Pel Aim Final
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Transcript of Pel Aim Final
In the name of Allah, the most beneficent and the
most merciful.
INTRODUCTION
A pioneer electrical goods manufacturer in PakistanRenowned company in home appliances sector Established in 1956 with collaboration of M/S AEG
of GermanySaigol Group of Companies took over the company
in1978Company is doing business in two divisionsMajor share of business is from Power division but
increasing investment in Appliances division also
Vision Statement
“To excel in providing engineering goods and services through continuous improvement”
MISSION STATEMENT
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
HISTORY
PEL was set up in 1956 Joint venture between two companies In 1962, specialized staff training in USA and West Germany In 1978 majority shares were acquired from Malik Brothers by
Saigol Group Expanded the existing product line in the year 1987 PEL signed an agreement with Messrs HITACHI of Japan for
the manufacture of Vacuum Circuit Breakers in 1990 Company commissioned its plant for the manufacture of
Electricity Meters in Pakistan in June 1994
LOCATION & FACILITIES
Head office is in Gulberg Lahore
Production unit is situated at 14-k.m. Ferozepur Road, Lahore
Spread over an area of 242 kanals
Total covered area comes to 232,883 square feet
NATURE OF ORGANIZATION
BUSINESS DIVISIONS
1- Appliance Division 2- Power Division
APPLIANCE DIVIISION
Home appliances manufacturing Division
In 1981, PEL window type air conditioners were introduced
In 1986-87, the company started manufacturing of refrigerators
In 1987, PEL deep freezers were also introduced
In 2006, the Company has started manufacturing of split type air conditioners
Product has been well received in the market
Encourages the company to increase production
POWER DIVISION
Consists of three plants
Plants are ISO 9001:2000 Certified
Manufactures Energy meters, transformers, switch gears, Kiosks, compact stations, and shunt capacitor banks
Major electrical equipment suppliers to largest power utilities in Pakistan
Privilege of getting its equipment approved and certified from international consultant in France
PEL PRODUCTS
POWER DIVISION
APPLIANCE DIVISION
TRANSFORMERENERGY METER
SWITCH GEARDIESEL
GENERATOR
DEEP FREEZERS
REFRIGERATORS
WASHING MACHINE
AIR CONDITIONERS
MICROWAVE OVEN
PEL PRODUCTS HIERARCHY
PEL ENERGY METERS
• Single Phase Static Energy Meters
• Single Phase Electromechanical Energy Meters
• Poly Phase Static Energy Meters
• Poly Phase Electromechanical Energy Meters
PEL ENERGY METERS
1- Single Phase Static Energy Meters Used for measurement of active (kWh) energy for Domestic &
commercial consumers
Main features: Display of energy (kWh) during power outages. High performance Lithium battery with long storage life for display
of data during power outages. Window based application software for configuration of parameters. Anti-tamper indication on meter LCD
2- Single Phase Electromechanical Energy Meters Used by house hold and small commercial customers
Design & Construction features: Long term stability and high reliability Low self consumption High impulse level protection Overload and Temperature compensation
PEL ENERGY METERS
PEL ENERGY METERS
3- Poly Phase Static Energy Meters Used for measurement of active (kWh) & reactive (kvarh) energy in
the three phase four wire and three phase three wire network for residential , commercial & industrial consumers.
Main Features: High precision voltage and current measurement. Meter offers features like event recording, anti tempering and
displays the data during power outages. Meter displays error and caution codes to indicate any abnormal
condition.
PEL ENERGY METERS
4- Poly Phase Electromechanical Energy Meters
Designed to address the needs of consumers for low voltage networks with load conditions up to 120 A
Best meters available in electromechanical technology
These meters have excellent response to temperature variations, positioning, voltage, frequency, external magnetic fields, short circuit and load unbalance.
PEL MAJOR COMPETITORS
APPLIANCE DIVISION• Dawlance• Waves• Haier• Mitsubishi• Orient• Singer • Panasonic
POWER DIVISION• Seimens • Climax • Transfab • J&P • AB Ampere• Ahmad & companies• Feco • Areva • Fico • Pempam• Tariq Electric• Syed Bhais • Microtech • Escort • SB Electronic • Creative Electric
INDUSTRIAL ANALYSIS
• PEL TRANSFORMERS
• PEL ENEGRY METERS
• PEL SWITCHGEARS
INDUSTRIAL ANALYSIS CONT….
PEL TRANSFORMERS
• Distribution Transformers
• Auto Transformers
• Furnace Transformers
• Welding Transformers
Market Share of Transformers
INDUSTRIAL ANALYSIS CONT….
PEL ENERGY METERS
Four Types
• Major CustomersWAPDA & KESC
• Major SuppliersZhejiang Holley Imp. & Exp.Co. Ltd of ChinaMitsubishi Corporation of Singapore provides poly Carbonate resins
Market Share of Energy Meters
INDUSTRIAL ANALYSIS CONT….
PEL SWITCH GEARS
• Major CustomersWAPDA
• Major SuppliersHyundai Heavy Industries, South KoreaPelka Elektrik Malzemeleri of Turkey
Market Share of Switch Gears
SWOT ANALYSIS
STRENGHTS
PEL has a Strong Brand Image in the market Strong Dealer Network is one of the core competency of the
PEL It occupies a monopolistic hold in Power market due to its
energy meters PEL also have a strong position in Appliances Market in
Pakistan Few years back it made Strategic Alliance with LG•PEL also
have Contracts with Government of Punjab
During economic crunch PEL faces financial problems
PEL lacks in the area of advertisement
It also lacks in the product range
WEAKNESSES
Exploration of new markets in Pakistan is a big
opportunity for PEL Rising population provides a good opportunity
for the PEL to grow By increase in its product range, PEL can increase its market
share Export Opportunity is also an option to expand the business Increase in production capacity can increase its market share Due to increasing population, Increase in Investment in Power
Sector is another opportunity
OPPORTUNITIES
THREATS
Strong Competition in the market is a big threat to PEL
Invasion of Chinese products is a big to threat to whole industry
Continuous decrease in Pakistani Rupee value reduces the people’s buying power
All the industries in Pakistan are facing
decreasing growth rateInstability of Government is major threat to the
business
BCG MATRIX
AppliancesDivision
Power division
COMPETITIVE ADVANTAGE
PIONEER company of Pakistan
Awarded Super Brands Pakistan 2007-08
Brand Ambassador of PEL is Hadiqa Kayani
MARKETING MIX
Product
Wide range of products
High Quality
Innovative Design
Product cont….
PORTFOLIO OF POWER DIVISION
BREADTHDEPTH
TRANSFORMER: 25 KVA 50 KVA
100 KVA1250 KVA
ENERY METER: VOLTAGE 220-240VCURRENT(NOMINAL) 10, 20,40A
SWITCH GEARS: CURRENT(MAXIMUM) 40, 60,
80,100A
GENERATOR: Model No. Capacity PG5040D 5.2KVA
Price
PEL sets its prices of product line regarding the competition in the market.
Price varies from product to product
Some prices are set according to quality
Company is well aware of the limited buying power of the average population of Pakistan
Focus on this portion of society, while setting the prices
Price Cont….
Internal Cost Include in prices:
Raw Material Labor Charges Factory Overheads Advertisement Cost Governmental Duty Excise Duty Company's Profit Margin
Placement
Concerned with all those activities which are related to move the product or service from seller to buyer
A product reaches customer through distribution channel
PEL uses short channel of distribution
PEL has strong dealer’s network
Consumer products available in the newly opened mega stores like macro, hyper star etc.
Placement Cont….
PEL DISTRIBUTION CHANNEL
Producer Agent Wholesaler Retailer Customer
Promotion
Essential for increasing product demand
Promotion includes advertising, personal selling and sales promotion
PEL advertises Industrial products
through business magazines and personal selling.
PEST ANALYSIS
PoliticalSocialEconomic Technological
• Pakistan is one of the most vulnerable countries in the world
• Very few incentives to manufacture by the government
• The Government also increased the minimum wage rate
• Economy is facing financial crises
• Strong black economy in Pakistan
• Unemployment rate has increased from 5.6% to 7.4%
• GDP growth rate was 2% in 2008-2009
• A Negative 3.3 growth rate in manufacturing
• PCI has increased from $1042 to $1046
• In Pakistan Air conditioners are used by upper and middle class
• People are more price conscious now a days due to financial crises
• Customers have started considering split Air Conditioners as a status symbol
• More demand of split AC due to energy saving
• Technology is rapidly changing
• Companies are in competition to introduce latest technology in its products as the manual energy meters are now being replaced my digital energy meters.
• The use of CFC gases has abolished in refrigerant products.
GROWTH RATE OF PEL
Financial Results (Rs. In Million)
2008-09 2007-08
Gross Sales 13,077 11,042
Profit before tax 707 516
Profit after tax 582 442
Earnings per share (Basic) –
Rupees6.87 5.04
Earnings per share (Diluted) –
Rupees6.65 4.82
GRAPH-Gross Sales
2004 2005 2006 2007 2008 2009
Increase Utilization of capacity
Lack of advertisement
System variations
Lack of Product range
Distribution Network
SUGGESTIONS
RECOMMENDATIONS
• Adopt a true decentralized organization setup which gives all employees to take part in decision making.
• The company should have a strong marketing information system to make proper forecasts.
• The company should announce two holidays (Saturday & Sunday) in a week.
• Make sure proper functioning of HR Department.
RECOMENDATIONS
• More allocate budget to its marketing department
• More focus on the Pull strategy in its promotion mix.
• Shorten its cash conversion cycle.
• PEL should constantly add technology in its products and systems.
• PEL should speed up its delivery process by establishing expand its stores in areas of high demand.
The economy is expected to perform well in the year or next however it is exposed to certain challenges like current account deficit, lower exports, increased competition in the international market and lack of technological advancement as compared to competing nations. It is still hoped that national economy will continue to grow and rising prosperity will bring expanding opportunities for the Engineering Industry and for your Company. The company will continue to focus on cost effectiveness, quality standards and best after sales services to our valued customers. We expect to go farther, faster and higher than we have ever been in serving the interests of our customers, shareholders and employees.
FUTURE OUTLOOK
CONCLUSION
• The industrial buyers has great interest in the brand name, quality, and durability of the product.
• A very fine example is that of Siemens.
• WAPDA & KESC gave a lot of preference to Siemens
• Same market share of PEL and Syed Bhais in energy meters
• Aims to become market leader in next five years.
• Industrial Buyers have a strong faith in this brand name
• Less importance of price, advertisement, word of mouth, dealers etc. during buying process.
• PEL is not targeting energy meters through advertising.
• By coordinating their marketing efforts
• Taking advantage of synergy among various communication tools, and develop more efficient and effective marketing communication programs.