Alfanar Group Profile

ORGANIZATIONAL STUDY OF ALFANAR
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CHAPTER 1
INTRODUCTION OF ALFANAR GROUP
Alfanar Company is a fully-integrated construction, manufacturing and services company
with core competence in the electrical power sector and with business interests in the Kingdom of
Saudi Arabia, throughout the Gulf region and in International markets. Alfanar group has its head
office in Riyadh, Saudi Arabia and has three main divisions: construction, electrical and marketing
and distribution. Alfanar Company’s full range of businesses and services include: manufacturing,
construction, building industry, real estate development, marine services, information technology
and communication, industrial ventures and investments.
Alfanar Construction executes projects on a turnkey basis (including build-own-operate and
build-own-transfer basis) and works with various government agencies, public utilities, and private
organizations in the field of power generation, transmission, and distribution. Alfanar Electrical
Systems manufactures electrical products and accessories for the Saudi Arabian and international
markets under Eletra and Alf brand names.
Alfanar Marketing and Distribution is the marketing arm and distributes a wide range of
products throughout the Kingdom of Saudi Arabia, in several other countries in the Gulf region, as
well as outside to international locations. We have a global network of manufacturing facilities,
design and development centers and branches to deliver products, businesses and services to our
customers in Saudi Arabia, in the Gulf region and throughout the world. Our other facilities are
located in Dubai, UAE; Doha, Qatar; Cairo, Egypt; Damascus, Syria; Suzhou, China; and Chennai,
India.
Alfanar Company has a dedicated and skilled resource team with excellent knowledge of the
electrical power industry. Alfanar are experts in turnkey design, construction and marketing and
alfanar excel in executing and completing every project Alfanar undertake to very strict deadlines
and at minimum cost, with maximum benefit for our clients. Alfanar have established joint ventures
and technical agreements with several leading companies such as: Cutler Hammer, US/UK, Group
Schneider, France and Electtro Meccanica Adriatica, Italy, terasaki Japan. These strategic
agreements strengthen our knowledge of the industry, and help us to deliver quality and pass
standard – both local and international - conformity tests on a regular basis.
At Alfanar technical services, our Mission is to sustain our prominence as the provider of high-
quality, precision-engineered repair and rewind services for all types of medium and high voltage
static and rotating equipment like Transformers, Motors and Generators.
Alfanar technical services also manufacture Magnet Wires, Insulated Conductors and
Preformed Coils for various electrical applications including medium and high voltage electrical
equipments.

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Alfanar Technical Services is proud to be recognized as GULF'S LARGEST FACILITY FOR
REPAIR & REWIND OF MOTORS & TRANSFORMERS APPROVED BY ARAMCO, SEC, etc...
 Only facility in the Middle East, North Africa and Asia to receive Saudi Aramco approval for
repairing of Motors up to 27000HP.
 Sole facility in the Middle East to rewind 200MVA transformers in integration with our coil
and conductor manufacturing plant.
 First facility in KSA to be certified to repair and recertify explosion proof motors.
The use of modern technology in our factory at Jubail, Saudi Arabia, and the years of practical
experience has enabled us to offer a wide array of engineering, technical services and logistical
resources catering to the needs of our customers in the power, petrochemical and manufacturing
sectors in the middle east region.
Our unique edge is in our conformance to international standards on quality by extending an as-new
warranty for the repair works done at alfanar technical services.
 alfanar technical services is an integral part of the alfanar Group of companies which is
involved in Electrical Manufacturing, Electrical Construction, Servicing, Marketing and
Distribution, Building Industry, Information Technology and Communication.
Products produced by the ALFANAR GROUP (ELETRIC, CONSTRUSTION)
ELETRICAL
High -Medium- and Low-voltage products; Tools and molds; ALF and MCB Assembly; Standard
products; Non-standard products; Compact fluorescent lamps; water heaters and many more.
CABLES:
Power, copper cables, telephone, coaxial and special cables and PVC.
CONSTRUTION activities:
 Power& Water Projects
 Mechanical, Electrical & Plumbing Projects (MEP)
Building Construction (Industrial & Commercial) Projects
COMPETITORS:
Electric Construction
 ABB  Bin landan group
 SCINDER  CAT
 GE  Aziz mapa
 IMEFY  Siemens

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 LS KOREA Hyundai
 Riyadh cables
 Jeddah value
STAKEHOLDERS OF THE INDUSTRY:
NAME OF DIRECTOR CATAGERY
ABDUL SALAM AL MUTALAQ CHAIRMAN(OWNER)
SABAH AL MUTALAQ DIRECTOR
HISHAM AL MUTALAQ DIRECTOR
AHMAED AL MUTALAQ DIRECTOR
FOUNDER’S VISION AND MISSION
The only constant that we know is that, this world is changing. Change had come to
SAUDI ARABIAN industry like a sweeping tornado transforming the industrial environment and
giving indigenous industry some very tough standards to measure up to. In this testing situation,
only the fittest have the wherewithal to survive. Only the best will thrive.
That ALFANAR GROUP has not only survived but has grown in confidence, capabilities,
range and were scope is a testimony to the inherent strength of its foundation as a company that once
set out to revolutionized Saudi Arabia ‘s industrial sector with value engineering.
The difference is in the collective outlook of people trained to look upon every challenge as a
platform from which to take giant leaps in quality and performance. And in so doing, to build on
core capabilities of power engineering and upgrade them to world standards.
The founder of Alfanar group is “ABDU SALAM AL MUTALAQ”. He was born in 1945
in Riyadh. He had preference for mechanical from his school days.
ABDU SALAM AL MUTALAQ is a successful industrialist, but his chief merit lay in the
trail he blazed, for the principle in life he depended upon were his vision and a spirit of pioneering.
He completed his engineering education from United Kingdom.
ABDU SALAM AL MUTALAQ – generation entrepreneur, brothers of the visionary, built
a bank of prime technological skills and capabilities. And a state of art facility that has since then

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continuously reinvented itself to meet the changing demands of a changing market – just that one
step ahead of time.
With long years of innovative application behind it, Alfanar group finds itself completely capable
of delivering a range of custom engineered products that meet and exceed global standards at very
competitive prices.
Moving smoothly from industrial sector to industry, to transport, to defence, to power
generation, desalination etc. Alfanar group products have had more than a significant contribution to
make to Saudi Arabia’s rapidly evolving economy.
“To be a major player in electrical manufacturing and construction industry
with unique attributes characterized by quality products & services and
values that nurture human potential.”
ABDU SALAM AL MUTALAQ
Founder, Alfanar Group of Companies

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CHAPTER: 2
Industry profile
Alfanar Company is a fully-integrated construction, manufacturing and services company
with core competence in the electrical power sector and with business interests in the Kingdom of
Saudi Arabia, throughout the Gulf region and in International markets. Alfanar group has its head
office in Riyadh, Saudi Arabia and has three main divisions: construction, electrical and marketing
and distribution. Alfanar Company’s full range of businesses and services include: manufacturing,
construction, building industry, real estate development, marine services, information technology
and communication, industrial ventures and investments.
Alfanar Company has a dedicated and skilled resource team with excellent knowledge of the
electrical power industry. Alfanar are experts in turnkey design, construction and marketing and
Alfanar excel in executing and completing every project Alfanar undertake to very strict deadlines
and at minimum cost, with maximum benefit for our clients. Alfanar have established joint ventures
and technical agreements with several leading companies such as: Cutler Hammer, US/UK, Group
Schneider, France and Electtro Meccanica Adriatica, Italy, terasaki Japan. These strategic
agreements strengthen our knowledge of the industry, and help us to deliver quality and pass
standard – both local and international - conformity tests on a regular basis.
Group overview
Head quarters in Riyadh, Saudi Arabia, Alfanar operated construction and manufacturing
business, design, & development centers and a host of facilities in the Middle East and other
countries.
Alfanar group involved in
 Electrical
 Electromechanical
 Civil engineering construction.
 Manufacturing and marketing electrical construction products
 Allied engineering works
Alfanar Vision
To be a major player in electrical manufacturing and construction industry with unique attributes
characterized by quality products & services and values that nurture human potential.
Alfanar electric operates industries in
 Riyadh and Jubail , Saudi Arabia

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 Dubai , UAE
 London ,United kingdom
Alfanar has development has a and engineering centre in Chennai, India
Industrial complex, Riyadh
The center of Alfanar industrial activities is Alfanar industrial complex situated in the third
industrial zone on Al kharj road , Riyadh Spread across 700000squre meters the complex houses
Alfanar facilities .The complex has a comprehensive infrastructure including data and
communication centre as well as a commercial zone.
Alfanar Electrical Systems
Alfanar Electrical Systems manufactures electrical products and accessories for the Saudi
Arabian and International markets. Alfanar Electrical Systems is the industrial unit of alfanar
Company and has its head office in Riyadh with more than 1500 employees, which include about
700 engineers and technicians.
Alfanar Electrical Systems has a modern 51,000 square-meter manufacturing plant in
Riyadh’s New Industrial Area - Phase II, and manufactures about 800 electrical products – mostly in
low and medium voltage segments - in 30 broad categories and all these products are marketed under
Eletra and Alf brand names. Alfanar Electrical Systems enjoys significant market penetration in key
geographical locations. Alfanar goal is to manufacture high-quality electrical products and cables. In
order to achieve this, we follow stringent quality control processes inside our manufacturing plant.
Alfanar products – from switches, junction boxes, custom-panels to wires and cables - pass several
quality and standard – both local and international - conformity tests on a regular basis.
This major achievement is secured with the collaboration of our new strategic partner
Terasaki Electric Co. Japan. Terasaki are not only one of the leading manufacturers of circuit
breakers in the world but they are also one of the pioneers of circuit breaker technology.
The most important aspect of this new offer is that this is the first panel board in KSA designed &
tested in compliance with the new IEC standard (61439-2) for low voltage switchboard.
Alfanar Electrical Systems has a large in-house mould design and making (manufacturing)
capabilities for manufacturing indigenous electrical products and cables. Since its inception three
decades ago, in 1989, its manufacturing division has expanded its current facility to a sprawling
700,000-square-meter manufacturing center to manufacture the following:
Electrical:
 High -Medium- and Low-voltage products; Tools and molds; ALF and MCB Assembly;
Standard products; Non-standard products; Compact fluorescent lamps; water heaters and
many more.
Cables:

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 Power and copper cables, telephone, coaxial and special cables and PVC.
Alfanar electric
 Alfanar electric is the industrial arm of alfanar, manufacturing a verity of low medium
and high voltage electrical construction products
Five main categories
 Power distribution and control
 Electrical switches and sockets
 Transformers
 Cables and wires
 Lighting
Product range
The product range of Alfanar electric includes:
 Low voltage products and system
 Medium voltage system
 Substation automation panels
 Metal enclosures
 Breakers
 Service boxes
 Switches, sockets and dimmers

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 Switch and junction boxes
 Plugs and protective enclosures
 Oil immersed distribution transformer
 Building wires
 Overhead conductors
 LV power and control cables
 MV power and special application cables
 Halogen lamps
 Florescent lamps
 Compact florescent lamps

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ALFANAR CONSTRUTION
As one of the very few Grade I companies in the region, Alfanar Construction is ranked number
one among the top turnkey construction companies in the region. Alfanar is widely known for its
full turnkey and project development capabilities.
 Over the years, Alfanar construction, has been providing unique and exceptional services in
the infrastructure sector and has evolved as a leading EPC and engineering services company
for power, water, petrochemical, industrial, and infrastructure sectors in the region.
 With a well-proven portfolio of impressive projects completed outstandingly in the past
decades, Alfanar is committed to deliver projects with the highest client satisfaction at the
right time at the right standard.
 Our strength lies in fulfilling our commitments and our ability to deliver a high quality
projects at a high pace to the complete satisfaction of our clients.
EPC activities:
 Power& Water Projects
 Mechanical, Electrical & Plumbing Projects (MEP)
 Building Construction (Industrial & Commercial) Projects
Subsidiaries:
In order to align the massive growth of the major turnkey related functions, several key vertical
units were established. These business units were created to provide integrated project solutions,
while still maintaining the competitiveness and high standards of Alfanar:
 Testing& Commissioning and Maintenance Solutions
 Repairing& Rewinding Services for Motors, Transformers and Generators
 Steel Structure Fabrication
Alfanar Construction: is primarily involved in providing EPC solutions in the Power Generation,
Transmission & Distribution, Water Desalination, and Civil Engineering and for Electro Mechanical
projects.
 In order to align the massive growth of the major turnkey related functions, several key
vertical units were established. These business units were created to provide integrated
project solutions, while still maintaining the competitiveness and high standards of Alfanar.
 Alfanar Construction has successfully executed many high profile projects in Saudi Arabia
including the Jeddah RO Plant, Haramain High Speed Railway electrification, Hail 2 Power
plant, etc.., to name a few.
ALFANAR COMMITMENT
 Alfanar are committed to provide expert and professional Engineering, Procurement &
Construction services in Power Generation and associated industries through a multi-
disciplined approach of investigation, implementation and execution
 Alfanar are committed to manage the projects from conception to completion with our
specialist Engineers, Designers, Technicians and other skilled man powers.

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 Alfanar have the ability to handle projects of any scale, maintain a safe work environment
and deliver quality in project with timely completion that meets customer expectation
ALFANAR strength lies in fulfilling our commitments and our ability to deliver high quality projects
at high pace to the complete satisfaction of our clients.
ALFANAR EDGE
 Experience in EPC contracting since 1976
 Professional and Quality oriented
 Turnkey Solutions
 Record Fast Track Delivery Period
 In house design capabilities
 Approved by Utilities in the region
 Highly qualified and experienced personae
 Alfanar Power & Water is a Grade I classified EPC contractor in Saudi Arabia with a track
record of consistent growth.
 As a regional market leader in power generation and transmission, Alfanar has currently
more than 30 ongoing mega infrastructure projects exceeding SR 8.5 billion. This is in
addition to a further 700 accomplished projects in different sectors in the last four decades.
Alfanar Power & Water provide complete turnkey Engineering, Procurement and Construction
(EPC) including Testing &Commissioning, and Operation & Maintenance for:
 CSP, PV, Biomass, ISCC and Wind
 Simple, Combined Cycle and Thermal Projects
 HV&EHV Substations Indoor and Outdoor
 HV&EHV Transmission Lines–Overhead and Underground
 Desalination and Water Treatment Plants
Renewable Energy (CSP, PV, Biomass, ISCC and Wind
 Though a recent entrant in the renewable energy sector, Alfanar is now a fast growing entity
in the field of Integrated Solar combined Cycle plants with different thermal solar
technologies and expertise, and other renewable energy projects; 1,600 MW ISCC, 1*50 MW
PV and 1*50 MW Wind project expertise to name a few.
 its experience of financing and developing of the largest private industrial city in Riyadh and
further complemented by its EPC and manufacturing businesses, alfanar is committed to
explore the opportunities in renewable throughout the regions.
EHV and HV Substations
 Alfanar Construction is involved in the EPC of transmission and distribution for high voltage
& extra high voltage levels up to 380kV.

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 ALFANAR turnkey capability ranges from 110kV up to 380kV extra high voltage levels.
Our expertise includes design, procure, construct & successful handover of overhead and
underground transmission lines, substation up to extra high-voltage level, facility protection
and control, telecommunication networks, customized control systems, remote terminal units,
substation and distribution automation, as well as generation and industrial system
interconnection.
 ALFANAR vast experience of executing numerous key projects and ability to complete the
projects in record time has depicted our clients’ faith in our capacity to handle high sensitive
projects.
ALFANAR have executed numerous transmission and distribution EPC projects for:
High Voltage and Extra High Voltage, Indoor and Outdoor substations
Alfanar Construction is widely recognized in for completing several projects under challenging time
schedules
Simple, Combined Cycle and Thermal Projects
 Over the years, Alfanar Construction Power & Water is an emerging player in the power
generation sector providing leading edge power and energy solutions providing sustainable
partnership
 It undertakes EPC contract of power plants including civil, mechanical, electrical,
instrumentation works and associated detailed engineering and procurement.
EHV and HV Transmission Lines
 Alfanar Construction offers complete services for transmission projects in all voltage classes.
Alfanar have the resources – in project staff, equipment and technology - to apply to every
challenge facing overhead or underground transmission lines.
ALFANAR execute:
 High Voltage and Extra High Voltage Underground Cabling (U/G Cables); and
 High Voltage and Extra High Voltage Overhead Transmission Lines (OHT Lines)
Desalination and Water Treatment Plants
With its strong technical expertise and the vast financial capacities, Alfanar is capable of design,
fabrication, installation and operation and maintenance of all kinds of water related projects like
desalination, treatment & transmission, ultra-filtration, municipal water and waste water treatment
plants
Alfanar strength
 In order to deliver a project and meeting the client’s requirements as well as on international
standards, Alfanar Construction has heavily contributed in developing its resources. With
turnkey capabilities.

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 Alfanar has always believed in the capacity and capability of its workforce of over 12,000
well trained and experienced personnel. Together with the above we are able to create a safe
environment for the project team as well as to deliver a project at high quality.
Turnkey Capabilities
In-house design
 To provide the best solutions for complex designs and for projects with high risk and urgent
priority in line with the client’s specifications.
Supply Chain
 To become the partner of choice, respected by everyone for our cooperation and honesty in
dealing with customers.
Turnkey project execution capability
 Set targets to be the best, meeting project schedules through unprecedented quality and
safety procedures.
 Expert and prompt post project maintenance and after-sales solutions.
Project Management
 Alfanar Construction’s project personnel organize and manage a full range of services
necessary to oversee the project planning and project management demands, right from
master planning to execution.
 Alfanar use sophisticated and the most modern software like SAP, Primavera, etc...
Alfanar main focus is to:
 Meet the project schedule
 Avoid budget overrun
 Maintain benchmark technical quality.
well trained and experienced personnel.
 The culture of Alfanar is designed to promote excellence in every aspect of an employee’s
career.
 With transparent growth opportunities, the employees are provided with the best facilities and
a healthy working environment.
 In a survey titled “Best Saudi Companies to Work for – 2008” conducted by a leading
regional newspaper, Alfanar was listed among the top ten best companies to work for by
virtue of its healthy work environment.

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People
well trained and experienced personnel.
 The culture of Alfanar is designed to promote excellence in every aspect of an employee’s
career.
 With transparent growth opportunities, the employees are provided with the best facilities and
a healthy working environment.
 In a survey titled “Best Saudi Companies to Work for – 2008” conducted by a leading regional
newspaper, Alfanar was listed among the top ten best companies to work for by virtue of its
healthy work environment.
 Quality
 Alfanar Construction is an ISO 9001-2008 certified EPC and a ‘Grade I’ classified company.
 Alfanar not only fulfill customer requirements but excel in exceeding the expectations in each
and every phase of a project.
 Safety
 Alfanar QA/QC engineers conduct thorough inspections at every stage of construction
including vendor inspections, pre-commissioning checks and final inspections to maintain
high quality levels.

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COMPANY PROFILE
NAME OF THE COMPANY ALFANAR GROUP
DATE OF ESTABLISHMENT 1976
SALES HEAD QUARTER EXIT 18, SULAIE, RIYADH,K.S.A
FACTORY LOCATION AL KHARJ ROAD,RIYADH AND
JUBAIL , K.S.A
CONTACT PHONE NUMBER 8001241333
AUTHORISED CAPITAL 1000000 MILLION SAUDI RIYAL
LAND AND BUILDING AREA 700000 SQUARE METER
FINANCIAL YEAR TURNOVER 8880 BILLION SAUDI RIYAL

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VISION, MISSION & QUALITY POLICY
VISION:
The power of now is the energy of opportunities that come to us disguised as challenges. The power
of now at Alfanar group is the dynamics of making opportunities work as by meeting client’s tough
specifications of cost and quality. Empower Alfanar group serve the world with electric products.
MISSION:
 To remain a leading producer of electrical technology products in Saudi.
 To continuously grow in our business and become a significant player in the world
market. .
 To achieve international levels of excellence in technology and quality.
The quality policy of Alfanar group shall be to continually improve the effectiveness of the quality
management system, conforming to ISO 9001-2000 standard in design, manufacture, market and
service at competitive prices, products of such quality which results in customer satisfaction, quality
reputation and market leadership.

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LOCATION OF OVERSEAS SALES OFFICE:
MAIN PROJECTS OF ALFANAR GROUP
 A partial list of the most signature projects along with a partial ongoing and completed
projects list in the Power & Water sector has been included in this section. As the leading EPC
Company in the region, we are proud to display our impressive client list.
PRESTIGIOUS PROJECTS OF ALFANAR GROUP
 Projects completed under very challenging time schedules
Hail 2 Power Plant Expansions
 Project No.: PM 105Project Name: Hail 2 Power Plant Expansion- Extension IIIStarting Date:
6-Apr-2011Target Date: 30-Nov-2012Client Name: SEC-COA
 The contract responsibilities include design, supply and install commission trial operation of
all the systems, equipment and connections necessary for a fully integrated Hail-2 Power
plant. The Bop includes Fuel Storage tanks, Fuel system, WTP, Compressed Air system,
Diesel generator, Electrical Switchgears, Transformers, I&C, DCS System and Civil works.

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40 Mw Power Plant InQurayat
 Project No.: PM-20Project Name: Power Generation work for Construction of 40 Mw Power
Plant InQurayatStarting Date: 1989Target Date: 1992Client Name: Electricity Corporation
 Project Brief Description:
 This project mainly involved the dismantling transportation and re-installation of 2X20 MW
BBC type 9 gas turbines complete with auxiliary systems.The gas turbines were taken out
from SCECO Central's Alkharj P/P.
 Dismantling of the following:
 Powerhouse building steel structures, wall, roof, overhead crane etc.
 Two chimneys and 2X30 MVA, 13.8/33 kV, 3 Phase auxiliary alternator step-up transformers.
 Complete development of work site in Qurayat having an area of 500X500 meters including
perimeter security fence and internal and access roads is done by alfanar along with the
following major works
 Modification of turbine control to meet the new site conditions.
Sharourah Power Plant Extension
 Project No.: PE-88Project Name: Sharourah Power Plant ExtensionStarting Date: 15-Mar-
08Target Date: 19-Aug-10Client Name: SEC-South
 Engineering, design, procure, supply and deliver all equipments and materials to the work site,
construct, install, test and commission the extension of Sharourah Power Plant by :
 Portion – 1
 Adding two (2) Gas Turbine Generator Units by 33.996 MW, their associated auxiliaries and
Balance of Plant (BOP) as GTG unit # 1 and GTG Unit # 2.
 Portion – 2
 Adding one (1) Gas Turbine Generator Unit of 16.998 MW, its associated auxiliaries and
Balance of Plant (B.O.P) as GTG Unit # 3 for project portion 2.
New Hiteen 380/132KV BSP at PP5
 Project No.: PE-93Project Name: Construction of New Hiteen 380/132KV BSP (# 9005) At
PP5Starting Date: 13-June-09Target Date: 13-Nov-2011Client Name: SEC-COA
 380 / 132 KV Hiteen BSP Sub Station (#9005) located near Power Plant # 5 (PP-5) comprises
of four (4) portions as following:-
 Portion-1 (New 380/132 KV BSP SS #9005)
 Portion-2 (Protection Replacement in SS#9000 &Wasia 230 KV SS)
 Portion-3 (Protection Replacement in SS#9019 &Khurais 380KV SS)

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.
New Haramain High Speed Railway 380kv Substations
 Project No.: PE-107Project Name: Construction of New Haramain High Speed Railway 380kv
-Substations (Six Substations)Starting Date: 07-Mar-2011Target Date: 06-Aug-2013Client
Name: SEC-COA
 Project Scope:
 Construction of New Haramain High Speed Railway 380 KV Sub Station's ( Six Sub Stations)
in Makkah, Jeddah, Rabigh& Madinah.
 Complete Design& Engineering, procurement, Installation, Testing & commissioning of the
following Equipments:-
 380 KV GIS ( 96 Bays)
 110 KV GIS ( 60 Bays)
 380/110/13.8kV 500 MVA TF (6 Nos)
 380/33kV 40 MVA TF (9 Nos)
Hail & Al Jouf areas to get reliable and secure power supply! 2014
 Alfanar construction and Saudi Electricity Company signed a contract for the construction of
the new Al-Jouf 380kV Substation and the expansion of the existing 380kV Hail Substation.
 This project forms part of SEC’s plan to increase the reliability and security of supply to Ar’ar
and Al-Jouf network. The project is aimed at increasing the capacity of electricity to meet the
growing demand and also the future needs in the Hail region.
Alfanar new 132kV substations to power the King Abdullah Financial
District (KAFD), Riyadh! 2014
 Alfanar construction and Riyadh Investment Company together with the Public Pensions
Agency (PPA), who are the developers of the King Abdullah Financial District, have entered
into a SR 249 million contract for the construction of four new 132kV substations as well as
the 132kV interconnecting cables.
 When completed, the substations will feed the power supply to the entire project, occupying
over 1.6 million square meters of developed floor space. The KAFD will house the
headquarters for the Capital Market Authority (CMA) and the Stock Exchange (Tadawul) and
Financial Institutions.
 Division Overview

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 Alfanar Construction is one of the leading EPC contracting companies of the region
specializing in Power Generation and Water Desalination, Transmission and Distribution and
Building construction projects.
 As a Grade I classified company, it enjoys a high reputation of being the preferred EPC
contractor with various governmental agencies, utility companies and private organizations by
virtue of its exceptional project development, management and execution capabilities.
 Alfanar Construction is the EPC division of alfanar group, which is involved in electrical
manufacturing, building systems, etc
Turnover of Alfanar group 2008 to 2014
 2008 turnover of Alfanar group 2588 billion Saudi riyal
0
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Category 2008 Category 2012 Category 2013 Category 2014

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CHAPTER 3
FUNCTIONAL DEPARTMENTS
ALFANAR GROUP RIYADH consists of various departments
Department play a vital role in the development of the company. These departments manage all
operations of the company. They are as follows:
 HUMAN RESOURCE DEPARTMENT
 ENGINEERING DEPARTMENT
 PRODUCTION DEPARTMENT
 MAINTENANCEDEPARTMENT
 QUALITY ASSURANCE DEPARTMENT
 MARKETING DEPARTMENT
 FINANCE DEPARTMENT
HUMAN RESOURCE DEPARTMENT
HRD functions is to satisfy the organizational needs, Selecting right persons for the right
job and to manage people not only workers but also includes white collared professionals. Thus,
the main objective is to maintain cordial relationship, by providing maximum welfare & thereby
optimizing the personal contribution for the effective functioning of the undertaking.
MAJOR FUNCTIONS
 Planning and consolidation of manpower data and projecting same to management

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for approval.
 Recruitment, promotion.
 Transfer.
 Welfare and industrial relationship.
 Identify the needs & conducting training & development programs.
 Rewarding employees and boosting their morale.
 Development programs for job rotation, job enrichment etc.
 Grievance handling & implementing corrective actions.
 Updating of personnel performance records as appraised by the concerned Head of
the department.
ALFANAR GROUP: Recognizes its employees as the most important asset for its continued
growth…HRM in ALFANAR GROUP shall strive to ensure continuous organizational growth by
nurturing the strengths of its employees and providing the environment and opportunity for every
individual to raise to his/her highest potential. Identity and achieve his/her personal goal within the
framework of organizational, societal, and national objectives.
General human resources policy:
This demonstration includes the outlines of the human resources policy and all rules and
regulation will be consistent with this policy.
Purpose the purpose of demonstrating the general human recourses policy is the following:
1. Identify the general outlines of this policy and make it available to all in the with the
transparency principle and clarifying it to whom it may concern of staff, managers and
applicants so that everyone will be aware of it and speaks the same language as far as human
recourse rules and regulation are concerned to avoid variance as much as possible.
2. Make this policy acts as a guidance of the company business in human resources field.
3. Force all company’s department of this policy.
4. Make all rules and regulations issued later consistent with this policy.
5. Make all staff and manager behavior consistent with this policy.
The general outlines of the human resource policy:
1. The human resource elements is the most important asset:
Alfanar believes that the human element is the basic building block that distinguishes any
organization from others.
It is considered the most important element for success if not the only one.
As such, one of the most important mechanisms to attain success is to create a robust
foundation of human recourses.
Furthermore, the human element is the element that will achieve the prime Alfanar
competitive advantage, namely quality.

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2. The human capital that we refer is the right human capital the possesses the human capital
that doesn’t possess this will not be able achieve the desired goals.
3. As such, the primary objective to be achieved is to establish a base of human recourses
with the level of performance indicate above.
In order to achieve that this primary objective, a continuous and persistent effort must be
made to obtain such base of human capital, develop and retain them.
On the other hand and of equal importance is the requirement to release those whose
performance is below the requirement level to maximum extent possible.
4. In order to achieve that , the company takes the following steps and gives the following
benefits:
A. The company pays (as a general policy) salaries that exceed that market level.
B. The company pays allowances higher than market level as:
 Four basic salaries for housing allowance instead of the usual three.
 Attractive transportation remuneration system, in addition to special car
purchase financing system.
 Medical insurance with top insurance companies.
 For higher management, the company provides other benefits over and above
what is mentioned.
C. Implementing a reward system for productive employee that reward individual as well
as team contibution.Such reward may constitute a large percentage of the income and
cases might exceed the salary especially for senior position.
The concept of reward is considered as an essential part of the company system of
operation and one of the competitive advantages that distinguishes the company from
other companies.
D. Creating a good and comfortable work environment.
E. Installing polices that help to create a culture of respect for the employees protecting
them, maintaining their rights and dealing with them in a professional manner.
F. The companies care for its employees and support them. This is extended even to ex-
employees. The company facilities sponsorship transfer for non Saudi employees
when they obtain employment elsewhere. This is done in accordance with the related
rules and regulations as well as business ethics.
G. Separation between the manager and his employee when it comes to personal issues
so the no control over the employees personal.
H. In case of dispute between the employee and the company and the dispute was not
clear, the benefit of the doubt will be given to the employee.
I. The company believes that high performers need to be nurtured and as such it has a
structured program to cater for this as it believes that these are the people who will
lead this company forward.
J. Implementing a professional promotion policy.
5. The company promotes the concepts of cooperation and team work.
6. Every employee deserves clear, honest, fair and transparent feedback for his assessment.
7. The company promotes the concepts of cooperation and team work.

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8. The company has a long term orientation and as such it promotes long term sustainable
business development the hr policy is designed and configured in order to support and
reinforce such orientation.
9. The company shall never tolerate two issues.
 Breach of trust
 Damage caused with premeditated intent.
Regulatory points:
1. Employees who leave the company for any reason and the way (such as resignation,
contract non renewal, dismissal or others) will not be given another chance to join the
company or any of its affiliates again unless there is prior arrangement and agreement with
the employee before he leaves the company.
In special cases, exception will be approved by Alfanar corporate management committee, in
case such decision is taken, it is recommended not to exempt employees within three years
from their departure.
2. The company doesn’t pay any personal loans directly to its employees. The company has a
scheme for staff personal loans through the banks.
3. Relative of staff are not allowed to work for company, exception are made through the
Alfanar corporate management committee.
The relativity’s n of non staff can be exempted case by case according to the appropriate by
the executive manager of the business unit.
4. All payments to the employees including salary , allowances, overtime , reward , commission
and any other payment are paid by the payroll section expect:
a. Petty cash( advance and reimbursement)
b. Business trip ( advance and reimbursement)
5. No verbal promises what over to be given without documentation due to the problems and
confusion they may cause after a period of giving such promises.
 As such promises during recruitment have to be documented and included within the
job and the contract. No promises to be accepted regales of their origin. The
recruitment dept will ensure the implementation.
Reward system:
Reward is a financial sum paid periodically to distinguished employees.
It is a mechanism to allow the employees to benefit from company successes which they
contributed to. This is to reward them for that contribution and also to align employee’s goal with
company goals and reinforce the culture of participation and sense of belonging.
It is not designed to compensate for any assumed shortage in salaries, allowances or
guaranteed income paid by the company. However the company uses the reward system as an
effective tool to attract and retain talent and act as an incentive to achieve business objectives.
Purpose: The purpose of the reward system is the following:
 To allow the employees to benefit from company success which they contributed to
 To reward them for that contribution

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 To retain the employees.
 To reinforce the culture of participation and sense of belonging.
 It is not designed to compensate for any assumed shortage in salaries, allowance or
guaranteed income paid by the tool to attract and retain talent.
 Act as an incentive to achieve business objectives and lead the company forward.
Reward outlines
1. The company endeavors to create a reward system which allows everybody to benefit
from.
As such, any employee or a group of employees are eligible for entry into this reward
system and no employee is excluded from such every as per the rules and regulation
mentioned below.
2. Reward will be paid against good, clear and tangible performance leading to good.
3. Reward is paid to paid center when they archive real and net cash profits such profits
should be collected and tried up with any risk that could reduce their value like the ability
to collect debts or any others risk.
4. Reward will not be on the basis of individual performance only , but it is linked to
achieving the set planned result.
5. Reward will be paid to cost centers and support departments when they produce good
performance leading to tangible results.
6. As reward are not paid based on individual performance only on objective criteria not
related to that performance of the department , division or unit in the result of overall
performance of the department , division or unit in which the employee is working .And
also on other factor such as profit , productivity market share , collection etc…
As such it should not be all times irrespective of mentioned points and therefore, it will
not be used concreted that there would be continuity or gureetuee of such reward at all
times irrespective of the changing condition from time to time.
7. Rewards are based on the above mentioned points and therefore, it will not be used for
the following purpose.
Reward should not be used to increase the income or to compensate for assumed shortage of salaries
as the policy of the company is based on the principle of paying fair salaries as compared to market
rates that will constitute a fair compensation for the employees’ effort even if they don’t receive any
reward.
 As the means to increase employee income because of their personal difficulties or
circumstances. This can be addressed through other means such as the services of the
“assistance committee
 To retain an employee despite his low performance, even if it was temporary while obtaining
a substitute.
 As an appeasement or courtesy.
 To reward the employees for specific task.
 To compensate the employees for working over time, the employees here means only staff,
while for the noon staff, the overtime is considered an essential and important part of their
income.

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8. Reward should never be used as a tool to get better performance from low performers. As
such it will not be paid to such low performer to improve their performance. Rather it will
be paid good performers to reward and retain them.
Rules and regulation:
1. This system excludes employees with guaranteed bonus in their contracts (in such cases only
the rewards mentioned in the contracts will be paid )
2. New employees should be in the services for the whole year which the bonus relates to.
3. Paying bonus to the employee annually is not a must.
4. Fresh graduates will be excluded for the reward system until they complete three years. An
exception could be made for top performers (rated as EE) after completing two years with
management approval
5. No guarantee that the reward will increase year ever year. This is dependent upon the outlines
mentioned above.
6. For new comers, it is essential to have a confirmation of sustainable performance and
delivery, therefore, service period is to be taken into consideration. As such the reward may
not reach the maximum attainable in the first or early years of service.
7. Reward will not be paid to those who cause damage even if the individual performance is
satisfactory.
Total number of Employees:
Staff & Executives –1650 Workers – 12000
In order to attract and retain talent, the company maintains the compensation structure on par with
that of the industry. They continue to make efforts to people with an environment in which they can
give their best and realize their full potential. Various hr initiatives have been taken to align the hr
policies of the company with the growth projections of the company-
 Receiving resumes from the
candidates.
 Conducting interview.
 Based on performance in interview, qualification, experience candidate is selected by
the company.
 Application for appointment to be filled by candidates.
 Issue probationary engagement letter to candidate and take signature of candidate on all
the copies of letters having accepted the terms and appointment conditions.
 Entries to be made in appointment register and adult register. To give employee number
to candidates.

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 Provident fund and gratuity fund application forms are to be filled by
candidate. Issue of time card and brief about punching.
 Issue identity badge.
 Obtain bank A/C number.
 Induction by labor welfare officer.
Sent to department head for
reporting.
DAILY RATED EMPLOYEES (DRE)
Workmen category paid on daily wages basis for 26 days
Exclusive of FIRDAY in the month and also based on the attendance of the worker.
In ALFANAR there 450 daily rated employees in Unit-1 in ALFANAR INTRSTIAL CITY. DRE
will work daily in 2 shifts-
 First shift; 6.30 am to 2.30 pm
 Second shift; 2.30 pm to 10.30 pm
Production process will be going on 16 hours a day. Weekly once shifts will be changed to all the
employees. In one shift 500-670 workers are working in ALFANAR shop floor plant.
MONTHLY RATED EMPLOYEES (MRE)
They are under the management category; they get salary on monthly basis. Yearly wise they get
increment based on performance and experience fixed by management in alfanar
There are 1600 monthly rated employees in INTERSTIAL CITY.
MRE will work daily in one shift.
 General shifts; 8.00 am to 5.00 pm

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TRAINEES/APPRENTICES/GOVERNMENT/COMMERCIAL TRAINEES
The company gives only stipend and doesn’t attract any allowance to them.
LEARNERS
Their wages is only for 26 days, for learning certain work for certain period of time in order to gain
practical training.
TRAINING AND DEVELOPMENT
A fully fledged training centre provides training to senior executives, managers, supervisors
and operators in the areas of management, marketing, technical, information technology, quality and
general program in ALFANAR. Specific career development courses are conducted at training centre
such as Employee re-orientation training, customer service training, promoters training, MDPs,
Retraining of operators etc. Employees are encouraged to acquire technical/management
qualifications through sponsorship form premier institutions within India and abroad, they may purse
PG course in areas that are useful to the organization as well as in furthering their career.
PLACEMENT:
The new entrant shall be placed under the best manager in the organization. This implies that
the manager being a role model, shall himself is a top performer, have the necessary skills in
inculcating the right values and attitudes in young people. The new employees shall be placed under
senior e at the executive who will act as his mentor. This mentorship process will start at the
probation stage and shall continue for next 5 years.
AWARDS
Awards are instituted by the company in the recognition of outstanding work
performance, useful suggestions for the improvements, and contributions to technical/academic
knowledge.
PROMOTIONS
Company adopts an Accelerated Promotion Schemes for fast trackers in recognition of

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employee’s performance. Systematic job rotation is carried out to nurture the all round growth of
the individual through lateral mobility. This will enhance employability as well as equip the person
to shoulder higher responsibilities. Job rotation is based on the individual’s experience, personality,
attitude, education and past performance, in addition to job related skills and knowledge.
PERFORMANCE APPRAISAL
It is also known as employee appraisal, is a method by which the job performance of an
employee is evaluated (generally in terms of quality, quantity, time and cost). It is a part of career
development. The objective is to groom every individual to realize his potential in all facets by
helping to identify and achieve his personal goals within the framework of organizational goals.
Appraisal consists of four stages viz… Self – appraisal, Performance assessment, Development plan,
Final evaluation and grading. Generally, the aims of a scheme are:
 Give feedback on performance to employees.
Identify employee training needs.
 Document criteria used to allocate organizational rewards.
 Form a basis for personal decisions: salary increases, promotions, Disciplinary actions, etc
Provide the opportunity for organizational diagnosis and development.
 Facilitate communication between employee and administrator.
COUNSELING:
Counseling services are provided to enhance employees’ competence and job satisfaction, to
prepare them for future responsibilities, to establish better working relationships and to cope up with
personal problems. Counseling is carried out by HRA Appraisers and professional counselors.
CAREER PLANNING
This is to ensure that people of the right caliber are available to meet the present and future
requirements of organization. The process identifies the necessity inputs aim at imparting
technical/managerial knowledge, inter-personal skills and attitudes that will helping dealing with the
external and internal environments. Other factors to develop potential include activities such as
exposure to new functional projects.

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JOB ENRICHMENT
ALFANAR follows a people centered approach to job enrichment with a view to enhance
performance of employees, lending to higher job satisfaction. Job enrichment shall be supported
through multi-skills operation, self –inspection and operator planning function.
SUCCESSION PLANNING
Every manager in ALFANAR organization will prepare a succession plan to all position
under him, identify the persons and provide required inputs to the probable successors. In order to
identify the right incumbents with high potential for all positions, concerned HOD (head of the
department) and unit chief shall implement the process. HR department shall co-ordinate this
activity. Succession planning and career planning shall be reviewed every 6 months in the company.
ENGINEERING DEPARTMENT
Engineering department plays a major role in giving shapes the products i.e. Transformers
and controllers. It is mainly concerned with designing the product according to the needs and wants
of customers. Highly, technically background employees will work together to ensure maximum
satisfaction to the customer. This department consists of 650 employees. They also undertake 3
comprehensive reviews of products before adding new features. Engineering department interacts
usually with various departments to bring effective results to the company in the form of profits and
maximize the wealth of the shareholders. The department outlays designs, drawing and sketches
required by the production department and keep track of recent changes in the technology thereby
diversifying the product produced by the organization in the modern era of computation.
FUNCTIONS
 Converting customer specification into procurable, manufacturing and evaluating product
specification.
 Design the product.
 Plan and arrange of raw material, manpower and other facilities required to meet
schedule.

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 Preparing production realization timing chart for new production development
 Ensuring that production is completed in time.
 To reduce wastages.
RESEARCH AND DEVELOPMENT
This department gives a supporting hand for engineering department by analyzing the
products with respect to materials requirement, their capabilities, uses and specific functions
involved in the materials and quality specifications. This department has 45 employees. Research is
conducted by Research group. After research is done, product development starts and done by
engineering department.
CHALLENGES IN ENGINEERING DEPARTMENT
 Coming out with positive result with lots of constraints.
 Adapting them to changing market.
 More computer oriented applications.
STAGES INVOLVED IN PROCESS OF ORDERS
 Branch or unit will receive the orders.
 Combine technical information along with commercial parameters (cost, delivery date,
advance to be paid etc)
 The order will be released on customers engineering department.
 Make drawings, specification saying that specified that components should have properties.
 A document by name “BILL OF MATERIALS” will be prepared which consists of
chronological order of materials along with their quantity.
 “BILL OF MATERIALS” is conveyed along with drawings, datasheets like catalogues.
 Incoming material inspection will be done by quality control department.
 Stage quality inspection will be done if material is available in house.
 After this, materials are sent to assembly shop to form finished product.
 Final inspection with respect finished products is done by quality control department again
verifying customer’s wants and meeting their requirements.
 After final inspection, packing and dispatching of product is done.
 If there is any problem in the product, service department will take care.

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PRODUCTION DEPARTMENT
Production department is the main department in any manufacturing unit as all
manufacturing activities are undertaken by this department.
Production department in any industry performs the functions of converting raw materials
into finished goods requires a predetermined plan so that available resources of company are used to
optimum level and more wastage is reduced to the greater extent.
ALFANAR has always tried to excel in what one knows the best. In the process of progress,
ALFANAR has laid great emphasis to use the best technology.
MANUFACTURING SYSTEM IN ALFANAR
Based on marketing department’s requirement and other documents received by planning and
material management department the production activity is undertaken. Based on the requirement of
the production department the stamping division plans production activity.
Alfanar has production shops which are supported by:
 Feeder shop
 Tool room
 Shaft line
 Machine shop
PROCESS ACTIVITIES OF SHOP I & II Machining
• Marketing • DIC-Costing • Sub-Assembly of
• Drilling • Pressing Report.
• Tapping • Shrinking
• Burnishing • Balancing

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PROCESS ACTIVITIES OF SHOP
 Chromatin process for aluminum components.
 Phosphate of mid steel components.
 Premier painting
 Un bake painting
PRODUCT SHOPS:
Shop III & V are product shops
OBJECTIVES:
To explain the various activities carried out in the respective shops & organizational setup.
FUNCTIONS
• Production • Interactions
• Delivery • Production planning & controlling (shop V)
• Drawing of materials • Process activity
• Industrial relations
QUALITY ASSURANCE DEPT
Quality is the fitness to use. It is all pervasive. In this modern & competitive world each &
every company is training hard to introduce quality & detect – free products. ALFANAR is one such
industry whose priority is not to be number one in quantity but in quality and reliability.
ALFANAR tries hard to see that the quality of a product is ensured by the total investment of all
workers. There are very skilled & smart employees who actively take part in quality improvement.
QUALITY POLICY OF ALFANAR:
“To continually improve the effectiveness of the Quality management system, conforming to
ISO 9001:2008 Standard in design, manufacture, marketing & services at competitive prices,

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products of such Quality resulting in Customer Satisfaction Quality Reputation & Market
Leadership”
Total Quality Management Depends on:
• Shareholders Satisfaction
• Employees satisfaction
• Vendor’s satisfaction
• Customers satisfaction
Quality Assurance Programmer takes into account the requirements of this part can be used, after
agreement between the purchaser and the manufacture, to verify the quality of the manufacturing
process.
Responsibilities of Quality Assurance Department:
➢ Achieving the quality requirement as per ISO 9001 for products manufactured.
➢ Delegation of duties to the staff along with issue, distribution and control of documents and
data.
➢ Control of data prints & ensuring the same is maintained.
➢ Maintain records of products against identification and traceability.
➢ Carry out inspection/testing of products at predetermined stages.
➢ Responsibility for identification, documentation, evaluation & notification to the concerned
department about the non conforming product to prevent their inadvertent use.
➢ Reviewing none conforming & implementing appropriate corrective actions.
➢ Identification of appropriate statistical technique.
Inspection of Machine
Before start up, the machine should be tested as detailed below for proper execution and readiness
for operation:-
 Are the bolts are tightened at the feet of the machine
 Is the machine is correctly coupled to the driving/driven machine.

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Is the machine is correctly connected.
 Do the brushes move freely in the boxes of the brush holders?
Is the brush rocker in labeled position?
 Is the fuses and other protective device is in proper condition.
TESTING AND COMMISSIONING DEPARTMENT
Alfanar Testing and Commissioning offers professional expertise in the maintenance, testing
and commissioning services of electrical power systems of various voltage levels. With a very strong
team of experienced engineers and technicians, AT&C provides testing and commissioning services
to various types of power systems, including 380kV EHV substations.
Alfanar Other Core Services Include:
 Maintenance Solutions
 Oil Filtration & Treatment
 SF6 (Sulfur Hexafluoride)
 In-house & Onsite Calibration Services
 Alfanar Testing & Commissioning (AT&C) offers professional expertise in the maintenance,
testing and commissioning services of electrical power systems of various voltage levels.
 With a very strong team of experienced engineers and technicians, AT&C provides testing
and commissioning services to various types of power systems, including 380kV EHV
substations.
 With key experience in the testing and commissioning of switchgears, power transformers,
protection and control systems, substation auxiliary equipment, fiber optic cable splicing and
generation equipment; AT&C is committed to provide benchmark services to its clients.
 With our mobile testing units, we provide complete on-field high voltage testing services.
Our unique services, pertaining to cables and power systems, range from certification testing
and equipment life assessment to emergency failure analysis and fault detection.
 We provide high voltage testing services for switchgears, transformers, power cables rated up
to 132kV.
Alfanar services include:
 Tower earthling resistance
 Measurement of actual line parameters
 Oil Filtration & Treatment
 AT&C’s specific choice and blend of materials and products ensure the best performance of
our equipment in the oil treatment and purification field.

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 Vacuum services as well as oil filtration for power transformers, shunt reactors and capacitor
banks
 Transformer Testing
 AT&C offers testing and oil treatment services for transformers, shunt reactors and capacitor
banks.
 We are fully equipped with the latest equipment necessary to provide these specialized
services.
 Testing of rotors, stator & exciter systems
 Testing of generator protection systems, control panels & DCS
 Maintenance and major overhauling and rehabilitation service
 Calibration Services
 alfanar Calibration Laboratory, a SAC, ARAMCO, SEC and ISO 17025 certified
establishment, is a well equipped, electrical & electronics and mechanical equipment
calibration, repair and maintenance center guaranteeing accurate test results of the equipment
calibrated.
 Electrical, Electronics, Mass & Balance, Pressure, Temperature, Force
 Calibration and repair services
 Technical asset management
 Re-calibration reminder services
 On-demand and On-contract services
 System Loop Checks
All Calibration and Preventive Maintenance Services include complete control loop testing.The
entire control and/or monitoring system of a process, from the Input/process sensing device to the
control and monitoring units to the final output device, is checked for proper operation and
calibration.
Maintenance Solutions
 AT&C's electrical maintenance unit is expert in managing both low voltage and high voltage
Infrastructure assets across a range of sectors, including, Transport, Power Generation, T&D,
Oil and Gas, Petrochemicals, Navy and Infrastructure.
Alfanar capabilities include:
 Annual Preventive maintenance
 Asset maintenance strategy
 Plant outages, shutdown, turnaround management and execution
 Maintenance performance and productivity analysis and reporting
 Ability to meet client's time schedule.

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Preventive Maintenance:
AT&C offers this scheduled event and we can provide for periodic service calls (monthly,
quarterly, semiannually, or annually) to clean, adjust, test and calibrate the instruments and control
systems throughout a customer’s plant.
We supply Qualified Technicians to completely check all the instruments and their associated
control/process loops.
The benefits of this maintenance program will be assurance of instrument accuracy elimination of
most instrument related problems, consistent process control and decrease in process downtime
caused by control failure.
REPAIR & REWIND SERVICES
 Alfanar Technical Services (ATS), is a specialized business unit of alfanar and is one of its
kind facility for reengineering services for motors, transformers and generators.
 Our mission is to sustain our prominence as the provider of high-quality, precision-
engineered repair and rewind services for all types of medium and high voltage static and
rotating equipment like transformers, motors and generators.
Range of services:
Rewinding, Repairing and Overhauling of:
 LT/HT Motors up to 25000HP, 13.8kV
 Power Transformers up to 200MVA, 132/230kV
 Turbine/ Generator/ Compressor Capital Overhauling
 Manufacturing of:
 Preformed Coils for Motors, Generators & Transformers
 All types of Enameled, Insulation & Paper covered round/ rectangular Conductors
 alfanar Technical Services has the distinction of being the only facility in the Middle East to
rewind a 200MVA transformer using an integrated Conductor and Coil manufacturing
facility in Jubail, in addition to that we are the only company in the Kingdom with a vapor
phase drying oven and high voltage testing lab, reaching the highest level og quality.
Material Management Department functions
FUNCTIONS:
 To exercise purchase budget control based on the material requirement.
 To prepare purchase order as for the procedure of company having.
 To plan for production item are based on the purchase requirement of MMD.
 To finalize the terms of purchase.
 Maintaining the document as per purchase of raw material.
 Maintaining the quality records in MMD.
 TO feed the materials to the production division at required delivery schedules at an
economic cost.
 To plan and process material conforming to specification through adequate selection of sub

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contracts.
RESPONSIBILITY
 Quality objectives.
 Control of documents.
 Control of records.
RESOURCE MANAGEMENT
 Determination of competency.
 Identification of trainee.
PRODUCT REALIZATION
 Planning of measuring instruments requirements.
 Product status identification & traceability.
PREVENTION OF PRODUCT DURING INSPECTION & TESTING
 Calibration of measuring devices.
 Providing inspection/test/quality plans.
 Verification of purchased product/in-process and find inspection & testing.
MARKETING DEPARTMENT
The word “Marketing” is derived from Latin word “MARCATUS” which means
MERCHANDISE where trade or place of business is conducted. The essence of marketing is a
transaction, which, occurs when one social unit strives to exchange something of value with another
social unit. Marketing takes into account various activities like marketing research, product
development, distribution, pricing, advertising, personal selling. It acts as a “link” between producer
and consumer. It maintains equilibrium between mass production and mass consumption. Hence the
entire marketing is vital for the organization.
Duties and responsibility:

38
➢ Generation of enquires.
➢ Customer visit.
➢ Updating technical data at branches.
➢ New customer development.
➢ Post contract review-correspondence SAP & planning.
➢ Shop discussions.
➢ Contract review on progress, inspection and clearance.
➢ Pending orders review and feedback to branches.
Objectives and policies:
To identify the potential business available.
o Preparing operating plans-short
term/long term. Diversification plan to
expand business.
o Monitor market fluctuations and act on time to correct the
situation. Identify the market needs.
ALFANAR has various ways of marketing
1. Personal visit: - Marketing partner makes a personal visit to the customer. Gives the
detailed information about the company and its facilities. The marketing manager is
responsible for convincing and getting order from the company.
2. Industrial display: - whenever there is a trade fair which happens at once every year,
ALFANAR displays is products and facilities. They have stall set where interested visitors
can get all details.
3. E-Business: - E-Business is a boom these days. ALFANAR has her own site. This
www.alfanar.com website is registered with Google search engine.
4. Business magazines and business newspaper.
5. Distribution channel.
6. Direct channel
7. Through dealer.
8. Through branches.

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Promotion strategies:
 Pre-tendering and after sales services.
Direct interaction with customers.
 Adherence to commitment during execution.
Participate in trade exhibition with and outside.
EXPORTS
Mainly ALFANAR products are exported to UK, ASIA, AFRICA AND MIDLE EAST, and
JORDHAN AND SIRYA
The marketing functions have performed in ALFANAR Electric Company. Their divisions
are:-
1. Purchasing
2. Storage
3. Packing
4. Labeling
5. Pricing
6. Dispatching.
PURCHASING
ALFANAR GROUP follows the path of purchasing which is to produce materials at the
right place, right quality, right time, right quantity, right purpose, and right contractual terms. The
company adopts decentralized method of purchasing. Purchasing is done on foremost it depends on
the order received from customers and the quality of goods/products required by them. Purchasing is
done through long term contracts, through personnel enquiry and also through negotiations.
STORAGE
Storage protects goods, provides supply of goods, helps to adjust, demand and supply, shifts
risk and promote orderly marketing.
PACKING

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Packing in ALFANAR done by keeping the following points in view:-
 To provide the products until it is used.
 To provide the consumer convenience.
 To minimize distribution cost, handling cost, storage cost, transportation cost etc.
Packing also depends on the mode of transportation used to transport the products. The products
used to pack semiconductors and photovoltaic are cotton thermion packing and wooden boxes.
LABELLING
The products of the ALFANAR electric co ltd are packed in boxes that have prints of
ALFANAR on it. That itself acts as label and brand name of its products.
PRICING STRATEGY
Company is adopting different types of pricing strategy for its products. It is based on the
demand for the products, credit period, prompt payment, performance of the customer,
manufacturing of products based on customer’s specification and market condition.
The total cost of production is first estimated. When the demands are more favorable,
then skimming price strategy is adopted.
 Some time a customer may stipulate a particular specification of product. At that time the
company charges special price for its products.
 Company follows “penetration strategy” whenever there is a high competition in the market.
 Company also makes a price variation based on the mode of payment and also extended
credit period.
 If the mode of payment is immediate (cash purchases), company shares lower price and also
gives cash discounts.
 If the credit period is more than acceptable time, company charges higher rates for
its products.
DISPATCHING;
This is the last step in ALFANAR sales where the products manufactured are dispatched to
the concerned customers.

41
RESPONSIBILITIES OF HOD DEPARTMENT
 Responsible for disposal of quality of the product.
 Preparation of the order requirement plan in cases of direct customers.
 Co-ordination in resolving issues with the customers in cases of any contract review
problems.
 Control of the customers drawings.
 Approval of the material indent to purchase department.
 Handling, storage, packaging, preservation and delivery of finished goods.
 Collecting of payment from customers in time.
CUSTOMER SATISFACTION SURVEY;
This is carried out by sending structured questionnaire to major customers & extracts their
opinion about the product been offered. The corporate standards & quality assurance group analyze
the data collected. The satisfaction is regularly measured & reported for internal reviews & also for
reviews at higher levels in the organization. The results of these are used to update the quality
management systems & procedures.
CUSTOMER COMPLAINT HANDLING SYSTEM;
This is an important activity initiated from the inception of ALFANAR. But the mission
critical requirement of some customers, expect past corrective/preventive actions. A comprehensive
& clearly documented system is implemented throughout the company to handle complaints more
systematically. The complaints are continuously monitored & regularly reviewed by the unit chief to
ensure speedy redressel.
FINANCE DEPARTMENT
Finance Management provides a framework for financial decision making. It is concerned
with efficient & wise allocation of funds to various uses. Alfanar group Ltd situated at Riyadh has a
corporate finance department at Riyadh, which is responsible for all the major financial decisions.
CORPORATE FINANCE DEPARTMENT;

42
The corporate finance department controls the financial activities of all Alfanar group. It is
responsible for taking all the important financial decisions & also prepares the annual operating
plans & the long range plans. The monthly operating plans are divided into weekly & daily plans.
All units are functionally accountable to the corporate department & is monitored & revived
quarterly. Some of the decisions taken up in this department are
 Dividend policy
 Capital Expenditure
 Diversification
 Collaboration etc.
STRATEGY:
The company follows the long term & short term strategy for all departments. It is the
process of establishing long term quality goals & defining the approach to meet these goals.
FUNCTIONS
 Maintenance of payroll records.
 Maintenance of sales and purchase books.
 Maintenance of cash and bank records.
 Updating the general and subsidiary ledgers.
 Preparing the management information report.
 Passing bills.
 Invoicing/costing.
When the department gets the purchase orders and supplies bills, they verify it and forward it
to the accounting department. Here the costing is done in 2 ways:
Job costing
Batch costing

43
Responsibilities of head of the department
 Also responsible for preparation of profit and loss account and balance sheet.
 He is authorized-signatory for payment of vouchers, receipt and also looks after the
overall administration of accounts and review of the work of the personal.
 He is responsible for financial-accounting system and verification and scrutinizing the
account in general ledger and preparation of profit and loss account as well as balance
sheet.
 Commitment to total quality-
The company is committed to continuous improvements of all activities & supply product &
services that confirm to highest standards of design manufacture, reliability maintainability & fitness
for uses as desired by our customers.
 Cost & Time consciousness-
The company believes that success depends on its ability to continually reduce the cost &
shorten the delivery period of products & services. It will achieve this by eliminating waste in all
activities & continuously improving all processes in every area of work.
SOURCES OF FINANCE:
NCB
AL RAJI BANK
RIYADH BANK
COMPANY PERFORMANCE;
During the year under report, your company has achieved a turnover (Gross) of SAUDI
RIYAL 7 Billion. The operations have resulted in a net profit of 1919 million Saudi riyal.
INDUSTRY OUTLOOK:
The electrical and construction industry has been witnessing consistent growth during last
few years but for the slow down witnessed during the second half of the last year. The performance
of the industry is directly related to the country’s GDP growth. If the atmosphere is good & the
industrial revival takes place for which the government has several steps, the electrical industry can
regain its momentum.

44
CHAPTER 4
RESEARCH METHODOLOGY
1- Research Design
Zikmund (2003) defines research design as a master plan specifying the methods, approaches
and procedures for collecting and analyzing the needed information while Burns & Grove
(2003) defines a research design as “a blueprint for conducting a study with maximum
control over factors that may interfere with the validity of the findings”. The objectives of
the research, the available data sources, and the urgency of the decision and the cost of
obtaining the data will determine the choice of the appropriate research design. The
quantitative and qualitative research methodologies are the two main research approaches
useful in the classification of studying primary data (Davis, 2000).
From the aforementioned research approaches (viz. qualitative and quantitative),
qualitative research approach was found to be appropriate for this study. As the primary
objective of the present study is Organization Study of ALFANAR. Hence, the present study
followed descriptive research design. Descriptive is due to the fact finding characteristics
and to describe the phenomena existing currently on a multiple dimension and broad
perspectives.
2. Objectives of the Study:
The present study has the following research objectives:
A. To understand the organizational framework & it’s functioning.

45
B. To gain knowledge about different departments of the organization and
the functions.
C. To study about the procedures of purchase and sales.
D. To study the interdependence of different departments.
E. To make a SWOT analysis of the organization
F. To study strategy of ALFANAR. How to compete with MNC’s
3. DATA COLLECTION:-
Zikmund (2003) argues that as there are numerous research techniques, it stands to reason that
there will also be different ways of collecting data. Respondents may be administered with interact
with an interviewer. For the present study, interview method was adopted. The respondents
were, thus, approached at the leisure/recess time with prior permission from them. Questions
ranged from backgrounds of employees to operation of different departments in company.
SAMPLING
Zikmund (2003) defines sampling as the process of using a small number of parts of a
larger population to make a conclusion about the whole population. The universe for the present
study employees, who are working in different departments of Alfanar.
Given the above discussion on probability and non-probability sampling, this study employed one
of the methods of probability based simple random sampling technique. Availability of proper
sample frame also enabled the researcher to adopt random sampling techniques. One of the merits
for using random sampling technique is that it helps in generalizing the results/findings over
the population.
Sample size of the present study is 25 managers 49 engineers and 58 workers.

46
Scope of the study
The study being conducted is for alfanar group, Kingdom of Saudi Arabia. The study tells an
over view of the organization, and the functions carried out by different department of the
organization, like - marketing, maintenance, human resource ,sales, finance, quality assurance and
engineering.
Database
The research efforts were both primary and secondary research, to ensure that the foundation
of business intelligence and insight is accurate, current and reliable. To conduct this study, both
primary and secondary data have been used, mainly from the employees from different departments
of alfanar group.
Area of study
The study was undertaken at all the departments, and the respondents were- marketing manager,
departmental heads and employees from different departments like finance, maintenance,
engineering and marketing.
Limitations of study
A. Limited Time was a major factor.
B. Secondary data were available from the company manuals.
C. The information provided by the company is assumed to be authentic.

47
CHAPTER 5
SWOT ANALYSIS
The SWOT approach is distillation of the steps & considerations that should be taken to
formulate an effective strategic plan. The terms SWOT is the acronym for Strengths,
Weakness, Opportunities & Threats.
STRENGTHS:
 ALFANAR ELETRIC is one of the rare units in the world which produces the
medium voltage transformers.
 Management is very stable, that forms strong foundation for the company
 The company has got the ISO certificate for producing quality products
 Well equipped quality control department for inspecting the quality of incoming raw
materials & final products
 Employees are being provided with all necessary welfare facilities
 There are highly skilled engineers & committed employees
 Company guarantees job security to all its employees this makes them to be more
committed & loyal.
 Well settled infrastructure and modern industrial facilities
Alfanar Construction strength
 Alfanar Construction is an ISO 9001-2008 certified EPC and a ‘Grade I’ classified
company.
 We not only fulfill customer requirements but excel in exceeding the expectations in
each and every phase of a project.
 Our QA/QC engineers conduct thorough inspections at every stage of construction
including vendor inspections, pre-commissioning checks and final inspections to
maintain high quality levels.
 Safety always remains a primary and fundamental concern for Alfanar Construction.
 We have a healthy track record and have obtained several prestigious ‘SAFETY
AWARDS’ from our valuable clients.

48
 We achieve high Safety Standards through the right combination of field procedures,
professional attitudes, and dedicated safety staff supplemented with periodical Safety
Evaluations.
 In order to deliver a project and meeting the client’s requirements as well as on
international standards, Alfanar Construction has heavily contributed in developing its
resources. With turnkey capabilities, Alfanar Construction makes use of the most
advanced technologies in project management.
WEAKNESS:
 As the company provides job security the employees have become less productive
 Less coordination between different departments
OPPORTUNITIES:
 The company has an opportunity to expand its production units due to more demand
for its product
 The company has got better tool for better planning & decision making
THREATS:
 Cost of production is very high
 The company faces competition from MNCs
Main MNCs competitor’s Alfanar electric
 ABB
 SCINDER
 GE
 IMEFY
 LS KOREA
Local competitors
 Riyadh cables
 Jeddah value
Main MNCs competitor’s Alfanar construction
 Bin laden group
 Siemens
 Hyundai

49
CHAPTER 6
FINDINGS & SUGGESTIONS
FINDINGS:
 Strength of alfanar is its Brand Name
 Alfanar is willing to take up any challenges customization project & successfully
implement it
 Advertisement costs are too less because they manufacture the products based on the
orders
 Alfanar group , has ISO, KEMA, CE & NVLAP certifications
 Quality assurance department is maintaining the quality of the product & it has
become basis of competition with other companies
 Company is eco friendly, they recycle the waste water & reuse the same water for
their daily use like washing & gardening
 They have well integrated SAP & use data base like ORACLE or other RDBMS that
co-ordinates & connects various information of different departments, hence it
provides ready information to the top level management to take immediate decisions
 The ready acceptance of Alfanar Electric products in USA, Europe, Singapore, South
Africa, Malaysia, Pakistan & Bangladesh along with the effort to earn certification
like world’s leading company.

50
SUGGESTIONS:
 Manufacturing cost to be lowered by improving productivity
 An extensive & effective marketing strategy needs to be carried out by the company
 Employee satisfaction & retention of manpower should be checked & ensured
 Company can encourage more women employees
 Can improve the infrastructure of training & development centre in order to provide better
environment for the learners & trainees
 Start advertisement of local Medias.
 Start this company in India also.

51
CHAPTER 6
CONCLUSION
The company has been pursuing its fascination with future since the year it was established.
Alfanar began its Endeavour by catering to the needs of domestic market & slowly & steadily
expanding its activities by exporting to countries like USA, Europe and all Middle East countries etc.
Due to increasing demand for its quality products which are ISO certified. The quality is maintained
with strict attention to every small aspect from raw material procurement, manufacturing processes
to the final product dispatch. A meticulously planned & strictly followed quality assurance program
which helps in establishing Alfanar’s quality criteria that accommodates product design,
manufacturing, testing & statistical monitoring. The company has very good personnel department
wherein the employees are given appropriate bonus, promotion & extensive care is taken by
providing required training & motivation as & when required. The organization follows autocratic
type of leadership style & the decision making is centralized. Therefore, the company being highly
established from years has very good future in terms of expansion, diversification, collaborations,
growth & development prospects & opportunities. It has a strong customer base; good positioning in
the market, goodwill & reputation earned due to its quality products & finally always believes in
power of now leading to more success & achievements year after year.
The in-plant-training for a period of 6 weeks has given me a clear- cut idea of an organization
working. This has helped me in recalling the theoretical concepts learnt in 1st
year MBA & relating it
with real working & applicability in life. It is also helping me in learning management concepts of
2nd
year MBA. I came across many real problems faced by organization in day to day activities such
a technology human management & physical resource management to overcome the problems by
combined efforts of all the related departments. Thus management is the accomplishment of results
through efforts of peoples.
During the 6 weeks, it was totally a new experience entering into the organization & spent
most of the time visiting various departments, interacting with people etc. In the beginning of the
training, I went to different production sites where the assembling of the material is taking place.
There I understood as to how the production work is divided & how the responsibility is
allocated. After production site I the subsequent weeks I went to different departments like human

52
resource management, quality, marketing, finance etc. I was able to understand the
Importance of each department & their contribution towards the achievements of the company
objectives. I came to know the importance of managerial knowledge such as planning, organizing,
directing, controlling & decision making in all day-to-day departmental activities.
I also learnt the importance of time management that is a key parameter for any organization
towards the success path. It was really fruitful & great experience working in the organization like
ALFANAR GROUP, which is of great repute in the electrical and construction industry.
Finally, the training period in the company was a wonderful small time experience in the
huge corporate.

53
BIBLIOGRAPHY
BOOKS:
Patnayak Biswajeet : Human Resource Management.
Prasad L.M. : Principles and Practices of Management.
Aswathappa K. : Human Resource and Personnel Management.
Mamoria C.B. : Personnel Management.
R K Mahlotra : Research Methodology
Stratigic Managment :
WEBSITES:
www.alfanar.com
www.google.com
ALFANAR BROCHURES:
2014 Annual Report.
ALFANAR records of Training &Development.
Annual Diary.
Alfanar air circuit breaker
Medium voltage power cables
Low voltage power & control cables
Low voltage solutions
Building cables and wires
Oil immersed distribution transformer

Alfanar Group Profile

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