SUFI GROUP OF INDUSTRIES

SUFI GROUP OF INDUSTRIES

UCP[Year]SUFI GROUP OF INDUSTRIES[Type the document subtitle]l1f11mbam0187[Type the company address]

COMPANY NAME: SUFI GROUP OF INDUSTRIES

PUBLICITY SLOGAN: THE NAME THAT INSPIRES TRUST,"BUY WITH FULL CONFIDENCE AS THIS IS YOUR BEST CHOICE"

HISTORY

Mr. Hadayat Ullah Sufi started production of soap in 1952 firstly on manual line of production. Then in 1965 revolutionary step was taken and automatic mazoni soap plant which were well known in the world for their most modern technique and standard, and as it was policy of the company to go for the best, the plant having capacity of 12 ton per day (installed capacity) was installed in new premises at 12-K.M. Lahore-Sheikhpura road. Later we increased our soap making capacity by installing another Mazoni Plant having 36 ton per day capacity (installed capacity). The factory took a further step ahead and glycerin recovery plant was also installed to cover the by-product of our soap making method.M/S Hamza Vegetable Oil Refinery and Ghee Mills Pvt. Limited. are producing 130 M.Ton of ghee and cooking oil for last five years.SUFI INTRODUCTIONHamza Vegetable Oil Refinery & Ghee Mills Pvt,in a brief period of less than 20 years, has championed quality assurance and customer satisfaction to emerge asone ofthe top two market leaders in the Edible Oil and Ghee industry in Pakistan. Under its marketing name ofSufi Banaspati& Cooking Oilit has introduced international standards of production and packaging to its industry. With certification of ISO9001:2008, the company continues to live up to its promise of its distinction in customer satisfaction and consistency in quality with commitment and dedication.Currently operating with 3 state of the art production plants, it is the only company in Pakistan providing pure oils and banaspati to its customers. With a countrywide distribution network channel, it holds a good market share and offers a wide range of packaging options. The company takes pride in its prized employees who form an integral part of this growth and development over the years. The company not only enjoys loyalty from its customers but also from its employees and boasts of average employment term as high as 8 years. We aim to continue on its path of leadership and excellence with ever growing zeal and vigor.COMPANY PROFILESoon after coming into being this God gifted country (PAKISTAN) had to face so many problems. The most major share of GNP consisted on agriculture production. The only source available for industrial product was unauthorized trade with India. With the passage of time when Indo-Pak border was strictly closed, the shortage of industrial products increased and with that living of Pakistanis became harder and harder. This was the time when Government of Pakistan realized to introduce countrys industrial policy on progressive lines. As it was need of the time and there were enough initiatives available so the people who had experience in any field of industrial sector jumped in and started moving the industrial wheel of Pakistan in the forward direction.

At that period of time Mr. Hadayat Ullah Sufi, who himself had migrated from Amritsar (India) took the initiatives and started production of soap in 1952 firstly on manual line of production. This was in fact courage of bear handed person who invested nothing more than sincere labor in the business. God, who has promised his men to give befitting reward of sincere efforts, picked up this small institution and made it what you are seeing today in 1998. In the early days of struggle and hardship other family members also play their vital role in the progress of institution. As the time was changing industrial growth in Pakistan was picking up its pace, new ideas in industrial production were also pouring in. Now it was need of the time to walk with the pace of time.Then in 1965 revolutionary step was taken and automatic mazoni soap plant which were well known in the world for their most modern technique and standard, and as it was policy of the company to go for the best, the plant having capacity of 12 ton per day (installed capacity) was installed in new premises at 12-K.M. Lahore-Sheikhpura road. Now the production of soap started on most modern soap plant with fully automatic system. This was a start of new era in the age of soap industry of Pakistan. Later on as our products win reputation in the market due to its high quality standard, increased our soap making capacity by installing another Mazoni Plant having 36 ton per day capacity (installed capacity). The factory took a further step ahead and glycerine recovery plant was also installed to cover the by-product of our soap making method.M/S Hamza Vegetable Oil Refinery and Ghee Mills Pvt. Limited. are producing 130 M.Ton of ghee and cooking oil for last five years. Now the entire production system of mills is undertaking a major change in installing automatic system of production. As a part of this job automatic plant refining and deodorization is under construction in Belgium and M/S S.A. Extraction De Smet N.V., Belgium are shipping this machinery in September and October, 1999. Then another company M/S Hadayat Soap & Chemical Industries (Pvt. Ltd. have installed an imported plant for Detergent Bar. Its productions are going to be launched very recently. Presently its trial productions have been done very successfully. As regards our present total turnover for both the companies is Rs.1350 Million and volume of annual imports is around Rs. 750 Million.Our consumers have full faith in our quality, as our products fully pay back its price to them. The most important matters which tops priority list of the company is to maintain and make every efforts to improve upon the quality standards of our products. Our entire production is supervised by very vigilant and well-equipped laboratory. We are consuming best quality material available from every corner of the world. It will be worth mentioning that some of the materials consumed in our products are not even known to our competitors that makes our products very distinctive from other available soaps in the market.Now we are covering almost most of big as well as small cities of Pakistan and our products are within reach of maximum population of the country. Our products are also available on all the Government run stores popularly known as Utility Stores and CSD shops. We trust on the faith of our consumers and consumers have faith in our quality. This is an ideal situation for an industrial concern and the spirit of this relationship is also picked up in our publicity slogan

"BUY WITH FULL CONFIDENCE AS THIS IS YOUR BEST CHOICE" FACTS & FIGURES Our product is available in more than 450 cities across Pakistan. The company ensures availability of product through its vast network of 450 distributors. The company operates 3 state-of-the-art production units, each with their own quality assurance laboratory. A remarkable 32% market share and growing. Various packaging options available for customer convenience including bottles, tins, standup pouch, poly-bags , Jerry can and bulk packing. Nationwide coverage and penetration of the distribution network. Quality assurance with ISO9001:2008. Awarded Super Brand Status for the year 2011-2012

Mission Statement

We will provide our customers the best quality products using the latest technology available to the privileged customers in the selected market segments keeping in view the concern for survival, growth and profitability of the organization. Our philosophy is to take care of our suppliers, stock holders and the community. Our self concept and public image is to come up with the innovative quality products at the right time and at the right place to cater to needs of our customers. We will provide our employees a learning and friendly environment and appreciate their creative and new idea.

VISIONProvide the best quality products to every privileged customer. We want to capture the market but will not compromise on our quality products and the image in the minds of the customers. Keeping in view the best interest of our stake holders Sufi Group is completely focused on the rapturous relationship. To achieve it we provide our employees opportunities to work with us and make sure that they learn maximum knowledge and utilize their strengths and expertise here to attain delight for customer, supplier, community and government.

QUALITY POLICY Sufi Group of Industries strives to meet and where possible, exceed its customers quality requirements. Sufi Group of Industries has a policy to constantly strengthen them self by adopting refined skills, training and learning from mistakes to continually improve the process. They try never to repeat a mistake by going to its root cause and institute measures to prevent future recurrence. We believe in teamwork and try to act like a family. Every member works towards improvement of processes for his own satisfaction and that of the entire family.

MARKET GROWTH OR ESTABLISHMENT

In1965 revolutionary step was taken and automatic mazoni soap plant which were well known in the world for their most modern technique and standard, and as it was policy of the company to go for the best, the plant having capacity of 12 ton per day (installed capacity) was installed in new premises at 12-K.M. Lahore-Sheikhpura road. Now the production of soap started on most modern soap plant with fully automatic system. This was a start of new era in the age of soap industry of Pakistan. Later on as our products win reputition in the market due to its high quality standard, increased our soap making capacity by installing another Mazoni Plant having 36 ton per day capacity (installed capacity). The factory took a further step ahead and glycerine recovery plant was also installed to cover the by-product of our soap making method.M/S Hamza Vegetable Oil Refinery and Ghee Mills Pvt. Limited. are producing 130 M.Ton of ghee and cooking oil for last five years. Now the entire production system of mills is undertaking a mjor change in installing automatic system of production. As a part of this job automatic plant refining and deodarization is under construction in Belgium and M/S S.A. Extraction De Smet N.V., Belgium are shipping this machinery in September and October, 1999. Then another company M/S Hadayat Soap & Chemical Industries (Pvt. Ltd. have installed an imported plant for Detergent Bar. Its productions are going to be launched very recently. Presently its trial productions have been done very successfully. As regards our present total turnover for both the companies is Rs.1350 Million and volume of annual imports is around Rs. 750 Million.

Association with the Sufi Group1. Sufi Soap and Chemical Industries (Pvt) Limited

Sufi Bath Soap, Sufi Powder, Toilet Soap, Sufi Vermicelli, Sufi Mini, Sufi Darja Awwal, Sufi Glycerine, Sufi Brown,Sufi Special Quality, Sufi Super, Sufi Nirol and Sufi Poly Bag 1 kg; 1/2 kg, Safon Dish Washing liquid. We are a locally owned and operated company, with our corporate headquarters located in the capital city of Punjab, Lahore. Since 1952 Sufi Soap and Chemical Industries Private Limited has been provided customer oriented and quality guaranteed products nationwide. Our quality has stood the test of time and our reputation speaks for itself. With our finest range of products, we have been able to cater to all our happy customers with better incentives.Products of Sufi Soap and Chemical Industries are 1. Sufi Bath Soap 2. Sufi Powder 3. Sufi Vermicelli 4. Sufi Mini 5. Sufi Darja Awal 6. Sufi Glycerine 7. Sufi Brown 8. Sufi Special Quality 9. Sufi Super 10. Sufi Nirol 11. Sufi Toilet Soap 2. Hamza Vegetable Oil Refinery and Ghee Mills (Pvt) Limited

Canola Cooking Oil, Soya Bean Cooking Oil,Banaspati Ghee, Sun Flower Cooking Oil.

3. Hadayat Soap and Chemical Industries (Pvt) Limited Safon Dish Washing Soap4. Hadayat Food Stuffs Industries (Pvt) Limited Sufi Mineral Water

Sufi group provides quality consumer products and has gained consumers' trust for over 50 years; The name is well established in health and hygiene. Sufi introduces a new brand in the water market. Sufi Finest Drinking Water: the real source of good health. With so much dependent on water, one cannot afford to be careless about the kind and quality of water which we drink. And this is where Sufi Finest Drinking Water comes in Pure and uncontaminated by any chemicals.Projects:

* Sufi Textile (O.E) * Sufi Flour * Iqbal Flour * Rehman Cotton * Sufi Waste Plant * Sufi Textile (Ring) * Sufi RiceSufi Group of Industries (Pvt.) Ltd. was founded in 1963. The founder of Sufi Group was Sufi Ghulam Rasool. From the beginning to the present Sufi Group is offering their products in the Textile & Food Sector. The projects working under the same management are:

Iqbal Flour Mills (Pvt.) Ltd. 1971Sufi Flour Mills 1975Rehman Cotton Ginning Factory 1980Sufi Textile Mills (O.E Spinning) 1988Sufi Rice Mills 1996Sufi Waste Recycling Plant 1997Sufi Textile Mills (Ring Spinning) 1998

our customers have full faith in our quality, as our products fully pay back its price to them. The most important matters which tops priority list of the company is to maintain and make every efforts to improve upon the quality standards of our products. Sufi Group has developed and implemented quality management system. To better satisfy the needs of its customers and to improve the management of the company. We trust on the faith of our customers and the customers have faith in our quality products. This is an ideal situation for an industrial concern and the spirit of this relationship is also picked up in our publicity slogan"BUY WITH FULL CONFIDENCE AS THIS IS YOUR BEST CHOICE" SBUs OF SUFI GROUP OF INDUSTRIES(1) Sufi Soap Range of Sufi Soap: 1. Sufi bath soap 2. Sufi Powder 3. Sufi Vermicelli 4. Sufi Mini 5. Sufi Darja Awal 6. Sufi Glycerine 7. Sufi Brown 8. Sufi Special Quality 9. Sufi Super 10. Sufi Nirol 11. Sufi Toilet Soap

(2) Vegetable Oil and Ghee: Range of ghee and oils: 1. Canola Cooking Oil 2.Soya Bean Cooking Oil 3.Banaspati Ghee 4.Sun Flower Cooking Oil (3) Safon Dish Washing BAR / LIQUID(4) Sufi Mineral WaterTECHNOLOGYInitializationHamza Vegetable Oil Refinery and Ghee Mills Pvt Ltd is currently harnessing state of the art batch and continuous processes for its manufacturing. When the company first took off, it initiated production with batch process units in 1992. The following two units installed used continuous process production which is maximizing mechanization on every front; it has fully computerized functioning and operates automatically.Conventional Processes of ProductionAt the time of its inception, our company was employing the conventional process in keeping with the technology trend of the industry at that time. However, this was a lengthy and time consuming procedure, inclusive of several stages. Its main features included1. Neutralization: removal of FFA present in oil with alkali2. Bleaching: removal of color contents with bleaching earth3. Hydrogenation: conversion of unsaturated fatty acids into saturated fatty acids to stabilize oil4. Deodorization: removal of objectionable contents with steam distillation under vacuumReengineeringIn keeping with our promise to the customer to maintain state of the art technology to deliver high quality products, we reengineered our production in 2003, and again in 2008. Hiring the services of the world renowned Belgian company Desmet Bellestra was came into complete automated and computerized mode of production using the Siemens S7 control system. The conventional process of Neutralization was replaced with Oil Centrifugal Clarifying and Separating Technology of the German technology leader Westphalia Separators.Continuous Processes of Production and BeyondThe introduction of continuous process plants has been an integral part of the companys growth and image creation. In keeping with the motto of the company, this automation has guaranteed constant production and uniform quality to ensure excellence is delivered to our customers year after year.In addition to this, the plants are now equipped to operate on low energy requirements, reduced manpower, avoid process loss and entail minimum wastage in complement to controlled chemical consumption. The pressing and filtering technologies are PLC controlled, with a precise dosage of activated bleaching earth in color content removal to maintain safety.Thanks to the technology adoption, we now proudly offer our customers improved taste and smell of our ghee and oil which undergoes a shorter processing period. Handling has been simplified due to the addition of function keys, ensuring impeccable quality. Our products now serve a longer shelf life, for the convenience of our customers.PACKAGINGIn the packaging department, international standards of quality are ensured due to the installation of state of the art machinery imported from Europe, Singapore and China. As a result our packaging process is swift and free of weight variation. It also ensures zero spillage, which results in smooth operation and environment cleanliness.QUALITY ASSURANCEAchieving excellence in quality has been the foremost priority of our company and it has been followed religiously throughout the course of its production life. Quality is the work ethic that drives us along, and experts have been committed to achieving optimal quality products. From raw materials to the finished products, we maintain strict standard of quality inclusive of the Quality Control Authority and Pakistan Standards. Quality checks are conducted on regular basis to ensure there zero lapses in quality on every level. The company takes great pride in being ISO9001:2008 certified, and every employee puts personal commitment to the goal of consistent quality assurance.CULTURE EMPLOYEES TO FAMILYAt Hamza Vegetable Oil Refinery and Ghee Mills, we cherish everyone associated with us and the work that we do. In the process of building production plants and product lines, we built a team which is now our most valuable and cherished asset. Every employee linked to our company is like a family member, and the growth we have seen and the success we have celebrated over the years has come from the dedication and commitment of our employees giving their best at every stage in our production and marketing journey. We feel privileged due to the immense talent of our qualified team members, who have not only chosen to work with us, but exhibited commendable loyalty over time.We offer a work environment built around principles of mutual respect and tolerance. As a team, we motivate and facilitate so that each member can apply himself and give his best performance. We believe in synergizing and optimizing. Here, you will not only attain a sense of achievement in the growth of the company, but in your own as well.EMPLOYEE FACILITIESWe have maintained our tradition of investing in our most valued assets consistently. To begin, we offer a competitive salary package. Employees are engaged in frequent trainings so that they can equip themselves with relevant skills and continue to learn throughout their career with us. All our Heads of Departments and Executives are provided expensed vehicles for their convenience.We not only consider our employees family, we treat them that way also. Bonuses are given out, especially on occasions such as Eid to contribute to their celebrations. Quality health benefits are part of our job contract, not only for the employee but his/her spouse and children as well so that we reach out to the entire family. We also have the tradition of sending our senior employees and their spouse for Haj. Recreational activities are also a highlight on our human resource agenda; annual family trips are conducted so that a family that works hard together can relax together and strengthen its bond.MANAGEMENTMr. Tariq Ullah SufiChief ExecutiveMr. Khalid Hadayat Ullah SufiDirectorMr. Tanvir Ahmed SufiCompany SecretaryMr. Hamza Tariq SufiDirector Sales & MarketingAt the heart of the Sufi Group is a culture of philanthropy. At present we have undertaken two CSR Projects viz. Al Habeeb Eye Hospital and Free Dispensary. Both the projects focus on addressing the needs of the lesser privileged.SUFI SUNFLOWER COOKING OIL Sufi Sunflower cooking oil has a very high smoke point, and helps food stay fresher and healthier for longer periods of time. Sufi Sunflower oil contains significant amounts of Vitamin E, which reduces the risks for heart disease by over 30%. It consists of high amount of heart healthy fats, monounsaturated and poly unsaturated. They help in reducing blood cholesterol level and lowering stroke risks. It is low on the harmful saturated fats.SUFI CANOLA COOKING OIL Canola Oil has well established heart health benefits, and is recognized by many health professional organizations including the American Dietetic Association and American Heart Association. Fats that are good for heart health i-e monounsaturated fats and polyunsaturated fat are high in Sufi Canola Oil. It is very low on the harmful saturated fats, less than 5%. It contains Omega 3 which are essential fatty acids that are necessary for human body to function properly. Intake of Omega 3 helps reduce risks of heart disease, high cholesterol, high blood pressure and diabetes.SUFI SOYBEAN COOKING OIL Sufi Soybean oil has the highest nutritional value. It provides proteins and amino acids in the amounts needed for a healthy body. Oil made from has soybean has absolutely no cholesterol, which dramatically reduces risks for heart disease. The linoliec and linolenic fatty acids in soybean oil help the body absorb nutrients from food and help grow healthy cells. It is low in harmful saturated fats and high in heart healthy fats. Its overall fat profile makes it ideal for heart patients.SUFI BANASPATI Sufi banaspati gives your food a mouthwatering aroma and an unmatched taste. Its low levels of cholesterol make it safe for heart patients and health conscious people. It has significant amounts of Vitamin A and D. High levels of heart healthy fats help you live a long healthy lifeSUFI SPECIAL BANASPATI At popular demand of consumers, Sufi special banaspati is being offered in 1Kg pouches. Special banaspati maintains a very low level of cholesterol so you can enjoy every moment of your life. Developed under strict quality standards, Sufi special banaspati offers you high levels of heart healthy fats for you to live a healthy life. Its light color and fine texture is proof of its supreme quality.SWOT ANALYSISINTRODUCTION:Every company before making its market plan prefers to have a SWOT analysis. It is not simply enough to identify the strengths, weaknesses, opportunities, and threats of a company. In applying the SWOT analysis, it is necessary to minimize or avoid both weaknesses and threats. Weaknesses should be looked at in order to convert them into strengths. Likewise, threats should be converted into opportunities. Lastly, strengths and opportunities should be matched to optimize the potential of a firm. Applying SWOT in this fashion can obtain advantage for a company. SWOT analysis can be extremely beneficial to those who objectively analyze their company. The marketing manager should have rough outline of potential marketing activities that can be used to take advantage of capabilities and convert weaknesses and threats. However, at this stage, there will likely be many potential directions for the managers to pursue. Due to the limited resources that most firms have, it is difficult to accomplish everything at once. The manager must prioritize all marketing activities and develop specific goals and objectives for the marketing plan.STRENGTHS: Sufi is one of the largest groups of industries in PAKISTAN. Exporting its good in more than 6 countries of the world. Sufi groups of industries are making 30 different products. Sufi is Pakistans 1st company to acquire ISO: 22000:2005 food safety management systems. More than 50 years of excellence. The company has good market repute, due its good and consistent quality product. Another major strength is its market share. Another major strength is that its wide range of product, only Sufi industries is the largest groups of industries who are producing more than 30 products in every range. A team of professional managers with the following leadership practice performs the day to day administration of the company. Finding opportunities for constantly challenging and improving personal performance. As per companies product they have introduced many attractive packages.

WEAKNESSES: The main weakness of Sufi industries is that, they are not full filling the demand of the customers. Even the quality is good but still the color and thickness of SUFI oil is a matter of consideration as it is different from others in market. The quality of Sufi mineral water is not good as compare to its competitors; there are many big and reputed brands available in market so compare to that Sufi water is not good. The main weakness of Sufi oils is that it is full of fat and high cholesterol. It is the main weak point of Sufi industries that they have many substitutes of their products. Another weak point of Sufi industry is that they have reduced spending for research and development in market and they are not going with the customers needs as their technologies are old from their competitors. As their technologies are old so their generation of revenue has been decreased. The main weakness of the company is miss-management

OPPURTUNITIES: As the population is increasing new areas are discovering and new markets are developing, so Sufi has the great opportunities to bring out their products in markets. The main opportunity for Sufi industry to increase the production of their product so that their products are available in every market. Sufi industries have to produce such products in low prices that low income people can also get benefits of their products. For good qualities and to attract more customers to their product they have to introduce new technologies in their products. Changing life styles of people give Sufi a very good opportunity to make new products and new technology.

THREATS: The main threats for Sufi group of industries are their competitors. Their competitors are producing products in very good quality with good prices. Changing life styles of people bring changes in technologies and technology needs more money. So it is also a threat for the company to keep on spending for research and developments. New technology wants new and improved labor and labor demand more money, so it is also a threat for the company to spend on the labor. Political effects also affect the companys production.

INDUSTRY ANALYSISEdible oils and fats are an essential part of the daily needs of a Pakistani family. It is also a significant part of household expenditure of an average family - almost 6% of the household budget is spent on it. Branded as well as non-branded products compete in the market. Branded products are mostly at the high end of the market and non-branded towards the lower end of the market and mostly selling in loose form. Edible oils and fats are marketed in variety of packaging formats tin cans, plastic bottles, plastic pouches, plastic buckets and in loose form.

Ghee and cooking oil industry in Pakistan relies heavily on the imported edible oil and spends a hefty foreign exchange on the payment of edible oil imports. Currently, Pakistan spends about $1.0 billion per annum on the import of edible oil. At present the capacity utilization of ghee or edible oil is about 55 percent. A probable reason for this under utilization is the existence of unregistered ghee and cooking oil-processing units in the country. Edible oils market is a highly fragmented market with many brands and non branded players.

Edible oils and fats are an essential part of the daily needs of a Pakistani family. It is also a significant part of household expenditure of an average family - almost 6% of the household budget is spent on it. Branded as well as non-branded products compete in the market. Branded products are mostly at the high end of the market and non-branded towards the lower end of the market and mostly selling in loose form. Edible oils and fats are marketed in variety of packaging formats tin cans, plastic bottles, plastic pouches, plastic buckets and in loose form.Ghee and cooking oil industry in Pakistan relies heavily on the imported edible oil and spends a hefty foreign exchange on the payment of edible oil imports. Currently, Pakistan spends about $1.0 billion per annum on the import of edible oil. At present the capacity utilization of ghee or edible oil is about 55 percent. A probable reason for this under utilization is the existence of unregistered ghee and cooking oil-processing units in the country. Edible oils market is a highly fragmented market with many brands and non branded players.

INDUSTRY SEGMENTS

The oil and ghee industry has 3 clear segments.

Ghee (75.33%) with a total consumption of 1.75 Mil tons. Cooking Oil (23.33%) with a total consumption of 1.0 Mil tons Industrial Fat (1.34%) with a total consumption of 50,000 tons.

Competitors and Market Share

GHEEOIL

Dalda65,000100,000

Habib85,000105,000

Ghee Corpo. Of Pakistan144,000

Associated66,0001,200

Hamza30,0001,500

United30,000

Punjab Oil20,000800

Gulf6,000700

Continental2,500600

Mehboob20,000

Faisalabad (Kissan) Oil20,0003,000

Shahbaz30,000

Khayaban30,000

Chniot Ent.20,000

Waheed Hafeez40,000

Piracha Ghee10,000

Hunza20,0002,500

Madni10,0002,500

P T C3,000

Agro (Soya Supreme)15,00065,500

TULLO25,00085,000

SUFI20,00081,000

Evolin5,000

Habib Oil Mill -

Habib, 13%

Dalda, 11%

Wazir Ali - Tullo,

3%

ATM Gases -

Soya Supreme,

2%

Sufi Group - Sufi

Cooking Oil,

0.5%

Paracha Textile -

Meezan/ Kissan,

0.5%

Loose & Other

Small Branded

Cooking Oil,

70%