Dedications

TO Our Honorable Teachers Parents and Friends who

showered their wisdom and knowledge enabling us to
come to grips with the worldly life and attain our
Objective
 Introduction

PEL is one of the oldest ma nufac turing unit of home a pplia nce in
Pakistan. It ma nufac tures => A.C => dee p fre ezer => Refrige ra tor.

The produc ts manufactured by PEL have bee n of high s tarte d quality

through out the yea rs. PEL was esta blis hed with Te chnology
C ollaboration of AEG Ge rmany in 1956, 1980 PEL expa nde d into
cons ume r domestic marke t w ith introduc tion of w indow by PEL A.C.
into Oc tober 1978 PEL was take n by sa gol fa mily. Ac cording A then
PEL is Now a company on the goes on.

The head of HR department is call ed H R manager. It has 180

employees w orki ng i n i t. A mong w hi ch 27 are doi ng cl erical job.

 
PEL  has continue d on the path of rec overy and the business in both its
divis ions powe r and home a pplia nces ha ve grown. Efforts for
improve me nt in produc tivity, quality of our products and dive rs ific ation
ha ve yie lded pos itive results and the company has earne d a net profit
a fte r ta x of Rs.94.100 million (la st yea r 59.000 million). Since the
company ha d suffered losses in the pas t, w hic h had erode d its e quity
leaving huge ba nk borrowings, the dept servic ing re ma ins a ma jor
burde n on its ope ra tions. Simultaneously inc reas ing bus iness volumes
requiring additiona l working capital ha ve not allowe d the muc h needed
ease in its cas h flows w hich could offe r a smoothness in its opera tions.

B usiness in Powe r Divis ion is prope lling pos itively and is expected to
grow further in the ens uring years. PEL is e xploring export ma rket for
our Powe r divis ion products, C rys tal brand Re frigerator launche d in
1998 has de veloped into a major source of our consiste nt growth. This
tre nd is e xpec te d to continue in the follow ing yea rs. O n the other hand
a ir-conditioner sales ha ve not rea che d de sira ble le vels due to some
se rious wea knes s in import proce dures and smuggle d goods, shrinkage
in the size of ma rket and working capita l cons traints.            The
continuous gai n i n the val ue of US doll ar upto the S eptember 11,
2001 inci dence (w hi ch is now a decl ining trend) has resulted in
further negative i mpact on R upee- Doll ar pari ty. The decrease in
the value of Rupee could not be ful ly covered up in the pri ces of
our products due to low purchasi ng power resulting i n reducti on of
gross margi ns. The company w ill thus have to mai ntai n i ts thrust
on high vol umes alongwi th further reduction in costs and i mproved
quality measure to consi stentl y mai ntai n the profi t path i n the
future.

            In order to ac hie ve less depe nda bility on single customer base s
company is moving towards a strategy of divers ific ation of its product
and c ustomer base. As a result Applia nces Divis ion is be ing
stre ngthene d w hereby marketing network has bee n w ide ned with a foc us
on stre ngthening sa les team as we ll as the de ale r’s network. Concept
of 3S introduce d earlie r is w orking satisfactorily in our A fte r Sale s
Service ne tw ork. A spec ial foc us is be ing give n on w ide ning the product
range introducing ne w mode ls, sizes, colours and new finishes. The
de ma nd of appliances produc ts espe cia lly re frigerators whic h is growing
a t a rapid pa ce is augme nted ma inly by increase d role of consumer
financ ing through the financ ia l ins titutions and the conventiona l hire
purchas e schemes by the reta ilers.

PEL is the only authorized distributor of Carrier products, services and spare parts in
Pakistan. PEL's HVAC organizational strength in Pakistan is consisting of reputed
managers, high caliber engineers and well trained experts. PEL in the capacity of
solution provider for HVAC & Controls is always available to guide and advise our
esteemed clients and assist the consultants with providing design tools like HAP etc.,
new concepts with value engineering optimization and specifications for HVAC system
design; application and product selection.

Pak Electrons Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan.
It was established in 1956 in technical collaboration with M/s AEG of Germany. In
October 1978, the company was taken over by Saigol Group of Companies. Since its
inception, the company has always been contributing towards the advancement and
development of the engineering sector in Pakistan by introducing a range of quality
electrical equipments and home appliances and by producing hundreds of engineers,
skilled workers and technicians through its apprenticeship schemes and training
programmes.

The company comprises of two divisions:

 Appliances Division
 Power Division

 POWER DIVISION
P roducts manufactured in Power division are Transformers,
E nergy Meters and Swi tch gears. B usiness in thi s division has
suffered badl y in pervi ous years due to problems in WAPD A and
KE SC. The most needed upgradati on of WAPDA ’s di stri bution
pilferage w as started by the new management. The energy meter
producti on of singl e phase and three phase are movi ng tow ard an
optimum l evel . Pl ans for further i mprovement i n producti vi ty and
quality of our meters are also i n progress. Our shares for the
supply of di stri buti on transformers to WAP DA has taken a
quantum l eap recently. A ccordi ngly, PE L is pl anni ng to increase
our producti on capacity of transformer plan through the
techniques of improved producti on operati ons i ncluding
manpow er uti li zati on, product i nnovation, process reengi neering.
W e are expecting to obtain the producti on capaci ty level of 2000
transformer per annum. A break through i n the Sw itch gear
business has been al ready achieved. PE L has successfully
supplied a large order of Sw itch gear from WAPDA against
International Tender. Si nce enti re business of P ow er Di vi si on is
now bei ng carri ed out agai nst L/C, i nternati onal tenders or
advance payments, chroni c problem of del ayed payments has
also been resol ved.

APPLIANCES DIVISION
B usiness in appliance s division has shown mixed trend but the C ompany
is finally on the right trac k. Crys tal Re frigerator with Ae ro design
and Danfoss  compre ssor w ith performance ce rtific ation by Danfos s
Ge rmany was la unc he d in the Fe brua ry 1999. This has bee n rec eived
ve ry well in the market and our refrige ra tor sa les ha ve shown an
inc rease of ve r 125% since 1999. This thrust is expe cte d to c ontinue in
the following year as a res ult of compa ny’s innova tive approac h in
product development couple d w ith an aggressive marke ting stra tegy.    
 

             De ep Free zer tested and certified by Da nfoss Ge rmany and with
improve d aes thetics has also been well rece ived by the ma rket. We ha ve
a lre ady been s upplying our D eep Fre ezers to C oca-Cola internationa l
and le ver Brothers and intend to continue our foc us on ins titutional
sa les of this product.

            Sales of w indow Air-conditione rs is a lmost a t the sa me le vel of

last ye ar but have not reac hed the des ired le ve l with a press ure on pric es
and exc hange rates impact ca using inc reas e in losses to the s ubs idiary
PEL Applia nces Limite d. Main rea son of this situa tion is a huge influx
of imported produc t as a res ult of change in custom va lua tion recorders
a llowing imports at during price s and unde r invoic ing. In addition
supply of smuggled air-conditioners a lso continued even afte r
Gove rnme nt’s announce me nt to impos e controls on suc h activitie s. This
is e xpec te d to disc ontinue a fter old s toc ks of smuggle d goods a re
exha uste d and fresh supplies are not allowe d. The company in order to
address the above si tuation has embarked upon a maj or plan to
improve product qual ity, wi den product range, i ntroduce power
efficient model s, add competitive features li ke remote control,
added filters etc. And to i mprove the product aestheticall y. After
consistent efforts in the recent years PE L have been able to
develop a new range of models under the brands name of  ‘E nergy
S aver ’ . The cooli ng and bal anci ng if this machi ne i s tested &
certified by Copeland of USA . This has received a very positive
response from the market due to i ts effi ci ent energy savi ngs,
cooling, l ow noi se, compact size, nature fri endl y features. PEL
anticipates that the company wi ll make a break through in the
volume of E nergy Saver as w hat we have successful ly performed
in case of Crystal brand R efri gerators. In addition a major exercise
is being done to reduce materi al cost and i mprove manufacturing
process. Technical support and know how is bei ng obtai ned from
internati onal compani es and forei gn laboratories to achi eve this
objective.

PEL APPLIANCES LTD.

Deep Freezers and wi ndow ai r-condi ti oners are the products of
subsidary PEL It is expected that PEL Appl iances Li mi ted should
move into a healthi er situati on in the ensui ng years.
 History and background
Pak Elektron was setup in 1956 as a Public Limited Company with the object of
initially producing transformers, switchgears, and electric motors. AEG experts
and PEL personnel carried out the designing and production of this equipment
jointly. After the conclusion of joint venture agreement with AEG Saigol Group
acquired the PEL COMPANY in October 1978.The company floated its shares to
the general public and was listed on Karachi Stock Exchange (KSE) and Lahore
Stock Exchange (LSE).

In 1980, Appliances Division was established and in 1981 it started the production
of Window Type Air Conditioners with the technical collaboration of General
Corporation of Japan. These air conditioners were well received in the market for
its quality. Subsequently in 1987 the production of Refrigerators and Deep
Freezers was started.

In 1993 the company has started the assembly of Compressors for Refrigerators
and Deep Freezers under technical collaboration with Messrs. NECCHI
COMPRESSORI of Italy.It was in early 70s that PEL became known in overseas
markets due to its quality. The company started its export to countries like Saudi
Arabia, Abu Dhabi, Qatar etc. Later on PEL supplied electrical equipments to
various other countries in the Middle East, Far East and Africa with great success.

PEL (Pak Elektron Limited) is the flag holder of the Saigol Group of Companies.
Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in
Pakistan. It was established in 1956 in technical collaboration with M/s AEG of
Germany. In October 1978, the Saigol Group of Companies bought the company.
Since its inception, the company has always been contributing towards the
advancement and development of the engineering sector in Pakistan by introducing
a range of quality home appliances.

In the year 1980 the company expanded into consumer products with the
introduction of Window Type Air Conditioners and today also manufactures Split
Air Conditioners, Refrigerators, Microwave ovens, Deep Freezers and
Compressors etc. PEL products right from the beginning have been of a high
standard and the name PEL is synonymous with QUALITY all over Pakistan.
Since its inception, the company has been acting as an institution working for the
advancement and development of engineering know how in Pakistan. The
company has produced hundreds of engineers, skilled workers and technicians
through its apprenticeship schemes and training programs.

In October 1978, the company was taken over by the SAIGOL GROUP, which is
one of the leading industrial groups in PAKISTAN, having diversified business
activities in the fields of: Textile, Engineering, Banking & Finance, Fuel &
Energy, Trading, Automobiles.

Vision Statement

 To excel in providing engineering goods and services through continuous

improvement.
Mission Statements

 To provide quality products & services to the complete satisfaction of our

customers and maximize returns for all stakeholders through optimal use of
resources
 To focus on personal development of our employees to meet future
challenges
 To promote good governance, corporate values and a safe working
environment with a strong sense of social responsibility.