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Internship Report Summer 2006 Table of Contents Page # Acknowledgment 3 Profile of the industry 4 Paint Industry in Pakistan 5 Profile of the Company 6 Objectives of ICI 7 Businesses of ICI 8 Structure of ICI 9 1

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Page 1: Ici Report Final

Internship Report Summer 2006

Table of Contents Page #

Acknowledgment 3

Profile of the industry 4

Paint Industry in Pakistan 5

Profile of the Company 6

Objectives of ICI 7

Businesses of ICI 8

Structure of ICI 9

Company Achievements 9

ICI Pakistan’s Businesses 10

ICI Paints Pakistan 10

Profile 11

Components 12

Classifications of Paints 13

ICI Paint’s Achievements 14

Organizational Chart 15

Channels of Distribution 16

Marketing Department 17

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Competitors of ICI Pakistan 17

Wood & Wood Care 20

Organizational Chart (Marketing Department) 21

Sales Department 22

Finance Department 25

Human Resource Department 26

Materials Department 29

Production Department 30

Total Quality Management 30

SSHE 32

SWOT Analysis of Paint Industry 34

SWOT Analysis of ICI Paints Pakistan 35

Conclusion 37

Recommendations 38

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ACKNOWLEDGEMENTS

First of all, I am thankful to Allah Almighty, who helped me in the completion of this

task. After that I am thankful to ICI (Imperial Chemical Industry) which gave me an

opportunity to work there as an internee and provided me with my initial professional knowledge

which will be of great help for me in the future. Further I want to thank Mr. Adnan Abbasi, brand

manager wood & wood care for his full support and providing me with all the necessary

information I needed and I am very thankful to my adviser Kaleem Saber whose guidance

enabled me to complete my internship successfully, I would also like to thank all my coworkers

for their support.

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Profile of the industry

What is "paint"?

Paint is defined as the group of emulsions, consisting of pigments suspended in

a liquid medium, for use as decorative or protective coatings. Today, contemporary paints

and coatings consist of countless compounds uniquely formulated to fulfill the varied

requirements of hundreds of thousands of applications. "Paint" ranges from the broad

group of environmentally-sound latex paints that many consumers use to decorate and

protect their homes and the translucent coatings that line the interior of food containers,

to the chemically-complex, multi-component finishes that automobile manufacturers

apply on the assembly line.

When did paint first appear?

Paint made its earliest appearance about 30,000 years ago. Cave dwellers used crude

paints to leave behind the graphic representations of their lives that even today decorate

the walls of their ancient rock dwellings.

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The Paint Industry in Pakistan

Profile

The paint industry in Pakistan operates both in the organized as well as the unorganized

sectors. There are around 22 paint producing units in the organized sector. There are two

multinational companies also in the organizational sector. The data regarding the number

of units and the production of the unorganized sector is not available; therefore it is

difficult to determine the total production and number of units of the paint industry.

According to an estimate, over 350 units producing paints and varnishes are operating in

the unorganized sector. Many of them are also not covered under the excise net in the

someway as the organized sector and therefore, are in a better position to compete in the

local market. According to the Federal Bureau of Statistics, during 1997-98, around

17,000,000 liters of paint was produced from 87 units. Pakistan Paint Manufacturers

Association (PPMA) represents the organized units in the paint sector. The paint industry

uses about 300 different types of raw materials for producing various kinds of paints.

About 15 percent raw materials of the industry are petroleum-based. In 1971, between 80

to 90 percent requirements of the raw materials were met through imports, which

currently have been reduced to about 40 percent due to increased production of

indigenous raw materials. The major raw materials produced locally include Mineral

Turpentine, Resins, Vegetable Resins and Gums, whereas raw materials such as

Pigments, Zinc Oxide, Titanium Oxide and Lithopone are imported. Paint is categorized

in two broad classes; namely water based paint and solvent based paint. The industries

produce a wide range of finished and intermediate products which include pigments,

distempers, plastic emulsion, enamel, undercoat, primers, rubber paint, aircraft paint,

marine paint, anticorrosive paint, anti fouling paint, etc.

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Profile of the company

“Vision” of ICITo become the industry leader in creating value for customers and

shareholders.

BACKGROUND & HISTORY OF COMPANY

Over 70 years ago, in 1926, ICI was formed when four large companies in the UK

merged to become a major force in the industry. These were: Bruner, Mond; Nobel

Industries; British Dyestuff; and united Alkali.

1. Burner, Mond & Company was formed in 1873 to make soda ash by the new

ammonia soda process. It manufactured alkalis from the vast salt deposits in

north-west England, and ammonia and fertilizers in the north-east of the

country.

2. Nobel Industries Limited, a successful explosives concern was established in

Scotland in 1870 by Alfred Nobel, the inventor of dynamite and founder of

the annual Nobel Prizes.

3. British Dyestuffs Corporation Limited, based in Manchester and also

established in the 1870s,

4. United Alkali Company Limited, which was suffering at the time from

outmoded technology and competing unsuccessfully with Brunner,

The merger provided the new company-Imperial Chemical Industrial-with the scale to

compete in the world market. With 45000 employees, ICI sold 27 million pounds worth

of products and made a pre-tax profit of 4.5 million pounds in its first year of business.

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The company rapidly built a reputation for innovation in science and technology and

grew organically.

ICI’s Paints brands are some of the most successful in the world. Its starches and

adhesives find their way into everything from foods to building materials and from sports

shoes to medical electronics. Its lubricants make vehicle transmission and fridges run

smoothly, and the vital ingredients in many personal and household care products come

from ICI. ICI Pakistan Limited is a 75.81% owned subsidiary of ICI Plc, UK. It was set

up as a public limited company in Pakistan in 1952.

OBJECTIVES OF ICI productively provide appropriate SHE (Safety, Security, Health and

Environment: discussed later) awareness and training to all staff, contractors and

customers to handle product responsibility and ethically.

Maintain complete and up-to-date records and appropriate safety, health and

environment data on all chemicals handle, including raw material, intermediates,

process chemicals, finished products and wastes.

Make safety data sheets and labels available with sale of all regular and

commercial test products in language appropriate to the customer.

Audit all contractors involved in transport, storage and toll/custom manufacture

on their safety policy, standards and performance.

Establish a program to regular conduct life cycle assessments for all substances

identified as having assessed potential environment risk, and subject all new

commercial introductions to such evaluation.

Work with customer and suppliers to productively develop mutually acceptable

SHE product improvement goals, and have formal systems in place for

monitoring, analyzing and responding to customers` SHE related incidents and

complaints.

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BUSINESSES OF ICI:

Today, ICI Pakistan’s five businesses, Paints, Polyester, Soda Ash, Chemicals and Life

Sciences manufacture and sell a range of industrial and consumer products. These

include, Polyester Staple Fibers, POY Chips, Light and Dense Soda Ash, Sodium

Bicarbonate, Paints Decorative, Refinish, Industrial & Projects and for manufacturers

of vehicles, Unique Specialty Chemicals, Polyurethanes, Adhesives and arranges

manufacture on a toll basis of Pharmaceutical and Animal Health products. It also

markets Seeds and in addition is engaged in trading in various specialized chemicals for

use in industries in Pakistan. ICI Pakistan has a 25% shareholding in a public quoted

company.

Pakistan PTA Limited is also an ICI Plc subsidiary. The PTA business was set up in

1995 within ICI Pakistan Limited and a USD 490 million PTA manufacturing facility at

Port Qasim was commissioned in 1998. In 2001 the PTA business emerged and was

housed in Pakistan PTA Limited.

The turnover of ICI Pakistan Limited in 2003 was Rs. 22.2 billion and gross assets

employed amounted to Rs. 15.1 billion. It is one of the largest quoted companies on the

Karachi, Lahore and Islamabad Stock Exchanges with a paid up share capital of Rs. 1.4

billion. The company has over 1,300 permanent employees in Pakistan and about the

same number of people provides services through contractual arrangements.

ICI Pakistan has a proud history of sustained investments in the Pakistan economy in

basic manufacture and as a good corporate citizen, the company continues with its policy

to serve the community.

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Structure

ICI Pakistan board

Comprises the Chairman and Chief Executive, two Directors and five Non-Executive

Directors

Responsibilities

Determining the direction and broad policies of the company, consistent

with the objective of ICI Group, of being the industry leader in creating

value for customers, shareholders, suppliers and employees.

Executive Management Team

Comprising the Chief Executive, the three Vice Presidents and four

General Managers of the Company’s Businesses and functions.

Company achievements

ICI is one of the world’s leading an international specialty products and paints.

Annual sales are over 8 billion pounds

ICI employs 45000 people in 55 countries.

ICI Pakistan limited pioneered in polyester staple fiber technology in Pakistan

through its investment in a 12000 tones per annum polyester fiber plant.

ICI has 200 manufacturing sites, producing 50,000 products, often specially

formulated to provide customers with individual solutions.

ICI`s leading world positions include:

Adhesives, Fragrances, Decorative paints, Specialty polymers, Food

Flavors, ingredients, and catalysts.

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IC I Pakistan’s Businesses

1. Polyester Fiber

2. Soda Ash

3. Paints

4. Chemicals

5. Life Science

ICI PAINTS PAKISTAN

MISSION STATEMENT” ICI Paints Pakistan Business will continue to be the market leader in

decorative, refinish and industrial paints in Pakistan. We will also

endeavor to maintain a high growth rate in support of the objectives.”

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PROFILEICI Pakistan paints business is the undisputed leader in the decorative, automotive and

refinish segments. In 1965, ICI UK acquired a 50% interest in a paints company in

Lahore. Later in 1973, the company converted into a public limited company. The plant

of paints business is working well. Three labor shifts worked in the plant.

ICI Pakistan paints business is the undisputed leader in the decorative, automotive and

refinish segments. ICI paints brands such as Dulux, Duco and Paintex are a part of the

painters and consumers vocabulary in the market and are synonymous with consistent

quality and reliable products. The paints manufacturing capacity was upgraded and

enhanced in 1981 and today with a production of nearly 25 million litres, all the three

segments of the business continue to grow significantly.

In 2005 the abolition of excise duty on paint and thinners in the Federal Budget

allowed the business to compete more effectively with the unorganized sector. The

Business reduced retail prices in the market by 10%-15% in line with commitment to

the Government to pass on the benefit to the consumer. The price reduction helped

boost volume demand for high quality decorative paints in the construction sector.

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Components of Paint

Pigments

Opacity

Color

UV protection

Resin

Adhesion

Gloss

Weather resistance

Solvents

Dilution

Mobility

Ease of Application

Additives

Drying

Anti Skin

Fungicides

Storage Life

PIGMENT control color and opacity, some paints contain lead and chromate

based pigments for anti-corrosive properties.

SOLVENTS are added to obtain the required thickness in the paint. They allow

the coating to be properly applied and can influence the flow and resistance of the wet

coating film.

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RESINS act as a vehicle during application and provide adhesion after the drying

process. Resins serve as a film forming material. They impart properties such as

harness, gloss, adhesion and durability

ADDITIVES include a wide variety for materials ranging from fungicides to

agents that control skinning, foaming, and leveling.

Classification of Paints

Water Based paint (Emulsions)

Solvent Based Paint (Enamels)

1. Decorative Business

2. Industrial Business

3. Refinish Business

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ICI Paint’s Achievements Leader in decorative, automotive, industrial and refinish paints segments.

In 1965, ICI UK, acquired 50% shares in a paints company at Lahore.

Converted into a public limited company in 1973.

Manufacturing capacity upgraded and enhanced in 1981

Produces over 15.6million litres of paints and continues to consolidate market

share.

The Decorative Business launched the Master palette in 1998, the most

technically advanced tinting system that gives the consumer a choice of 6134

discernibly different colors.

First company in Pakistan and 23rd in the world to be awarded MRP

(Manufacturing Resource planning) II class A for excellence in overall

business operation.

Also the first paint company in Pakistan, to receive ISO 9001 Certification, in

Feb. 1999, in all its disciplines.

ISO 14001 certification, in July 1999, a world class recognition and an

international certification on Environment Management.

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Organization Chart

Chief Executive

Vice President Vice President Sect. V.P

Decorative Operations Refinish Industrial Human Resources Materials IT&

Deptt. Deptt. Deptt. Deptt. Deptt. Deptt. SHE Deptt

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The important departments of ICI paints business Lahore are:

Production department

Finance department

Marketing department

Sales department

SSHE department

HR department

Channels of Distribution

Factory............Warehouse............Dealers......Customers

Factory........................Warehouse................Customers

The stock is distributed to various regions from the factory in Lahore. This is based

on requirements which are provided by the sales teams. Some of the imported stock

is also kept in the Karachi warehouse from where it is distributed on behalf of Center

and North regions. This is made possible through a stock transfer note, which is

raised in response to an order given by one of the regions to the Karachi warehouse.

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MARKETING DEPARTMENT

Market exists where consumer need exist or you may say market is created on the basis

of need of people. Marketing manager in the organization has a big and vital

responsibility to create market for the product.

Marketing department performs two types of activities which are:

1 Marketing Research

2 Sales

Market Research:

In the Paints business the research manger is responsible to check out the

international market. He continuously analyzes the changes in the prices of

the product and raw material as well.

Major functions of market research:

1 Check the movement in the international market.

2 Check the upward and downward trend in the prices of the product.

3 Cater for the government rules and regulation.

4 Monitors the improvement compared to the international market and local

market.

Major competitor of Paints business

ICI paints business is a leader in Pakistan. Major competitors of ICI are

Berger and Champion Paints. Nowadays, Berger is merging with Asia

paints of India which has a monopoly. Besides this there are many

competitors of ICI in Pakistan but they are too small.

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Target Market:

ICI paints are selling its industrial paint to Toyota Company, Suzuki

motors, and Honda cars. ICI also sells decorative paint to homes, schools,

colleges etc.

Major Functions:

The major strategies that marketing department has to perform are as under:

Product

Pricing

Placement

Promotion

Packaging

Product:

Before launching any product in the market, marketing department tends to measure the

demand of that product in the market and also looks after the customer’s expectations

about the quality of product.

Promotion:

Product promotion is a core and complicated yet essential responsibility of the

department. The marketing department has different policies to promote the product.

Paints business has more industrial, decorative, and refinish paints customers so the

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department has initiated several promotional activities. Department sends news letters to

their customers, sponsor different programs, and visits their customers and informs them

about their upcoming products. The name of company also works in the promotion of the

product.

Pricing:

ICI Paints is a market leader therefore, making the price standard according to its cost, its

own standard and its competitor. Marketing department adds additional benefits to the

product like token and discount packages to its new and old customers.

Placement:

Paints business get customer’s orders and makes delivery within time. ICI transport

system is responsible for any damage of paints.

Packaging:

ICI always makes product promotion through the changes in packaging.

1 They offer quality in the product.

2 They provide after sales services.

3 They also offer variation products.

4 Brand name also works a lot in the market.

5 ‘ICI’ company name also contribute a lot in the product promotion.

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Wood & Wood Care: ICI Paints has reached agreement to sell its Industrial Wood Preservation

and Fire Retardant business to Rütgers AG, based in

Mannheim, Germany.

The divestment of the business, which has an annual turnover of around

£6 million, allows ICI Paints to focus on the development of its DIY and

Trade Decorative Coatings businesses in Europe where it already holds

strong positions, and where there is considerable scope for further

expansion and growth. The transaction, which is subject to regulatory

approval, is valued at less than one per cent of ICI Group gross assets.

ICI Pakistan Ltd. has decided to launch the wood & Wood care products

under the paint business. In this context they have already launched the

wood care products in the market. Some of the products are;

Cuprinol Paint and Varnish Remover

Cuprinol Wax Remover

Cuprinol Wood Restorer

Cuprinol Fine Wood Filler

Cuprinol Wood Filler Sticks

Cuprinol Wood Dye

Cuprinol Colored Wax

Cuprinol Traditional Clear Wax

Cuprinol Protective Clear Seal

Cuprinol Wood Oil

Cuprinol Lint-Free Cloths

Marketing department

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VICE PRESIDENT

DECORATIVES INDUSTRIAL REFINISH

BUISNESS MANAGER BUISNESS MANAGER

BUISNESS MANAGER

CENTRE NORTH SOUTH CENTRE NORTH SOUTH

DULUX GLIDEN WOOD & WOOD CARE

MARKETING MARKETING MARKETING

MANAGER MANAGER MANAGER

BRAND BRAND BRAND

MANAGER MANAGER MANAGER

BUISINESS

DEVELOPMENT

MANAGER

CENTRE NORTH SOUTH CENTRE NORTH SOUTH

RSM RSM RSM RSM RSM RSM == RSM= REGIONAL SALES MANAGER

SALES COLOR SALES COLOR

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PROMOTERS CONSULTANS PROMOTERS CONSULTANS

SALES DEPARTMENTThe sale department of any organization acts as a backbone of the organization. If there is

no sales department, company cannot run its business and the notion of business is vague

and idle. It is the main department that provides the essence to business entity. If sales

department team in any organization whether in form of services, manufacturing or

trading is timid and lazy, it cannot target maximum markets. In the Paints business the

sale department is enriched with the proficient and skilled veterans and the progress of

sale department is better then other departments.

Sale department adds revenue in the business.

Three types of sales are:

1 Advance sales

2 Secured sales

3 Credit sales

Although the company policy is that all sales should be made on advance

payment, but sometime credit sales are also allows to selected customers.

Advance sales:

These are the sales which are paid for in advance, or at the time the sales are made.

Companies basically use that policy.

Credit sales:

These are the sales which are allocated to only certain customers. The decision about to

whom to be given credit is made in the meeting, and the things kept in consideration are,

The relationship with the customer whether it’s old or new customers and the financial

position of the customers. When the list and credit limit is finalized then it is sent to the

sales department and as well as to the finance department.

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Company takes following things under consideration while deciding to whom they give

credit.

How long they want credit.

Company checks out the annual stock exchange statement of the customer.

Company checks the annual turnover, liabilities of the customer and financial position of

the customer.

Secured sales:

In the secured sales LC’s (letter of credit) are opened by the customer ranging between

30 days, 90days 100days , or 120days.after the sales are made ICI can claim the payment

from the bank which had issued the L.C. if it claims before the due date than the bank

deducts some discount and make the payment . There are some selected banks, whose

LC’s are acceptable..

Functions of sales department are as follows

1 To handle sale matters

2 To set sale targets.

3 To set up strategies and tactics to attain such targets.

4 To motivate sale force.

5 To get order from their customer.

6 To place order to production department.

7 To give suggestions to production department regarding raw

materials and demanded products.

8 To give suggestion to marketing regarding product.

9 Day to day discussions with marketing, market research and

material department.

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Procedure toward obtaining the order

The first manifesto of the sales department is to target customers and pick the maximum

orders of the product for the company. Two criteria are involved over here as to

determine whether the customer is new entrant or it is old one. If the customer is new

entrant, then sale department fulfills the necessary formalities by filling a special form to

serve such purpose.

Company give information form which includes, necessary details like name, address,

credit limit usually depend upon the customer’ position and credit period.

If the customer is not reliable then following steps are included;

1 Sales department take order through telephone, fax, e-mails, and through

industrial contacts.

2 Enter the order in the special form, in which all the details about the item is

specified like quantity, price, delivery time and payment time etc, and also send

order copy to finance department.

3 Finance department open the existing account of the customer and make entry in

his account or receipt entry in his account.

4 Order copy is then sent to the warehouse.

5 When the warehouse department received the order copy then they delivered the

required quality and quantity to the customer.

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.

FINANCE DEPARTMENTFinance department is one of the most important departments for any company. Finance

department has big responsibility to allocate fund in such a way that maximize the profit

of the company and at the same time to satisfy the needs of the shareholders of the

company

Finance department in the Paints business deals with lot of work. Employees in the

finance department are diligent and hard working.

Finance department at the same time controls multiple activities, as far as the investment

activities are concerned, it contract with different companies like leasing companies and

insurance companies. At the same time, department controls income tax matters and

prepare annual report for outside parties like government, creditors and shareholders etc.

Finance department in the Paints business is fully computerized and they are using the

SAP (social application product processing data) software. Finance department mainly

perform two types of activities reporting and operations.

The fundamental functions of the finance and accounts department being performed are

as under:

Accounting function

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Preparation of Monthly Accounts

Preparation of Monthly Management Accounts (MRO)

Record Keeping

Financial Analysis

Reporting of Financial Result

Fund Management

HUMAN RESOURCE DEPARTMENT

One of the most important departments in an organization is the personnel department

because it deals with the policies for personnel of the organization. The people of the

organization are of course, the most precious asset of the organization. In today’s

industrial era, the importance of personnel department cannot be denied. Therefore the

management of the paint business also realizes the significance of personnel department

would like to share some functions of ICI paints HR department about their employees.

Human Resources

At ICI Pakistan employees are the most valuable asset.

The Human Resources Department strives to ensure that a professional and caring

environment continues to be fostered so that creative energies of the staff are

released and fully utilized, while developing their potential.

Professional support is provided to the entire organization to ensure that business

goals are realized through people whose own personal aspirations are also met.

Aims to ensure that highly motivated and professionally competent people are

available within the organization.

Seeks to maintain the company’s position as a preferred employer in the job

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market by adopting progressive personnel policies and providing competitive pre

requisites.

Training and development of staff, an essential responsibility of every

manager...part of his ``key result Area`` and objectives, is considered to be a core

value at ICI Pakistan.

A very pro active corporate training department that provides extensive in house

training and consultancy for development initiatives to all businesses and

functions.

Provides schools and colleges Scholarships to staff children.

The company’s policy is to encourage healthy trade union activity aimed to

achieve a meaningful and productive relationship with the unions.

Department Performance

At ICI Pakistan ltd. business has personal department and all the personal departments

performing their duties diligently.

The function of any personal department is to manage the peoples who are at work. After

realizing the needs of the organization, a restructuring process took place on behalf of the

managing director. At present there is a worker union in the company which was

established when the organization started working in 1965(in Pakistan). The union

produces no great problems of legislation and shut down of the factory due to the good

management of the department.

Functions of personnel department:

The personnel department is engaged in exercising the following types of jobs:

1 Recruitment

2 Maintenance of attendance

3 Handling of gratuity, awards, retirement, contributions, benefits and bonuses.

4 Maintain the record of its old and present employees.

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5 Taking disciplinary actions against the employees held responsible

6 Maintain the record of over time workers.

7 Handling the grievances of employees.

8 Distribution of salaries among employees

9 Maintain the record of social security benefits, GP and educational funds.

10 To give promotional assistance to top level authority Industrial relationship

manager is engage with following activities:

11 Industrial relationship manager deals with trade union matters.

12 Industrial relationship manager deal with employees’ old age (EOIB) benefits.

13 Apprenticeship (system of training) management is also the responsibility of the

industrial relationship manager.

14 Social security contribution matters are handled by the industrial relationship

manager.

15 Pay roll, and time keeping is another important responsibility

It is important that what duties the HR manager is performing. Following

are the major activities being performed by the department.

Human resource planning:

Human resource planning or man power planning is the process for determining and

assuring that the organization have an adequate number of qualified persons available at

proper times, performing jobs which meet the needs of the enterprises and that provide

satisfaction for the individual involved. The paints business is planning its human

resource requirement very well. When department requires new employees it is done

through the recruitment process.

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MATERIALS DEPARTMENT

Material department in the paint business plays important role. Material department and

finance department have close relationship because every payment for the purchases is

made through the finance department.

Production department give suggestions to material department about raw material

quantity as well as which material is more required by the production department. It helps

a lot in a way that, material department purchase the raw material in advance and store it.

The process of making paint is a continuous process for which 3 shifts are arranged by

the labor. The production manager records the level of inventory on daily basis; if the

level decreases as compared to the current demand then demand by any required

department is forwarded to the material department.

Material manager is responsible to:

1 Design, implement, and oversee materials systems and procedures that effectively

fulfill the requirement of production.

2 Selection and continuous assessments of suppliers and vendors.

3 Preparation and approval of purchasing documents.

4 Maintenance of an approval suppliers listing.

Main functions in the “Materials” department are:

1 In the material department all purchases are documented in the purchase manual.

2 Request for quotation is maintain in the SAP and quantities are properly written in

the respective PO (purchase Order).

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3 Acceptance criteria are written in purchase manual and ISO 9002 documents.

4 List of authorized vendor is maintained in the SAP and list is updated when

required.

5 Required items delivery is recognized by raising GRN (good receive note).

6 Price history of the product is maintained in the SAP system

7 Payment is made when finance department receives the GRN note from the

material department.

PRODUCTION DEPARTMENT

ICI paints are a leading business of paints all over the Pakistan. The paints of ICI are

Dulux, Glidden, and Paintex. These all have there own qualities. It increases strength,

and durability of the product. Production department of any company plays a prominent

role. Its major function is to produce goods according to the stated standards. Production

department is responsible to manufacture the goods as order is placed. To get the work

done through employees, it is the duty of production officer to give instruction time to

time and motivate them at the work place. At ICI paints plant the mixing of the raw

material is very important. ICI paints are mostly importing the raw material from Kanzai

company Japan and also from U.K. Why ICI paint is a leader because it don’t ever

compromise on the quality. Its quality control system is too much high as compare to

others that’s why it s a leading industry.

Total Quality Management (TQM)

TQM is what ICI paints limited follows in each and every operation they perform.

Quality is their main aim. Total quality management is one of the basic objectives of the

company and they do not compromise on quality at any cost.

To ensure TQM, ICI offers various training programs to its employees.

Training package is offered at all levels of employees.

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Training courses are offered 3-4 times per year.

LUMS, Pearl Continental Hotel Lahore, Bhorban, Avari Hotel Lahore and

Karachi are the locations where those courses are often organized.

ICI is very concerned about efficiency and effectiveness of employees.

They discourage wrong deliveries and late deliveries.

The company continues to remain committed to training and development of its staff.

They emphasize on customer satisfaction.

Customer can register their complaints regarding wrong delivery and late delivery of

products. They put their best effort to minimize the number of complaints and increase

the number of satisfied customers. ICI paints limited is ISO 9001certified Company that

is proof of their continuous efforts towards total quality management.

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SAFETY, SECURITY, HEALTH

AND

ENVIRONMENT DEPARTMENT

SSHE

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If a worker works in a secure and healthy environment then he can perform more

effectively and efficiently. So ICI paints business provides a safe, secure and healthy

environment to their workers. ICI goal is to be the leader in the production and sale of

products which benefits society. They provide a safe and healthy work place not only for

their staff but as well to their contractors. They also take responsibility towards the

communities and environment in which they operate.

They have established principles by which they operate, within the limits of current

knowledge, are:

1 All workers related injuries and illness are preventable. Company goal is zero

harm

1 All escapes of hazardous materials can be prevented and emission in the course of

operation will progressively be reduced towards zero.

2 Energy, water and resources, both natural and man made, will be utilized

efficiently. We will minimize waste.

3 New products can be developed which have increasing margins of safety for users

and the environment throughout their life cycle.

4 Line management is accountable for leading the continuous improvement in

SSHE performance to defined goals.

5 Everyone has a personal responsibility for their own safety and health, for others

in the workplace and for the environment in which they work. Safety and good

health are equally important away from work and will be encouraged.

6 Everyone should be involved in the SHE improvement process

.

7 Information on SSHE performance will be made available to those around us.

Every worker in the company individually and collectively is committed to these

principles and expects all who work at ICI to behave in accordance to them. SSHE

department maintain the standards and try to work according to the set standards.

SSHE Performance Targets:

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No Reportable injury, no allergic occupational illness and full compliance with

emission standards.

Responsible Care – Community Element:

To recognize and respond to community concerns about chemicals and its operations.

SSHE Challenge 2005

Significant progress through achieving annual milestones

SSHE Management System:

Targeting a compliance greater than 90%

Driving Safely:

A campaign to eliminate road accidents

Contractor SSHE:

Implementation of improvement strategies

SSHE through people:

Increasing people involvement to strengthen SSHE system.

SWOT Analysis of the Industry

Strength:

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Worldwide, the paint and coatings industry is an important part of everyday living. Paint

industry statistics confirm that no domestic or commercial arena remains unaffected, with

applications ranging from household and decorative paints, to coatings used in the

automotive industry; from the anti-contamination coatings in the canned foods sector, to

the paints used to emblazon corporate colors on airliners.

WeaknessesThe placement policies of the industry are not very good. The industry has failed to

educate the consumer about the quality of paint due to which some times consumer get

attracted towards low quality paints.

OpportunitiesRecent years have witnessed significant changes in the paint and coatings industry - the

succession industry consolidations and acquisitions, for example, strict market demands

in environmental requirements and the increasingly sophisticated nature of consumer

demands.

Threats:Local paint industry operates both in organized and unorganized

sectors. The data regarding production and number of units of the

unorganized sector is not available; therefore, it is difficult to have

complete data about the production and number of units of the paint

industry. According to an estimate, over 350 units of paints and

varnishes are operating in the unorganized sector. Their products are

substandard though their cost of production is comparatively low.

Many of them also avoid payments of excise duties and therefore, are

in a better position to reduce their prices.

SWOT ANALYSIS OF ICI PAINTS LIMITEDICI Paints limited well repute multinational organization competing with worldwide level

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successfully. After getting detail information we can say that they are not only more

professional then other multinational organizations but they are also trying to adopt high

standard of quality and environment.

Strengths:

ICI has positive image and reputation in the minds of customers so it’s a great

strength because it helps in sales of their products.

Financial strength of the business.

The paints business is financially very strong and has established Nation-wide

Infra-Structure.

The ICI paints business has established nation wide infrastructure. Its network of

dealers in all over the country is helpful in the sales of company’s products.

ICI encourages their employee and it has resulted in the shape of motivated and

loyal employees

ICI paints limited has up to date technology in its production. ICI paints Pakistan

Claims that they are offering 6134 color to their respected customer..

Opportunities:

Increase Quality Awareness Among The Customers

One of the greatest opportunities for ICI paints is that now a day’s people are very much

conscious about the quality of the paints and they are aware of the fact that good quality

paint is long lasting. As ICI is producing high quality paints so it will increase the

demand of company.

Increasing Paints Markets.

Another opportunity for ICI is that there is a great demand for paints of ICI because of

their quality and ICI paints can reap this opportunity by exporting paints products and can

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earn great profits.

Weaknesses:

No Distribution Network

The major weakness of ICI paints business is that they don’t have their own distribution

network. They just have dealers in different cities, which carry their products, and then

retailers have to use their own means to get paint from those dealers and then make it

available for sale for the customer.

Threats:

The paints business must adopt the new marketing strategies because our main

competitor Berger Paints is going to merge with Asian Paints and now Asia paints has a

monopoly In India, if we update our strategies than no body can effect on our sale.

CONCLUSIONICI paints limited is a multinational company with global exposure, using excellent

marketing system in the organization. Moreover, they update and review their evaluation

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system according to international standards. Quality assurance is very important part of

this organization. As far as compensation and benefits are concerned, they are giving all

legislative benefits and they provide many financial and non-financial benefits and

rewards to their employees for motivational and retaining purposes. Having professional

and competent employees with knowledgeable experience makes the company

distinguished and competitive.

I find ICI paints limited quite professional and competitive. They have a formal

comprehensive appraisal systems and attractive compensation plan to attract the best and

competitive personnel.

The whole exercise gives me thorough knowledge and practical experience, which is

beneficial and advantageous for my studies and future. From this, I also conclude that

training in ICI paints limited is an effective part which contributes to the achievements of

over all goals and objectives of the organization, as ICI Paints limited is a multinational

organization and it has the capability to maneuver strategies efficiently which has led

them to become the market leaders. I can conclude after an in depth study of company

different departments that it is effectively fulfilling the current as well as the future needs

of organization.

Recommendations

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The paints business must adopt the new marketing strategies because our main

competitor Berger Paints is going to merge with Asian Paints and now Asian paints has a

monopoly In India, if we update our strategies than no body can effect on our sale

ICI the import of raw material is huge. My suggestion is to produce required raw

material locally which would save these expenses and be beneficial for other

purposes

ICI paints fixed costs is very high so if we reduce this cost then ICI paints can

earn much more.

No rapid expansions, future expansion plans of the paints business takes more

time in implementation. The rapid expansion plans should be taken under

consideration.

The paints business needs more investment, so ICI must invest in the paints

business.

Channel structure needs improvements.

Communication gaps can be narrowed between marketing and sales department.

Production department should increase their efficiency in order to fulfill the

demand in time.

ICI paints limited make the practice of performance appraisal once in a year, they

should review the performance of the employees twice in a year. In this way,

they can easily judge the performance in the middle of the year.

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