pakistan Ltd, Soda Ash
Business, Khewra and second one is the Olympia Chemicals Limited.
So ICI the only competitor ICI has to face is the Olympia Chemicals Ltd who has
setup is plant in Warcha Distt. Khoshab. ICI has a clear domination in this segment over
his competitors due to many reasons. First is that ICI has established its plant in 1944
while Olympia is new in this segment. Further their capacity is only 140 tons/day which
is very less than the ICI. Thats why market share also reflects this distinction and ICI
holds 70% of the market, while Olympia has only 30% of the market share.

Target Market
(a)

Consumer or Industrial: Soda Ash is mainly an industrial product, thats why

target market for the Soda Ash is the industries and especially the Distributors
and the Dealers. Mostly market is in the hands of ICI and there is no close
substitute of the products, thats why consumers are targeted for the product.

Further industries which do not require it in huge amounts also prefer to buy it
from the dealers. Thats why main target market is the dealers and industries
which require it in huge amounts and consumers are not influenced through
mass media.
Another thing is that two products out of three are industrial nature, and only
Sodium Bicarbonate is used by home consumers as Baking Soda. Thats why
industry has more importance than the house holds.
(b)

Buying Characteristics: Soda Ash is purchased in bulk amount by the

industries and dealers. Purchase orders are not of small quantities (e.g. 5, 6
bags) but are in tons. Transportation also matters because plant is situated in
Khewra. So purchase orders are usually in tons.

(c)

Market Potential: Due to high growth in the industrial sectors in Pakistan, there
is huge market potential. Soda Ash is raw material for different industries, e.g.
Paper, Textile, Detergents, FMCG Products, etc. Thats plant operates at its full
capacity and when one expansion project completes, second starts.

Marketing Mix:
Distribution, Price and Product Strategies:
Distribution Strategy:
ICI has more than 70% share in the Soda Ash business in Pakistan. This is because of
its vast market coverage through the powerful distribution network of its distributions.
Mainly Soda Ash is mainly distributed through the network of distributors through
Pakistan. Different regions are assigned to different distributors. They purchase Soda

Ash from ICI and distributed it to different consumers and industries in their areas which
contact them for sale.
Along with the distribution network, big industries also purchase directly from the ICI as
they need it is bulk amounts. These include glass and chemicals industries. They
directly contact sale department of the ICI Soda Ash business and purchase it from
there at market price or if they is a discount agreement then at discounted price rather
than the distributors.
This is al for the local sale. However ICI is also involved in international sale. Further ICI
is also distributor of the some Soda Ash manufacturers in Pakistan in order to fulfil the
demand of soda ash in Pakistan and abroad. Sale agreement is the duty of marketing
department. Then purchase department arrange the delivery of the soda ash from
Khewra to the destination with help of the Karachi Head Office. Channel is selected with
the mutual understanding with the customer depending upon the need of the customer
i.e. Urgent or normal. On this base it is decided whether it would be sent through Air
Mail, or through Voyage. Further the clearing agents and shipping companies are
selected and consignments are fully insured.

Pricing Strategy:
Prices are fixed at cost plus margin. For distributors, a margin is fixed on the market
price. They get it at discounted price and sale it on the market price to the consumers.
However ICI also has discount agreements with its value able customers. For that
company offers them a discount percentage for some period (i.e. 6 month, 1 year) etc.
and this discount is carried on with mutual understanding.

Product Strategy:
ICI Pakistan produces the following products at the
Soda Ash Plant in Khewra:

Light Soda Ash (Na2CO3)

o Light Soda Ash is used as a raw material in Detergents, Papers, Silicate,
Chemicals and Textile Industries.

Dense Soda Ash (Na2CO3)

o It is used a raw material in Glass Industry

Sodium Bicarbonate (NaHCO3)

o Used as a baking soda
o Poultry, Cattle Feed, Leather Tanning and Textiles.

Classification:
Soda Ash is generally classified as an Industrial Product. It includes two products
mentioned above. Two out of three and generally used in industrial. Only one has a
limited use as a Baking Soda in house holds.
Packing and Labelling:
As far the packing and labelling is concerned, all three
types of Soda Ash are packed in Poly Propylene Bag.
Bags are purchased from foreign countries in bulk

quantities usually in more than .2 million while they are printed by the plant itself during
the packing. Each bag is contains information regarding its category, its weight, ICI logo
and Made in Pakistan logo.
However there is difference in the Packing weight of the all three types. ICI recently has
issued new packing. Weight of their packing is as follow:
Type
Light Soda Ash
Dense Soda Ash
By Corp (Metha Soda)

Weight
50 Kg
50 Kg
25 Kg

Size of Bag
24 x 43 inch
20 x 35 inch
19 x 26 inch

Promotion Strategy:
ICI has a proper marking department with a fully experienced team. A proper budget is
allotted for the sale activities. However sale is not done through advertisement in news
papers, television, radio etc because of the nature of the products. Thats why selling
are mostly based on relationship with the dealers.
However company spends a lot on building the image of the company. For that a lot of
activities are done in fulfil the corporate social responsibilities. Through this the brand
name is introduced with the people and image of the company is strengthened.
Meeting of the dealers is arranged frequently. Further best performing dealers are also
awarded cash prized and trips to different local and foreign countries. This boosts up
their moral and they deliver their best in order to achieve high targets.
Customer Satisfaction Programme:

Customer satisfaction teams are formed to tackle quality related issues prompted by
customers complaints. Each team comprise of operators, technicians, contract staff and
mangers and are allocated different aspect of quality control in order to focus on all
problem areas. The teams met on a monthly basis and implement original solutions to
improve quality. This focused approach pay off in the form of reduced number of
complaints and result in end user satisfaction.

7 Ps of ICI
Product of ICI
According to market point of view the product of ICI is:
Customer Satisfaction
Safety and health (For everyone which is directly or indirectly related to the company)
Position of ICI
ICI is the leading company in the Pakistan as well world. It has 76% market share in
Pakistan and ICI are used in countries which represent over 95% of the worlds
population.
So ICI is not only market leader of Pakistan but also worlds leading company in the
business of.
Price of ICI
ICI price is very reasonable when we compare with the benefits or offering of ICI. Some
people think that of ICI are costly but keep in mind quality is free.
Promotion of ICI
ICI is using following promotional tools:
Customer satisfaction is itself a promotion tool for ICI and it help to develop C2C
relationship.
ICI arranges painter parties at different places and at this event gift are given to those
painters which have used a reasonable quantity of ICI paint for the period.
ICI has given a target to every dealer according to its capacity and market analysis. If
that dealer meets that target, ICI Paint will take that dealer to some other country for

recreational purpose e.g. last time ICI chartered special plane for its dealers and took
them to Dubai. For present year ICI has promised to take its dealers to Malaysia.
Just like other ICI has offered a token in every Bucket or Gallon of Maxilite and Painex
which are worth Rs. 220 per Bucket and Rs. 60 per Gallon.
People
People in ICI can be divided into following categories:
Management Staff
Non-management Staff
Management Staff:
Management Staff is being used for decision making process and if there is any
problem occurs to the company.
Non-management Staff:
Non-management Staff includes Sales Promoters, IT persons and other contract based
staff.
Process
ICI is customer centric company so the process starts from the need or desire of
customer and ends at the delivery of products or finished goods.
Physical Evidence
The physical evidence of ICI is its production unit, Decorative Department and Color
Studio which are easily accessible to the customer at any time.

3 Cs of ICI
Consumer
Competitor
Corporate
Consumer
The consumer of ICI is any individual which has desire for the paint and requires cost
beneficial product.
Competitor
The Biggest competitor of ICI is Berger Robilac; it is local company which is being run
by the Big Investors in Pakistan.

Corporate
ICI management is its corporate and management of ICI is consists of marketing and
HR managers which basically belongs to Pakistan.

Part Six:

MY WORKING AT ICI
Working at ICI remained a very successful experience for me and it was great
experience for me that I worked with such a dynamic firm. Mainly I worked in the
Purchase (Material) Department at ICI Soda Ash Business, Khewra, however I also
visited other departments of the company and also interviewed different people. I think I
remained successful in order to grasp the procedures and extract the valuable
knowledge.
I want to appreciate the efforts and their corporation of ICI employees for their advice
and their assistance in helping me to avail this opportunity. I learned a lot from these
people. They were much experienced and have a great command in there own work &
on policy of ICI. Mainly I worked in the following tasks:
Supplier Code Opening: This process involved the registration of different new
suppliers who want to work with ICI. So I learned who they are registered and who they
are assigned codes.
Classification of the Materials: Classified of different materials, categorization, and
codes are assignation.

Stocks Information: Information regarding the stock levels, consumption, re-order

quantity and safety stock.
Item Status Reports: To check the status of different materials, they inventory level,
and creation of the indent in case of reaching to re-order level.
Indent Generation: Procedure of indent generation, authorized persons, and the
circumstances under the indent is generated.
Approval of the Indent: How indent if floated to different department and the approval
of the indent.
Request for Quotations: Process for the generation of RFQ (Request for Quotation)
for materials to be purchased.
Statement of Comparison: Comparison of different quotations received and making
comparison of the rates stated by the different suppliers.
Purchase Orders Generations: Generation of the purchased order after selecting final
supplier.
Gate Receiving Notes: Handled Gate Receiving Notes generated for different
materials supplied by the suppliers.
GRN Clearings Procedure: Procedure from Gate Receiving Note to the clearing of the
invoices and sending to Accounts Department for the payment.
Reminder Letters: Correspondent with the different suppliers and generating reminder
letters to the suppliers who do not meet the deadlines.

Warehousing: Studied the ware house structure of the ICI, Soda Ash Business, its
capacity and material handling procedure.
Foreign Purchases: Helped in correspondent with different foreign suppliers and
assisted in Coke Purchase from Poland.
Mr. Zahid Muhammad Sheikh, Purchase Officer was my supervisor during my
internship. Further I also interviewed different people e.g. S. M. Aamir (Assistant HR
Manager), Mr. Adnan Sheikh (Assistant Purchase and Quarry Manager), Mr. Asghar
Malik (Planning Officer) also helped in order to get valuable knowledge.

Part Seven:
Conclusions and Recommendations:

CONCLUSIONS
ICI Pakistan Ltd. is an excellent organization. It operates as a independent business
unit with AkzoNobel as a part of its specialty chemical portfolio. The seed planted in
1926 is now a tree which provides extremely qualitative products to billions of people all
around the world. It is also providing jobs to millions of people in different countries. The
fact can be judged by ICI and AkzoNobel is the number one chemical manufacturing
and processing company of the world and this fact is recognized by Fortune 500.

Management of ICI Pakistan is mostly local. Top management involves CEO and senior
mangers (Chief Financial Officer, Production and marketing) while every business is
headed by Vise President of the Company. They all are experienced people. It is a
relatively very old Multinational on the Pakistani established in 1944 It has established a
strong footing for itself in the chemical industry. Apparently, there are no loop holes in
the working of the organization, but still some areas require more attention.

Management has designed rules and regulations which are supposed to be followed by
everyone. Policies have been formulated for major and minor issues both. Relationship

with the employees is maintained at every level. Employees work with commitment and
dedication to achieve the best for the organization. Job satisfaction soars at a high level.

Due to its innovation technologies, committed employees and best use of the resources,
it has gained a prominent position in the market and is far ahead of its competitors.

RECOMMENDATIONS
Following recommendations are based on my observation during my internship
at ICI and some have been given during formal and informal interview with the people.

Although ICI is offering a lot of incentives to its employees in case of

salary and benefits. However there is a clear different in facilities of permanent and
contract employees. For example in department I worked, Purchase Clerks were on
contract basis and there was more burden of work on them while they were getting only
the basis salary. Facilities like medical allowance, Pension, Gratuity, Provident Fund is
not for the contract employees. This creates a lot of dissatisfaction among the
employees.

Pay increment of people should be according to the work and duties they

perform. In some cases it does not happen and pay is not increased according to
seniority and work base. For example, during my stay at ICI pay was increased and
clerk handling the most work was awarded 20% increment while other was awarded
40% increment although his work was less and duties were easy one as compared to
first one.

Purchase department is very important department of any company and

production depends a lot on purchased of timely raw material, plant equipment and
other supplies. So purchase department was already facing a high burden, further
quarry department was also added in it and quarry staff was also working in the same
premises producing a lot of difficulties. So Soda Ash Business should separate the
quarry department and it would be most suitable if it is shifted at the site where quarry is
located so that burden on purchase department decrease and quarry staff also not has
to travel daily between site and purchase department.

Purchase Department was handling a lot of suppliers at a time. They have

to enter into correspondence with a lot of suppliers while suppliers evaluation was in
delay for a couple of years. Many suppliers were giving no response and because they
were not evaluated, thats why there were contacted every thing when their related
material was required resulting in loss of time and money. So suppliers evaluation
should not be delayed and should be carried out at least once in a year.

Consumer Services Department but couldnt get what and where it is. Well

the name suggests that it should be most visible and active department, I wonder if it is
there? If it is there it should be organized at a larger scale and efforts should be made to
interact more frequently and at a personal level with the consumers.

Last of all I must THANK ICI and CIIT once again for providing me the golden
opportunity of spending 6 weeks in such a wonderful place where most people can only
dream of. It was an experience of life time. I got the chance of sitting among the ideal
sort of people, professionals whose names are engraved as pioneers and geniuses of
the field. I learned about meeting and dealing with people. I must say that the
integration of this internship program will definitely a significant improvement in my
future professional life.

I end my report here by again thanking Allah Almighty who gave the ability to complete

this tedious task and all other people who have helped me in this task.

BIBLIOGRAPHY
1. Web:

www.ici.com.pk

www.wikipedia.com

www.investopedia.com

2. Annual Report, ICI Pakistan Ltd.

3. Employees Interview

Mr. Abdul Jabbar Athar (Material Manager, ICI Soda Ash Business)

Mr. Adnan (Assistant Purchase & Quarry Manager)

Mr. S. M. Aamir (Asst. HR Manager)

Mr. Waqar Khawaja (Assistant Accounts Manager)

Mr. Asghar Malik (Planning Officer)

Mr. Zahid Muhammad Sheikh (Purchase Officer0

Mr. Asad Aslam (House Officer, Hospital)

4. Company Magazines

Images, Spring 2008 Edition

Images, Fall 2007 Edition

Part Eight: