PACKAGES LIMITED- ROSE PETAL

Submitted to: Ali Taimour

September 23, 2019

Submitted by:
Hashir Faisal
Noor Hyder
Momina Khan
Fizza Akmal
Ashna Ali
Moosa Khan
M. Ahmad (273)

Lahore School of Economics

Table of Contents
PACKAGES LIMITED- ROSE PETAL............................................................................................................ 1
Introduction: ................................................................................................................................................. 3
Mission Statement: ....................................................................................................................................... 4
Rose petal: .................................................................................................................................................... 4
Products: ....................................................................................................................................................... 5
Company profile:......................................................................................................................................... 10
Rose Petal- Subsidiary Company of Packages Limited............................................................................ 10
STATUS OF THE COMPANY ..................................................................................................................... 10
Consumer profile: ....................................................................................................................................... 10
Demographics ......................................................................................................................................... 10
Competitors: ............................................................................................................................................... 12
 MISK ................................................................................................................................................ 12
 Moveeta Tissue Paper..................................................................................................................... 13
 Venus Classic Tissues ...................................................................................................................... 13
 Standards Brand (pvt) ltd ................................................................................................................ 13
References .................................................................................................................................................. 14
Introduction:
Packages Limited is a Pakistani packaging company based in Lahore, Pakistan. The company was

founded in 1956 as a joint venture between the Wazir Ali Group and Swedish companies Akerlund

and Rausing of which 73 percent shares were owned by Wazir Ali Group. The company is owned

by Syed Babar Ali. The company is known for their tissue brand, Rose Petal and packaging

department. The company is listed on the Pakistan Stock Exchange. The company is owned by

Syed Babar Ali. It's the flagship company of Syed Babar Ali Group of Companies. The group

owns following companies:

 Coca-Cola Bottling Plant in Lahore

 Nestle Milkpak

 Packages Mall

 Packages Lanka Pvt. Limited

 Bulleh Shah Packaging

 Tri-Pack Films Limited

 IGI General Insurance Limited

 IGl Holdings Limited

 IGI Investments Pvt Limited

 IGl Life Insurance Limited

 OMYA

 Flexible Packaging Converters

 DIC Pakistan Limited

 Treet Corporation

 Tullo Cooking Oil

  Capri Soap Company

(www.packages.com.pk)

Mission Statement:
To be a leader in the markets the company serve by providing quality products and superior facility

to their customers, while learning from their feedback to set even higher standards for their

products. To be a company that continuously enhances its superior technological competence to

provide innovative solutions to customer needs. To be a company that attracts and retains

outstanding people by creating a culture that fosters openness and innovation, promotes individual

growth and rewards initiative and performance. To be accompany which combines its people,

technology, management systems and market opportunities to achieve profitable growth while

providing fair returns to its investors. To be a company that endeavors to set the highest standards

in corporate ethics in serving the society.

Rose petal:
Company work on bringing great ideas to life. Company have built Rose petal as Pakistan’s largest

and most valuable tissue and hygiene brand with the market share of 70%, their quality products

and services are focused on providing consumers with reliable, safe and hygienic solutions. The

Company led the tissue industry with premium tissue products, keeping their brand’s promise of

uncompromised quality. Rose petal offers products manufactured under highest standards of

hygiene and quality to meet the household and cleanliness needs of consumers. Currently provide

a complete range of tissue papers and paper products that are convenient, quick and easy to use.

Ranging from facial tissues to toilet rolls, table napkins, pocket packs, kitchen rolls, party packs,

company bring to the consumers, complete convenience with tissue products for every occasion.
The ideal solution for all cleaning needs, tissues give consumers the confidence to always be at

their best.

Products:
Rose Petal have facial tissues in which they include deluxe facial tissues, perfumed facial tissues,

luxury facial tissues, multicolor facial tissue, and supreme facial tissues. Moreover the company

have kitchen, washroom, party and on the go types of products.

Packages Ltd – Rose Petal

Porter’s 5 Forces:

 Threat of New Entrants

 Bargaining Power of Suppliers

 Bargaining Power of Buyers

 Threat from Substitute Products

 Rivalry among the existing players

Threat to new entry:

The threat of new entrants is relatively low in Pakistan, and new competitor isn’t likely to

intimidate Packages Limited’s strategy as it has to invest billions of rupees for that, which is not

going to be an easy task for any new entrant. In addition, the new company must invest in human

capital in terms of designer team’s production personnel and other employees who have the

necessary know-how for the creation of packing materials and other stuff. New companies will

have a much easier task if they compete at a local level as it requires limited amount of

resources.

Bargaining power of suppliers:

Most of the companies in the Materials industry buy their raw material from numerous suppliers.

The number of suppliers in the industry is high therefore we can conclude this force isn’t

creating too much pressure for companies operating in the industry.

Bargaining power of buyers:
PKGS has a very strong investment portfolio. Majority companies are either buyers of the

company's products or suppliers of raw materials like printing ink. This provides a strong

backing to the company and thus mitigates any risk of bargaining power of customers. Some of

its major customers are Nestle, Tetra Pack, Tri-pack films etc.

Other Customers include

 DIC PAKISTAN LIMITED

 IGI INSURANCE LIMITED

 IGI INVESTMENT BANK LIMITED

Rivalry among the existing players:

Packages Ltd. has a strong liquidity position as compared to its competitors. Growing investment

in capacity enhancement has indebted the company to a lot of finances, consequently hitting the

liquidity position.

Owing to rapid expansion projects new assets have been added, consequently depressing the total

asset turnover ratio of the company. Nevertheless, the operation of the new projects will

reinforce the sales growth in future. Sooner or later, the company will outstrip other players of

the industry in overall asset management ability.

During the first quarter of 2019, the Company achieved net sales of Rs. 5,772 million against

net sales of Rs. 5,094 million in corresponding period of last year, representing sales growth of

13%. Today Packages Limited is considered to be a leader in Packaging field in Asia. Hence it

can be easily said that it does not have much of any rival in the market yet among the existing

players, it clearly outstands others.

Existing Players:
  Saima Packaging Pvt Ltd

 Oasis Packaging Industries (Pvt) Ltd.

Threat from Substitute Products:

Multinationals such as P&G, is already their competitor for Feminex, can further capture market

share. Though we can say that Packages Ltd. industry looks very good at the moment. It does not

have to face competition in Pakistan, they have a good relationship with both; suppliers and

clients and are not threatened by substitute products and new entrants in the near term.

Rose petal Macro-Economic Analysis:

The market is growing by 12-15% each year and presents a lot of potential for growth in terms of

potential. There is still a long way to go as household penetration of these products remains low

and limited to the urban-middle and upper-class consumers.

Packages limited released financial statements of the year 2017 which were of net sales worth

Rs18.105 billion whereas reporting a total of 6.216 billion worth of profit, but the during the

periods the company reported 12.54% increase in administrative expenses, 22.56% increase in
distribution and marketing cost and 42% decrease in other income as well. Whereas in 2019 it

announced its result ending on March 31st. the packaging company posted a consolidated profit of

Rs702 million showing a growth of 187% as compared with Rs24 million in the same period last

year in 2018. The number of employees when it comes to packages ltd are over 2000 with an 18

billion PKR turnover. Overall net sales of the company were Rs14.65 billion up by 9.33% against

Rs13.40 billion in the corresponding period of the previous year. Packages limited overall sales

executed were US $ 141 million. The company is also listed on the Pakistan stock exchange.

Placement (distribution):

Company is using selling concept by distributing its products in the market through its

approximately 300 distributors.

Market share:

Because of the premium quality and brand promise it delivers, has been the pioneer and leader in

its market category for the last 25 years. Today it is one of the biggest tissue brands in the

country's market and commands 70% of the market share with Rose Petal, Tulip and Double Horse

regional brands.

Wholesaler channel:

Rose petal has a huge wholesale set up. They have approximately more than 300 wholesalers and

are from big city to a small town in Pakistan. Rose Petal gives immense importance to this so that’s

why their distribution channel is spread like roots of a tree.

Retailers channel:

Mostly retailers buy the product from wholesalers and some retailers like (C.S.D, HKB) directly

buy from company and then the consumer buys from them.
Company profile:
Rose Petal- Subsidiary Company of Packages Limited.
Rose Petal offers products manufactured under highest standards of hygiene and quality to meet

the household and cleanliness needs of the consumers. Company is provide a complete range of

tissue papers and paper products that are convenient, quick and easy to use. Ranging from facial

tissues to toilet rolls, table napkins, pocket packs, kitchen rolls, party packs. The ideal solution for

all cleaning needs, Rose Petal tissues give consumers the confidence to always be at their best.

STATUS OF THE COMPANY

Packages Limited is a manufacturing concern that is involved in the production and sale of

packaging materials and tissue products.

Consumer profile:
Demographics
The product is used and consumed by each

and every member of the society because it

has now become one of the most important

product, which is used in several various

activities. This is the paper that can be used

only once and then disposed of as it cannot

be used again. The tissue papers have been used widely in varied parts of the world, especially in

washrooms, kitchens, dining table etc.

Furthermore, Rose petal is offering large variety of tissue papers in different sizes and packaging

to fulfill the demand of vast number of users or target market. Prices of the product are competitive

because they are playing in pure competition market where number of sellers and buyer are high.

There offerings are:

 Tissue boxes

 Toilet rolls

 Paper towels

 Pocket packs

 Table napkins

 Hand towels

 Dispensing solutions

 Wet wipes

 Jumbo rolls

The products and services of Packages ltd are focused on providing consumers with reliable, safe

and hygienic solutions. They lead the tissue industry with premium tissue products, keeping our

brand’s promise of uncompromised quality.

  Packages ltd complies with the ISO 9001 standard. (This was the 6th company to get ISO

certificate).

 57 quality improvement teams in various

departments to ensure improvement.

 They have a comprehensive set of engineering

tools, rules, processes, training materials,

guidelines, best practices and other supporting

documents to make sure that the products comply with every possible customer

requirement.

 Packages Ltd. is strongly committed to produce quality products that conform to

customer’s requirements at a competitive price.

Competitors:
There are number of competitors of Rose Petal as discussed below:

 MISK
In 2009, Misk papers mills (pvt) ltd was launched a wide range of diversified tissue products under

the corporate umbrella of eminent ruba group of companies which has various distinctive concerns

under its group like Haier home appliances, Reshma textile, ROBAM kitchen appliances etc.
  Moveeta Tissue Paper

M/s. K.B.TRADERS is first established paper converter of the country manufacturer, of

Disposable sanitary products viz tissue paper boxes, toilet rolls, multi-purpose kitchen rolls, pocket

tissue, Towels tissue, handy pack & serviettes. One of the most successful manufacture of tissue

product by the name of MOVEETA. Also deal in jumbo rolls as a raw material. We are converting

jumbo rolls in cut to size as per specific demand.

Originally established as a paper converter, MOVEETA has grown steadily since its formation in

1971. Careful capital investment and on-going products development have moved the company

into whole new area of business.

 Venus Classic Tissues

Venus Classic Tissues was established in 2011 by setting up a state-of-the art manufacturing

facility in Karachi. Recognizing the importance and the need for hygienic living, the Venus Group

has made huge investments in this venture. The automatic converting machines installed are

managed by a team of highly qualified and experienced professionals. Operating in a clean,

hygienic environment, the manufacturing process involves using only 100% imported virgin pulp

paper to produce a wide variety of tissues to meet the needs of consumers belonging to diverse

sections of business and society.

 Standards Brand (pvt) ltd

References
(http://misk.com.pk/#portfolio.html)

(http://standardbrands.com.pk/?page_id=4650)

(http://www.venuspakistan.com/vclassictissues.php)

(http://www.moveeta.com/main.htm)