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Contents`
Chapter 1:............................................................................................................................................2
Introduction of the Company...............................................................................................................2
Brief History of the Company.............................................................................................................2
Companies:..........................................................................................................................................2
a. Vision Statement of the Company............................................................................................3
b. Mission Statement of the Company..........................................................................................4
c. Business Product Lines and Volume:.......................................................................................4
d. Hierarchy of the Company........................................................................................................5
Chapter 2:..........................................................................................................................................5
Organizational Analysis:...................................................................................................................5
a. Brief overview of the departments of the Company................................................................5
b. Human Resource policy of the Company.................................................................................5
c. Marketing Strategies of the Company.....................................................................................5
d. SWOT Analysis of the Company..............................................................................................5
1. Micro and Macro Analysis of the Company............................................................................5
2. Internal Analysis of the Company............................................................................................5
3. Matching of Strength and Weakness with Opportunities and Threats.................................5
4. Identification of Strategies........................................................................................................5
5. Space Matrix, IE matrix, GSM matrix, BCG matrix and QSMP Matrix.............................5
e. Financial Analysis of the company...........................................................................................5
1. Ratio Analysis of the last five years..........................................................................................5
2. Comparative and Trend Analysis using Liquidity Ratios, Solvency Ratios, Profitibality
Ratios, Efficiency Ratios and Coverage Ratios................................................................................5
3. Common Size Financial Statements for Comparative Analysis.............................................6
4. Dividend policy- Dividend payout by the company over maybe six year and analyze their
dividend policy...................................................................................................................................6

Chapter 1:

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Introduction of the Company
Brief History of the Company
Packages Limited is a big company in Pakistan that makes and sells things like boxes and
tissues. They also invest in other companies. Their main office is in Lahore, Pakistan, and
they started in 1956. It's a company that anyone can buy a part of, and it's listed on a stock
exchange in Pakistan, which means people can buy and sell its shares.
Packages Limited started in 1956 when two groups, one from Pakistan and one from Sweden,
decided to work together. They joined forces to create this company.

Companies:
The group owns the following companies:
 Packages Convertors Limited
 Bulleh Shah Packaging Pvt. Ltd
 Tri-Pack Films Limited
 DIC Pakistan Limited
 OmyaPack
 StarchPack
 Packages Lanka Pvt. Ltd. (Sri Lanka)
 Flexible Packages Convertors (South Africa)
 Chantler Packages (Canada)
 Packages Power
 Packages Mall
 IGl Holdings Limited
 IGI General Insurance Limited
 IGI Investments Pvt Limited
 IGl Life Insurance Limited
 IGI Securities
 IGI FSI

a. Vision Statement of the Company

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1. We want to lead in the markets we serve by offering great products and excellent service
to our customers. We also aim to learn from their feedback to make our products even
better.

2. We strive to be a company that keeps improving its technology to come up with new and
creative solutions for our customers.

3. We aim to be a company that attracts and keeps excellent employees. We do this by

creating a culture that encourages openness and innovation, helps individuals grow, and
rewards hard work and good performance.
4. To be a company that combines its people, technology, management systems, and market
opportunities to achieve profitable growth while providing fair returns to its investors.

5. We want to be a company that always sets the highest standards for ethical behavior while
serving society.
b. Mission Statement of the Company
1. We want to become a well-respected company in our region for high-quality packaging
and consumer products.

2. We aim to get better in various aspects like cost, quality, service, speed of delivery, and
getting things done efficiently.

3. We will keep investing in technology, systems, and our people to be ready for whatever
challenges the future brings.
4. We aim to build strong relationships with everyone involved in our business by working
together sustainably and following ethical values. This includes our shareholders,
management, and employees, and we'll always work towards this goal.
Business Product Lines and Volume:
 Pulp, Paper

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  Paperboard Mills
 Converted Paper Product Manufacturing
 Miscellaneous Nondurable Goods Merchant Wholesalers
 Towels
 Tissues
 Napkins
 Paper and Stock
 Paper cups
 Plates
 Dishes, and Utensils
 Folding paperboard boxes Packaging materials

BUCP (Business Unit Consumer Products):

Tissues, Napkins, and towels

BUFP( Business Units Flexible Packaging)

Lays Packaging

BUFC( Business Units Folding Cartons)

Toothpaste carton, Biscuits carton

BURC (Business Unit Rollers)

c. Hierarchy of the Company

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 Board of Directors

Advisor Managing Director Executive Board

General Manager

Deputy G. Manager

H.R.D Manager

Commercial Manager

Marketing Manager

Store Manager

I.R Manager

M.I.S Manager Production Manager

R&D Manager Admin.Manager

Power Manager E.H&S Manager

Mechanical Manager Cost & tax Manager

Mill Manager Finance Manager

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 Chapter 2:

Organizational Analysis:

a. Brief overview of the departments of the Company

In the company, there are various productions, service, support divisions and their respective
sub-departments, which are as follows:

i. Paper & Board Division

Straw and Linter Preparation, Cooking House, Bleaching House, Chemical House, Waste Paper
Plant, Beater House, Machine House, Quality Control, Finishing House, Maintenance and
Instrument.

ii. Business Unit- Carton

Offset, Cutting & Creasing including Dye making, Laminating, Folding & Gluing,
Planning Cell and Offset Department.

iii. Business Unit- Prepress and Logistics

Art & Camera, Reproduction, Paper Stores, Coating, Dispatch Section, Planning
Cell- Prepress Departments

iv. Business Unit- Flexible

Flexible Packaging, Paper Conversion Departments and Planning

v. Corrugated Division
Planning, Conversion Section & Sheeting Section

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Vi. CPD Production
PM-IV, Tissue Conversion

vii. Technical- Power

Electrical Department, Air Conditioning Department, Steam Power Plant and Diesel
Power Plant

viii. Technical-Mechanical
Mechanical Workshops & Design Department, Civil & Carpentry

ix. Marketing Division

Sales Office Lahore, Karachi, Islamabad

x. Consumer Products
Sales Office Lahore, Karachi, Islamabad & Multan

xi. Finance Department

Financial Accounts, Cost and Tax, Internal Audit, Accounts and Shares Department
Karachi

xii. Commercial
Local Purchase Section, Imports Section and Commercial Office, Karach

xiii. Stores & Inventory

Central Stores Packaging and Paper Board, Waste Disposal and Transport

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xiv. Industrial Relations
Industrial Relations, Labor Welfare, Time Office/Establishment and Legal Section

xv. Human Resource Development

Administration & Liaison, Public Relations, Gate Office, Security, Fire Fighting / Safety and
Horticulture

xv. Information Technology

Operations, Development and Network

xvi. Quality and Environment System

Industrial Performance, safety, Health and Environment

xvii. Research Development and Control

Laboratory, Rubber Section & Quality Control

xviii. Medical Unit

Packages Dispensary, 23-Gulber-III, Lahore

b. Human Resource policy of the Company

c. Marketing Strategies of the Company
d. SWOT Analysis of the Company
Strengths:
I. Technology- Packages Convertors Ltd has the cutting-edge technology
available at their disposable allowing them to produce high quality products in
an efficient manner. For example it's the only company in Pakistan that can
make C-48 boxes used for storing raw tobacco.

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 II. Large Scale Economics - The company has high production capacity that
helps it achieve economies of scale and reduce per unit cost.
III. Brand Image - Packages Convertors Ltd has a respectable name in the
industry both among the customers and suppliers. A company's reputation in
the market is a valuable asset that is always appreciated.
IV. Trusted Suppliers – Having reliable suppliers is crucial for any company.
Packages has spent a lot of effort and resources to build a strong network of
suppliers. This helps them avoid delays and potential losses.
V. International Standard Certification – Packages has earned ISO 9001
certification for its "flexible line" and "carton line" divisions, which means
they meet international quality standards.
Weaknesses
I. Poor Forecasting – Forecasting demand is essential in cutting inventory costs. Packages
need to work on their demand forecasting using the latest software.
II. High Distribution cost – Packages Convertors Ltd has done well in lowering its fixed
costs but the variable costs fluctuate too much. From their financial costs it was found
that their distribution costs were very high.
III. Longer Sales Cycle – Despite having a high production capacity and reliable suppliers
the sales cycle is too long and this reduces cash flows.
IV. Unsatisfactory Marketing Strategy – Packages convertors Ltd needs to work on their
marketing strategy to increase public awareness. I didn’t even knew that Packages were
making two tissues. One rose petal and second Tulip.

Opportunities
I. Industries Focusing on Packaging – The industrialists are becoming aware of the
importance of packaging for any product. They want to outperform their rivals by using
appealing packaging.
II. Growing Industry – Pakistan’s packaging industry is growing at approximately 10
percent for the year 2023-2024.
III. Export Focused Economy – Pakistan’s economy is shifting their focus on exports and
providing benefits to exporters.
IV. Eco friendly products – Awareness about climate changes has resulted in an increased
demand for environment friendly products.

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Threats
I. Inflation – Inflation is causing significant price increases in the economy this year. This
has increased raw material and energy costs.
II. Cottage industry – The packaging cottage industry of Karachi is going from strength to
strength and has the potential to affect Packages’ market share.
III. Reducing Demand – Demand is being reduced for offset printing.
IV. Change environmental regulations – Pakistan has laid great focus on reducing
industrial waste. Therefore regulations are experiencing changes frequently. In order to
make those regulations, Packages may need to make drastic changes.
1. Micro and Macro Analysis of the Company
2. Internal Analysis of the Company
3. Matching of Strength and Weakness with Opportunities and Threats
Strengths – Opportunities
I. Packages can make use of their international standard certification to avail the
opportunity to export their products.
II. Packages has one of the most advanced technologies in Pakistan. They can use this
information to generate creative ideas for eye-catching packaging, which aligns with the
increasing demand for attractive packaging.
III. The packaging industry is growing in Pakistan. Packages can make use of its economies
of scale and good brand image to increase in market share.
Strengths – Threats
I. The company has a strong supplier which can overcome any challenges that faces the
company.
II. A reduced demand for offset printing can be judged from the market analysis. Packages
can shift their focus from offset printing to the latest printing techniques by the help of
the technologies at their disposal.
III. Although the Pakistani economy is suffering from inflation. Packages, who has achieved
economies of scale, can control their costs.

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Weakness – Opportunities
Packages can attain international customers which will help provide necessary cash flow to the
company.
Weaknesses – Threats
I. Karachi’s packaging cottage industry is growing and Packages low marketing
expenditure does not help.
II. Packages need to fix its forecasting measure to ensure having enough inventory on hand
with minimal costs.

4. Identification of Strategies
5. Space Matrix, IE matrix, GSM matrix, BCG matrix and QSMP Matrix.
Grand Strategy Matrix (GSM)
Packages Convertors Ltd has solidified its position in the market, with increasing
number of sales each year due to the adaption of excellent strategies. The
company has successfully been able to sustain its growth by diversifying its
product line; therefore, their growth is not dependent on specific products. They
have collaborated with brands like Uniliver, Mitchells, Engro, Sufi etc. in the
local market. As a result of their superior production facilities, they have been
able to create high quality products that set themselves apart from the rest of the
competition.

Quadrant 2 Quadrant 1
 Product Development Product and market development
 Market Development Market penetration
 Market Penetration Backward Integration
 Horizontal/Vertical integration Forward Integration
Horizontal Integration

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 Backward Integration

Quadrant 3 Quadrant 4

 Related/unrelated diversification Related/ unrelated diversification

 Retenchment Horizontal/vertical diversification
Joint ventures

Having considered all of Packages Convertors strengths and its current market
position, the company can be easily placed in the first quadrant which consists of the
following:
 Product and market development
 Market Penetration
 Forward Integration
 Backward Integration
 Horizontal Integration
 Vert0ical Integration

By placing the Packages in the first quadrant, it can overcome its issue of high
distribution costs by applying forward integration, acquiring its distribution chain to
not only lower its costs but gain more market share.
As a result, it will significantly boost the profits for retailers too. If the company
complies with all the parameters placed in the first quadrant, not only Packages
Convertors will not only be able to improve its market share, but also will be able to
improve its operation efficiently.

QSPM( Quantitative Strategy Planning Matrix)

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 Quantitative Strategic Planning Matrix is an approach used to evaluate all possible
strategies. For Packages QSPM, we chose two strategies: market development and
product development. The score for market development came out to be 3.17,
whereas the score for product development came out to be 2,7, rendering the first
strategy, market development to be more favorable according to the parameters taken
in consideration.

Strengths Weights Strategy1( M TAS Strategy2( Pr TAS

arket oduct
Development) Development)
Cutting edge 0.15 2 0.3 4 0.6
Technology
Large Scale 0.1 2 0.2 3 0.3
Economies
Good Brand 0.05 1 0.05 1 0.05
Image
Reliable 0.05 3 0.15 3 0.15
Suppliers
International 0.08 1 0.08 2 0.16
Standard
Certification
Weakness
Poor 0.05 2 0.1 3 0.15
Forecasting
Their 0.3 3 0.9 1 0.3
distribution
costs are high
Low cash flow 0.05 2 0.1 1 0.05

Marketing on 0.1 2 0.2 2 0.2

social media
Easy for 0.07 4 0.28 2 0.14
others to clone
core
competencies
Opportunities
Utilizes cutting 0.1 2 0.2 2 0.2
edge
technology
Industries 0.08 2 0.16 2 0.16

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focusing on
attractive
packaging
Exporters are 0.09 2 0.18 2 0.18
being
subsidized by
the
government
Eco friendly 0.08 3 0.24 1 0.08
products
Threats
Impact of high 0.15 3 0.45 3 0.45
inflation on
product
demand
Cottage 0.04 2 0.08 2 0.08
industry in
Karachi
Reducing 0.1 1 0.1 1 0.1
demand for
offset printing
Total= 3.77 3.35

e. Financial Analysis of the company

1. Ratio Analysis of the last five years
2. Comparative and Trend Analysis using Liquidity Ratios, Solvency
Ratios, Profitibality Ratios, Efficiency Ratios and Coverage Ratios.
3. Common Size Financial Statements for Comparative Analysis
4. Dividend policy- Dividend payout by the company over maybe six year
and analyze their dividend policy.

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