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Nawab Traders, Sargodha: B.Z.U Sub-Campus D.G.Khan
Nawab Traders, Sargodha: B.Z.U Sub-Campus D.G.Khan
Nawab Traders, Sargodha: B.Z.U Sub-Campus D.G.Khan
Table of Contents
Nawab Groups Profile ................................................................................................................... 3 Rice and Rice Industry Profile ........................................................................................................ 4 Definations: ................................................................................................................................. 6 A) RICE: ................................................................................................................................. 6 1) Cargo Rice: ......................................................................................................................... 6 Major Exporters of Rice.............................................................................................................. 7 Nawab Traders, Sargodha ............................................................................................................. 10 Vision Statement ........................................................................................................................... 11 Mission Statement......................................................................................................................... 11 Departments and their functions ................................................................................................... 12 Procurement Department .......................................................................................................... 13 Front Office Department ........................................................................................................... 14 Finance Department .................................................................................................................. 14 Quality Department ................................................................................................................... 15 Testing Lab ............................................................................................................................... 16 Inventory Controller Department .............................................................................................. 17 Engineering Department ........................................................................................................... 17 Export Department .................................................................................................................... 17 Domestic Trade Department ..................................................................................................... 18 Extra Long Finest Rice ......................................................................................................... 19 By Products of Rice .............................................................................................................. 19
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Beside this portfolio Nawab Group is also involved in real estate business. Mr. Nawab Fazal Karims son, Mr. Nawab Mehboob Alam with his keen eye on the future is now guiding the Nawab Group to enter the field of Information Technology (IT). The Group is constantly on its forward march. Mr. Nawab Mehboob Alams Vision knows no bounds and it will be difficult to predict as to what will be his focus of attention tomorrow. Mr. Nawab Mehboob Alam runs Fazal Karim Foundation whose sole objective is to engage in humanitarian projects in support of social and cultural causes and for the uplift of the deprived. Through this Foundation he not only fulfils his corporate responsibilities but also more importantly his commitment to promoting the good of common man.
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subsequent crops including wheat. Miller's interest is high head rice recovery. Traders prefer attractive physical appearance (shape and size), whiteness and uniform grain size.
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For consumers, quality encompasses a complete range of visual, sensory and palatability criteria that include impressive appearance of raw as well as cooked rice texture in terms of stickiness/flakiness and appealing aroma. Rice grain quality depends on intrinsic quality of rice variety (appearance, milling quality and cooking characteristics), environmental conditions (temperature, humidity, rainfall) and management practices such as use of healthy seed; optimum sowing time; balanced and timely application of fertilizers; proper harvest and post-harvest operations, use of modern milling and polishing machinery etc.
Definations:
A) RICE: means milled rice which includes cargo rice, white rice, glutinous rice and boiled rice, whether it be whole grain, head rice, big broken, broken or small broken. 1) Cargo Rice: (BROWN RICE, HUSKED RICE) means rice obtained from paddy of which only the husk has been removed. This includes its whole grain, head rice, big broken, broken, and small broken. 2) Plain or White Rice: means rice obtained from paddy which has been husked and milled while by removing its bran layers. This includes its whole grain, head rice, big broken, broken, and small broken. 3) Parboiled Rice: may be husked or milled rice processed from paddy or husked rice that has been soaked in water and subjected to a heat treatment so that the starch is fully gelatinized, followed by a drying process. B) GRAIN CLASSIFICATION: means the proportional mixture of rice of difference classes to form a grade
Rice Kernal is divided into four classes namely: 1) Extra Long Grain: shall be the head rice/whole grain having the average grain length of 6.90 mm or more. 2) Long Grain: shall be the head rice/whole grain having the average grain length of more than 6.0 mm but not more than 6.90 mm. 6
B.Z.U Sub-Campus D.G.Khan
Rice is the second largest food item of the Pakistani households after wheat flour. During the last decade, the production of rice in Pakistan has been around 5 million tons per annum. Around 2.9 million tons of rice is available for domestic consumption of Pakistan. The per capita availability of rice in Pakistan is 20.78 kg. Pakistan has scattered population of rice eating people throughout the country. In most of the urban and rural areas of the Punjab, people eat rice at least once a week. In Azad Kashmir, the entire households consume rice in their daily meals. In Sindh province, particularly Karachi, people eat rice 3-4 times a week.
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ISLAMABAD: Pakistans top rice export body said it aims to export 4 million tonnes in fiscal year 2010/11, about 1 million tonnes more than previous estimates made after destructive floods in August. Irfan Ahmed Sheikh, chairman of the Rice Exporters Association of Pakistan (REAP), said total rice production would be nearly 6 million tonnes. A senior food ministry official on Tuesday, however, low-balled REAPs estimate and said output would be about 5 million tonnes. We dispute the governments figure, Sheikh told Reuters. Our assessments are that the production will be nearly 6 million tonnes. We are now aiming to export about 4 million tonnes of rice this year on good global demand. REAPs export target tops previous trader estimates by almost a million tonnes. The government in September estimated losses of up to two million tonnes from the August floods. Before the floods, the food ministry expected 6.1 million tonnes for the 2010/11 crop. The countrys eight-month-long rice season runs from April to November and final estimates of the crop size will not be available until late December. The reason for the increased estimate, Sheikh said, is that the monsoon floods, which devastated more than 2.4 million hectares of farmland, did not affect the rice crop in the Punjab province, which produces 60 percent of the total national output. Production losses in the second-largest rice growing province of Sindh were estimated at about 500,000 tonnes, but that would largely be offset by the better yield in Punjab, Sheikh said. The president of the Agri-Forum Pakistan agreed with the REAPs production estimates.
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Nawab Traders, Sargodha is a subsidiary of Nawab Group. The organization has a big share in the total revenue of the group and earns much foreign exchange for the government. The management at Nawab group has gathered valuable experience in Rice Export through trading to Europe and Middle East since 1992. After assessing high demand for premium quality Pakistani Basmati Rice, in the international market, management decided to set-up a state-of-theart processing plant of its own.
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Nawab Traders, Sargodha has one of the finest plants, conforming to international standards of excellence in hygiene and quality. The complete plant is supplied by Buhler GmbH
(a
German
Industry
Supplier),
renowned
name
in
food
processing.
As a member of Nawab Group, Nawab Traders, Sargodha enjoys an exceptional advantage in financial matters, sales, logistics, research and development.
Vision Statement
The company is committed to serve the humanity by providing the most hygienic food so they can live a healthy life
Mission Statement
To be a market leader in rice industry ensuring the highest quality of the product and building employees career, serve the society and earn foreign exchange for the country by exporting and establishing the quality image of Pakistani rice in outer world
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This department is responsible for purchasing the paddy of desired quality. The employees of this department have special and expert level knowledge of paddy because it is the most sensitive part of the business. If wrong type of paddy is purchased or undesirable quality of paddy is purchased then its going to be a big mess.
Teams are built among these 18 employees and then regions and territories are allotted to them, and each team is responsible to go to their particular area and achieve the purchase target from that area. Keeping quality of the paddy is the first thing these employees have in their minds.
Procurement is really a tough job because when rice crop comes in the market, the duration is only 1 month. You have to purchase within one month. Because this is a seasonal product so it only comes once in the year. Employees have to achieve their purchase targets within one month so they have a huge responsibility.
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Guests of employees and management are also warmly welcomed by this department. Any person comes in the firm first tells the issue to the front office, front office then calls to the corresponding person and informs him about the issue then a meeting is arranged or an appointment is set and issue is solved. All phone calls are also first received by the front office staff.
Finance Department
Finance department is the hub of the organization. This department has many things to do. How to float capital Arranging payrolls Arranging wages Maintaining cash flows Making budgets Calculating costs Setting prices
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Budget is prepared which is the most complex thing, how to spend, where to spend, when to spend and how much is to spend. Cash flows are generated and it is tried that cash flows are maintained as they were projected at the beginning of the fiscal year.
Costs of different varieties of rice are calculated and the price is set by keeping both markets, domestic and international market. Labor is given wages on weekly basis and rest employees are given salaries and payrolls within the first seven days of the month. It is ensured that Cash InFlow should meet the timings when the expenditures are to be incurred.
Quality Department
The first and foremost responsibility of Nawab Traders, Sargodha is the customers satisfaction by providing them highest quality. We pursuit for the highest quality standards and its philosophy of quality product deliverance as only reiterated its mission statement.
We seek satisfaction for our customers by making our products and services worthy of them through our commitment, teamwork and an efficient ever-improving quality management system.
Company is committed and endeavoring to do environment-friendly and pollution-curtailing rice processing business while continually improving its Green Practices and complying by all applicable national and other standards. Company is focused to consistently interact with and address the concerns of all interested parties.
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This process is closely watched by highly trained and experienced personnel. Management maintains most moderns testing laboratory equipped with mini mill.
Detailed laboratory analysis form part of the routine control. Testing is regularly performed by our experienced and highly qualified analyzers right from raw rice to finished end product to ensure that product delivered to customer conforms to the given specifications.
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Engineering Department
Engineering Department is responsible for the smooth flow of operations in the plants and machinery. Engineering department has a complete schedule and plan of when to repair and when to conduct maintenance.
If any machine goes out of order, the department is responsible for the repair and to keep running machines in full-season. All compulsory and important spare parts of machines are already kept to tackle in case of emergency.
Export Department
70% of the revenue of the company is generated by this department. All the Export orders and tenders are gained by the personnel working in this department. This department is responsible to fulfill export orders at time and win tenders from different countries.
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60% of rice produced is exported to following countries: Dubai Saudi Arab Iran Qatar Behrain Oman Kuwait Jordan England Sweden Australia Spain
Different orders from different countries and different tenders are won and to fulfill the orders at time by keeping the quality at required level is the utmost responsibility of the department.
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Par-Boiled Super Kernal Extra Long Basmati Rice Par-Boiled 1121 Qayenaat Extra Long Rice
By Products of Rice Processing, husking and milling of rice leaves many By-Products which are scrap and sold separately. The selling of by-products also contributes much to the total revenue of the organization.
The kinds of by-products are given as follow: Husk of Rice (Toh) Bran (Powder of Rice) Broken Tip (Nakku) Broken Rice (Totah) Damaged Rice (Dhaghi Daanay)
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Pre-Steaming
Double Steaming
Drying
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Paddy Cleaner
Drying of Paddy
Husking
Husk Seperation
Paddy Seperation
Polishing
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8 9 10 11
Shining
Destoning
Shifting
Width Grading
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Length grading
When selling domestically only this procedure is followed, in local market only normal rice, both Basmati and Non-Basmati is sold. This type of rice is neither par-boiled nor it is reprocessed. It because the domestic market doesnt have enough demand for par-boiled and re-processed rice thats why company do not pay much attention here. It only sales non par-boiled and non reprocessed rice locally.
If rice is further to be exported then the following procedure which is known as re-processing is done to make it of export quality.
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Color Sorting
Final Grading Packing
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File sorting;
I also used to sort out and index files in the office area. Locally sold by-products invoices and expense invoices were sorted out in the corresponding files
Attending Calls:
Few days I also worked in front office where I answered the calls and transferred to the concerned department.
Labors Inquiry:
Took the inquiry of any labor worker working on any machine within the unit to the corresponding person.
Supervision on Loading/Unloading:
When by-products were loaded in trucks/containers, it was my job to count how much the bags are loaded. Counting them and making a report was my job.
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Balance Sheet
Assets Cash and balances Balances Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets
Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities Net Assets Represented By Share capital Reserves (Accumulated loss) / Un-appropriated profit
5,287,974 7,427,232 (7,658,686) 5,056,520 4,230,379 7,427,232 3,452,842 15,110,453 3,885,341 18,995,794 1,219,801 12,278,773 164,072,532 -30,632 4,564,257 182,165,995 3,743,125 937,647 17,842,915 191,968,909 40,321 2,205,530 3,009,984 216,005,306 18,995,794
(1,313,395) 3,743,125
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2011
(Rupees in 000)
Mark-up/return/interest earned Mark-up/return/interest expensed Net mark-up/ interest income Provision against non-performing loans and advances Provision for diminution in the value of investments Bad debts written off directly Net mark-up/ interest income after provisions Non Mark-up/interest Income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale and redemption of securities Unrealized gain / (Loss) on revaluation of investments classified as held for trading Other income Total non-markup/interest income Non Mark-up/interest Expenses Administrative expenses Provision against other assets Provision against off balance sheet items Other charges Total non-markup/interest expenses Extra ordinary/unusual items (Loss) / Profit Before Taxation Taxation - Current - Prior years - Deferred (Loss) / Profit After Taxation Unappropriated profit brought forward Transfer from surplus on revaluation of fixed assets net of tax 29
-
17,752,969 17,539,0 16,614,000 1,138,969 94 13,939,3 18,863,58077 366,387 17 19,229,967 3,599,7 1,616,4 24,479 21 246,86 9 1,711,9 653,51 1,804,8 2 377,23 78 2,039,5 3 35
526,185 4,182,826
547,63
(16,832,906)2,289,0 4,845,7 19 (16,832,906) 22 4,845,7 207,600 169,25 1,052,000 22 (19,921 2 (8,033,001) 250,77 ) (6,773,401) 2 (10,059,505) 400,1 3,452,842 03 5,572 19 4,445,6 3,219,2 5,866 46
(Accumulated loss) / profit available for appropriation Basic Dilut ed Financial Business Summary (loss) / earnings per share (after tax) - Rupees (loss) / earnings per share (after tax) - Rupees
2008
Operating Results
2009
2010
2011
2012
Rs in m
2,555
6,125
11,579
17,539
17,753
Rs in m
719
2,669
7,509
13,939
16,614
Rs in m
1,836
3,456
4,070
3,600
1,139
Rs in m
1,097
1,331
2,954
5,423
4,183
Rs in m
1,150
1,291
1,882
2,289
2,925
Rs in m
47
331
374
1,888
18,864
Rs in m
1,736
3,165
4,769
4,846
(16,833)
Rs in m
1,368
2,353
3,804
4,446
(10,060)
Balance Sheet
Total Assets
Rs in m
66,320
111,154
164,855
234,974
185,909
Rs in m Rs in m
39,439 16,198
63,624 18,026
101,320 28,233
133,894 73,462
131,731
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Shareholders Equity
Rs in m
4,420
6,777
10,659
15,110
5,057
Revaluation Reserve
Rs in m
3,419
6,893
5,467
3,885
(1,313)
Deposits
Rs in m
54,724
88,465
137,728
191,969
164,073
Rs in m
2,832
6,791
6,989
17,843
12,279
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Strengths:
Nawab Traders, Sargodha has strong foundation regarding finances In local as well as international Markets, Aroma Rice is a name of quality Goodwill in terms of commitment and delivery on time of an order Have expert personnel in each department Latest and advanced automated machinery Power Back-ups It has Low cost cheaper labor Cameras are installed everywhere for monitoring
Weakness:
Organizational structures nature is not decentralized. Only Export related documents and accounts are computerized Procurement department has less staff than required
Opportunities:
More share in exports can be captured because still there is a lot of room It can go for related diversification as Biscuits can be made from its by-product (Bran/Powder) From Its Husk Tip and Bran, Rice Canola Oil can also be produced Putting the product into its own brand, can create new markets and profits
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Threats:
Threat of new entrants is really high. Many new units are being installed and competition is becoming tougher Threats from political scenario is very much high. As exporters are not trusting on Pakistani parties If river/water issue is not resolved, then there could be a shortage in crop due to lack of water and depression may come.
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All documents including domestic trade as well should be computerized and reports should be generated on computers. This will reduce the time of reports generation and furthermore it will reduce the chances of error. If any error happens then it can be immediately rectified on computer while on the other hand it is very difficult to find it and then correct it on manual books.
The duration of paddy procurement is only one month, and the procurement department has only 18 employees working in it. Purchase targets are so high that in this one month employees are overloaded and it is very difficult for them to achieve targets because they also have to achieve the quality levels. If more employees are hired then it will ensure the quality level as well as the fulfilled purchase targets within the time duration.
Since Nawab Traders, Sargodha is involved in business to business market, I also recommend that Aroma Rice should also put some of their production in their own brand and market it, If they can commercialize their own brand/product they can earn more on the same sales.
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REAP online sources: http://www.reap.com.pk REAP is Rice Export Association of Pakistan, an exporters body where national and international level decisions are taken.
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