Final Report of Shamim

SHAMIM GROUP OF INDUSTRIES
DEPARTMENT OF MANAGEMENT SCIENCES 1

SUBMITTED TO
Sir Nazik
SUBMITTED BY
Sidra Saeed
MBA (G1) 5th
SUBMISSION DATE
October 08, 2012
The internee
Sidra Saeed

Acknowledgement
I want to acknowledge my deep thanks to our all the Teachers and company Officials who
helped me make my final report.
I am deeply indebted and also express my gratitude to my respected teachers at ISLAMIA

UNIVERSITY, BAHAWALPUR specially Mr. Taimoor Hassan Abbasi for their Support. Their
guidance and support was always instrumental in setting the track right for preparation of this
report.
I am very thankful to Mr. Waseem Akhter (GM) finance & accounts for providing me the
opportunity to have an excellent learning experience during my internship at the head office of
“Shamim Group of Industries Limited” and to all the experienced staff at for their guidance and
cooperation.
Preparation of this report has been an unusually enjoyable and exciting experience for me.
Perhaps the most memorable aspects of the project has been the opportunity to know a better
number of people who have provided information for various operations of the work in the
course of the research, I started to collect data from the very first day, when I start working on
this report. The person to whom I would like to give my regards is the chief accounts officer
Mr. Majid Rashid of “SHAMIM GROUP OF INDUSTRIES LIMITED” who gave me very
useful tips and information. I am sure that my report will prove to be work in advance for the
people to study later on. I wish all the successes from the core of my heart to all.

DEDICATIONS
I dedicate this to my Beloved Parents for all their love & attention which has made it possible for
me to make it up to this point and as well as the Internship Advisor Mr. Majid Rashid who
bestowed me with the courage, the commitment and the awareness to follow the best possible
route, by his unmatchable style and by best possible training.

TABLE OF CONTENTS
Sr .No Description Page No.
1 Executive Summary 6
2 Company Profile / History 7
3 Introduction of Organization 9
Mission , vision and objectives of the
4 14
organization
5 Shamim Group consists of 16
6 Corporate level strategies 29
7 Business level strategies 30
8 Operational level strategies 31
9 Recommended strategies 32
10 Organizational structure 34
11 Working of various Departments 36
12 Marketing Mix 57
13 Financial Analysis 64
14 Ratio Analysis 73
15 SWOT Analysis 75
16 Suggestions & Recommendations 80
17 Conclusion 83
18 Annexture 89

Executive Summary:
Shamim group of industries (SGI) has grown from business of Ginning & Oil Milling in
Lodhran in early 80’s into the premier business group of Pakistan with 4 listed companies,
concentrating on 4 core businesses; Oils, Feed, Ghee and Poultry Industries . Today, Shamim is
considered to be at par with multinationals operating locally in terms of its quality products and
management skills.
I recently have done my internship in, Shamim group of industries in which I got training from
each of its department. The internship basically revolved around the product knowledge training.
The system, the style of working & the commitment of the employees in SGI is really
exemplary.
The difference between the success & failure is doing things right and doing things nearly right,
& SGI has always tried for success & that is why it is known to be one of the leading
organizations in Pakistan. Irrespective of all these positive points of Shamim group of industries,
I have noticed a few areas where the improvement can really increase the efficiency of SGI.
In this report I have given a very brief review of what I have seen during our internship I have
mentioned all these as I have made an internship as according to the schedule. I have mentioned
about the Shamim industry in Pakistan and vision of its industry. Then I have done a detailed
SWOT analysis.
Then I have discussed about my learning in the whole internship that is all about the ginning,
ghee, oil mils terminologies and process of the productions. I have made it possible to write each
and every thing that I have learned there. I have all my practical efforts in the form of this
manuscript that’s the asset for my future career.

Company
Profile & history

Shamim group of industries has 26 plus Years experience in Ginning, Oil Milling &
Solvent Extraction Business. This Family established business of Ginning & Oil Milling in
Lodhran in early 80’s with cooperation of National Bank of Pakistan. Most of its top
Management educated from Australia. In 1994 they moved from Lodhran and set up a
Solvent Extraction Plant at Samma Satta, Bahawalpur to enjoy a Tax holiday for 8 Years.
And took credit lines with NBP (National Bank Pakistan). In June 2000 switch over from
NBP to ACBL & entered into Imports. After entering in imports they get substantial profit by
expanding their business. At that time they Purchased Land near factory premises & set up
the 2nd unit of Solvent extraction in 2001-2002. In 2004 Company planned horizontal
diversification & established a new Unit of Poultry Feed Manufacturing. Then Shamim
group of industries had Established a Ghee and Cooking Oil Manufacturing Unit with the
name of “SHAMIM GHEE INDUSTRIES” (Pvt) Ltd which had started its operations
successfully in April, 2010.

Introduction OF
ORGANIZATION

“Shamim Group of Industries” has three partners Rana M. tariq Khan, Rana M. Aslam Khan,
M. Arslan Khan. It has approximately three decays experience of industry. This group starts with
Ginning Mills then launch Shamim Oils (Pvt.) Ltd. Shamim Group in 1994 installs First
Solvent Extraction Plant in Division. In 2004 Shamim Group starts Shamim Feed Industries
First Feed Industry in Bahawalpur division and then launching Shamim Ghee Industries. Top
15 group of poultry industry in Pakistan crystal group out and shamim group fill it position. So
after emergent it becomes one of biggest group of locality. Lives brand was launch in year 2009
from the stage of Shamim Ghee Industries which is one of the best ever mounting Shamim
Group's Company. The company entirely engaged in the vegetable oil and fats industry with core
aim to bring quality products within everyone’s reach which is the social liability of the company
towards the society and company feels that it is also the right of every consumer. They imports
raw material of feed in order to improve their production. Shamim Group of Industries
Bahawalpur is specialized, strict, diligent and responsible and has honest working attitude as
well as high effective teamwork spirit, past experience, reputation, and the network, they are
confident to provide supreme quality Manpower Recruitment services and satisfactory co-
operation to their clients.
Import items of shamim feed
 Soya bean meal

 Die calcium phosphorous
 Medicines (20 items)
 Machinery
Head office Address:

Head Office: 6-B/2, Tipu Shaheed Road, Model Town–A, Bahawalpur.
Phones: 062-111-266-277
Fax:062-2887420
Email:Info@shamimgroupbwp.com

Detail of directors:
Name of partners Percentage of share holding
Rana Muhammad Tariq Khan 80%
Rana Muhammad Aslam Khan 10%
Muhammad Arslan Khan 10%
Management:
Executive directors & partners:
Rana Muhammad Tariq Khan
Non - executive partners:
Muhammad Arslan Khan
Rana Muhammad Aslam Khan

Relationship of shamim group of industries with other organizations:

Major competitors:
Shamim Feed:
Asia feed SB feed
Shabir feed Lahore feed
National feed Multan feed
Shamim ghee:
Asia ghee mills
Shahbaz ghee mills
Shama ghee mills

Vision, mission AND OBJECTIVES OF
THE ORGANIZATION

Vision:
To lead poultry feed industry, ghee mill, oil extraction and medicine industry in Pakistan
By establishing our best quality brand.
Mission:
 Set the highest industry standard for quality across all areas of operation.
 Optimize people, processes and technology to deliver the best product and
services
 Continuous improvement and protection of the environment
Objectives:
 To uplift the Shamim group of industries in the industry scene as the best where
you come first.
 Fully utilize its capital
 Customer trust is our asset.
 To satisfied customer need and meet their expectation
 Be innovative, progressive and responsive to the needs of its customer within the
frame works of operational latitude and risk taking.
 To contribute in the economic growth in the country by generating huge profits.
 To provide technical education and services to the poultry farms, oil mill, ghee mill
and in medicine industry at their doorstep and make their entrepreneur profitable.

SHAMIM GROUP CONSISTS

OF

SOLVENT EXTRACTION
Shamim Oils (Pvt.) Ltd.
POULTRY FEEDS
Shamim Feed Industries (Pvt) Ltd.
GHEE & COOKING OIL
Shamim Ghee Industries (Pvt) Ltd.
BREEDER FARMS, HATCHERY&CONTROL HOUSES
Shamim Poultry Industries

Shamim Oils (Pvt.)

Limited

 It is incorporated as Private Limited Company in 1993.
 It has 2 Units of Solvent Plants.
 Crushing capacity of these plants is 350 MT per day.
 Annual Import of this company is .500 Billion.
 It has a Supply of Edible Oils to Ghee Mills and Poultry Meals to Feed Mills in bulk
quantity throughout the country.

FUNDS REQUIREMENT FOR SHAMIM OILS.
Daily crushing capacity US$ 250 M.TON
Crushing capacity per month US$ 7,500 M.TON
Average price of seed US$ 600 /M.TON
Value of seed consumption per month US$ 4,500,000
Value of seed consumption in pak rupees Rs. 274.500 (M)
Landed cost @ 15% Rs. 41.175 (M)
Total landed cost of seed consumed/month Rs. 315.675 (M)

Shamim Feed Industries

(Pvt) Ltd

 It is established in 2004 as a Partnership concern.
 Total Project cost is Rs.200.00 Million.
 Total Annual Turnover is Rs.2.600 Billion.
 Annual Import around 400.000 Million.
 Its Production capacity is 425,000 Bags monthly.
 Marketing areas are “Punjab, Sindh, Quetta and Afghanistan.
 It Change the Constitution to Private Limited Company in February, 2011.
FEATURES
 Equipped with Latest & Modern Technology.

 Fully Automated.
 It is the best unit in Pakistan.
 This company is designed and constructed under foreign consultation from Switzerland.

FUNDS REQUIREMENTS FOR FEED MILLS
Production capacity (present) 15 TON/HOUR
Daily production (15 x 24) 360 TON
Daily production in kgs (360 x 1000) 360,000
Monthly production in kgs (360,000 x 30) 10,380,000
Monthly production in bags (10,800,000 / 50) 216,000
MATERIAL REQUIREMENT FOR PRODUCTION OF 216,000
Grains 60%
Soya bean meal 15%
Medicines & other meals 25%

Shamim Ghee Industries

(Pvt) Ltd

 It is established in 2009 as a Partnership Concern.
 Marketing areas are “Punjab, Sindh and Quetta.
 Total Project cost Rs.160.00 Million.
 Change the Constitution to Private Limited Company in February, 2011.
 Production capacity of shamim Ghee industry is 150 M. Tons Daily.
FEATURES
 It is designed and constructed under foreign consultation.
 Equipped with Latest & Modern Technology.
 Fully Automated.

Product Family of shamim Ghee:
Lives Banaspati
Lives Sunflower Cooking Oil
Lives Soya bean Cooking Oil
Lives Canola cooking oil:
Canola cooking oil is safe, rich in taste and very light cooking oil. The Vitamins A & D found in
Lives Canola improve your eye sight and further stronger your bones that helps you to grow in a
balanced way. Continuous usage of Lives Canola cooking oil balances the level of Cholesterol
and protects you from heart diseases which help you to reduce the chances of getting paralyzed.

Available……….in: 1x5Ltrs, 1x10Ltrs, 1x12Ltrs, 1/2x5Ltrs,

Corporate, Business& functional

Level strategies

EXISTING STRATEGIES:
Corporate Level Strategies:
Corporate level strategy focuses on strategies for enterprises consisting of more than one
business. Shamim group of industries (pvt) Ltd, for instance, comprises several businesses,
including consumer goods and poultry products. Shamim group of industries involve in more
than one business is said to be diversified.
Concentric Diversification:
“Adding new, but related products or services”.
Shamim group involved in concentric diversification because it has other small companies, like
control shed ECT. Shamim group has developed a setup to hold control shed under the brand
name of “Shamim control shed” so it is adding new but related products in to the market.
Instead of selling only shamim ghee they are providing extra services in terms of recipes of
different dishes, online contest where different people can win a lot of prizes. Then we said it hat
their control shed is concentric diversification.

Horizontal diversification:
Shamim group involved in horizontal diversification because it had established a new Unit of
Poultry Feed Manufacturing. In order to diversify themselves for the purpose of getting more
profit by covering a greater proportion of the market.
Business Level Strategy:
Firms compete directly with one another at what is called the business level of strategic
management, so we will focus on crafting successful competitive strategies. Because competition
takes place at the business level, strategic management at this level is crucial to the overall
success of the firm.
Cost Leadership:
In manufacturing and especially in industries where the product differentiation is not possible the
only strategy the organization is left with is "Low Cost Production" or cost leadership. In fact
cost reduction is the only way to stay in the industry. Shamim group has cost leadership strategy.
According to the text, the low cost strategy is good when, product cannot be differentiated,
industry is producing standardized product, product has same usage and switching cost is low.
All the characteristics are fully applied in ghee industry. So company is using right strategy.

Operation Level Strategy:
Operation level strategy focuses at how to develop capabilities in process execution that will
yield competitive advantages for a firm. This involves applying strategic management concepts
to what is known as the operations level, the level at which work inside the organization actually
takes place. We focus on how organizations go about improving their process capabilities,
including both total quality management and core process reengineering.
Product Development:
“Seeking increased sales by improving or modifying present products or services”.
Currently Shamim group of industries (pvt) Ltd is following the product development strategy,
because the Shamim group is continuously improving the quality of the ghee/oil for the
consumers. Shamim ghee (Lives) has a good image in the Bahawalpur, and they try to develop
the same good image in all over the country, so that’s why they are improving their products
through TQM.

RECOMMENDED STRATEGIES:
Recommended Strategies:
At this time when industry is fully mature, and the competition in terms of access to final
consumer is very high the companies usually face the problems of slow demand growth,
emphasize on cost and services, topping out and loss of profitability. The Shamim group of
industries (pvt) Ltd is also facing the same problems. Although it has tackled the major problems
very well but still there is some room of improvement in its existing strategy.
Forward Integration:
“Gaining ownership or increased control over distributors or retailers”.
The firm should use their own distribution network because the motive behind that when they
have their own distribution system the additional cost will be avoided which had been kept by
dealers as their own margin. In this dynamic and competitive environment the firm has to
maintain its current position of cost leadership to be competitive.
Market Development:
“Introducing present products or services into new geographic areas”.
As it is already mentioned that the firm is only distributing in Bahawalpur and Multan division.
The firm should go for market development, means that the firm should introduce their products
in new markets or new geographical areas. This can increase the demand of the firm’s products.
Then increase in demand will lead the company to utilize the full capacity of the production.

When the company utilizes the full capacity its sales will increase along with the profitability of
the owners.
Advertisement:
Shamim group of industries (pvt) Ltd is not using any mode of advertisement, because of low
demand and unavailability of their products. They believe that advertisement without availability
of the product is useless and creates a bad image. In order to create awareness Shamim group of
industries must go for advertisement.
ISO Certificate
Although the firm is working better than required ISO certificate but the firm should take the
ISO certificate. Because ISO certificate create a good image among the consumers.
Dispensary
Shamim group of industries has no dispensary in the factory for the employees’ injuries during
the production. It must take some action to establish a full fledge dispensary for dealing the
employees’ injuries. This will provide the safety to the employees and they will be more
satisfied, productive and having high morale.

ORGANIZATIONAL
STRUCTURE


Working of various
Departments

 Procurement department
 Production department
 Accounts department
 Marketing department
 Human resource department

Procurement department

1: First we will decide the rate of the purchase products.
2: Then make contract and signed by following authorities.
 Purchaser
 Purchase manager
 Chief accountant
 General Manager Finance
 Director

Production department

1: Purchase raw material in shape of
 Grains (maize, nako, wheat, millet)
 Meals (soya bean meals, fish meal, sun flower meal, canola meal, guar meal glutton
meal)
 Medicine (vitamins, minerals, amino acids, anti oxidants, growth promoters)
2: Material shift to bins from silos and gowdons.
3: Premix made from medicines
4: All material is collected, mix and converted into final product that is feed, in hopper.
Types of feed:
1: Layer feed:
Layer feed is prepared for hens that lay eggs. Layer feed consist of following numbers:
 11 no feed
 13 no feed

Feed no 11, Feed no 13 (for layer)
2: Broiler feed:
Broiler feed is prepared for broilers. Broiler feed consist of following numbers:
 9 no feed
 9c feed
 10 no feed
 10 c feed
Feed no 9, 9c, 10, 10c (for broiler)

Accounts departments

1: To operate the books it includes
a) cash book
b) Ledger
c) Journal
d) Vouchers
Vouchers:
It includes
 Cash payment vouchers
 Cash receiving vouchers
 Adjusted journal vouchers
 Raw material purchase vouchers
 Sales receiving vouchers
 Purchase receiving vouchers
 Bank payment vouchers
 Bank receiving vouchers
 Reconciliation with banks
 Reconciliation with parties

Parties are:
(a) Debtors
(b) Creditor
2: Maintain trial balance
3: Maintain monthly accounts
4: Maintain balance sheet
It includes
 Profit & Loss accounts
 Notes to be account
 Filling of returns
 To control the cash
They maintain and save all the data in computerized form for future use.

Marketing department

This is age of competition and every organization is facing hard competition from not only
domestic organization but also from the international organizations due to globalization. Due to
this competition the marketing department plays a vital role in the success of the organization.
The location of branch and all tangibles at Bahawalpur level are not in satisfactory condition.
In the branch there is no proper marketing activities are follow seriously and I observe some
points:
 Lack of marketing at desk due to lack of training and awareness among employees.
 Lack of promotional activities.
 Little attention to the apparent conditions of the bank exterior, interior layouts and design
of furniture.
Through the proper Marketing and promotional activities organizations are successful to achieve
the objectives. Objectives for UBL clearly defines what the bank want from its target market and
potential customers. So to achieve organizational objectives it is necessary to understand the
target market.

Suggestions for Marketing Department:
For the improvement of marketing activities some suggestions are as under
Branding:
This brand or name of service associates with it should be such, which could communicate some
message and attract the customers. So proper branding of top product is necessary.
Advertising Media:
Promotional campaigns provide added incentive, encouraging the target market to perform some
incremental behavior, which is highly necessary. Communication with the target market should
be always there and Electronic and Print Media should be used for promotion.
 Electronic Medias
o TV
o Radio
o Internet
 Print Medias
o Newspapers
o Magazines

Shamim ghee Mill should advertise on electronic media especially on TV, Because TV is more
capable to create awareness about the company’s product among the people and can facilitate its
sales officers during sales to retailers. The timing of advertisement should be during Khawatin
programs.
Appearance:
Physical appearance of the location and inside the building also matters. It helps a lot to attract
the customer. By following these suggestions the region of Bahawalpur moves towards
achieving the targets and growth.

Human resource department

Employee’s benefits & advantages:

This department is also called the backbone of the any company. Because the success of any
business is depending upon it. The reason is that the employee’s benefits are related with this
department. All the recruitment is to be done by this department. Training, Recruitment,
selection, and compensation are the main function performed by this particular department.
Training & development:
This is one of the important functions of human resources department. All employees needed
specific training related to their function to maintain company standards. Training is not only
important for the employees but it is necessary for newly hired people whether they are
experienced or not. Training is also important to develop carrier planning and promotion system
and records for monitoring employee’s carrier progress. It helps managers to evaluate and
recommend employees for development of all activities and only training provides information
regarding how to institute and operate quality improvement programs and team building.
Employees Benefits & Advantages:
Benefits are the rewards which are given to employees in the response of their good
performance. It is being analyzed that employee’s productivity is directly related to benefits. If a
firm wants to motivate their employees a good number of benefits should be given to them.
Shamim is emerging because it is using strategy that they are giving quite a reasonable number
of advantages to their permanent employees.
Some of these are given below.

Conveyance Allowance:
Special facility is given to the ladies staff for the pick and drop daily and in emergency whenever
needed. Conveyance allowance is also given to the employees that are travelling 300 km per
month. There is also the facility of patrolling.
Over time:
The cost of living allowance of rs350 per month so added in employees pay. The over time is
paid to the employees as. Cola+18%+house rent+ conveyance allowance.
Shift Allowance:
Shift allowance is given accordingly to the basic pay. However evening shift allowance is
rs10.And the night shift allowance is rs20.
Important documents of different departments

L.C is required in order to imports goods from other countries.
Letter of Credit:
Letter of credit is the conditional undertaking on the request of the importer/buyer. It is also
called documentary credit defined as;
“A written undertaking by the bank of importer i.e. issuing bank at the request of buyer or
importer to make payments at sight or at determinable future date up to stated sum of money
within prescribed time against stipulated documents”.

FSGI parties are involved in the payment of the goods, i.e., the buyer, buyers bank, beneficiary,
L.C. advising bank.
After clearance of the import documents, import department negotiate the papers with bank
payments to the bank. Then exporter’s local bank sends documents to the buyer bank and foreign
bank get payments from SGI (shamim group of industries) bank with the permission of them.
Documents required in L.C:
 Commercial invoice 8 copies with description of goods. Certifying that goods are to be of
India origin.
 Original truck receipt shows goods consigned to bank, address of bank, notify applicants
and our self (Marked freight prepaid).
 Packing lists with 3 copies.
 Copy of shipment advice to be sent to applicant, insurance company. Address of

insurance company. Full detail of shipment (with date). Shipment advice must enclose
with original documents.
 Certificate of origin as per saarc rules must have original shipping documents & non-
negotiate documents.

 Invoice must bear a certificate from beneficiary that the quality, quantity, rate
specification & all other documents are as per proforma, invoice no.
 Beneficiary certificate required to ensure that they have sent a complete set of non-
negotiate documents directly to applicant through courier service.
 Beneficiary certificate required to certify that the complete description of goods is

mentioned on invoice that are called by the L.C exactly as mentioned in proforma
invoice, sales contract number mentioned in the field accepted by the applicant &
beneficiary.
 Products/ goods should posses minimum 75% of shelves life at the time of arrival in
Pakistan. A certificate required from beneficiary with original shipping documents.
 Invoice and packing lists must be enclosing with the consignment, a certificate issued by
beneficiary required along with documents.
 A certificate of weight one original copy, 3 copies from loading station.
 A certificate of quality one original copy, 3 copies from loading station.

Purchase vouchers:
It contains all related information that is required in order to purchase
Products from other party. Contract must show material description and rate.
Purchase Maze:
Material Rate Status

Serial #
1 Maze 20 KG Delivery
2 Maze 20 KG x-party
Documents include in purchase vouchers:
 Sales invoice
 Weight note company, seller
 Weight/freight analysis report
 Receiving note
 Goods receiving note
 Purchase vouchers

Sales vouchers:
This voucher is formed in term of sales to other parties by the shamim group of industries.
In response to the order from other party it is passed by the authorized person and sends
It to factory where gate pass is formed for already manufactured products.
Documents include in Sales vouchers:
 Weight note
 Bilty
 Gate pass
 Sales voucher

Marketing mix of Lives
Cooking oil & ghee

1: Product:
Shamim ghee (pvt) ltd is selling the ghee under the brand name of lives. The company is making
the product right according to the demand of customers also make value addition in a sequence
in order to remain in the top of the list in the local market competition. Lives brand has range of
products available into the market. These are highlighted as under:
Available in:
Canola,Dispenser
1x5Ltrs
1x10Ltrs
1x12Ltrs
1/2x5 Ltrs
Canola PET Bottle
1Ltr
3Ltrs
5 Ltrs
Canola Tin
Available in:
2.5ltrs
5ltrs
10ltrs
16 Ltrs

Features and benefits of lives ghee:
Features:
It is worth mentoring that lives ghee contains vitamins A, D& K in its various products.
Moreover the specialty of ghee is considerably important ghee products are manufactured on 37
degree Celsius which helps a person to digest easily and which keeps the person away from
various chronic heart diseases.
Benefits:
Features of lives ghee gives the different benefits to people in different ways as follows:
Benefits of vitamin “A”:
 Improving vision.
 Treating or preventing various eye conditions, such as:
 Macular degeneration
 Cataracts
 Glaucoma
 Enhancing the function of the immune system.

 Preventing and treating cancer.

 Preventing lung problems in premature infants.

 Treating various skin conditions, including but not limited to:
 Acne
 Cold sores
 Wounds
 Sunburns
 Wrinkles
 Sun damage
Benefits of vitamin “D”
 It helps the intestine absorb nutrients, including calcium and phosphorus. This ensures
strong bones and a strong immune system.
 Vitamin D prevents osteomalacia and rickets. Osteomalacia, which causes weakness of

the muscular system and brittle bones, is most prevalent among adults with vitamin D
deficiency. Rickets is a skeletal deformity mostly seen in children with vitamin D
deficiency.
 Vitamin D provides calcium balance in the body that prevents osteoporosis or arthritis.

 . Vitamin D regulates blood pressure, reduces stress and tension, relieves body aches and
pains by reducing muscle spasms.
 Vitamin D is recommended in the treatment of several diseases.
Benefits of vitamin “K”:
 Helps you build strong bones and keep them healthy
 Helps boost your vascular (arteries and veins) system
 Promotes your healthy heart
 Helps you fight against premature aging
 Enhances your memory function

2: Price:
The objective of lives ghee limited in terms of pricing is “competitive pricing”. In this regard we
can surely state that Lives follows its competitors like Nasir cooking oil and ghee, sultan cooking
oil and ghee, Shahbaz cooking oil and ghee etc. As these competitors change their pricing. So the
same pattern of pricing is followed by the Lives ghee Ltd. If we go further it means “price
signals” are followed in terms of prices of various brands Lives cooking oil and ghee. Lives is
doing so because there is no significant difference in the product brands of Lives ghee and the
product brands of its competitors. Due to this reason Lives can only compete on the bases of
competitive pricing.
3: Promotion:
They place their products in local as well as in national market. Promotional line activities
include media, and other trade incentives to distributors and wholesalers, placing ads on bill
boards in different phases of the Bahawalpur city with the combination of wall chalking and
below the line activities which includes the sponsorship of entrepreneurial activities flower
exhibition besides the cocking shows held in different time periods in a year.
(Source: Marketing Manager)
4: Distribution:
Distribution of Lives ghee is based on two elements:

1: Distribution networks.
In Bahawalpur City lives ghee limited owned its own distribution network channels which
supply the producer brand to different regions of Bahawalpur City. On the other hand there are
number of distributers outside of Bahawalpur who are responsible for the supply of products
brand to the retailers.
Distribution Network:
Mill
Dealer
s
Retailer
s
Final
Consumers
2: sales workforce:
Lives ghee limited has established a special sales department in the city of Bahawalpur which
does its level best to provide on time deliveries to the retailers and some time to the final
customers the sales department has divided the city into different phases and the responsibility of
each phase is imposed on different sales people.

FINANCIAL ANALYSIS

SHAMIM FEED INDUSTRIES BAHAWAL PUR
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED ON 31 DECEMBER 2008 TO DECEMBER 2011
2008 2009 2010 2011
(RUPEES) (RUPEES) (RUPEES) (RUPEES)
SALES - NET 1,604,734,252 2,029,988,829 2,567,935,868 3,248,438,874
COST OF SALES 1,494,677,392 1,888,966,715 2,380,149,948 3,003,448,955
GROSS PROFIT/(LOSS) 110,056,860 141,022,114 187,785,921 244,989,918
ADMINISTRATIVE EXPENSES 35,528,519 46,986,466 62,139,602 82,179,623
OPERATING PROFIT 74,528,341 94,035,648 125,646,319 162,810,295
OTHER INCOME - - - -
74,528,341 94,035,648 125,646,319 162,810,295
OTHER CHARGES
FINANCIAL CHARGES 45,680,173 50,233,954 54,511,212 61,791,123
MISCELLANEOUS -
45,680,173 50,233,954 54,511,212 61,791,123
NET PROFIT/(LOSS) FOR THE

YEAR
BEFORE TAX 28,848,168 43,801,694 71,135,107 101,019,171
PROVISION FOR TAXATION 7,212,042 10,950,423 17,783,777 25,254,793
NET PROFIT AFTER TAXATION 21,636,126 32,851,270 53,351,330 75,764,379

ACCUMULATED PROFIT /(LOSS)

B/F 28,677,835 50,313,961 83,165,231 136,516,562
ACCUMULATED PROFIT /(LOSS)
CARRIED TO BALANCE SHEET 50,313,961 83,165,231 136,516,562 212,280,940

SHAMIM FEED INDUSTRIES BAHAWAL PUR
BALANCE SHEET
AS AT DECEMBER 2008 TO DECEMBER 2011
2008 2009 2010 2011
(RUPEES) (RUPEES) (RUPEES) (RUPEES)
CAPITAL AND LIABILITIES ACTUAL PROJECTED
PARTNER'S CAPITAL 40,500,000 40,500,000 40,500,000 40,500,000
UNAPPROPRIATED PROFIT/(LOSS) 50,313,961 83,165,231 136,516,562 212,280,940
90,813,961 123,665,231 177,016,562 252,780,940
SURPLUS ON REVALUATION OF
'-Fixed Assets 27,754,391 27,754,391 27,754,391 27,754,391
SPONSOR'S LOAN
Due to Partners 40,000,000 40,000,000 40,000,000 40,000,000
LONG TERM LOANS
TERM FINANCE 9,005,613 2,245,642 - -
Liabilities Against assets
-subject to finance lease - -

1,889,719 689,719
CURRENT LIABILITIES
CURRENT PORTION OF LONG TERM LOANS 17,393,978 6,795,830 2,245,642
SHORT TERM FINANCES 314,672,798 379,292,028 438,279,280 503,885,615
CREDITORS ACCRUALS AND OTHER
LIABILITIES 65,428,806 78,103,163 98,637,451 124,590,489
Mark up Paybale 11,710,219 12,314,147 13,378,700 15,190,012
Income Tax Payable 7,212,042 10,950,423 17,783,777 25,254,793
416,417,843 487,455,592 570,324,849 668,920,909
585,881,527 681,810,575 815,095,802 989,456,241
PROPERTIES AND ASSETS
TANGIBLE FIXED ASSETS
OPERATING FIXED ASSETS 130,561,447 114,668,602 100,365,041 87,491,836
CURRENT ASSETS
STORE & SPARES 11,932,855 15,095,062 19,095,253 24,155,495

STOCK IN TRADE 315,253,160 456,471,698 576,614,369 728,512,616
TRADE DEBTORS 86,258,997 83,424,198 105,531,611 133,497,488
ADVANCES,DEPOSITS,PREPAYMENTS
& OTHER RECEIVABLES 5,386,425 5,655,746 5,938,534 6,235,460
CASH AND BANK BALANCE 36,488,643 6,495,270 7,550,995 9,563,345
455,320,080 567,141,974 714,730,762 901,964,404
585,881,527 681,810,575 815,095,803 989,456,240

SHAMIM FEED INDUSTRIES
CASH FLOW STATEMENT
FOR THE YEAR ENDED ON 31 DECEMBER 2009 TO 2011
2009 2010 2011
RUPEES RUPEES RUPEES
NOTE-A
CASH FLOW FROM OPERATING ACTIVITIES
PROFIT FOR THE YEAR - BEFORE TAXATION 43,801,694 71,135,107 101,019,171
ADJUSTMENT FOR :
DEPRICIATION 15,892,845 14,303,561 12,873,205
FINANCIAL CHARGES 50,233,954 54,511,212 61,791,123
CASH INFLOW FROM OPERATING ACTIVITIES
-BEFORE WORKING CAPITAL CHANGES 109,928,493 139,949,880 175,683,499
PAYMENT OF LONG TERM DEPOSIT - - -
NET CASH INFLOW FROM OPERATING ACTIVITIES 109,928,493 139,949,880 175,683,499
(INCREASE)/DECREASE IN CURRENT ASSETS:
STORE SPARE & LOOSE TOOLS (3,162,207) (4,000,191) (5,060,242)
STOCK-IN-TRADE (141,218,538) (120,142,672)

(151,898,247)
TRADE DEBTORS 2,834,799 (22,107,413) (27,965,877)
ADVANCE, DEPOSITS & PREPAYMENTS (269,321) (282,787) (296,927)
INCREASE/(DECREASE) IN CURRENT LIABILITIES:
DECREASE IN CREDITORS,ACCRUALS &
OTHER LIABILITIES. 12,674,357 20,534,288 25,953,038
(129,140,910) (125,998,775) (159,268,254)
CASH INFLOW / (OUTFLOW) FROM OPERATING
ACTIVITIES - Before taxation (19,212,417) 13,951,105 16,415,245
Taxes Paid (7,212,042) (10,950,423) (17,783,777)
NET CASH INFLOW / (OUTFLOW) FROM

OPERATING (26,424,459) 3,000,681 (1,368,531)
NET CASH INFLOW / (OUT FLOW) FROM
OPERATING ACTIVITIES - (Note A) (26,424,459) 3,000,681 (1,368,531)
CASH FLOW FROM FINANCING ACTIVITIES
GENERATION OF SPONSORS LOAN - - -
REPAYMENT OF TERM FINANCE (17,358,119) (6,795,830) (2,245,642)
REPAYMENT OF LEASE FINANCE (1,200,000) (689,719) -
SHORT TERM FINANCES- Net 64,619,230 58,987,252 65,606,335
FINANCIAL CHARGES PAID (49,630,025) (53,446,660) (59,979,812)

NET CASH (OUTFLOW / INFLOW FROM
- FINANCING ACTIVITIES (3,568,914) (1,944,957) 3,380,881
NET INCREASE IN CASH AND CASH EQUIVALENTS (29,993,373) 1,055,724 2,012,350
CASH AND CASH EQUIVALENTS
-At the beginning of the year 36,488,643 6,495,270 7,550,995
CASH AND CASH EQUIVALENTS
-At the end of the year 6,495,270 7,550,994 9,563,345

RATIO Analysis

Ratio Analysis
2008 2009 2010 2011
Net sales 1604734252 2029988829 2567935868 3248438874
Gross profit 110056860 141022114 187785921 244989918
GPmargin (%) 6.85% 6.95% 7.31% 7.54%
SG&A (%) 2.21% 2.31% 2.42% 2.53%
Interest 2.85% 2.47% 2.12% 1.90%

expence (%)
NPAT 50313961 83165231 136516562 212280940
Net margin (%) 3.14% 4.09% 5.32% 6.53%
Net worth 118568352 151419622 204770953 280535331
Current ratio 1.09 1.16 1.25 1.35
Leversge 2.68 2.56 2.33 2.09
Inventory days 30 30 30 30
Recieveable 20 20 20 20
days
Payable days 15 15 15 15
Cash cycle 10 10 10 10

SWOT Analysis

Strengths:
 Self production of raw material.
 Producing top quality of feed.
 Highly skilled and qualifies marketing staff.
 Already existing marketing network all over the country.
 Experienced and qualified management quality conscious management which is already.
 Modern high capacity plant to meet the excess demand of edible oil in the country.
Weaknesses:
 There is already number of companies producing Ghee& Cooking Oil in the country.
 Brand will be new for the customers in the country, so there will be difficult to capture
the market immediately.

Opportunities:
 If shamim group of industries expand their product line then they get sufficient profit
by capturing more market in Pakistan, than only Punjab.
 If the cost of different matters which is not utilizing properly is controlled by the
Shamim’s management they can produce more in a few costs. It has to develop a
further systematic process for controlling and managing resources.
 They can take advantages by hiring more skilled people and they should hire young,
fresh and energetic staff for their betterment.

Threats:
 Because of the research and development the product of Shamim’s Ghee, Shamim feed
are just satisfactory as compare to competitors in the global and they are not totally
fulfilling the demand of customer.
 Government policies are changing day to day so it is a threat for the Shamim’s to survive
in such a changeable situation.
 Because of the economic instability the Shamim’s affected a lot.

Dumping system which is rising on daily basis in the world can create many problems for
the company and any uncertainty in the world like 9/11 may affect also the overall
export, imports.
 Threat of new entrants is present in ghee, oil industry, and feed.

Suggestions& recommendations

 Company should provide the best quality Ghee in the market in order to capture market,
made good relationship with customers so that their loyalty is increased with Shamim
Ghee (LIVES) whose logo is “YEH RISHTA HAY ZINDAGI KA”.
 Because this company is concerned with imports so the company should maintain the
good relationship with other countries from where they import in order to get the raw
material availability on time.
 At present facility of bonus is given only to production staff but such incentives should
also be given to Head office Staff.
 Special incentives should also be given to Head on Eid and on other special days should
be given to the workers.
 Medical facilities are given in mill but such facilities should also be given to
management.
 Different training courses should be arranged for the up lifting and improving the quality
of work for employees.

 They provide transportation facility to only female employees I think male should also be
provided with conveyance convenience. This will create the easiness for workers and
reduce the wastage of time.
 There is also a problem of work overload for the employees and it should be control
properly so that the employees are motivated.
 Employees should be paid extra for the work which they done after working hours.
 Development and training should be provided from time to time because this proves to be
very helpful for all employees including soft & hard skilled persons.

Conclusion

If I have to express my experience of internship in Head office of Shamim group of industries

Bahawalpur. I would briefly say:
It is one of the leading groups in Pakistan (Bahawalpur). The system, the management style, the
policies & decentralized decision making environment is really remarkable. This report is
basically an attempt to identify the areas which need to be improved.
Basically Shamim group of industries is a good Organization in the way that anybody can join it
for his/ her long-term career. Overall working environment is comfortable. Management of head
office cares a lot of its employees and considers them as the asset of organization.
Behavior of senior executive of organization is very polite and they are caring about the
individual’s career and their growth. However management is very demanding about the targets
but good reward at the achievement of assigned targets is awarded.
Employees at Shamim group are quite efficient. As Head office in Model Town-A Bahawalpur
its employees have to bring their organization among the list of good ones. Therefore, they work
more than their working hours and it is all according to their will. It also shows their loyalty,
commitment to organization.

Employees are given by the benefits like bonus, gratuity funds, loans, increments, and medical
allowances.
In this era of technology, the “Information” is the key to success in the business. This means that
the successful businessman will be who will have the right information at the right time. This
comment leads to the conclusion that the Information Sharing Process should really be improved.
So an idea for improvement from customer side is a new idea and that is working very well in
Shamim group of industries (pvt) Ltd. All the customers are asked to fill a suggestion form and
the standards of the products are improved through them.
In the organization, all the work is done on computers. All the entries are made in computer.
Balance is fed into the computer. This increases efficiency of the organization. The overall
analysis is indicating that the company’s progress has mainly attained through dedication of
employees.
The effectiveness of its management, their willingness to take advantage of opportunities and
face challenges of changing economic picture, this all contributes to the very much improved and
sound position of company. This is really appreciable for the devotion and hard work of all the
employees of the company

All the customers are entertained individually. Same kind of behavior and attention is given to all
the customers. Prioritizing its product portfolio in line with its consumer needs and wants the
company is committed to develop products that give more value to its customers in the sectors.
In shamim, all the work is done on computers. All the entries are made in computer. Balance is
fed into the computer. This increases efficiency of the organization.
Above is all about the knowledge which I get during my internship training at Shamim group of
industries. It is to be a very rewarding experience. The training was beneficial because it helpful
me to aware a real life working environment.
During my internship training I gathered information regarding how a successful organization’s

operational aspect decorticated with the practical. I found my internship training at Head office
of Shamim group of industries (pvt) Ltd Bahawalpur to be a very rewarding experience. The
training was beneficial because it helped me to aware a real life working environment.
The overall analysis is indicating that the company’s progress has mainly attained through
dedication of employees.

The effectiveness of its management, their willingness to take advantage of opportunities and
face challenges of changing economic picture, this all contributes to the very much improved and
sound position of company.This is really appreciable for the devotion and hard work of all the
employees of the company.
So far my learning is concerned; all the employees at Head office were quite cooperative. They
helped me to understand the activities of organization to possible extent. Their good attitude
gave me more confidence to learn more and to ask if I have any query in my mind.
Besides their ever going activities they never get irritant by my questioning. I had made an
honest effort to present the working & operation of Shamim group of industries (pvt) Ltd
Bahawalpur in simplest way.
I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with
experienced, cooperative & intelligent staff.

Annexture

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SHAMIM GROUP OF INDUSTRIES

DEPARTMENT OF MANAGEMENT SCIENCES 1

MBA (G1) 5th

October 08, 2012

DEPARTMENT OF MANAGEMENT SCIENCES 2

I am deeply indebted and also express my gratitude to my respected teachers at ISLAMIA

DEPARTMENT OF MANAGEMENT SCIENCES 3

DEPARTMENT OF MANAGEMENT SCIENCES 4

Sr .No Description Page No.

2 Company Profile / History 7

6 Corporate level strategies 29

7 Business level strategies 30

8 Operational level strategies 31

DEPARTMENT OF MANAGEMENT SCIENCES 5

DEPARTMENT OF MANAGEMENT SCIENCES 6

Profile & history

DEPARTMENT OF MANAGEMENT SCIENCES 7

DEPARTMENT OF MANAGEMENT SCIENCES 8

DEPARTMENT OF MANAGEMENT SCIENCES 9

Import items of shamim feed

 Soya bean meal

Head office Address:

DEPARTMENT OF MANAGEMENT SCIENCES 10

Name of partners Percentage of share holding

Rana Muhammad Tariq Khan 80%

Rana Muhammad Aslam Khan 10%

Muhammad Arslan Khan 10%

Executive directors & partners:

Rana Muhammad Tariq Khan

Non - executive partners:

Muhammad Arslan Khan

Rana Muhammad Aslam Khan

DEPARTMENT OF MANAGEMENT SCIENCES 11

Relationship of shamim group of industries with other organizations:

DEPARTMENT OF MANAGEMENT SCIENCES 12

Asia feed SB feed

Shabir feed Lahore feed

National feed Multan feed

Asia ghee mills

Shahbaz ghee mills

Shama ghee mills

DEPARTMENT OF MANAGEMENT SCIENCES 13

Vision, mission AND OBJECTIVES OF

DEPARTMENT OF MANAGEMENT SCIENCES 14

By establishing our best quality brand.

DEPARTMENT OF MANAGEMENT SCIENCES 15

SHAMIM GROUP CONSISTS

DEPARTMENT OF MANAGEMENT SCIENCES 16

Shamim Oils (Pvt.) Ltd.

Shamim Feed Industries (Pvt) Ltd.

GHEE & COOKING OIL

Shamim Ghee Industries (Pvt) Ltd.

BREEDER FARMS, HATCHERY&CONTROL HOUSES

Shamim Poultry Industries

DEPARTMENT OF MANAGEMENT SCIENCES 17

Shamim Oils (Pvt.)

DEPARTMENT OF MANAGEMENT SCIENCES 18