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Company Profile

Company Profile.

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Company Profile

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  1. Company Profile The name of BERGER has been associated with paints manufacturing for more than two centuries. In Pakistan, BERGER has been the pioneer in organized paint manufacturing and was the first company to introduce premium quality paints in Pakistan, Berger stated its operation in Pakistan in 1950.  BERGER PAINTS PAKISTAN becomes a public limited company in 1974, when 49.38% of its share was acquired by Pakistani investors, while the remaining 50.62% were held by the U.K parent company, Jenson & Nicholson Limited. Soon afterwards, Jenson & Nicholson limited was taken over by Hoechst, one of the world’s major manufacturers of chemicals and allied products. Slotrapid Limited, a U.K based company with diversified business interests, acquired the control of BERGER paints Pakistan limited in 1991. BERGER paints launched its second paint manufacturing facility in 2006 located in Lahore, this is a state-of-the-art plant geared to incorporate the latest technologies to produce paints and coatings for a variety of applications.

  2. Berger's Mission Statement ·We will vigorously promote and safeguard the interests of our employees, our shareholders, our suppliers and all our others business associates. ·We will achieve corporate success through an unwavering commitment to provide our customers high quality products to their ultimate satisfaction.

  3. Industry Overview • Market Share Company Vise

  4. List Of Paint Manufacturers The total sale of in Pakistan is 50 million liters per annum . There are about 8 paint manufacturers out of which two are multinational and other are local. Berger paint ICI paint Nelson paint Penguin paint Reliance paint Jouton paint Gobi paint Point paints

  5. Supply Chain Mission Statement They do forecast from sales Arrange material against forecast Mr. Tanveer (Head of Supply Chain, Berger Pakistan) quoted “Our Supply Chain starts from Sales and ends up with the Sales” Means Production Distribution Sale

  6. Berger's products Berger has 600 products in all and 1800 SKU’S depending on type of paint, and shades. 1 DECORATIVE: (Household Paints) Water base   Plastic emulsion Economy emulsion Oil base Berger elegant Berber enamel 2 AUTOMOTIVE PAINTS: 3 POWDER PAINTS: 4 TIMBERCOAT RANGE OF PAINTS 5 BERGER ROAD SAFETY 6 DEFENCE MARINE PAINTS 7 PRINTING INKS:

  7. Berger's customers for AUTOMOTIVE PAINTS Cars assemblers Honda. Toyota. Chevrolet Joy. Revo. COMMERCIAL VEHICLES Zabardast, Truck. Master Truck. Star Truck. Kalash Pick-up. Hino Buses. MOTORCYCLES: Honda. Yamaha. Suzuki. 25 Chinese brands. TRACTORS:   Fiat Tractors. sUniversal Tractors.

  8. Berger’s other customers GENERAL INDUSTRIAL PAINTS: Singer. Philips. Siemens. Pak Fan. PSO. PBS. Caltex. KSB Pumps. PROTECTON: (Heavy Duty Coatings) National Refinery. Pak Arab Refinery. Karachi Fish Harbour. White Oil pipeline project. Telecommunication Towers of Ufone, Telenor, Mobilink, Paktel and Al Warid

  9. POWDER PAINTS: Appliances of PEL, Waves, Philips , Dawlence BERGER ROAD SAFETY. Paints for road and runway markings: Islamabad – all CDA roads. Motorway. Kohat Tunnel. DHA, Karachi. Karachi – Hyderabad Highway. Mai Kolachi Road. Shahbaz Airfield. Bahria Town. Lahore -Sheikhupura Expressway. DEFENCE MARINE PAINTS: Specialized paints for Army, Navy, Air Force, Shipyard and Fish Harbour.

  10. Company Location Head Office: phone :111-237-437 Adress:D-31-south avenue S.I.T.E Karachi Factories   Karachi Phone: 111-237-437 Adress: D-31-south Avenue S.I.T.E Karachi Lahore Phone: 111-237-437 Address: plot 20 Multan road Lahore

  11. Organizational Chart President CEO Director sales GM technical GM Finance& audit Controller personal& admin Controller production planning ss Logistic manager Product manager Management trainee

  12. Supply Chain Integration End consumer End consumer End consumer Retailer Retailer Retailer Distributors Distributors Dealers Central Region Business Vertical Southern Region Northern Region Warehouse Manufacturing Karachi& Lahore Store pigments Extender Labels Binder Procurement Supplies Cartons Solvents Containers

  13. Plan SCORE Modal Source Make Deliver Return

  14. Plan Firstly the company’s plan includes sales forecast followed by the planning of material procurement and planning for other processes. Basically Forecasting is done for different products based on two bases as follow Quarterly basis: On quarterly basis the sales forecast is done one quarter earlier. Suppose if they need the required target in August they do the sales forecast two quarters earlier in between January and March. Monthly basis: On monthly basis the sales forecast is done one month before, they check the inventory if there is sufficient amount of stock available in that than they are meeting with the forecast requirements, but in case if there is a shortage in inventory they increased their production till the time they meet to their required target.

  15. Demand Trend High Demand Months October, November, December, January , June, July Reason Due to marriage Season ,Eid season and rainy season Low Demand Months February, March, April, August, September

  16. Source  In making the paints and other products there are 2500 different raw materials are used. Of which 60% is imported and 40% is acquired from local suppliers Suppliers: Raw material is acquired by three types of suppliers as mention earlier that 60% of the total raw material is imported and other by local suppliers. Local suppliers: Local suppliers are those from which we purchased our raw material local from the market that is 40%. Local Imported Suppliers: Local importer suppliers are those who import the raw materials and sale out that to them, they play a third part role; they do that kind of procurement when they required less amount of raw material. Overseas Suppliers: These are the suppliers where a company directly does the procurement from them. These are the overseas suppliers.

  17. List of overseas Suppliers 1 Japan: Nippo Trading Mitsui co. 2 Taiwan: ·Eternal chemical 3  Korea: ·Kukdo chemical 4 China: ·Deping chemical ·Runfa Ltd ·Sinochem international 5 Dubai: · Enoc international · Patio chemicals 6 India: · Essac international · Pedilite chemical

  18. Make Detail of Manufacturing units Karachi Location D-31-south Avenue S.I.T.E Karachi Production capacity Manufacturing capacity of maximum 30 million litersper month Average production No average 0.7 million liters is produced Type of paint produce decorative, automotive, powder, and industrial paints are produced Lahore( Established in 2006) Location plot 20 Multan road Lahore Production capacity Manufacturing capacity of maximum five laces liters per month Average production No average 0.3 million liters is produced Type of paint produce Only Decorative paints are produced

  19. Manufacturing process 1 Acquisition of material: The procurement department controls store and it is issued as per the production schedule. 2 Charging: In this process the raw material is put in to machines in different batch sizes. Minimum of two hundred and onwards. 3 Grinding: Here the solid raw material is put in to grinder in order to make a paste of that to mix it in liquid raw material. 4 Mixing: This is the last process of manufacturing, they’re liquid and paste and other material like bonging, gloss, and base is added. 5 Quality check: Quality of the product is checked in all terms it include color, shine , base , drying time. 6 Filing After the paint is cleared by the quality control then it is filled. Order of tins provide at the same time when production schedule is made. 7 Storage: In last the tins of the paint is stored in the warehouse located in the factory.

  20. Deliver They have their distribution zonal wise, which are as followed  s Southern Zone: In southern zone they have the cities of Sindh and Baluchistan, where they deliver their product. They have their own dealers. Northern Zone: In Northern zone they have the distribution in cities of Punjab like Multan, Gujranwala etc. Their major distribution in Punjab is in Gujranwala because it is used for the manufacturing in electric appliances over there. Central Zone: Where as in a central zone all the area that comes in the region of Islamabad. They also do their exports to Afghanistan but it is just a 1%. Lead Time: Nation wide they have their lead-time of minimum 04 days and maximum 06 days, where as during the export to Afghanistan it is 15 days.

  21. Territory division in Karachi Territory A Nazimabad, Orangi town, Shairshah, Golimar, Kamari, Territory B Defence, Clifton, Ghazari Territory C Landahi, Korangi, Malir, Gulshin

  22. Return Damage Material As per the company policy every distributor or salesman has entitled of returning 2% damage material of its total sale , if any damage occurs Expired Material Normally return of material due to expiry occurs rarely . But if ever it occur they recycle the returned material.

  23. Warehouses Berger has mainly two warehouses located at Karachi factory named RG-1 and EB-4 and Lahore from these warehouse location finished products are transported other regional warehouses. Details are given below Southern Region Warehouses KARACHI phone :111-237-437 Adress:D-31-south avenue S.I.T.E Karachi Capacity: 0.7 Million liters Lead Time from Lahore: 42-72 HYDRABAD phone :0221-720908 Adress: shop no 06, Nana Bhai Center, Bohri Bazar Sadar Capacity: 40,000 liters QUETTA phone :081-822772-3 Adress: M/S K.M Khan & CO< Suraj Ganj Bazar Basant singh Road Capacity: 40,000 liters Lead Time from Karachi: 36 hours

  24. Northern Region Warehouse LAHORE phone :111-237-437 Adress:36 Industrial are kot lakhpat Capacity: 1.0 Million liters Lead Time from Karachi: 42-72 hours  GURANWAL phone :0431-711206 Adress: Butter Trades 106 C Satellite Town Capacity: 0.2 Million liters Lead Time from Karachi: 48-70 hours Lead Time from Lahore: 24-36 hours MULTAN phone :061-517501 Adress: asharfia plaza, chawk fawara Capacity: 70,000 liters Lead Time from Karachi: 48-60 hours Lead Time from Lahore: 24-36 hours Central region Warehouse ISAMABAD phone :111-237-437 plot no 201, street no 01, sector 1-10/13 Industrial area capacity: 0.4 million liters Lead Time from Karachi: 72-90 hours Lead Time from Lahore: 12-24 hours RAWALPINDI phone :051-444648 Shan distributors,471 D,6th road Settlite Town Capacity: 50,000 liters Lead Time from Karachi: 72-90 hours Lead Time from Lahore: 12-24 hours

  25. Capacity chart of Warehouses City Capacity in liters Lead time in hours Karachi Lahore Karachi 700,00042– 72hrs Hydrabad 40,000 Quetta 40,000 36 hrs Lahore 10,00,000 42– 72hrs Gurawala 200,00048-70 hrs 24-36 hrs Multan 70,00048-60 hrs 24-36 hrs Islamabad 400,00072- 90 hrs 12-24 hrs Rawalpindi50,00072-90 hrs 12-24hrs

  26. Dispersmentof finish good to warehouse Paints are placed and stored in the shelve in color or paint type vise Dispersement of paint is done on the basis of First in firs out that is (FIFO) For distribution with in the city paints containers are not packed in cartons If distribution out side the city then containers are packed in cartons.

  27. Shelf life Oil base Shelf life for oil based paints is more than 6 months. after six months these paints get fungus in it , and expiry oil based paints get some chemical reactions in it. Water base water based paints having shelf life of 6 months and if it is not sold out , it gets fungus, then anti fungal agents are added and paint is reprocessed. Note These paints gets expire in rare cases it is return to company and reprocessed again to be converted it in to new shelf life.

  28. DISTRIBUTION SYSTEM

  29. Export documents • Form E (Bank) • Letter Head (Overseas Chamber of Commerce) • Form fillings • Commercial Invoice • Performance invoice (Placing $ rate) • Certificate of origin • Form E submission to accounts • Two Director Signatures from the company • Endorsement by Bank • Two-clearance certificate (Chamber of Commerce and Overseas) • Certificate of Origin} • Commercial Invoice • Sales tax Invoice

  30. BILL OF MATERIAL Procurement process PRICE NEGOTIATION SOURCES OF SUPPLIIERS ESTABLISH LC PURCHASED ORDER RECOVERY OF DOCUMENTS CLEARING AGENTS POSSESSION OF MATERIAL GOODS RECIEPT NOTE

  31. A Commitment to Excellence BERGER is an ISO-9001:2000 certified company. A trusted name in quality paints, coatings and allied products for household, commercial and industrial use, Berger makes no compromises in its quality standards. A test facility has been established at the factory in Karachi to achieve and maintain standards of the highest quality and reduce testing periods. The company has also made investment in new equipment.  Berger places great emphasis on marinating rigid quality control standards. This includes training of personnel in the latest manufacturing methods and procedures, application of rigorous testing measures at the finished product stage and introduction of computerized color matching technology.

  32. Sales Performa Local: Decorative Department 70%  Decorative includes all house Paints in all territories  s Automotives 20%  Honda Motors (Lahore 100% Shades) Suzuki Yamaha Toyota China Bike Industry General Industry (institutional sales) 10 %  Pakistan Navy Pakistan Army City District Govt. Karachi (for black and yellow colors for footpaths and roads signs) Pakistan state oil company ltd Semins Pakistan Fan Industries Gujranwala Pell refrigerators

  33. Exports Country: Afghanistan Quantity Exported: 18000 to 20,000 liters per year

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