Engro Foods Pakistan

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Acknowledgement
Apart from the efforts of me, the success and completion of any work depends largely
on the encouragement and guidelines of many others. I take this opportunity to express
my gratitude to the people who have been instrumental in the successful completion of
my internship and internship report.
I would like to show my greatest appreciation to my internship supervisor at the institute
Sir Tariq Mahmood and internship supervisor in the organization (EFL) where I
completed my internship, Mr. Muhammad Asif HR Officer in Human Resource
department. I can’t say thank you enough for their tremendous support and help. I feel
motivated and encouraged every time as they helped me and guided me whenever I
needed. Without the encouragement and constant guidance from Mr. Aalam Khan, I
would not have been able to learn a lot and complete my internship and internship
report.
The guidance and support received from both of my supervisors, was vital for the
success of my internship and internship report. I am grateful for their constant support
and help.

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Executive Summary
This report is about my internship experience. My eight weeks internship in EFL Sahiwal
Plant was a compulsory part of my degree. Doing internship in EFL Sahiwal Plant was a
great opportunity for me as I got platform to acquire practical knowledge and experience
and learn the working of finance department. I completed my internship in finance
Department. EFL is an affiliate of Engro group. Now in short span of five years they are
offering a number of products. A new ice cream Omore’ launched by EFL is a great
success on the side of EFL. The company is continuously moving towards success. In
this report I have discussed the brief history of EFL, their brands, their core values,
departments in Sahiwal Plant, the working of finance Department and most of all I
focused on my learning as an internee in EFL. I have explained my duties that were
assigned to me during my internship. I completed all the tasks assigned to me. I have
discussed those tasks in detail in this report. I found the people in the finance
department very cooperative. My supervisor Mr. Aalam Khan guided me at every stage
and helped me to learn the activities and then practically perform all those activities. On
the basis of my working experience I also did the SWOT analysis of the company
specially focusing on the EFL Sahiwal Plant. My internship experience will smooth the
progress of my career specially while entering the professional life, as now I have the
practical experience of working in any organization. I have also thrown light on the
aspect that how internship will impact my career. Internship experience is also a great
opportunity in a way that I got a chance to evaluate and examine the practical
implementation of what I have read in my course of finance; this will help me further in
my specialization. I have explained all my findings and new knowledge acquired while
working as an internee.

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Table of Contents
Overview of the Organization.....................................................................................................5
Vision:.............................................................................................................................................5
Mission Statement:.......................................................................................................................6
Values ............................................................................................................................................6
Integrity ..........................................................................................................................................6
Our People ....................................................................................................................................6
Innovation......................................................................................................................................6
CSR................................................................................................................................................7
Consumer Centric ........................................................................................................................7
Objectives and Goals...................................................................................................................7
Main Brands ..................................................................................................................................8
Main Branches..............................................................................................................................9
Fertilizer Business........................................................................................................................9
Engro Energy Limited ..................................................................................................................9
Engro Innovative Automation Limited .......................................................................................9
Engro Vopak Terminal Limited.................................................................................................10
Engro Asahi Polymer &Chemicals. Limited ...........................................................................10
Organizational structure ............................................................................................................10
Executive Committee.................................................................................................................11
Integrated Management Policy ................................................................................................50
Competitors Analysis.................................................................................................................50
Marketing Strategy.....................................................................................................................52
Marketing Research...................................................................................................................53
Segmenting & Targeting The Market For Olpers ..................................................................54
Demographic Segmentation .....................................................................................................12
Psychographic Segmentation...................................................................................................12

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Behavioral Segmentation..........................................................................................................19
Positioning The Brands .............................................................................................................19
Placement and Distribution.......................................................................................................18
Promotion and Distribution .......................................................................................................18
Promotional Strategy .................................................................................................................19
HR Department of Engro...........................................................................................................19
Purpose of HR Depertment ......................................................................................................19
Main Functions of HR Department ..........................................................................................20
Organization of HR Department...............................................................................................21
HR Policy.....................................................................................................................................21
Major Functions of HR Department………………………………………………………….25
Job Analysis Information ...........................................................................................................27
Recruitment and Selection........................................................................................................28
Orientation by Depertment........................................................................................................24
Performance and Management ...............................................................................................24
Career Planning and Management .........................................................................................24
Financial Statement Analysis ...................................................................................................24
Financial Statement Analysis of Engro Foods.......................................................................26
SWOT Analysis...........................................................................................................................27
Strength .................................................................................................................................29
Weaknesses ..........................................................................................................................40
Opportunities.........................................................................................................................32
Threats ...................................................................................................................................33
PEST Analysis ............................................................................................................................35
My experience during Internship Program .......................................................................57
Suggestions and Recommendations ......................................................................................58

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Overview of the Organization
The 21st century for Engro Corporation has thus far proved to be the most successful
period in the total life of Engro, from then onwards Engro has only faced success and
never looked back, 2003 was the year of the establishment of Engro EXIMP, after which
in 2005 Engro decided to expand their business more by venturing into the food
business by establishing Engro Foods Limited, which is now experiencing a great
success and contending now with international brands like Nestlé and Wall's Ice Cream.
Engro Foods Limited is auxiliary of Engro Chemical Pakistan Ltd. which is one of the
most reputed enterprises in Pakistan with more than 40 years of diversified business
operations in the areas of fertilizer and chemicals. Engro Foods started its business
operations in March 2006 and with the successful launch of Olpers Milk, Tarang, Olpers
Lite, and Olpers cream, it has established itself as a major player in the foods business.
Engro Foods has already set up two processing plants at Sukkur and Sahiwal. With the
ever expanding milk collection network and processing facilities, effective Supply Chain
has geared Engro for the growing sales of their products.
Vision:
Engro Foods’ vision is “Elevating Consumer Delight Worldwide” and the Company aims
to satisfy their customer and to make them their loyal customers and generate a
significant portion of its revenue from foreign operations.

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Mission Statement:
We exist to deliver high quality food products, which exceeds our costumers (EFL’s)
expectations. Our people are greatest assets and we have a value in market place,
which inspires excellence in our teams. Our deed reflects our pride in being
environmentally responsible and good community citizen which enhance our goodwill
and creditworthiness.
Values:
Integrity
Engro has crystal-clear processes ,open disclosure policy and decentralization decision
making. They are doing their business activities and transactions with fairness and
honesty.
Our People
Engro have a team of passionate people which are self directed and skilled and trained,
they have intelligence and firm approach towards business. Engro enhance their skills
by facilitating them with training, fun loving environment, necessary resources and
facilities.
Innovation
Engro has team of innovative people, which innovate new products and make
continuous improvement in the existing products .Engro always encourages innovation
by their people or from wherever they get anything new.

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CorporateSocialResponsibility (CSR)
Engro has always follow CSR rules to take the measures for the safety of their people
or the environment. Engro always consider it, their responsibility to take care of their
employees and ocal people because they all are the valuable assets for him.
Consumer Centric
Customer is the king of the market .So the basic target of any organization is their
customers. Engro is delivering high quality to their consumers.
Objectives and Goals
Engro’s main goal is to satisfy the customers needs and wants by providing them high
quality products like Olpers Milk, Omore’ Icecream, Olfruite etc. Second main objective
of Engro is to increase the profit share, market penetration, goodwill ,creditworthiness
and get hold on a large market share.

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Main Brands

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Main Branches
Fertilizer Business
Agriculture accounts for 25% of GDP and 45% of employment in Pakistan Second
largest Urea producer of Pakistan .Capacity975 KT/A Market share20% Second highest
phosphates sales (~400KT/A) –Market Share 23% ECPL’s Margins are by far the best
in the industry. Zarkhez (NPK) Market leader -Capacity 160 KT/A –Market Share 95%
Urea shortage expected to grow to 1.2 million tons/annum by 2010. World’s largest
single-train Urea plant of 1.3 million tons being setup at a cost of US$ 950 million. On
commencement of operations in mid 2010, cash fixed costs of the new plant will be a
third of the existing plant; scale & brown field synergies Gas consumption at the new
plant will be 15% less than the existing plant. Engro’s Daharki complex will become the
world’s fifth largest Urea production site; 2.28 million tons, 3 plants.
Engro Energy Limited
Established in 2006-100% owned subsidiary Pakistan is facing growing energy deficit –
Energy consumption has been growing at 7% per annum Setting up a 220 MW gas
based power plant at a cost of $220 million with commercial operation in 2009 Short-
listed along with 3 other companies for privatization of Jamshoro Power Company.
Engro Innovative Automation Limited
Acquired majority stake (51%) in a knowledge based company Innovative Engineering
& Automation Ltd in 2003 Market Leader in domestic Industrial Automation –Honeywell
distributor in Pakistan Expanding internationally to synergize, and benefit from lower
costs at home and higher demand abroad Now operating in Dubai, UAE which
contributes 25% of revenue and half of the profit Company’s first IP product “iboiler”
launched internationally in 2006 Acquired an automation company in the US in Dec.
2006; mandated to develop outsourcing opportunities.

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Engro VopakTerminalLimited
A 50-50 JV with Royal Vopak of Holland; established 1997 Royal Vopak is the world’s
largest independent tank terminal operator Engro Vopak handles 70% of liquid chemical
imports in Pakistan .Setting up our country’s first Cryogenic facility for ethylene imports
Well positioned for setting up proposed LNG terminal –under active consideration of the
government; Cost US$ 350 –400 million.
Engro AsahiPolymer &Chemicals.Limited
Established in 1999. 80-20 JV with Mitsubishi Corp. Pakistan’s only PVC manufacturing
plant; facing buoyant domestic demand since 2006 Successfully placed 22% of sales in
diverse export markets from Australia to East Africa in prior years (2004 –2005)
Expansion and back integration underway –imported ethylene + new caustic soda plant;
EDC/VCM/PVC.
Organizational structure
Engro's 13-member Board of Directors is responsible for the overall supervision of the
company.
1. Hussain Dawood (Chairman)
2. Asad Umar (President)
3. Asif Qadir (Director)
4. Arshad Nasar (Director)
5. Shahzada Dawood (Director)
6. Israr Ahmed (Director)
7. Shabbir Hashmi (Director)
8. Khalid Mansoor (Director)
9. Rohail Mohammad (Director)
10.Khalid Siraj Subhani (Director)

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11.Muhammad Aliuddin Ansari (Director)
12.Abdul Samad Dawood (Director)
13.Saad Raja (Director)
Executive Committee
Committee is headed by President & CEO Mr. Allahudin, while others include:
 Mr.Asif Qadir (President & Chief Executive Officer Engro Polymer &
Chemicals Limited),
 Khalid Siraj Subhani (President & Chief Executive Officer Engro Fertilizers
Limited),
 Bakhtiar Wain (President & Chief Executive Officer Avanceon Limited),
 Khalid Mansoor (President & Chief Executive Officer Engro Powergen Limited),
 Sarfaraz A. Rehman (President & Chief Executive Officer Engro Foods Limited),
 Shaikh Imran-ul-Haque (President & Chief Executive Officer Engro Vopak
Terminal Limited),
 Ruhail Mohammed (Group CFO Engro Corporation Limited),
 Tahir Jawaid (Vice President Engro Corporation Limited) and
 Syed Ali Akbar (Vice President Marketing Engro Foods Limited)

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Integrated Management Policy
The management and employees of EFL are committed to maintain a leading
position in Halal and safe food value chain of “Dairy Farm”, Milk procurement,
processing at Dairy produced (UHT milk, powder milk, icecream and Ghee) and
huices and Nector, through team work continual improvement, implementation of
good practices and maintaining the hygiene food excellence and safety standards
to the entire satisfaction of our valuable customers.
We are also endeavoring to comply with International, National and company’s own
health, safely hygiene, quality and regulation applicable to EFL’s IMS and take concrete
measures to minimize waste, prevent pollution, conserve natural resources, prevent
injury and ill health of our people.
Reviews at defined targets/objective and their fulfillment for continued improvement are
the hall mark of all activities undertaken by EFL.
Competitor analysis
Brands like Milk Pak (owned by Nestle) and Haleeb Milk (from Haleeb Foods) had led
the dairy market in the world’s fourth largest milk producing country for nearly two
decades—without any real sustained competition. Engro Foods, in contrast, had only
recently been established by Engro—a traditional giant in Pakistan's chemical and
fertilizer.
Branding experts could not imagine how Olper’s could distance itself from its parent
company’s incredibly unappetizing, chemical-laden, and non-edible roots. Yet, by the
end of 2006, sales for Olper’s Milk had reached Rs.1 billion (approximately US$ 15
million) and in 2008, the brand has a market share of close to 22 percent—second only

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to Milk Pak (estimated at 40 percent). The critics had to grudgingly accept that the new
entrant to the multi-billion rupee packaged milk category meant business.
The packaged milk category was originated in 1981 by (quaintly named) Milk Pak,
which pioneered tetra pack milk in Pakistan. The supply chain involved collecting milk
from rural areas across Punjab, processing the milk through UHT (Ultra-High
Temperature Processing) treatment, and selling it to consumers in uniquely colored
triangular and rectangular packs designed to prolong the milk’s quality. Milk Pak’s “Milk
Packs” were very well-received and the brand soon became synonymous with quality
milk. Its first real competition came in the form of Haleeb, which introduced distinctively
blue tetra packs to the market in 1986.
Milk Pak, however, further grew in stature when Nestle used it to break into Pakistan's
marketplace. By 2006, the dairy milk category was growing at 20 percent annually, and
Milk Pak and Haleeb were well-entrenched brands with distinctive colors and brand
promises of providing high quality, natural and healthy milk. Milk Pak was identified by
its green and white packaging—the colors of the country—and offered a brand backed
with the strong equity of Nestle, coupled with its own traditional heritage. Haleeb was
recognized as the blue brand, and professed to have the "naturally thickest" milk. With
the market dominated by two strong, familiar, and widely respected brands, the
marketplace appeared completely impervious to new comers.
Olper’s, however, stepped into the forway by launching a massive campaign that started
off with an introductory slice-of-life television commercial featuring some of the biggest
stars in Pakistan. Billboards went up at key locations in the major cities, and soon the
brand had become a voice above the media clutter—a voice that differentiated Olper's
brand from the others.
Rafey Nisar Zuberi, the marketing manager for Engro Foods, says, “From the onset, we
wanted to introduce a true paradigm, bringing the dairy brand to the fore.” The name
itself made it sound like a foreign brand, giving the perception of quality, and was unlike

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anything previously experienced by Pakistani consumers. Rafey continues, “We wanted
consumers to consider Olper’s as a contemporary and modern brand, and all of our
communication and brand attributes were geared toward ensuring that end.”
To a large extent, they were successful. “It was certainly a campaign with its own
unique identity,” says Farah Jamaluddin, a media professional. “All of their
communication was aesthetically on the mark and had a sense of synergy about it,” she
Explains. The campaign highlighted and expanded upon the various occasions in which
milk could, and should, be enjoyed—and kept driving home that message through its
various promotions. Olper’s became the "All Purpose Milk" and could be consumed with
breakfast or blended with tea (arguably the most popular beverage for the masses in
Pakistan), and appreciated by all members of the family. Engro Foods utilized a
dynamic campaign, and during Ramadan (the Muslim month of fasting), molded its
message to talk about the "All Purpose" nature of their brand during both Iftaar
(breaking of the fast at dusk) and Sehree (pre-dawn food before the fast). “We are
aiming to own the religious month and our special edition packaging, Ramadan relevant
ATL (Above The Line—television, radio, etc.) and tailor-made iftaar activations, are
aimed at building the necessary association we want in consumers’ minds,” Rafey
points out.
Other avenues of BTL (Below The Line—brochures, flyers, etc.) have also contributed
to the brand’s success. The World of Olper’s, for example, involves reaching out to the
different locations in various cities and having the housewives participates in learning
and showcasing milk-based recipes. “The intention is to purely build trial experiences,”
says Rafey. “We are in our third year, and so far we have had close to 350,000
contacts,” he adds with pride. The Olper’s Consumer Relationship Party is another
ongoing BTL based program, which intends to create and maintain loyalty amongst the
brand’s users.
In its launch, Engro Foods has made a conscious and concerted effort to distance its
milk brand from its parent company’s chemical and fertilizer roots to ensure that no

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negative connotations or cross-pollination of brand identities were manifested in the
minds of consumers. Interestingly though, the company has been able to use Engro’s
historical equity with rural farmers positively toward growing its milk collection network in
the province.
Our milk collection network has grown exponentially post launch,” says Rafey.
“So much so that we reached our supply capacity within six months and had to begin
using a second UHT plant within three months,”
he adds. Today, Engro Foods aims to become the only company to utilize all of the milk
collecting areas in Pakistan and also plans on developing the biggest dairy farm in the
country. The company’s reputation as a local giant actively involved with community
welfare in remote areas has also been a positive add-on for Engro Foods.
Marketing Strategy
The milk sector in Pakistan is Huge. According to SMEDA Engro produce about 28
billion liters a year and Packaged Milk is just a dent on this number.Packaged Milk is
still not that popular here Because of various socio economic factor .92% to 93% of milk
is open milk. It may possible that after some time the need and demand of packaged
milk increases and the drive to turn that need into profit that defines the success of a
Good Business and Olper’s saw that need.
Before OLPERS, Nestle MILKPAK was the king of the castle and Haleeb was second
best. Sometimes Businesses become too comfortable with present situations and
forgets and also forget strategic vision and analyzing the market and that is exactly what
happened.
The grass mowed under the feet of Nestle and Haleeb when OLPERS (with huge
financials) came in. OLPERS did something else that was amazing; they attracted, they
strenghten and delighted their customers into becoming more health conscious and
purchase savvy.

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Haleeb lost their market share and their place as second best. It was an all out war of
the worlds and Olpers came prepared. A barrage of line extensions and big budget
spending saw them become one of the most recognizable brands in Pakistan, and that
too in just two years. Their presence was everywhere on shelves, on billboards… you
name it! Olpers was everywhere!
Marketing research
Before the inception of the brand Olper’s, AC. Neilson carried out a marketing research
for Engro Foods to determine the viability of the brand name Olper’s and the market
readiness through surveys, interviews and focus groups.1200 names were reviewed
and analyzed before Olper’s was decided. Olper’s is promoted as the milk for all-
purposes. The reason for this is that while conducting research, they found out that
people want milk that could be used for all purposes such as drinking, tea whiteners etc.
Once the brand was introduced the organization wanted to add more product lines to it.
Therefore they conducted another marketing research to find out the success of Olper’s.
The researchers started off with secondary data that was available. They tried to
uncover the level of complexity involved in such a decision and the magnitude of
success. But that wasn’t enough so they started to collect primary data through the use
of different techniques.
They first started with survey research to understand the people’s beliefs, preferences
and core needs that can be satisfied by introducing additional products. The
researchers also conducted observational research to observe the people in different
settings. They used it to find out which brand the people really bought, where did they
take more time in purchase process and where did they look when they were shopping
for grocery. This helped them to see the shelf-space that can be used. They used the
method of shadowing that is they observed people while using the product. They also
conducted unfocused groups where they interviewed a diverse set of people to explore

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Idea about the brand and what more they want in the food sector to be available to
people.
The researchers conducted questionnaires to find the responses of consumers about
Olper’s. They got a positive feedback from the customers who also encouraged them to
invest further and to setup a new plant in Sahiwal. Through different research methods
the organization was also able to find out the number of competitors brands.
After the analysis of data researchers present the findings to the decision makers who
pass the final verdict. Due to the positive responses of consumers, the decision makers
decided to go ahead with the idea of introducing more product lines to the food Olper’s
brand.
It can be said that successful marketing research helps the marketers to understand the
customers’ needs that are still unfulfilled. The four new products of Olpers in the market
are:
1. Olper’s lite
2. Olper’s cream
3. Tarang
4. Omore’
5. Olper’s milk
The organization has further plans to expand more in this sector and introduce more
products related to milk.

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Segmenting and targeting the Market for Olpers
The milk sector has a market that has homogeneous taste and demand that is the
consumers have similar preferences.
1. Milk should be clear and free from any impurities.
2. It should be carefully processed
3. Milk should be good for bones and health.
Olper’s market has been segmented according to these things. Olpers marketers had a
number of options available to them when segmenting the market for their products
 Demographic Segmentation
Olpers is meant for all the users in higher upper or middle class families. Olper’s
products are not restricted to any particular age, gender or lifecycle stage. Lower class
wouldn’t want to buy the brand maybe because they are price sensitive or because they
still believe lose milk is better than processed milk .Milk companies are trying to change
the image of processed milk as non-nutritionist milk. Therefore it can be said that
Olper’s had a image as a brand for high income earners. Due to that image it can be
said that Olper’s milk target a specific social class who are health conscious and
concerned about their weight.

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 Psychographic Segmentation
During segmentation Olpers also focuson psychographics factors, factors such as
personality traits, lifestyles and values, Olper’s marketers have segmented the market
who are goal-oriented and focused on their careers, and those who are looking variety
in the milk sector. For example the ads for Olwell ,focus on achievers who want to be
successful, have high aims and are already doing quite well in their concerned fields.
And why OLPERS have targeted variety seekers because the company has given them
a new set of brand and so, many will make their first purchase because they want to try
something new. Olper’s ads also target believers, traditional conservative people with
Concrete beliefs. Olper’s ads show the beliefs of healthy life with processed milk and
plays on the emotional aspect more.
 BehavioralSegmentation
Olper’s products have been segmented on the basis of benefits that consumers seek in
the milk.Olpers ads are always based on the theme of family.Olpers milk can be used in
daily life.Olpers can be used for all purposes like tea whiteners or to feed the animals.
Olpelrs milk can use for drinkin or as a tea whitener….
Positioning the Brands
Positioning involves designing the product and image that will occupy a distinctive place
in the minds of the target market. As can be seen, Nestle Milkpak and Haleeb have the
largest profit margins and market share in the milk industry. Thus the marketers at
Olper’s have decided to create its own unique image and then

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strengthen the position in the customer’s minds. They have done this by taking a
number of following steps:
Packaging of Olper’s Milk in red colour are quite different and distinctive from the typical
green and blue packing used by other competitors.
The brand has been positioned as an all purpose milk that is meant for everyone,
especially those who live life to the fullest, hence its tag line is
“jo dil khol kay jeetey hain unheen kay liyay hai Olper’s”
Placement and distribution
According to Mr. Fuad Chundrigarh, Director Marketing EFL,
“In order to succeed, you should always capitalize on your strengths and
never on your competitor’s weaknesses”
Engro Foods did exactly that. They used their decades of PR with farmers and used it to
provide world-class supply-chain management for delivering the ultimate quality milk in
Pakistan.
Having kicked off simultaneously in 20 cities across Pakistan, the launch has been
ambitious and currently Olper’s is available in 80 cities across Pakistan. It reflects the
company’s intention to become a big player in the industry, both on a national and
international level. Engro Foods Limited has its own distribution network. EFL has
divided Pakistan into five regions for milk distribution namely:
1. Karachi
2. Lahore
3. Islamabad
4. Peshawar

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5. Multan
Due to an appealing color scheme, which stands out in the clutter and thanks to the
EFL’s strong relationship building and special discounts to retail outlets, Olper’s has
gained a proper shelf placement in the presence of competitors like Nestle and Haleeb.
Promotion and Distribution
Promotionalstrategy:
Olpers promotional strategies:
a. Stalls in BAZAAR
In order to encourage and attract the consumer company using the strategy, stalls in
Sunday Bazaar, Tuesday Bazaar and Friday Bazaar at different location of pakistan and
especially to those areas where the volume of sales of the Olpers is low .
b. Integrated marketing communication
In order to inform the consumer about the new, upcoming product and value added
services to the existing product company have a complete plan. The company uses
print media to inform their consumer.
c. Unique selling proposition
Olpers is a trend setter in market.The usp of Olpers is “wo log jo khul k jete hai”. They
provided their consumer pure milk and this the usp of nestle milkpak.
d. Advertisements

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Olper’s emphasis on advertsing.they use different medias to advertise their product ,
TVCs, print ads, radio commercials, billboards and plenty of BTL (below theline)
activities including direct consumer and shop branding activities. Because of OLPERS
aggressive marketing campaign, the company gave tough completion to well
recognized brands.
e. Ramadan Campaign
Olper’s celebrates the spirit of Ramadan. Olper’s celebrate Ramadn with unique style,
in Ramadan 2009 is the latest example for it. Every Ramadan they have has come up
with nice promotional campaign. They try to promote the patriotic spirit of Muslims all
around the world through the most popular ³Hum Mustafavi Hein´song that gives the
message of Peace for the whole world. The song is directed by Asim Raza advert
features Atif Aslam and Dawood Ali.And worked has done fabulously. This ad has
been shot in 5different countries I-e Pakistan, Dubai, Morocco, Brunei and Turkey. In
Olpers ads They have shown the Muslim rich heritage, culture and beautiful mosques.
Olper’s association with religion and cultural heritage grows stronger each Ramadan as
their worth talking about Ramadan Campaign penetrates through the industry setting a
bench mark of gleeful trail for competitors to witness. Their rich hues of corporate color
and emphasis on cultures across the globe give more meaning and depth to the brand
as a whole. What we see today is a great project execution by TNBT (The Next Big
Thing) to take the Olper's digital campaign to the next level by going beyond traditional
online banners and simple Facebook page management.
OLPERS brand shows Islamic nations as a united faction in their ads. In Olpers ads
they try to show the principals and family values are very important. Their user friendly

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website opens up unfurling the corporate colours and takes the user for a journey of
engaging features and advertisement downloads that could be cherished as collectibles.
Similarly, the display of Sehri and Iftar timings and the integration of digital and
traditional media are worth noticing where Olper’s has lked recipes on a local TV
channel and the brand enjoys good product placement.
This Islamic theme integrate in Olper’s Ramadan campaign and the digitalized aspect in
it’s entirety have made the viral impact and positive word of mouth inevitable and thus
more of related campaigns are expected in years to come.
Now days there has been a growing trend of targeting Muslim consumers around the
world, Providing Halal food is the main target of national and international markets . ,
‘Islamic Marketing’ is the term in use and thus relevant activities increase in Ramadan.
NewYork Times also talked about OLPERS work how Olpers competing against
Nestle. NewYork Times also mentioned in his section ‘Media and Advertising about
various international brands focusing on the Muslim market and mentioned how Olper’s
has been doing it’s part in terms of Ramadan and how it helps in competing against
Nestle.

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HR Department of Engro
Purpose of HR Department
The Human Resource department may be considered the backbone of companies. The
HR department makes sure that the company policies, visions, and values are being
followed through by the company, as well as the employees within that company. The
Human Resource department develops initiatives and provides strategic support to
management concerning Human resources policy
Main Functionsof HR Department
The HR department is responsible for many every day functions. For instance, HR is
responsible for manpower planning, which is the balancing of overstaffing and
understaffing within a company. HR also deals with organizational development, or
determining the hierarchy of a company’s many positions. Employment and association
conditions, recruitment, job classification and salary administration, performance
appraisal, advancement, internal mobility, training and development, and corporate
social responsibility are just many of the other responsibilities that the HR department is
responsible for.
Organizationof HR department
1. Control of records:
Data on all HR related activities are generated and recorded in a meaningful
manner to provide objective evidence of quality and work done. All HR separating
manual related records are retained in good manner. HR officers maintain a list of
quality records and their retention time. These papers are important as backup
information, or if ever a need arises to determine whether or not a particular objective is
being met, if an employee is working properly based on their job descriptions, and much
more.

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2. Management commitment
HR department of EFL is committed to developing and implementing HR policies,
procedures, and continually improving their department effectiveness through
conducting management reviews, establishing HR objectives, & providing strategic
support to the management with regard to HR policies. The HR department helps keep
all of the different policies and procedures in check by overlooking all aspects of a
company, including management.
HR Objectives
HR Objectives have been developing for EFL. These specific objectives are the prime
basis for the performance evaluation of HR department. Objectives can be reviewed
any time when the needs arise. Objectives are important to keep not only the HR
department, but also the overall company on the right tracks. A planned review is
performed once a year to help ensure this.
HR Policy
It is the policy of the company to provide Human Resource services and staff
development programs responsive to the needs of the company and delivered at
highest possible standards of quality.
The HR policies are related to:
HR deals with who is hired, and how they are hired. HR also deals with an employee’s
benefits relating to medical and dental benefits. If employees want to travel, or to
transfer to another department, company, or position, then HR works with that
employee to the best of their abilities. Transportation allowance and company assigned
car are other aspects of a company that the HR department deals with.

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Major Functionsof HR department
There are seven major functions in HR department of every company:
1. Manpower planning
This aspect deals with the responsibility of determining whether or not a company is
understaffing or overstaffing. Understaffing is dangerous because it can lead to a
smaller workforce. Overstaffing leads to insufficient funds to pay a large amount of
employees.
2. Recruitment and selection of employees
HR is responsible for analyzing job descriptions, as well as finding and hiring proper
employees for the job. HR is also responsible for interviewing people for job positions.
The interview process is highly important because this is what helps the company hire
the right person for the right job.
Employee motivation
HR is also responsible for initiating professional development and leadership workshops
that can help employees grow. These types of workshops allow for employees to better
understand one another, determine ways of improving themselves, and feel more
motivated to work in the company. A company that takes the time getting to know their
employees will in return have employees who want to better understand and work for
their company.
3. Employee evaluation
This aspect deals with assessing and evaluating the progress of an employee. This is
important because it helps a company, through the HR department, determine at what
level an employee stands, if the employee has made sufficient progress, and how help
the employee advance and succeed within the company.

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4. Organizational relations
A company can range from a few people to thousands of people, and these people are
divided throughout various departments within the company.
5. Provision of employee service
HR is responsible for delivering its policies, paperwork, and much more their
employees.
6. Employee education, training, and development.
This aspect is very similar to employee motivation. An employee is a human being, and
all human beings are able to learn and advance in their field of work. There is always
room for advancement, since no human being is perfect. This is perfect for the HR
department, which is able to deliver training and education to its employees.
Job Analysis Information
Job Analysis information is the basis for several interrelated HR management activities:
1) Recruitment and Selection
This helps HR find and hire the right people for the right job.
2) Compensation
This helps HR determine what amount of money should be given to an
employee based on experience, work productivity, and much more.
3) Performance Appraisal
This helps HR appraise those employees who are able to follow and complete the
responsibilities, objectives, and goals written in their job descriptions.
4) Training

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This helps to explain both to HR and employees the type of training that can be offered
to help reach the different objectives and goals.
5) Discovering unassigned duties
Developing a description for a job can often lead to discovering other responsibilities
that a specific job could provide! For example, let’s suppose an HR specialist is creating
a job description for an Assistant Manager. While creating the description, the HR
specialist realizes that the Assistant Manager position also requires good
communication skills, and so he/she writes this requirement into the job description! By
doing this, the HR department will not only find people who have good communication
skills, but they can now provide TRAINING to previous Assistant Managers within the
company to help them develop their communication skills!
Job description is also a part of Job Analysis. A job description is a written statement of
what the worker actually does, how he or she does it, and what the job’s working
conditions are. You use this information to write a job specification; this lists the
knowledge, abilities, and skills required to perform the job satisfactorily.
There is no standard format for writing a job description. However, most descriptions
contain sections that cover the following:
1- Job identification
2- Job summary
3- Responsibilities and duties
4- Standards of Performance
5 – Working Conditions
6- Job specification

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Recruitment& Selection
Once a pool of candidate has been completed, the next stage is to select the best
person for the job to achieve the organizational goal. The organization gives importance
to solution process as the result of this process. The better performance of the
employees shows the better performance of organization, which can achieve its
goodwill & vice versa. Further effective screaming leads towards cost minimization.
Finally the organization gives this process importance to fulfill legal formalities also.
Applications are reviewed by the HR Department and suitable candidates are selected
for departmental consideration. Applications are necessary to also be reviewed by the
concerned department. The concerned Department and HR select those candidates
who are to be called for initial interview by HR department.
1) Calling Candidates from outside for Interview.
Before a candidate is called for interview, an estimate of expenditure involved in his
travel will be proposed for approval by the HR Manager. It will be only after the approval
has been accorded that the candidate will be informed in writing with necessary
instructions as to the date, time and place of his interview and he will be asked to
confirm his agreement to travel expenses admissible.
2) Preliminary Interview
• Candidates are screened by HR Department
• Appropriate tests are administered as explained below
• Results of screening and tests are shown to the Department concerned.
• Candidates for further interviewing are chosen on the basis of this screening and
testing.
•

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3) Testing
The purpose of the testing program is to collect from the applicant such supplemental
information regarding his mental abilities, skills and competencies as it would be used
by the management, in deciding if the applicant is likely to succeed as an employee for
the organization.
4) Final Interview
Candidates are interviewed by the members of Management as nominated by the
Department Head concerned and the HR department. The Interview Rating Form (form
no. HRD-1-2) is completed by each interviewer and returned promptly to HR
Department.
5) Interviewing the Candidate
The candidate should be interviewed under such conditions that he /she is as ‘natural’
as possible and has an opportunity to exhibit his usual behavior towards people. Of
course, this is not entirely possible when he / she knows that the selection or rejection
for employment may depend in part at least upon the impression he / she creates. But
with due allowance for nervousness and perhaps anxiety an interview conducted under
the following conditions go far towards revealing the human relations aspect of the
candidate:
• This interview must be conducted in an informal atmosphere.
• The interview must be conducted like a friendly discussion between the
interviewer and the candidate.

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• The interview must be conducted as per the industry benchmarks.
6) Medical
The purpose of the medical examination is to determine and evaluate the general health
status of the applicant as it is related to his ability to perform the job for which he is
applying. Appointment letter is issued only after the candidate has been found fit for the
job applied for.
7) Appointment
HR prepares an appointment letter. The Department Manager signs the Appointment
Letter for all employees and returns it to HR for further processing.
8) Orientation
It is the responsibility of the HR Department to acquaint the new employees with the
general HR Policies and procedures of the Company. It is the responsibility of the
Department Head to acquaint the employee with the applicable working rules at the
place of assignment and to explain in full detail to the employee his place and duties in
the overall Company organization.
9) Replies to the other Candidates
All other candidates who were called either for initial interviews or any other interviews
are sent replies by the HR department thanking them for their cooperation and telling
them that the position has been filled.
.

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Orientation by Department
After the selection the head of Dept itself give the orientation to his sub-ordinates. He
gives an overview of organization culture, but the duties & responsibilities of new
employees in detail. First 2-3 days there is a not much/fully responsibility on the
employee.
For the fresh employee (having no experience) there is 3 to 6 month training period.
After it they are fully responsible for their duties.
 For existing employees, there is continuous On Job Training by the supervisor
and Head of Dept. they are prepared as inside supply of candidates for an upper
level vacant post in future expected.
Orientation provides the information about the followings:
1. Organization’s Culture
The entire employee’s are introduced with organization’s culture. Organization’s values,
norms and beliefs are discussed in detail. Employees are introduced with Engro Food’s
image and its reputation in all over the world and the customs and traditions are
explained to the employees.
2. Employee’s Introduction
All the employees are introduced with other employees and their supervisors so they
can know each other. The purpose of this practice is that, if employees know each other
and they feel good to work with each other then definitely they will perform well and with
ease. Company’s policies, rules and regulations, benefits, working hours, performance
reviews, payroll system, vacation information, working conditions these types of issues
are discussed in this content of the orientation.

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3. Contingency Training
In this content employees are introduced certain contingent situations in which they
have to respond immediately, like fire drill, safety issues, theft, robbery, to handle
disputes among the customers. Employees are taught about precautionary measures,
they should take during these critical situations. Engro food considers it very important
to discuss these sensitive and crucial matters on the very first day because these issues
can happen at any time and employees must know how to handle these situations in
advance, that’s why first orientation session is taken very seriously. This training
session forms a base for all future training programs.
4. Follow-Up Orientation
Follow-up orientation is conducted after the 30 days of first orientation. This orientation
is also a 45 minutes session having following contents:
Performance& Management
As it is obvious that performance appraisal is very important tool for evaluating the
performance so in Engro Foods it is conducted in a very careful manner.
Immediate Supervisor: The Responsible Person
For this purpose the person or official who is in direct contact with employees and to
whom the employees are under reservations is selected to assign the duty of appraising
the performance.

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The administrative manger, unit head, for example, General Manger also make surprise
visit. Moreover the immediate boss makes the performance appraisal in a very concise,
precise and systematic way as given below.
Defining the Job Properly
In order to avoid future problems the supervisors clarify from all aspects to employees
what the performance level is expected from them and what would be the standard for
their performance appraisal. Then in the light of definition of job performance appraisal
is made.
Feed Back
As without feedback performance appraisal remains fruitless. The keeping in mind
performance appraisal, discussion and feedback session are held time-to-time for
solving the problems.
Appraisal methods adopted by the Engro Foods
In order to get better results Engro Foods uses the combination of several methods and
this technique is very successful in their organization. The most important method by
them is:
 The MBO method
 Critical Incident Method
 Behaviorally Anchored Routing Sale.
NOTE: In Engro Foods performance appraisal is not limited up to formulation just.
Rather based upon a reward system that is established for satisfaction providing
appraisal as:
 Special increment

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 Promotions
Career Planning and Management
The company consistently monitors its employees and as far as the betterment of their
career is concern, the company has a proper strategic plan through which it increases
the skill level of its employees. The company offers training courses which focuses on
injecting skills and professionalism into employees. These courses held in the
organization or outside organization and even abroad depending upon the course
requirements. Regardless of the location of these training programs, the company pays
all the expenses. The only focus is to improve the skills of their employees so that not
only company can get maximum out of them but also employees can enrich their nature
of job and life standard as well.
Along with these training programs, the company make their employees fully aware of
their job requirements so that they can develop a clear picture about at what they are
good and bad. Indirectly the promotions also play a key role in employees’ job
satisfaction.

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FINANCAIL ANALYSIS
BALANCE SHEAT
as at december 31, 2011
amounts in thousands
2011 2010
Assets
Non current assets
Prperty, plant, equipment 9,615,426 148,219
Long term investment 980,000
biological assets 496,809 428,293
Intangible assets 133,598 142,433
Long term advances 24,212 23,126
10,270,045 8,722,071
Current assets
stores, spares and loos tools 571,812 441,841
Stock in trades 2,637,816 2,089,221
Trade debts 87,121 51,879
Advances, deposits & prepayments 266,093 244,209

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other recievables 1,160,126 720,735
Taxes recoverable 1,443 9,417
Derivative financial instruments 510
Short term investments 1,294,000
cash & bank balance 350,728 180,181
6,369,139 3,737,993
Total assets 16,639,184 12,460,064
Equity & liabilites
Equity
Share capital 7,517,889 7,000,000
Share premium 722,181
Hedging reserves -18,878 331
accumulated loss -984,954 1,875,924
Non- Cuurent liabilites
Long term finance 5,610,000 4,625,000
Obligations 1,295 4,714
Deferred taxation 308 180.964
Deferred liabilites 1,870 3,462
5,921,255 4,814,140

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Current liabilites
Current long term finance 465,000 200,000
current obligation 3,864 3,675
Trade & other payables 2,343,506 2,040,575
Derivative financial instruments 27,966
Accrued interest
_ Long term finance 968,152 275,077
_ short term finance 20,229 2,190
Short term finances 252,250
3,480,987 2,521,517
Contingencies
Total equity & liabilites 16.639,184 12,460,064

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PROFIT AND LOSS ACCOUNT
as at december 31, 2011
amounts in '000'
2011 2010.00
Net sales 29,859,226 20,944,943
Cost of sales -23,230,345 -16,552,117
Gross profit 6,628,781 4,392,826
Distribution & marketing expenses -3,716,489 -2,913,448
Adminstrative expenses 504,722 473,198
Operating expences -228,902 -131,460
Operting income 213,133 54,142
Operating profit 2,411,801 929,662
Finance costs -1,049,141 -659,652
Profit before taxation 1,362,660 270,100
taxation -471,786 -94,878
Profit for the year 890,973 175,622
Earning per Share 1,22 0,31

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HORIZONTAL AND VERTICAL ANALYSIS OF PROFIT & LOSS
ACCOUNT
Horizontal analysis 2011 11 VS 10 2010 10 VS 9
Rs % Rs %
Sales 29,859 42.6 20,945 42.8
Cost of sales 23,230 40.3 16,552 38.5
Gross profit 6,629 51.9 4,393 61.7
Distribution & marketing
expenses
3,716 27.6 2,913 10.3
Adminstrative expenses 505 6.8 473 36.3
Other expences 209 58.3 132 187
Other income 213 287.7 55 -68.8
Operating profit & loss 2,412 159.4 930 -760.6
Finance Cost 1,040 59 660 28
Net profit before taxation 1,363 404.1 270 141.2
Provision for taxation -472 399.6 -94 -142.4
Net profit after taxation 891 406.5 176 140.6

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Vertical analysis 2011 2010
Rs % Rs %
Sales 29,859 100 20,945 100
Cost of sales 23,230 77.8 16,552 79
Gross profit 6,629 22.2 4,393 21
Distribution & marketing
expenses
3,716 12.4 2,913 13.9
Adminstrative expenses 505 1.7 473 2.3
Other expences 209 0.7 132 0.6
Other income 213 0.7 55 0.3
Operating profit & loss 2,412 8.1 930 4.4
Finance Cost 1,040 3.5 660 3.3
Net profit before taxation 1,363 4.6 270 1.3
Provision for taxation -472 -1.6 -94 0.5
Net profit after taxation 891 3 176 0.8

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HORIZONTAL AND VERTICAL ANALYSIS OF BALANCE
SHEAT
Horizontal analysis 2011 11 VS 10 2010 10 VS 9
Rs % Rs %
Equity & liabilities
Equity
Share capital 7,518 7.4 7,000 29.1
Share premium 722 100
Hedging reserves -18 100
accumulated loss -985 47.5 -1,876 -8.6
7,237 41.2 5,124 52.6
Non- Cuurent liabilites
Long term finance 5,610 21.3 4,625 39.1
Obligations 1 -80 5 -37.5
Deferred taxation 308 70.2 181 39.9
Deferred liabilites 2 -33.3 3
5,921 23 4,814 32.4
Current liabilites
Current long term finance 465 133 200 70.9

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current obligation 4 4 -20
Trade & other payables 2,344 14.8 2,041 29
Derivative financial
instruments
28
Accrued interest
_ Long term finance 368 33.8 275 50.3
_ short term finance 20 900 2
Short term finances 252 -100
3,481 38 2,522 28.3
Total equity & liabilites 16,639 33.5 12,460 38.4
Assets
Non current assets
Prperty, plant, equipment 9,615 34.5 7,148 23.1
Long term investment -100 980 540.5
biological assets 497 16 428 -2.2
Intangible assets 134 -5.9 142 408.7
Long term advances 24 3.8 23 194.8
Deferred taxation
10,270 17.7 8,722 35.5

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Current assets
stores, spares and loos tools 572 29.4 442 52.4
Stock in trades 2,638 26.3 2,089 79.5
Trade debts 87 67.3 52 108
Advances, deposits &
prepayments
266 9 244 -28
other recievables 1 60.9 721 26
Taxes recoverable -88.9 9 -71
Derivative financial
instruments
-100 1 100
Short term investments 1,294
cash & bank balance 351 95 180 21.6
6,669 70.4 3,738 45.5
TOTAL ASSETS 16,639 33.5 12,460 38.4

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vertical analysis of balance sheat
2011 2010
Rs % Rs %
Equity & liabilites
Equity
Share capital 7,518 45.2 7,000 56.2
Share premium 722 4.3
Hedging reserves -18 -0.1
accumulated loss -985 -5.9 -1,876 -15.1
7,237 43.5 5,124 41.1
Non- Cuurent liabilites
Long term finance 5,610 33.7 4,626 37.1
Obligations 1 5
Deferred taxation 308 1.9 181 1.5
Deferred liabilites 2 3
5,921 35.6 4,814 38.6
Current liabilites
Current long term finance 465 2.8 200 1.6

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current obligation 4 4 0
Trade & other payables 2,344 14.1 2041 16.4
Derivative financial instruments 28 0.2
Accrued interest
_ Long term finance 368 2.2 275 2.2
_ short term finance 20 0.1 2
Short term finances 252 1.5
3,481 20.9 2,522 20.2
Total equity & finance 16,639 100 12,460 100
Assets
Non current assets
Prperty, plant, equipment 9,615 57.8 7,148 57.4
Long term investment 980 7.9
biological assets 497 3 428 3.4
Intangible assets 134 0.8 142 1.1
Long term advances 24 0.1 23 0.2
Deferred taxation
10,270 61.7 8,722 70
stores, spares and loos tools 572 3.4 442 3.6

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Stock in trades 2,638 15.9 2,089 16.8
Trade debts 87 0.5 52 0.4
Advances, deposits &
prepayments
266 1.6 244 2
other recievables 1,160 7 721 5.8
Taxes recoverable 1 9 0.1
Derivative financial instruments 1
Short term investments 1294 7.8
cash & bank balance 351 2.1 180 1.5
6,369 38.3 3,738 30
Total assets 16,639 100 12,460 100

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Financial statement analysis
Financial Analysis
(Rs m n) 2010A 2011E
Income statement
Net Sales 20,945 31,282
COGS 16,552 24,381
Gross profit 4,393 6,900
Operating profit 930 1,930
EBITDA 1,630 2,717
Finical Charges 660 789
PBT 270 1,141
Tax 94 399
PAT 176 742
Balance Sheet
Share holder Equity 5,124 3,216
Non Current Liabilities 4,814 5,607
Current Liabilities 2,522 5,740
Total Liabilities & Equity 12,460 19,563
Non Current Assets 8,722 15,075
Total Current Assets 3,738 4,488
Total Assets 12460 19563

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Ratio Analysis Valuation
Earnings per Share 0.2 0.1
Book value per share 6.9 11.0
Price of earning ratio(x) NM 25.2
Price of book value(x) 3.6 2.3
Price of Sales(x) 0.9 0.6
Profitability
Gross margin 21% 22%
Operating margin 4% 6%
Pretax margin 1% 4%
Net margin 1% 2%
Solvency
Total debt to total assets 0.4 0.3
Total debt to equity 0.9 0.8
long term debt to equity 0.9 0.7
Interest Cover 1.4 2.4
ROE 3% 9%
ROA 1% 4%
Momentum
Sales growth 43% 49%
Net profit growth NM 322%

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SWOT Analysis
 Strengths
a) Engro’s Back
Engro has a great brand recognition all over the world. It has a big brand image in
Fertilizers, IT and Infrastructure business. That’s why the main product of Engro foods
Olpers can be recognized by foreigners and also it can be backed up by foreign
investors rather than Nestle. It makes its distributing channel strong.
b) Better Relations with suppliers
The main benefit to Engro Foods is its good reputation among farmers due to fertilizers
which has created a long term relation between farmers and organization. Now Engro
has the advantage of its long term interaction with farmers that they can easily buy milk,
also they have mad centres for milk collection. And also farmers won’t have to look
anywhere else to sell the milk.
c) Positive Feedback from Customers

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EFL had a big success in the very first year, it crossed 1.4 Billion sales, which showed
the consumers belief and satisfaction with EFL’s products, for its good taste and quality
proposition.
d) Strong consumer & product research
A strong consumer & product research was conducted before and after launching the
Olpers. This has provided Engro the perfect launching pad to eventually emerge as a
global player in the food industry. To develop its future portfolios, EFL has hired various
global research partners like AC Nielsen, Mindshare, JWT Asiatic and MARS marketing
and advertising agencies.
e) Third-Generation Plant
Only EFL, has the third-generation UHT milk plant in the country. EFL plant is the only
plant in Pakistan that uses Bactofuge technology to eliminate bacteria and ensure
premium quality and hygiene. Moreover, it has also set up another milk processing plant
in Central Punjab (Sahiwal) with an investment of Rs. 2 billion (US $ 33 million).
1. Worldwide fame of Engro.
2. Efficient milk collection system.
3. Keeping high quality standards.
4. Integrated distribution and warehousing facilities.
5. Successful related diversification.
6. Generic brand name of Olper’s
7. Large market share of Engro innovative and chemicals.
8. Having Good reputation in the market by strong brand name i.e. Engro

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 Weaknesses
a) Not owning Red Color
The company has not owned the color red like Nestle has a green Milkpak; Haleeb has
a blue carton etc. This may create problems because when a consumer enters a
grocery shop, then he/she might have problems in recalling the brand because there is
no color association attached to Olper’s. The company may need to find a suitable color
in which to focus its upcoming marketing strategies.
b) Low Quality Milk
Engro Foods Ltd don’t have there own milk centres. They collect loose milk from
local gawalas and farmers. Which is the reason that the quality of milk is not that
good, it also have sometimes times vegetable oil and impurities add in it.
c) Monopoly of Tetra Pack
Tetra packs is the only packaging company in Pakistan. Engro is using Tetra Pack for
almost all their dairy products. So Tetra Pack being in monopoly can charge them at
whatever rate they want.
d) Milk collection & distribution costs
EFL’s 34 out of 40 milk-collection centers are located in Punjab, where as its milk
processing facility is situated near Sukkur (Sindh) and Sahiwal. It increases the milk
collection & distribution costs; and also increases the chances of milk getting spoiled
because of increased traveling time.
e) Narrow Product line
On March 20, 2006 when EFL launched its first dairy product, Olper’s Milk. EFL’s brandl
consists of just 3dairy products i.e. Olper’s Milk, Olpers lite and Olper’s Cream. But
EFLs competitors Nestle and Haleeb Foods have a diversified line of dairy products.

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 Opportunities
a) Increased funding by Government
Government has decided to help the farmers by increasing their funding. This is also
help ENGRO foods because of bad weather conditions and some other reasons there
was lots of wastage of milk but now farmers will be able to overcome their loss by
storing milk for longer time periods.
b) Increased consumption of PLM
Competition may create opportunities for the company because each competitor in the
milk industry wants to increase penetration of processed liquid milk and so they will
create awareness for consumers through different advertising media. This will ensure
the increase in the consumption of processed milk instead of lose milk and so will in turn
lead to increase in sales for the company. Therefore there will be an opportunity for
accelerated growth.
c) Awareness
High awareness about health and hygiene issues helps the milk industry to increase
their product by Growing dissatisfaction with loose milk and increased processed milk
consumption.
d) Third largest producer of milk
In the world Third largest producer of milk is Pakistan, total production of 32 billion liter
of milk a year, which is more valuable than that of the value of wheat and cotton, from a
total herd size of 50 million milch animals (buffaloes and cows).Milk is covering 51
percent of the total value of the sector.Milk production is expected to grow at an
additional 3 billion liters in the next few years because government and private sector
taking some steps for the betterment of milk industry. This is good opportunity for Engro
foods as there is lot of growth in this part of the sector.

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1. Improving Economy
2. Population growth rate.
3. High urbanization rate.
4. High literacy rate.
5. Flexible government policies for food industry.
6. Have significant growth opportunities
7. Has sufficient capital to expand.
8. Has the potential to innovate and differentiate the company's products to sustain
competitive advantage
9. May merge with other global businesses to eliminate competitors.
10.Having Capable of expanding into other markets of the world
 Threats
a. Competition
Competition is always a threatso the company try to keep a grip on their market share
and maintain its leadership in an expanding market. Sometimes it is difficult For Olper’s
to stable in a market where the loyalties exist for such brands as Nestle and Haleeb.
Such brands captured the milk industry for a long time and have a strong position in a
minds of consumers.
b. Perceptions and Price Differentials
Sometimes Consumers’ perceptions about price can cause a threat for the company. To
meet the companys promised specifications it is important that Olper’s comes up to the
expectations of the customers and fulfills its conformance quality.Change in the taste
and preference of consumer with time and prices might create threat of the profit
margins for Olper’s. For example,people still buy lose milk instead of packaged milk
because lose milk is cheaper. To eliminate Engro foods olpers the competitors may

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develop some marketing strategies. Because of this there may be an economic
downturn in the business cycle.
1. High inflation rate.
2. Low purchasing power.
3. Decrease in GDP growth rate.
4. Increasing interest rates.
5. Decreasing investment.
6. Recessionary period in business cycle
7. Competition with Nestle, Engro Foods and the new entrants.
8. Engro foods are currently facing an increase in Sales Tax.

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PEST Analysis
A. Political factors
There are no specific government rules and regulations but because of unstable
political conditions, strikes and road blocking is creating problems for delivery on
time.
B. Economical factors
Inflation rate of Pakistan for the current fiscal year has grown to 7%.so, the
purchasing power of the customers is decrease. packaged milk industry which is
already considered as more costly compared to open milk .As a result there is
increased pressure on the companies to either decrease their prices or at least keep
prices stable
C.Social factors
In Pakistan the norm is to get up in the morning and get fresh milk from doodh wala.
Mostly people considered that milk is healthy for them. This will require a lot of time
and patience because most of the people are not willing to spend additional amount
of money on packaged milk when they are convinced that it has a lot of
preservatives and is unhealthy
D.Technological factors
Milk yields per animal have been increased through scientific feeding & breeding
Our project is to establish farms. First 14 farms in Okara, Punjab have been formally
established as model farms

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Currently, most equipment for storage and processing is being imported from
Western countries.
My learning experience during Internship Program
Engro Foods is known for its internship programs which actually inspired me to go for it
and learn new things. Internship programs are basically designed to give a practical
exposure to the students of what they have studied in their class rooms and books. The
experience by itself was a pleasant surprise which was full of learning, meeting new
people and understanding corporate culture. Throughout the course of my internship I
was encouraged and guided by my supervisory staff. There professional handling and
trust made me to excel for continuous improvement and simultaneously gave me the
confidence to accomplish my projects as a winner.
The objective and can-do attitude that I developed working on stretched and tedious
projects helped me to convert my opportunities into strengths. It can also be termed as
a period of self-discovery where it was revealed that how far I can go, an estimate that I
have been revising to this day because of the new spirited attitude towards life.
Engro Foods stands as a company having its own culture, professionalism and strong
ethics. Equity and mutual respect are the core values which I greatly loved. The
company offers a very well-defined and structured internship program providing great
opportunities of learning. My experience as an internee with Engro Foods can be
summarized to be very befitting, fruitful and useful.
During the internship I was assigned with a project on T.I.S. It is a software EFL
developed the year to maintain the data of their permanent employees, such as:
Attendance, Leaves record, their personal information, their payroll and their other
bonuses and incentives etc. My project was to maintain the leaves record of the
employees and their payroll. This took 4 weeks to complete this task. The leaves were
from june 1st till the date going. The learning through this project was the working on
Excel Sheet.

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The next 4 week was mostly spent to maintain the record of organization daily and
monthly expenses.
I also helped my fellow internee who was working in accounts department. I helped her
in her task by managing the accounts of the employees, also I helped another internee
in making roasters, which is actually assigning the workers their shifts, i.e. There are
four of shifts in EFL:
• General (9 am to 5 pm)
• Morning (7 am to 3 pm)
• Evening (3 pm to 11 pm)
• Night (11 pm to 7 am)
I worked on DES (Daily Expense sheet). This is a sheet that employees use in order to
claim for some specified expenses such as mobile, travelling expenses. Firstly I verified
the amounts and bills that are attached to the sheets and then I put their data in SAP.
I also came to know about the working of R&D department. They are operating a
laboratory in which tasting of their products is done which confirms the productions of
that specification product.

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Suggestions and Recommendations
Following are the suggestions and recommendations for EFL:
 The co-ordination between different departments of EFL should be improved it
will lessen the bureaucratic cost and increase the efficiency of the company.
 The activities like customer satisfaction day should be performed on regular
basis so the company should know the feedback and satisfaction level of
customers regarding the product and the image of the company.
 EFL has shifted to branding concept but it really has not adopted it fully, for
smoother working of the different brands, the sales teams should merged with
respective brand management.
 There is no check on the performance of the distributor, and this has led to huge
problems in the delivery of many products in some areas of the city.
 They should also start to manufacture powder milk in order to meet the domestic
demand and so that it can be helpful in saving the foreign exchange that is
expensed in importing the powder milk from foreign countries.
 The company should explore the market potential in a way, so that it can utilize
its full capacity in order to gain economies of scale in the production.

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 At the moment the company is using focus marketing approach that only that
segment is approached which highly attractive for the company but it should also
develop the marketing program that distinguishes the characteristics of existing
available substitutes to their highly quality & hygiene oriented product.
 The company should also develop an integrated awareness plan in order to
aware the people about the quality of the UHT milk as compared to other
pasteurized or loose/fresh milk.