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Contents
PREFACE........................................................................................................................................5
ACKNOWLEDGEMENT...............................................................................................................6
NIPPON PAINT (PVT.) LIMITED PAKISTAN.............................................................................7
INTRODUCTION...........................................................................................................................8
History.........................................................................................................................................9
Nippon Paint Pakistan (Pvt) Limited.............................................................................................10
Legal Status And Nature Of Business........................................................................................11
Capabilities................................................................................................................................11
Quality Policy............................................................................................................................11
Vision & Mission.......................................................................................................................12
Corporate Governance...............................................................................................................12
Competitors................................................................................................................................12
COMPANY MANAGEMENT SYSTEM.....................................................................................13
Directors of Nippon Paints........................................................................................................13
Employees/personnel in Various Sections:................................................................................14
Lunch Subsidy & Mess System:................................................................................................17
Finance Department...................................................................................................................18
Laboratories, R&D and Quality Control...................................................................................19
I.T. Department..........................................................................................................................19
Sales & Marketing.....................................................................................................................19
Production Facilities......................................................................................................................20
Quality Consideration................................................................................................................20
Documentation Procedures........................................................................................................20
Paint Manufacturing Process.....................................................................................................21
Major Raw Material for Paint Manufacturing...........................................................................22
Dispatch.....................................................................................................................................22
COMPANY MARKETING SYSTEM..........................................................................................24
Nippon Paint Products...............................................................................................................24
BASE COAT..............................................................................................................................24
NIPPON AQUA PRIMER SEALER UNDERCOAT............................................................24
NIPPON 5101 ODOUR-LESS SEALER..............................................................................28
NIPPON EXPRESSKOTE SEALER....................................................................................31
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Page 4 of 159
PREFACE
This report is about Nippon Paints (Pvt.) Ltd. I have tried my best to cover all the
departments, products and facilities of Nippon Paints (Pvt.) Ltd. My 0bjective was
to get the practical exposure of corporate sector by applying the knowledge that I
have gained from my prestigious institute. The valued instructions given by Mr.
Rizwan Rao helped me in writing the various aspects of my internship report on
Nippon Paints (Pvt.) Ltd. I completed my internship in Nippon Paints (Pvt.) Ltd. at
its factory. The staff of the office provided me with all the relevant and required
valuable information about Nippon Paints (Pvt.) Ltd.
For the completion of this internship report I gathered all the recent data about
Departments, Products & Services and day to day activities of Nippon Paints (Pvt.)
Ltd.
I feel no hesitation in saying that this comprehensive report will be a good source
of information and the reader will have sufficient material about all aspects of
Nippon Paints (Pvt.) Ltd.
Page 5 of 159
ACKNOWLEDGEMENT
With the name of ALLAH the Most Beneficial and Merciful. I completed my
internship in Nippon Paints Pvt. Limited. I am really pleased to have a professional
learning experience in one of leading paint manufacturers of Pakistan. In these six
weeks I worked very different people and I am truly thankful to all officers and
staff who provided assistance to me.
I am also grateful to my honorable teachers Prof. Dr. Ehsan Malik and Prof. Sajida
Nisar and all other teachers who motivated me to work hard and provided me with
an opportunity to do an internship in Nippon Paints.
The account of acknowledgement will remain incomplete if I do not express my
sincere appreciation, indebtedness and gratitude to my parents. They have always
been a source of encouragement for me.
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Page 7 of 159
INTRODUCTION
Company was first founded in the country of Japan as Komyosha in 1881 by two brothers Haruta
and Jujiro Moteki. T ogether with their own chief engineer Heikichi Nakagawa, they began
production with projects for the Japanese national navy and soon progressed to the creation of
viscous paints.
Nippon paint (Pvt.) limited is certified by ISO 9001 which proves its quality beyond doubts.
Over 35 years. Nippon Paints (Pvt.) limited, has grown significantly in Pakistan and today its
stands known as The Paint of 21st Century.
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History
Nipon Paint was first founded in Japan as Komyosha in 1881 by the two brothers Haruta and
Jujiro Moteki. Together with their own chief engineer Heikichi Nakagawa, they began their
business with projects for the Japanese national navy and soon progressed to the production of
viscous paints. In 1896, it moved all its production activities to a newly build factory in the T
okyo. T wo years later, Nippon Paint was Japan's first true diversity paints developed company.
Nippon Paint's presence quickly spread crossways Japan. In 1914, having protected the family
bazaar , the company extended into China, India and the South Pacific asia. After creation
inroads into T aiwan and North China, Nippon Paint established the Pan into Malaysian Paint
Industries in the year 1963 today it is known as Nippon Paint Singapore. In 1967, four years
later on, Nippon Paint Thailand and Malaysia were recognized. Ground-breaking product
breakthroughs have been a brand of Nippon Paint's growth through the decades. In 1986, the
superior "Photo ED" system for printed course boards was introduced.
Nippon Paint (Pakistan) Limited noticeable the winning entry into Pakistan with the first sales
going out on the 5th of November 2007. Head quarter in Japan, Nippon Paint is the principal
paint producer in Asia. The company is investing $25 million in Pakistan over the next three to
five years of time; it will include a manufacturing facility in the District of Kasur, near Lahore.
Currently, Nippon Paint is doing dealing with 200 outlets countrywide of which 113 are prepared
with the Nippon Paints different Color Creations and Tinting Systems. We aim to have more than
200 Color Creations Outlets in the country by the end of the year 2008. The allocation
arrangement is being at present spread from the far South, Karachi and Gwadarss to the hilly
areas of Mingora and continues to spread.
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Capabilities
The company has highly qualified technical staff comprising of Engineers, M.sc, and B.Sc.
professionals. Nippon Paint (Pvt.) Limited is certified by ISO 9001 which proves its quality
beyond doubts. Over 35 years, Nippon Paint (Pvt.) Limited, has grown significantly in Pakistan
and today it stands known as The Paint of 21st Century".
Quality Policy
We are committed to provide the highest level of decorative paint production supply and service
on consistent basis to meet exceed our customers requirements. Our quality system is the
supporting mechanism for implementation of this commitment and forms the basis for costeffective operation and continuous improvement for the benefit of our customers.
Our quality policy encompasses our customers, suppliers, employees, and other sectors of
community on all issues of quality, safety, health and the environment. We believe that by
implementing constantly improving our quality system, Nippon will enhance its leadership
position in its served markets. Our motto is the best quality and services at an affordable price at
the doorsteps of our valuable customers.
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Corporate Governance
The company maintained very good relationships with the employees. All the efforts are being
made to keep the employees loyal to the company through taking the various fiscal and
administrative measures. Taxation matters are being handled satisfactorily. No adverse
assessments impairing the financial position of the company are likely to be made. Company has
no legal dispute with any outside person of agency.
Competitors
Nippon Paints is facing severe kind of competition with the multinational giants like ICI and
Berger, Master paints, Sparco paints and the everyday emerging mushrooms in the industry. The
multinational with their unlimited resources and diversified strategies are giving Nippon paints a
tough time. On the other hand the substantial increase of small manufacturers of paints is also
affecting the prosperity of the company because the mushrooms are doing business under the
fixed tax structure but their level of operating activities is very high as a result they have to bear
low cost of production and consequently their prices are very low.
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COMPANY MANAGEMENT
SYSTEM
Directors of Nippon Paints
1. Kh. Ijaz Ahmad Sikka
2. Kh. Khurram Shahzad Sikka
3. Kh. Atif Riaz Sikka
(Chief Executive)
(Director Production)
(Director Marketing)
Name
Designation
Chief Executive
Director Production
Director Marketing
Manager
Manager I.T
General Manager Finance
Secretary Finance
Assistant G.M. Finance
Asst. Manager Admin
Asst. Manager I.T
Accountant
Accountant
Account Officer
Accountant
Asst. Accountant
Legal Representative
Telephone Operator
Peon
Peon
Chokidar
Chokidar
Facrory Staff
Sheraz Ahmed Qureshi
Hafiz Ghulam Murtaza Hasan
Gufran Masood
Mohammed Tahir Baber
Mohammed Ali Sajid
Mian Fasieh Ahmed
Abdul Hafeez Khan Abbasi
Saif Ullah Sabri
Javad Iqbal
Abdul Razzaq
Mohammed Zubair Butt
Directors
Office Staff
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Lahore Office
Sajid Hussain
Agha Mohammed
Asst. Supervisor
Asst. Supervisor
Godown Keeper
Quality Controller
Quality Controller
Supervisor
Supervisor
Manager Sales
Hamma
Khan
Mohammed Naeem
Shahid Butt
Asmat Ullah Khan
Salman Asif
Mohammed Kaleem Ameen
Mohammed Khalid Waseem
Syed Mohammed Kashif
Syed Majid Ali
Kausar Ali Khan
Faisalabad Office
Mohammed Ahmed
Mohammad Tahir Shah
Bilal Shaukat
Bilal Mughal
Waqar Ahmed Khan
Area Manager
Sales Representative
Sales Officer Trade
Area Sales Manager
Sales Officer Trade
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Multan Office
Jamshaid Ahmed
Khawar Nazir
Shakeel Mirza Baig
Sales Representative
Sales Representative
Area Sales Manager
Sialkot Office
Javad Iqbal
Islah Uddin Ahmed
Bilal Tariq
Abdul Rehman
Tayab Shabir
Sales Manager
Sales Representative
Sales Representative
Territory Manager
Territory Manager
Islamabad Office
Jamshaid Alam
Sohail Baig
Sales Representative
Office Boy
Sargodha Office
Sohail Sarwar
Rashid Aziz
Sales Manager
Sales Representative
Finance Department
The most dominant and big department in Nippon Paints Limited is accounts and finance
department. The main function of accounts and finance department is to have a check and
balance over the financial records and business activities. Other staff members include in the
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I.T. Department
The information technology department is the most important and the best working department
of the Nippon Paint Limited, which is the more organized and systematic department.
The department is basically adjacent with the accounts department and helps the higher
management
in
generating
different
reports
and
documents.
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Production Facilities
Quality Consideration
The products of Nippon Paint Limited are of high quality and it is the first consideration of the
organization. Quality is the key to success for Nippon Paint Limited; this thing is kept in mind
during all the production processes. I have observed that it is tried that the product, which is
under manufacturing process, should be complete in all aspects when it will reach in customers
hands. For this reason checking and testing is done at all levels.
First raw material is tested. If it is good enough then it is put into the process and during process
all the things like viscosity, weight per litter, thickness, glossiness, and other specifications are
checked to match with old retained samples. If any discrepancies are found, technically chemists
and research laboratories resolve these.
Documentation Procedures
The production process in Nippon Paint Limited is initiated whenever the production department
receives an order from Sales Department or Commercial Department. If the required raw
material for the production of specific paint is available in the factory store then the production is
started and the production manager in which the name & specifications of products
manufactured, type & quantity of raw material used prepares job card sheet. Dates of starting &
completion, packing standards, weight per liter of paint and loss percentage is described.
If the raw material is not available in the store then the production manager make an indent note
and send to Accounts department for the procurement of raw material. Here the problem occurs
because of the fact that the procurement of raw material takes time and during that time all the
labor sits idle and it results in wastage of time and resources. As no formal forecasting of sales is
done and the procurement of raw material is based on personal judgment so these types of
problems are the matter of routine. If raw material is present in bonded warehouse or bank go
down, the production manager fills in raw material requisition form and sends it to accounts
department, which arranges for the clearance of material and then is issued to the production. In
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Mixing
Stirring
Gumping
Thinning
Quality Assurance
Packing
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Pigment
Additives
Thinner
Extender
Color Solutions
The raw material of paint factory has a wide range of above mentioned products. There are about
190 items of raw material. Some important raw material used in Nippon Paint Limited is as
follows
Titanium Dioxide
Yellow oxide
Chrome Pigment
Chalk
Soap Stone
Mica
Dispatch
Because the main aim and objective of any production concern is to handover the product to the
ultimate consumers and in this era of normalization, this is done through proper distribution
channels. For this purpose, first and foremost thing is to dispatch the product to outside the
factory gate. In this regard some formal rules and regulations are to be followed regarding the
payment of sales tax and excise duty.
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COMPANY MARKETING
SYSTEM
Nippon Paint Products
BASE COAT
NIPPON AQUA PRIMER SEALER UNDERCOAT
Nippon Aqua Primer Sealer Undercoat is a water based one step pre-coat formulated with special
acrylic polymer for the following excellent properties:
Alkali and efflorescence resistance
For interior and exterior application on masonry substrates, timber and metal
surfaces.
Quick drying
TYPE
Acrylic Emulsion
COLOR
White
FEATURES
Excellent penetration on porous substrates
Physical barrier to water transport
Chemical barrier to salt migration
Excellent alkaline and efflorescense resistance
Quick drying time
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to
13m2/litre
(based
on
30
Dry
Film
Thickness/coat)
Dust off
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SURFACE PREPARATION
Moisture
There must not be any water residue on the surface of the substrate. Moisture must be <6%
before application.
Unstable Matter
Remove loose bonding film, dirt, peeling paint, etc by high-pressure water jet wash or
mechanical means such as power brush or scraper whichever is suitable.
Contaminants
Remove dust and foreign matter by cleaning with damp cloth. Remove oil or
grease by solvent cleaning or mild detergent. Allow surface to dry again. Mild
detergent may be used
Fungus and Algae
Wash the affected area to remove unstable matters and micro-organisms. Then apply Nippon AntiFungus Solution and leave for at least 2 hours.
Hairline Cracks
Fill cracks with suitable exterior grade water-resistant putty or filler.
DRYING TIME
Surface Dry - 30 minutes at 30 oC
Hard Dry - 1 hour at 30 oC
OVERCOATING TIME
2 hours based on normal conditions.
ADDITIONAL INFORMATION
Solid Content: 57 2% by weight
Specific Gravity: 1.31 2% kg/litre
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METHOD
Roller, brush and air spray
THEORETICAL COVERAGE
17 m2 / litre (based on 30 microns DFT per coat)
DILUTION
Solvent - NIPPON BODELAC 9000 GP THINNER
Roller & Brush - Maximum 10%
Dilute only if necessary
SURFACE PREPARATION
Metal
The surface must be:
Clean/Dry
Free from grease/oil
Free from rust/foreign matter
Stable
Ensure adequate ventilation and avoid direct contact with skin and inhalation of
Page 40 of 159
NIPPON TIMBERLAC
TYPE
A one-pack modified Polyurethane based varnish that enhances the natural beauty of wood.
COLOUR
Clear or pigmented as per standard range in color cards.
FINISH
Gloss / Matt
USES
As a decorative coat which provides excellent durability for old and new timber surfaces e.g.
Wooden Doors
Timber cladding/Panels
Wood furniture
Wooden sheds
Cane
FEATURES
Excellent for use both interior and exterior applications (for gloss finish only)
Anti-fungus property to protect wood due to mildew growth
Excellent flow and leveling for smooth appearance and easy application
Highly penetrative for excellent adhesion to substrate
Excellent film hardness
Resistance to water and mild detergent for easy maintenance
METHOD
Roller, brush or air spray
THEORATICAL COVERAGE
13 m2/ litre (35 microns DFT)
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EXTERIOR PAINT
NIPPON WEATHERBOND
A high-performance water-based paint that possesses superior exterior durability.
TYPE
Modified Acrylic Emulsion
COLOR
A wide range of sophisticated colors
FINISH
Satin
USES
High grade emulsion with high grade decorative and protective functions for all internal and
external masonry surfaces such brickwork, cement, plaster and textured surfaces.
FEATURES
Excellent weathering under local climatic conditions
Resistant to fungus and algae growth
Good adhesion on stable surfaces
Easy application with good levelling property
Excellent anti carbonation property
High water vapour permeability
METHOD
Roller or brush
Theoretical Coverage
9 m2 / litre (based on 40 microns DFT)
DILUTION
Ready for use, if necessary, dilution should not be more than 5 % water.
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SURFACE PREPARATION
Ensure surface is clean, dry and stable.
contaminants by appropriate means. Treat fungus growth areas with NIPPON ANTIFUNGUS SOLUTION.
DRYING TIME
Touch Dry
- 30 minutes at 30 oC
Hard Dry
- 1 hour at 30 oC
OVERCOATING TIME
2 hours based in normal conditions
CLEANING
All equipment should be cleaned with water immediately after use.
ADDITIONAL INFORMATION
Solid Content: 57.0 2% by weight (based on white colour)
Specific Gravity: 1.33 0.03 kg/litre (based on white colour)
Packing: 5 litres & 20 litres
Storage: Store in a tightly sealed container in cool dry place.
Shelf Life: Up to 18 months in a tightly sealed container.
Precaution: Ensure adequate protection and avoid direct contact on sensitive skin, eye, etc.
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TYPE
100% acrylic emulsion for exterior use
COLOR
Wide range of colors
FINISH
Low Sheen
USES
Suitable for new and previously painted surfaces such as masonry, bricks and exterior timber.
FEATURES
Enhanced resistance to fungal and algal growth
Enhanced anti-streak marks property keeping the faade clean
Excellent weather durability under local climatic conditions
Good adhesion on stable surfaces
Easy application with good levelling property
Excellent anti-carbonation property
High water vapour permeability
Environmentally friendly paint certified under the Singapore.
METHOD
Roller or brush
THEORETICAL COVERAGE
Approx. 9 m2 / litre (based on 40 microns DFT)
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SURFACE PREPARATION
Ensure surface is clean, dry and stable. Remove loose surface matter and contaminants by
appropriate means. Treat fungus growth areas with NIPPON ANTI-FUNGUS SOLUTION.
DRYING TIME
Surface Dry Hard Dry
30 minutes at 30 oC
- 1 hour at 30 oC
OVERCOATING TIME
2 hours based on normal conditions
CLEANING
All equipment should be cleaned with water immediately after use.
ADDITIONAL INFORMATION
Solid Content: 55.0 2% by weight (based on white colour)
Specific Gravity: 1.35 2% (based on white colour)
Packing: 5-litre and 20-litr
Storage: Store in a tightly sealed container in a cool dry place.
Shelf Life: to 18 months in a tightly sealed container.
Precaution: Ensure good ventilation during application and drying of paint. Avoid direct contact
with sensitive skin. Use appropriate personal protective equipment.
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INTERIOR PAINTS
NIPPON PAINT ODOUR-LESS (PREMIUM ALL-IN-1)
Nippon Paint Odour-Less Premium All-In-1 is an environmentally favorable green product
formulated without VOCs (Volatile Organic Content) for interior use. Specially formulated with a
solvent-free resin, it limits air pollutants and has an extremely low odour during application and
drying.
Being a GREEN product, it is especially ideal for use in eco-sensitive commercial and residential
areas
with
high
frequency
human
traffic
such
as
hospitals,
flow
which
helps
to
minimize
minor
surface
imperfections
Excellent coverage and hiding power
Excellent adhesion
Excellent color durability
METHOD
Roller or brush
THEORETICAL COVERAGE
10 - 12 m2 / litre (35 microns DFT)
DILUTION
No dilution is necessary for best performance
SURFACE PREPARATION
Surface must be clean, dry, stable and free from dust, dirt, oil, grease and other
contaminants prior to painting
Treat fungus-growth areas with NIPPON ANTI- FUNGUS SOLUTION. Rinse
again with clean water and dry
DRYING TIME
Touch Dry - 30 minutes at 30 oC
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CLEANING
Clean all equipment immediately with clean water
POST - TREATEMENT
As the paint film is elastic, masking tapes used to protect surfaces not to be painted, e.g. door and
window frames, should be removed with a knife or cutter.
RECOMMENDED PAINTING SYSTEM
1 coat Vinilex 5101 Water-based Wall Sealer or Vinilex 5170 Oil-based Wall Sealer
2 coats Nippon 3-in-1 Medi-Fresh.
ADDITIONAL INFORMATION
Solid Content: 54.0 2.% by weight (based on white)
Specific Gravity: 1.36 0.03 kg/litre
Packing: 1 litre and 5 litres
Storage: Store in a tightly sealed container in a cool dry place.
Shelf Life: Up to 18 months in a tightly sealed container
Precaution: Avoid direct contact with sensitive skin. Use appropriate protective equipment.
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FEATURES
Luxurious finish
Up-to-date range of pleasing and attractive colours
Excellent flow and leveling for a smooth classy finish
High
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METHOD
Roller, brush, air and air spray
THEORETICAL COVERAGE
9 m2 / litre (based on 40 microns DFT and based on white)
DILUTION
Use clean water
Brush - 10% max
Roller - 10% max
Air Spray - 10 ~ 20%
Dilute to only improve workability
DRYING TIME
Touch Dry - 30 minutes at 30 oC
OVERCOATING TIME
2 hours minimum based on normal conditions
SURFACE PREPARATION
Dirt/Powder
Clean with damp cloth
Mild detergent may be used.
CLEANING
Clean all equipment immediately with clean water
ADDITIONAL INFORMATION
Solid Content: 53 2% by weight (based on white)
Specific Gravity: 1.37 0.03 kg/litre (based on white)
Packing: 1 litre and 5 litres
Storage: Store in a tightly sealed container in a cool dry place.
Shelf Life: Up to 18 months in a tightly sealed container
Precaution: Avoid direct contact with sensitive skin. Use appropriate protective equipment.
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Special colors on
request
FINISH
Matt
USES
Decorative coating for surfaces e.g.
Plastered walls
Primed metal
Soft Boards
Brickwork
Gypsum
Fibre boards
Primed timber
FEATURES
Low Odour
Resists fading and chalking by cement alkali
Good coverage because of high opacity for easy application
Good adhesion. A special combination of different particle size emulsion
that results in better penetration and adhesion.
Anti-fungus property. Effective control against mildew growth
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METHOD
Roller, brush, air and air spray
THEORETICAL COVERAGE
13m2 / litre (based on 30 microns DFT)
DILUTION
Use clean water
Brush - 10% max
Roller - 10% max
Air Spray - 10 ~ 20%
Dilute to only improve workability
DRYING TIME
Touch Dry - 30 minutes at 30 oC
OVERCOATING TIME
2 hours minimum based on normal conditions
SURFACE PREPARATION
Dirt/Powder
Clean with damp cloth
Mild detergent may be used.
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ADDITIONAL INFORMATION
Solid Content: Above 50% by weight (based on white colour)
Specific Gravity: 1.31 0.03 kg/litre (based on white colour)
Packing: 1 and 5 litres
Storage: Store in a tightly sealed container in a cool dry place.
Shelf Life: Up to 18 months in a tightly sealed container.
Precaution: Avoid direct contact with sensitive skin. Use appropriate
protective equipment.
friendly
green
emulsion
product
METHOD
Roller or brush
THEORETICAL COVERAGE
Approx 9-10 m2 / litre (30 microns DFT)
DILUTION
No dilution is necessary for best performance
SURFACE PREPARATION
Surface must be clean, dry, stable and free from dust, dirt, oil, grease and other contaminants
prior to painting
Treat fungus-growth areas with NIPPON ANTI-FUNGUS SOLUTION. Rinse again with
clean water and dry.
DRYING TIME
Surface Dry - 30 minutes at 30 oC
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CLEANING
Clean all equipment immediately with clean water after use.
RECOMMENDED PAINTING SYSTEM
1 coat of Nippon Odour-less Sealer
2 coats of Nippon Odour~less Anti-Mould Ceiling White.
ADDITIONAL INFORMATION
Solid Content: 48 2% by weight
Specific Gravity: 1.38 2% kg/litre
Packing: 5 litres
Storage: Store in a tightly sealed container in a cool dry place.
Shelf Life: Up to 18 months in a tightly sealed container.
Precaution: Ensure good ventilation during application and drying of paint. Avoid direct contact
with sensitive skin. Use appropriate personal protective equipment.
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SURFACE PREPARATION
FEATURES
Low odor and low VOC.
Non toxic solvent.
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Out-of-Home Advertising
TVC
Facebook
Website
Out-of-Home Advertising
Nippon has carried out extensive out of home advertising for its latest product Momento. The
marketing campaign was carried all across the country, from Karachi to to Quett, from Lahore to
Multan and up to Nathia Gali in Murree.
The whole purpose was to position Momento into the minds of its target market as a superior
product to its competitors. The out of home marketing campaign that started few months ago is
still in place and Momento billboards and Tsigns can still be seen in various parts of Lahore.
Out-of-Home Advertising was carried out in following cities across the country:
Lahore
Pindi
Faisalabad
Murree
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Karachi
Quetta
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TVC
TVC is one of the traditional and most effective ways to advertise the product to the larger
audience. TVC are more suited when the company is in need for mass marketing and it is
because of this mass marketing that TVCs can be really cheap when you divide the total cost to
the estimated population it reaches.
Keeping in view the benefits, Nippon Paint Pakistan launched its TVC in June, following are the
characteristics of the Momento TVC:
Genre Category
News Channels
News Channels
News Channels
Entertainment
Entertainment
Entertainment
Channels
Dunya News
ARY News
Express News
HUM TV
ARY Digital
Geo Kahani
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1St
2nd
3rd
3rd
2nd
Last
Last
Ordin All
Last
ary
Prime
ion
ion
ion
ion
ion
ion
on
ons
D
20
DUNIY
31
21
28
15
49
117
A TV
EXPR
25
33
39
11
122
120
18
17
13
18
66
133
ARY
ONE
WORL
ESS
NEWS 63
GEO
KAHA
NI
HUM
10
20
TV
15
24
30
64
100
91
78
76
57
52
271
454
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Advertising On Facebook
With Momento campaign running everywhere from TVC to Billboards, Social Media was no
exception. All the marketing efforts were put to increase an awareness regarding the new
product. The Facebook advertising was divided into two parts:
Promotion of Momento
TVC on Facebook
Facebook credits were used to boost the Momento TVC on Nippon Paint Pakistan Facebook
page and the results of boosting the TVC were quite amazing.
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Total Likes
496
Total
80
Comments
Total Shares
Total
134
Video 12,905
Plays
In order to increase the reach of the TVC we seeded the TVC on following marketing platforms
on Facebook:
Advertistan
Newsmedia 247
Advertising Pakistan
Advertising Today
Brandsynario
Marketing Strategies
Media Poondi
S t e p 1 : S t e p 2 : S t e p 3 : St ep 4: St ep 5:
The core objective of the contest is to drive sales from Facebook.
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Islamabad
Sialkot
Faisalabad
Multan
Sargodha
The regions send their report and have their own targets in a specific time periods and they also
monitor the activities of sales force and demand of the customers for the paints. The paint market
of Nippon Paints Limited is very wide but due to lack and deficiencies it is lagging behind to the
other companies.
Market of paints has been a challenging job in one country because people consider that paint is
a decorative item. Even today it is considered as a luxury and not valued as a protective element.
The greater portion of our population lives in villages, where people are illiterate and
consequently lacking the knowledge of paints. Even in cities people rely upon painters and
painters have their own technology and preferences. In spite of all these drawbacks in the market
many companies in the field of paints striving, with the help of their marketing activities, to gain
high business. They have realized that the market is growing with substantial potential as a
consequence of increasing literacy rate, standard of living, infrastructure development, industrial
growth and more and more emphasis on defense strength.
Environmental Friendly
Nippon policy states that it will strive to develop new products and containers that have minimal
impact on the environment whilst maintaining its quality performance standards.
One of the largest environmental effects of painting is the solvents which are given off during the
painting process. These solvents can cause adverse health effects (if used in poorly ventilated
areas) and can contribute to pollution in the lower atmosphere.
Page 80 of 159
Pricing Strategy
Nippon Paints provide customers with the quality products and better customer service; they
outrank all its competitors due to quality because they use the good quality raw material and
maintain a total quality during the manufacturing of the paints. Therefore, they charge the price a
little higher than the prices of its competitors. Since Nippon is at the top spot for its quality
products, this high price is worth it.
Nippon Paints also offer cash and trade discounts to its customers i.e. retailers and wholesalers in
case of bulk purchase. The pricing of the products of Nippon Paints also varies region by region
to keep the competitive advantage and market share.
Page 81 of 159
ACCOUTING/FINANCE
SYSTEM
NIPPON PAINTS (PVT)
LIMITED
BALANCE SHEET AS AT 30
JUNE, 2013
2012
2013 (Rs.)
EQUITY
(Rs.)
AND
LIABILITIES
SHARE
CAPITAL
&
RESERVES
Authorized
Capital
2500,000 ordinary shares
of Rs. 100/- each
Issued, Subscribed
50,000
250,000,000
and
Paid-up Capital
946,137 ordinary shares of
Rs. 100/- each
Reserv
,000
49,613,
94,613,700
es
Accumulated
700
40,388,
Profit
TOTAL
52,479,842
810
90,002
EQUITY
NON-CURRENT
147093542
,510
LIABILITIES
Page 82 of 159
and
3,000,0
Advances
CURRENT
21,700,000
LIABILITIES
Trade
and
other
00
136,73
Payables
158,002,375
8,657
6,601,9
6,740,247
79
143,34
164,742,622
0,636
CONTINGENCIES
AND
COMMITMENTS
TOTAL
LIABILITIES
TOTAL
EQUITY
186,442,622
0,636
236,34
333,536,164
3,146
AND
LIABILITIES
146,34
ASS
ETS
NON-CURRENT
ASSETS
Property,
Equipment
Long term
Plant
and
deposits
and
repayments
23,125,
28,686,998
336
1,032,4
1,266,203
70
24,158
29,953,201
,133
CURRENT
ASSETS
74,623,
Stock in trade
Trade debts
Advances
Receivables
Cash
and
and
bank
61,255,364
753
55,686,
75,655,772
709
69,814,
137,952,351
28,719,476
098
12,060,
other
Page 83 of 159
balances
303,582,963
5,013
236,34
333,536,164
3,146
TOTAL
ASSETS
affect its current ratio and the ability to pay the short term obligations.
Overall, total liabilities increased by Rs. 40,101,986 from year 2012 to 2013.
Property, plant and equipment increased by Rs. 5,561,335.
The long term deposits and prepayments increased by RS. 233,733.
In current assets, stock in trade decreased by Rs. 13,368,389.
Trade debts increased heavily; in 2012 these were Rs. 55,686,709 but in 2013 they raised to
Rs. 75,655,772.
Advances and other receivables increased by Rs. 68,138,253.
Cash and bank balances increased from Rs. 12,060,453 to Rs. 28,719,476.
And the overall total assets increased with a large amount Rs. 16,659,023.
In summary, Nippon Paints attained a more stable position, maintained stability and increased its
assets and other useful elements of balance sheet. If the company manages to go on this way, it
will grow very well indeed and surpass its competitors in the near future.
Page 84 of 159
2013
2012
Rs.
SAL
ES
COST
Rs.
544,32
626,263,417
3,279
(435,32
SALES
GROSS
(500,718,126)
4,447)
108,99
PROFIT
OTHER
125,545,291
8,832
INCOME
352,100
83,755
109,08
125,897,391
2,587
33,003,
42,908,371
599
53,180,
62,736,481
431
OF
ADMINISTRATIVE
EXPENSES
SELLING
AND
GENERAL
AND
DISTRIBUTION EXPENSES
OTHER
EXPENSE
1,535,9
1,366,814
Page 85 of 159
75
,005
21,362
GPROFIT
18,885,725
,582
517,20
FINANCE COST
PROFIT
336,097
7
20,845
BEFORETAX
TAXATION
Current
18,549,628
,375
Year-
Normal
Final
on
OPERATIN
4,599,4
4,754,652
35
2,002,5
1,703,069
282,526
44
6,601,
6,740,247
979
14,243
11,809,381
,396
12.48
28.71
Exports
Surcharge
Page 87 of 159
2012
R
Rs.
Rs.
11,809,381
96
3,871,51
year
Prior year adjustments
4,094,312
281,651
3
75,293
(77,7
16,185,34
83)
18,112,
419
57)
8,279,00
receivables
)
(19,969,063
1
(48,213,0
)
(74,738,92
27)
(66,478,
7)
083)
138,268
26
12,537,
7)
377
(10,163,547
(4,596,95
9)
140,0
in
long
term
deposits
507,900
(9,655,647
00
(4,456,9
59)
30,00
45,000,000
0,000
(233,733)
92,000
(34,450,0
and
repayments
00)
(4,358,0
activities
00)
8,338,03
12,060,453
28,719,47
5
12,060,
453
Horizontal Analysis
NIPPON PAINTS (PVT) LIMITED
BALANCE SHEET AS AT 30 JUNE, 2013
2013
2012
Amount
R
Rs.
EQUITY AND LIABILITIES
SHARE CAPITAL & RESERVES
Page 89 of 159
s.
Rs.
Percentage
and
250,000,000 50,000,000
200,000,000
400%
94,613,700 49,613,700
52,479,842 40,388,810
147,093,542 90,002,510
45,000,000
12,091,032
57,091,032
90.7%
29.9%
63.4%
21,700,000
3,000,000
18,700,000
623.3%
158,002,375
6,740,247
186,442,622
333,536,164
136,738,657
6,601,979
146,340,636
236,343,146
21,263,718
138,268
40,101,986
97,193,018
15.5%
2.09%
27.4%
41.1%
28,686,998
1,266,203
29,953,201
23,125,663
1,032,470
24,158,133
5,561,335
233,733
5,795,068
24.04%
22.6%
23.9%
61,255,364
75,655,772
137,952,351
28,719,476
333,536,164
74,623,753
55,686,709
69,814,098
12,060,453
236,343,146
(13,368,389)
19,969,063
68,138,253
16,659,023
97,193,018
-17.9%
35.8%
97.5%
138.1%
41.1%
Paid-up
Capital
Accumulated Profit
TOTAL EQUITY
NON-CURRENT LIABILITIES
Loans and Advances
CURRENT LIABILITIES
Trade and other Payables
Provision for Taxation
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment
Long term deposits and repayments
CURRENT ASSETS
Stock in trade
Trade debts
Advances and other Receivables
Cash and bank balances
TOTAL ASSETS
Horizontal analysis of the balance sheet of Nippon Paints presents the clear view of the financial
situation of the company and it helps in analyzing the statements with a birds eye view for
estimating the growth or the downfall of the operating activities of the company.
Following are some important points we can infer from the horizontal analysis of the financial
statements of Nippon Paints Limited Pakistan.
1. Nippon Paints accumulated profit increased with the amount of Rs. 12,091,032 which
is 29.9% increase from the year 2012.
Page 90 of 159
4. As compared to the previous year, the total liabilities increased and the increase is 27.4%
5. The value of property, plant and equipment increased with an amount of 24.04% and the
long term deposits and repayments increased by 22.6%.
6. Total non-current assets increased by 23.9%from year 2012 to 2013.
7. Stock in trade decreased by -17.9%and trade debts increased by a amount of 35.8%
which means that the company increased its credit sales and there is a large number of
debts to be recovered from different parties.
8. Advances and receivables increased by 97.5% and cash and bank balances increased by
138.1%.
9. Overall total assets increased by 41.1% which are greater than the increase in the total
liabilities and it is good for the company for the purpose of its liquidity and prosperity.
2012
Rs.
Amount
Rs.
Rs.
SALES
626,263,417
(500,718,126
544,323,279
(435,324,447
81,940,138
15.1 %
COST OF SALES
65,393,679
15.0 %
GROSS PROFIT
125,545,291
108,998,832
16,546,459
15.2 %
OTHER INCOME
352,100
83,755
268,345
320.4 %
109,082,587
33,003,599
16,814,804
9,904,772
15.41 %
30.0 %
ADMINISTRATIVE
AND
125,897,391
GENERAL 42,908,371
Page 91 of 159
EXPENSES
SELLING
AND
DISTRIBUTION
EXPENSES
62,736,481
53,180,431
9,556,050
18.0 %
OTHER EXPENSES
1,366,814
1,535,975
(169,161)
-11.0 %
107,011,666
87,720,005
19,291,661
22.0 %
OPERATING PROFIT
18,885,725
21,362,582
(2,476,857) -11.59 %
FINANCE COST
336,097
517,207
(181,110)
18,549,628
20,845,375
(2,295,747) -11.0 %
Current Year-Normal
4,754,652
4,599,435
155,217
3.38 %
Final on Exports
1,703,069
2,002,544
(299,475)
-14.95 %
Surcharge
282,526
282,526
6,740,247
6,601,979
138,268
2.09 %
11,809,381
14,243,396
(2,434,015) -17.09 %
12.48
28.71
(16.23)
-35.0 %
TAXATION
and
-56.5 %
From the horizontal analysis of the profit and loss account of Nippon Paints we can clearly judge
the results of its operating activities and the amount of profits, costs and revenues earned and
their difference, increase or decrease from the previous years values. Some key facts are
described as under:
a) Nippon Paints sales increased by the amount of Rs. 81,940,138 this year, which is 15.1%
more than the sales in 2012.
b) The cost of goods sold also increased with almost same amount, it increased by 15.0%
from the previous year.
c) The gross profit increased by 15.2 % from 2012 to 2013 because of the increased sales of
the company.
d) Administrative and general expenses increased by 30.0%.
e) Selling and distribution expenses increased by 18.0 %
Page 92 of 159
Page 93 of 159
Vertical Analysis
NIPPON PAINTS (PVT) LIMITED
BALANCE SHEET AS AT 30 JUNE, 2013
Common
Size
Percentages
2013
RS
2012
RS
2013
RS
2012
0
94,613,700
52,479,842
147,093,54
50,000,000
49,613,700
40,388,810
74.95 %
14.88 %
15.73 %
21.16 %
20.99%
17.09%
90,002,510
44.10 %
38.08%
21,700,000
3,000,000
6.50 %
1.27%
158,002,37
136,738,65
5
6,740,247
164,742,62
7
6,601,979
143,340,63
47.37 %
2.02 %
57.86%
2.79%
2
186,442,62
6
146,340,63
49.39 %
60.65%
TOTAL LIABILITIES
2
333,536,16
6
236,343,14
55.90 %
61.92%
100.00 %
100.00%
28,686,998
1,266,203
24,953,201
23,125,336
1,032,470
24,158,133
8.60 %
0.38 %
7.48 %
9.78%
0.44%
10.22%
Page 94 of 159
61,255,364
75,655,772
137,952,35
74,623,753
55,686,709
18.37 %
22.68 %
31.57%
1
28,719,476
303,582,96
69,814,098
12,060,453
212,185,01
41.36 %
8.61 %
29.54%
5.10%
3
333,536,16
3
236,343,14
91.02 %
89.78%
100.00 %
100.00%
23.56%
Vertical analysis of Nippon Paints financial statements provides a better look of its operations
and activities. It can be clearly seen that the value of certain segment is of what percent of its
total amount. This is very helpful indeed for the estimate of each asset and liabilitys portion of
the total value of its head. With the help of it we can better understand the financial statements
which cannot be clearly understood by merely looking at a simple balance sheet.
1. Total equity of 44.1% of the total equity and liabilities of Nippon Paints in 2013
while it was 38.1% in the year of 2012.
2. Loans and advances are 6.5% of total liabilities which were only 1.28% in 2012;
therefore we can clearly see that there is a large increase in this part of balance
sheet.
3. Trade and other payables are 47.3% of the total liabilities and these were 57.9% in
the previous year.
4. Provisions for taxation also decreased from 2.8% to 2.1% this year.
5. Total current liabilities are 49.4% and total liabilities are 55.9% of the total equity
and liabilities of Nippon Paints.
6. The value of property, plant and equipment is 8.6% of the total assets and it was
9.8% in the previous year.
7. Total non-current assets are 7.48% of the total assets and the total current assets
are 91.02% of the total assets of 2013.
8. Trade debts were 23.6% in 2012 but they are 22.68% in 2012.
9. Advances and other receivables are 41.4% of the total assets while these were
29.5% in the previous year.
10. Cash and bank balances increased from 5.10 % to 8.61 % this year.
Page 95 of 159
Size
Percentage
2013
2012
RS
RS
2013
2012
RS
Rs
100.00
SALES
626,263,417
(500,178,126
544,323,279
100.00 %
COST OF SALES
(435,324,447)
79.87 %
79.98%
GROSS PROFIT
125,545,291
108,998,832
20.05%
20.02%
OTHER INCOME
352,100
83,755
0.06%
0.02%
125,897,391
109,082,587
20.10%
20.04%
EXPENSES
42,908,371
33,003,599
6.85%
6.06%
62,736,481
53,180,431
10.02%
9.77%
OTHER EXPENSES
1,366,814
1,535,975
0.22%
0.28 %
OPERATING PROFIT
18,885,725
21,362,582
3.02%
3.92%
FINANCE COST
336,097
517,207
0.05%
0.10%
18,549,628
20,845,375
2.96%
3.83%
TAXATION
6,740,247
6,601,979
1.08%
1.21%
11,809,381
14,243,396
1.89%
2.62%
ADMINISTRATIVE
PROFIIT
AFTER
AND
TAX
EQUITY STATEMENT
GENERAL
CARRIED
TO
Page 96 of 159
With the help of vertical analysis of the profit and loss statement of Nippon paints, we can see
that the different costs and revenues are of how much percent of the total sales and thus we can
be able to tell straightforward that which portion of costs are damaging the overall profits and
need to be minimized.
a. Cost of goods sold is same with respect to last year which is 80 %.
b. Similarly, gross profit same 20% last year.
c. Administrative and general expenses were 6% in the previous year but these are
6.9% in the year of 2013.
d. Selling and administrative expenses are 10.1% as compared to the 9.8% of the
previous year; and finance cost is 0.05% this year as compared to the 0.10% last
year.
e. Operating profit is 3.02% this year while 3.92% previous year.
f. Profit before tax is 2.96% of the total sales this year and 3.83% in the previous
year. In the coming pages we will see that this figure will also be demonstrated by
the operating margin ratio.
g. Net profit is 1.89% of the total sales this year and 2.62% last year; this figure will
also be the same in the net profit margin ration in the coming ratio analysis.
Page 97 of 159
Ratio Analysis
Gross Margin/Gross Profit Ratio:
(2012)
(2013)
Gross Profit
108,998,832
Net Sales
544,323,279
Gross Profit
125,545,291
Net Sales
626,263,417
20%
20.04%
0.1
0.2
0.05
0
2012
2013
The gross margin is not an exact estimate of the company's pricing strategy but it does give a
good indication of financial health. Without an adequate gross margin, a company will be unable
to pay its operating and other expenses and build for the future. It is a financial metric used to
assess a firm's financial health by revealing the proportion of money left over from revenues
after accounting for the cost of goods sold.
Page 98 of 159
Operating
(2012)
Income
20,845,375
Net Sales
544,323,279
3.8%
Operating
(2013)
Income
18,549,628
Net Sales
626,263,417
Page 99 of 159
2.9%
0.05
0.05
0.04
0.04
0.03
0.03
0.02
0.02
0.01
0.01
0
0.04
0.03
2012
2013
Operating margin is a measurement of what proportion of a company's revenue is left over after
paying for variable costs of production such as wages, raw materials, etc. A healthy operating
margin is required for a company to be able to pay for its fixed costs, such as interest on debt. A
ratio used to measure a company's pricing strategy and operating efficiency.
Operating margin gives analysts an idea of how much a company makes (before interest and
taxes) on each dollar of sales. When looking at operating margin to determine the quality of a
company, it is best to look at the change in operating margin over time and to compare the
company's yearly or quarterly figures to those of its competitors. If a company's margin is
increasing, it is earning more per dollar of sales. The higher the margin, the better it is Often,
nonrecurring cash flows, such as cash paid out in a lawsuit settlement, are excluded from the
operating margin calculation because they don't represent a company's true operating
performance.
Nippon Paints has an operating margin of 2.9% in 2013; this means that it makes Rs. 0.029
(before interest and taxes) for every Rupee of sales. The operating profit ratio shows a decline as
compared to the previous year. The reason is that the company could not manage to increase its
operating profit in accordance to the sales and operating expenses. The operating profit of the
firm remained almost same as the previous year. If the company had been able to decrease the
(2013)
Net Profit
14,243,396
2.6%
Net Sales
544,323,279
Net Profit
11,809,381
Net Sales
626,263,417
1.8%
0.03
0.03
0.02
0.02
0.02
0.01
0.01
0
2012
2013
The net margin ratio reveals that how much of each dollar earned by the company is translated
into profits. Net margins will vary from company to company, and certain ranges can be
expected from industry to industry, as similar business constraints exist in each distinct industry.
Net Profit
Total Assets
14,243,396
236,343,146
6.0%
2013
Net Profit
Total Assets
11,809,381
333,536,164
3.5%
0.06
0.05
0.04
0.04
0.03
0.02
0.01
2012
0
1
In case of Nippon Paints, the Return on Assets in the year 2012 was 6% which decreases 3.5%
this year. The company faced a decline in its Return on Assets Ratio; the reason is that the total
assets of the company increased with a huge amount but the net profit remained almost the same
as previous year. This caused the decrease in the Return on Assets ratio from the previous year.
EBIT
Total Assets
20,845,375
236,343,146 -
Current
143,340,636
Page 103 of 159
22.4%
2013
EBIT
Total Assets
18,549,628
10.98%
Current
333,536,164 -
Liabilities
164,742,622
0.22
0.2
0.15
0.11
0.1
0.05
0
2012
2013
Return on capital employed is a ratio that indicates the efficiency and profitability of a
company's capital investments.
Return on capital employed should always be higher than the rate at which the company
borrows; otherwise any increase in borrowing will reduce shareholders' earnings. A variation of
this ratio is return on average capital employed (ROACE), which takes the average of opening
and closing capital employed for the time period.
The return on capital employed of Nippon Paints decreases from 22.4 % to 11% this year.
2012
Net Income
Total Equity
14,243,396
49,613,700
28.7%
2013
Net Income
Total Equity
11,809,381
94,613,700
12.48%
Return on Equity
0.3
0.29
0.25
0.2
0.15
0.13
0.1
0.05
0
1
2012
2013
Return on equity is the amount of net income returned as a percentage of shareholders equity.
Return on equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested. ROE is expressed as a percentage.
The Return on equity is useful for comparing the profitability of a company to that of other firms
in the same industry.
Page 105 of 159
Current Ratio:
2012
2013
Current Assets
Current
212,185,013
Liabilities
143,340,636
Current Assets
Current
303,582,963
Liabilities
164,742,622
1.48
1.84
Current Ratio
2
1.84
1.8
1.6
1.48
1.4
1.2
1
0.8
0.6
0.4
0.2
2012
2013
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations. The ratio is mainly used to give an idea of the company's ability to pay back its
short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables).
The higher the current ratio, the more capable the company is of paying its obligations. A ratio
under 1 suggests that the company would be unable to pay off its obligations if they came due at
that point. While this shows the company is not in good financial health, it does not necessarily
212,185,013 -
Prepayments)
Current
74,623,753
Liabilities
143,340,636
0.96
Current Assets
(Inventories
2013
303,582,963
Prepayments)
Current
61,255,364
Liabilities
164,742,622
1.47
Quick Ratio
1.2
1
1.47
0.96
0.8
0.6
0.4
0.2
0
2012
2013
It is an inflexible indicator that determines whether a firm has enough short-term assets to cover
its immediate liabilities without selling inventory. The acid-test ratio is far more strenuous than
the working capital ratio, primarily because the working capital ratio allows for the inclusion of
inventory assets.
Companies with ratios of less than 1 cannot pay their current liabilities and should be looked at
with extreme caution. Furthermore, if the acid-test ratio is much lower than the working capital
ratio, it means current assets are highly dependent on inventory.
The term comes from the way gold miners would test whether their findings were real gold
nuggets. Unlike other metals, gold does not corrode in acid; if the nugget didn't dissolve when
submerged in acid, it was said to have passed the acid test. If a company's financial statements
pass the figurative acid test, this indicates its financial integrity.
The acid test ratio of Nippon Paints also increased from the previous year as the acid test ratio
was 0.96 in 2012 which is now increased to 1.47 in 2013.
Cash Ratio:
Cash
Marketable
2012
Securities
Current
81874551
Liabilities
143,340,636
Cash
0.57
Marketable
2013
Securities
Current
166,671,827
Liabilities
164,742,622
1.01
Cash Ratio
1.2
1.01
1
0.8
0.6
0.57
0.4
0.2
2012
2013
Cash ratio is the ratio of a company's total cash and cash equivalents to its current liabilities. The
cash ratio is most commonly used as a measure of company liquidity. It can therefore determine
if, and how quickly, the company can repay its short-term debt. A strong cash ratio is useful to
Sales
Average
Credit
544,323,279
Net
Receivables
Net
2013
Sales
Average
7.80
69,814,098
Credit
626,263,417
Net
Receivables
137,952,351
4.54
7.8
7
6
5
4.54
4
3
2
1
0
2012
2013
Accounts
2012
Receivables x
69,814,098
365
Annual Credit
365
Sales
544,323,279
x
47 Days
Accounts
2013
Receivables x
137,952,351 x
365
Annual Credit
365
Sales
626,263,417
80 Days
80
80
70
60
50
47
40
30
20
10
0
2012
2013
Average collection period is the approximate amount of time that it takes for a business to
receive payments owed, in terms of receivables, from its customers and clients.
Due to the size of transactions, most businesses allow customers to purchase goods or services
via credit, but one of the problems with extending credit is not knowing when the customer will
make cash payments. Therefore, possessing a lower average collection period is seen as optimal,
because this means that it does not take a company very long to turn its receivables into cash.
Ultimately, every business needs cash to pay off its own expenses (such as operating and
administrative expenses).
Nippon Paints average collection period also has a bad position this year which is 80 days. This
indicates that the company is now less efficient in collecting its receivables from the debtors.
Sold
Average
435,324,447
Inventory
74,623,753
Page 113 of 159
5.84
Cost of Goods
2013
Sold
Average
500,718,126
Inventory
61,255,364
8.18
8
7
6
5
4
3
2
1
0
8.18
5.84
2012
2013
1
2
Inventory Turnover is a ratio showing how many times a company's inventory is sold and
replaced over a period of time.
This ratio should be compared against industry averages. A low turnover implies poor sales and,
therefore, excess inventory. A high ratio implies either strong sales or ineffective buying. High
inventory levels are unhealthy because they represent an investment with a rate of return of zero.
It also opens the company up to trouble should prices begin to fall.
Nippon Paints stock turnover ratio has a better position this year as the previous year. The
company has a very reasonable stock turnover ratio of 8.18 this year which means that the firm is
having good sales, the inventory does not stay much at the go downs, ineffective purchases are
rare and the inventory is turned over more than 8 times in a year.
74,623,753x
365
Cost of Goods
365
Sold
435,324,447
Inventory
2013
63 Days
61,255,364
365
Cost of Goods
365
Sold
500,718,126
x
45 Days
63
60
50
45
40
30
20
10
2013
2013
Inventory conversion period is the time period in which the inventory is sold and new ready-tosale inventory takes place. This ratio shows that how quickly the inventory is sold out and the
companys sales are how frequent. If the inventory conversion period is long, it means the stock
Page 115 of 159
2012
Net Sales
Total Assets
544,323,279
236,343,146
2.30
2013
Net Sales
Total Assets
626,263,417
333,536,164
1.88
2.3
1.88
2
1.5
1
0.5
0
2012
2013
Debt Ratio:
Total
2012
Liabilities
Total Assets
146,340,636
236,343,146
0.62
186,442,622
333,536,164
0.59
Total
2013
Liabilities
Total Assets
Debt ratio is a ratio that indicates what proportion of debt a company has relative to its assets.
The measure gives an idea to the leverage of the company along with the potential risks the
company faces in terms of its debt-load.
A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a
debt ratio of less than 1 indicates that a company has more assets than debt. Used in conjunction
with other measures of financial health, the debt ratio can help investors determine a company's
level of risk.
The debt ratio of Nippon Paints is 0.59 in the financial year 2013 and it was 0.62 in the financial
year 2012. The debt ratio has become favorable than the previous year.
Page 117 of 159
Debt/Equity Ratio:
Total
2012
Liabilities
Shareholders
146,340,636
Equity
49,613,700
2.95
Total
2013
Liabilities
Shareholders
186,442,622
Equity
94,613,700
1.97
Debt/Equity Ratio
3.5
3
2.95
2.5
1.97
2
1.5
1
0.5
0
1
2012
2013
Net
2012
Capital
Total Assets
Net
2013
Working
68,844,377
236,343,146
0.29
138,840,341
333,536,164
0.42
Working
Capital
Total Assets
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
0.29
0.36
2012
2013
1
2
Net working capital ratio is a measure of both a company's efficiency and its short-term financial
health. Positive working capital means that the company is able to pay off its short-term
liabilities. Negative working capital means that a company currently is unable to meet its shortterm liabilities with its current assets (cash, accounts receivable and inventory).
If a company's current assets do not exceed its current liabilities, then it may run into trouble
paying back creditors in the short term. The worst-case scenario is bankruptcy. A declining
working capital ratio over a longer time period could also be a red flag that warrants further
analysis. For example, it could be that the company's sales volumes are decreasing and, as a
result, its accounts receivables number continues to get smaller and smaller.
Working capital also gives investors an idea of the company's underlying operational efficiency.
Money that is tied up in inventory or money that customers still owe to the company cannot be
used to pay off any of the company's obligations. This can be seen by comparing the working
capital from one period to another; slow collection may signal an underlying problem in the
company's operations.
Nippon Paints has a good net working capital ratio as compared with that of 2012.
2012
2013
Net Earnings
Number
of
14,243,396
Shares
496,137
Net Earnings
Number
of
11,809,381
Shares
946,137
28.71
12.48
EPS
40
35
30
28.71
25
20
15
12.48
10
5
2012
2013
Earnings per share are the portion of a company's profit allocated to each outstanding share of
common stock. Earnings per share serve as an indicator of a company's profitability. When
calculating, it is more accurate to use a weighted average number of shares outstanding over the
reporting term, because the number of shares outstanding can change over time. However, data
Page 121 of 159
SWOT Analysis
In this analysis, the whole organization is being squeezed into few words which can help it to
survive in this competent world.
Strengths
Strengths are those specialties that by availing them we can capitalize and have a result in the
form of profitability. Strengths are internal capabilities. The strengths of Nippon Paints are:
The environment policy and safety of health policies are extra-ordinary, it is a standard to
follow and no one can compete in this department with Nippon Paints.
Nippons first priority is the customer satisfaction and it is practicing well. The customer
satisfaction can be measure from the following practices:
Free color scheme advice to customers
Prompt feedback, if there is any complain from the customer.
Customer focus web site
talk about the quality of the products, Nippon is leading quality conscious
o
o
o
When
Weaknesses
No promotional activities
The procedure of delivery is very complex for a customer to understand, theres need to
be simplified or modify.
No brand recognition.
No good marketing.
Opportunities
Nippon Paints has the vast range of opportunities to restructure itself as a competitive firm
given as:
To use their technology of paint research and develop new high-class paints used in local
industries
To have the good management in the organization having good benefits and rewards
They have a greater opportunity to expand its products all over the country because the
organized sector is producing only 20% of paint and remaining is being prepared by
mushroom sector.
Nippon Paints can come into auto paints market due to their past experience and R&D
skills.
Nippon Paints can increase its sales by accelerating its marketing efforts.
Threats
The new emerging companies are prevailing the opportunities from those areas where
Nippon has lose control.
The competitors are using the better promotion skills, which help them to defend
against Nippon.
Huge job burden on the employees is de-motivating them and they just maintain their
existence in the factory.
Pakistan is a big country when we talk about population, and people here belong to
different status. From that point of view there is a lot of opportunity for ICI in
Pakistan.
The biggest threat to Nippon Paints is the political and economic instability of
Pakistan.
TRAINING PROGRAMME
Learning as Internee
Nippon Paint Pakistan is a symbol of quality paints. ISO is something that is minimum quality
level for the business to maintain. There are some quality personnel working in Nippon Paint
Pakistan and I learned a lot for them. I am really thankful to Nippon Paint Pakistans Staff for
their kind support and guidance. That experience that I got from here will help me throughout
career.
During my internship at Nippon Paint Pakistan, I was assigned a job to learn and handle the
digital advertising dimension of their marketing campaign. The purpose of my work is to gauge
the performance of marketing efforts of Nippon Paint Pakistan. Everyone assisted me in my task
whenever I encountered any problem. Date wise detail of work done at Nippon Paint Pakistan
during my internship is as follows:
Date
30-Jun14
1-Jul-14
2-Jul-14
Day
Activity
Monday
Tuesday
Wednesda
3-Jul-14
y
Thursday
4-Jul-14
Friday
5-Jul-14
Saturday
6-Jul-14
Sunday
7-Jul-14
Monday
8-Jul-14
Tuesday
9-Jul-14
10-Jul14
11-Jul14
12-Jul14
13-Jul14
14-Jul14
15-Jul14
16-Jul14
17-Jul14
18-Jul14
19-Jul14
20-Jul14
21-Jul14
22-Jul14
23-Jul14
24-Jul14
25-Jul14
26-Jul14
Wednesda
y
Thursday
Friday
Saturday
Sunday
Monday
Tuesday
Wednesda
DHA
Reviewing and auditing Momento advertisements in DHA Y block, H
Thursday
Friday
Saturday
Sunday
Monday
Tuesday
Wednesda
y
Thursday
Friday
Saturday
Sunday
Monday
Tuesday
Eid Holiday
Wednesda
y
Eid Holiday
Thursday
Eid Holiday
Friday
Eid Holiday
Saturday
Sunday
Monday
Tuesday
Wednesda
y
Thursday
Friday
Saturday
Sunday
Monday
In short, the training program at NIPPON Paints was a wonderful and lifetime experience.
Everyone dealt with us politely, solved all the ambiguities and guided very clearly and
Following pages will contain the questionnaires and digital advertising plan developed by me
with the assistance of my manager. Survey report of questionnaire will highlight the findings of
my work. Questionnaire was targeted to general public.
Objective
The sole objective of this advertising plan to create brand awareness and position brand in the
minds of the customer, the brand that we are going to be working on in this advertising plan
would be Nippon Paint Pakistan. While the Nippon Paint Pakistan is doing stupendous job in
Out-of-Home Advertising, it can reap more benefits by indulging in digital advertising.
The priority of this digital advertising campaign is to reach larger group of target audience as
much as possible while keeping in mind the budget at hand. The strategies suggested in this
advertising plan will help to create awareness about the brand among the masses, which will
eventually have positive impact on the sales.
Almost all the advertising agencies rely on some of the above mentioned tools. It must be
remembered that it not the tools that really counts, what makes things more innovative, creative
and interactive is how you use and integrate these tools with your environment and opportunities.
The time duration for this plan will be of 7 days with the budget of Rs. 25,000.
Dawn.com
Tribune.com.pk
Social Media: In case of social media we have selected Facebook and we will be spending the
given budget to get as many likes to Nippon Facebook page as possible.
Online Contest: Some of the money will be allocated to the online contest.
Google Adwords: And lastly we will be taking advantage of Google Search Engine by
allocating some of the budget to the Google Adword.
All of the above 4 methods will be discussed in detail with justification in the Marketing Aspect
of the Digital Plan.
Media Groups
The media groups available at our disposal are as follows:
1)
2)
3)
4)
Dawn
Express tribune
The news
Business Recorder
Reasons
When we were selecting the media group, we took into consideration following factors.
-
Ad Units
Leader board (Top)
Medium Rectangle
Box)
Leader board (Bottom)
Big Box II
Local
ROS
$2.30
$2.30
Homepage
$4.60
$4.60
728x90 pixels
300x250 pixels
$0.86
$1.43
$1.72
$2.87
Size in pixels
728 x 90
300 x 250
160 x 600
250 x 90
468 x 60
300 x 60
All the rates are charged on CPM (cost per thousand impressions) basis and not on CPC.
Audience
Readers are mostly educated, affluent and influential.
They from across the country and around the globe are students, travelers,
business decision makers, opinion leaders and influential consumers more
so than the typical online user. They need to know up-to-the-minute world
news and information to make key decisions about business and life.
Readers are active and engaged web users, people who come to Media
Groups sites for more than just the latest headlines. They update and followup with the series of our experts opinion by our columnists, with our editorial
experts and with each other.
-
Mostly male
Active Hours
Time
Level of Engagement
10am 3pm
3pm 6pm
6pm onwards
High
level
engagement
Medium
level
engagement
Low
Level
engagement
How to Execute
Given the stats above, we came to realize that Dawn had the most pageviews per month followed
by Express Tribune, Business Recorder and The News.
Now given the pageviews and rates there was no problem in selecting Dawn the problem lied
when selecting between Express Tribune, Business Recorder and The News.
Given the bad publicity Jang Group had gone through in the last few months, selecting it was out
of the equation. That leads to the remaining 2 Media Groups, Express and Business Recorder.
Comparison Between Express Tribune and Business Recorder
Media Group
Pageviews
Rates for Regular Availability of Rich Media
Express Tribune
Business
6.5 million
1.2 million
Ads
$5
$4
Ads
Yes
No
Recorder
In terms of Rates and Pageview there was a significant difference between the two of the Media
Groups and the difference also lied in the types of Ads available, for Business Recorder there
were the no Rich Media Ads available.
The table above clearly shows that selecting Express Tribune can be more fruitful as it
provides interactive Rich Media Ads plus possesses higher pageviews.
Benefits
The above Ad Placements will provide with over 21,000 reach in 7 days and the Ads that will
show up in these Ad Placements will be regarding the Nippon products, specifically regarding
Momento and if the user clicks on the Ad they will be redirected to Nippon Paint Pakistan
Products Page, making the aware of Nippons products and positioning it in their minds.
SOCIAL MEDIA
Social Media provides more innovative and interacting opportunities to attract rather younger
audience. While the Ad Placements on Media Groups will reach out to the Adults in the 40s,
advertising on Social Media will reach out to the Young Adults.
Facebook
Twitter
Google+
Pinterest
Tumbler
Reasons
The reason for selecting Facebook over Twitter and Google+ is that over 10 million Pakistanis
are the active users of the Facebook as of Sept, 2013 and as we speak millions of other
Pakistanis are signing up on Facebook.
And out of these 10 million almost 27% of them lie between the age of 25- 34 years followed by
6% in the age group of 35 44 years, which matches perfectly with our target age of 28 years
and above, providing us with total of 33% of the entire Pakistani population on Facebook which
is a huge number.
Active Hours
Time
Age Group
25 34 years
35 44 years
Level of Engagement
Low Level Engagement
Medium Level Engagement
3pm 6pm
25 34 years
35 44 years
6pm onwards
25 34 years
35 44 years
10am 3pm
How to Execute
Facebook advertising will be executed in a manner that will render maximum likes to the Nippon
facebook page. The allocated budget will not be used to boost posts or TVCs, it will only be used
to promote the brand page for 5 days with the help of Facebook Ads.
Benefits
The Facebook advertising campaign will go on for 5 days will provide with estimated 1250 likes.
Now this may seem little expensive to spend this much money only for 1250 likes given the
small budget, but the benefits these 1250 likes will provide are as under:
-
People who will like the Nippon page, their friends will also be able to
see that their friend has liked Nippon Page, leading to more targeted
likes.
People who will like the page will be able to see latest posts, TVCs and
other stuff in their news feedback which will increase interaction and
brand positioning.
Through facebook advertising Nippon will be able to create long term
relationship with its fans.
ONLINE CONTEST
Another way to attract more audience and create brand awareness is through contests and lucky
draws. Contests and lucky draws are exciting yet an effective way to gain peoples attraction. It
provides equal opportunity to all the people who participate in it while at the same time creating
buzz in the market.
Audience
All those people carrying medium to high end smartphones and tablets will be able to participate
in the contest.
How to Execute
This contest will take advantage of Nippon recently developed app called Nippon Paint Color
Creations to leverage its brand name. Following are the steps on how the contest will work:
-
First people will have to download the Nippon Paint Color Creations
app.
Then they will take a picture of their house or room and color it with
Benefits
The benefits that this contest will be able to reap are as follows:
Page 139 of 159
With the help of this contest more and more people will download the
product awareness.
People who will upload photos on Nippon Paint Pakistan will definitely
spread their photo among their friends and family members to get
maximum likes. As a result more and more will get to know the brand.
This might also trigger bandwagon effect, leading to more and more
people liking Nippon Paint Pakistans page and getting engaged in the
contest.
Online contest will allow for the integration of Nippon Facebook page
and app.
Contest will allow for high level of engagement between the brand and
its users.
ADWORDS
Adwords provides advertiser to the display their ads on both Google Search Engine and on the
websites that use Google Adsense. The Adwords allows the advertisers to bid on the keywords
and then when some searches for that keyword, the advertisers ads show on both Google and on
other websites.
Audience
In case of Adwords, the audience that we will be focusing on is the people who actively search
and look for interior designs to renovate their houses. By showing Nippon Paint Pakistan Ads to
the people who are already interested in renovating their houses will help leverage the brand.
How to Execute
Adwords allows place bids along with setting up daily budget, keywords and other filtering
options. For the Nippon digital advertising plan we will be focusing on only one keyword due to
limited budget. The keyword we will be bidding for is:
-
Interior Designing
But because people in Pakistan barely use Google search engine when it comes to house paints
and wall paints, we wont be spending too much on Google Adwords.
Benefits
With just a small amount of budget allocated to the Google Adwords, we will be anle to generate
2000 impressions and estimated 27 clicks and all the ads showing up on Google will lead to
Nippon Paint Pakistans product page so that those who are already interested in interior
designing call take benefit of Nippons products such as Momento, Weatherbond etc
Regio
Ad Units
Cost
Placement
(PKR)
Est.
Impressio
n
an
728 x 90
728 x 90
300 x 250
Express
Pakist
728 x 90 Rich
Tribune
an
Media Ad
800
1000
Facebook ads
714
250
714
Dawn.com
Pakist
460
230
230
3000
Pakist
Facebook
an
Online
Pakist
Contest
an
Adwords
Pakist
Display
On
Page
an
Search Ads
TOTAL COST AND IMPRESSIONS
total
Site
Regio
n
Dawn.co
Pakist
an
Placement
Date
728 x 90
728 x 90
300 x 250
Est. 5250
2648
Impress Cost
ion
21,000
644
0
90
Express
Pakist
Rich
Tribune
an
Ad
days
Pakist
for
an
ads
days
Online
Pakist
Contest
an
Pakist
Display
an
Adwords
286
other sites
Run
Ad Units
728
Media for
for
days
and for
560
Home Page Top
7000
0
500
7 On
1250
Facebook
Page
0
600
5000
7 On Google and
0
149
2000
8
245
total
36,250
38
Gender: _________
Area: ________
Yes
No
Broadcast
Media
Print Media
Nawa-i-Waqt
Jang
Akhbar-e-Jahan
Tv
Family mag
Outdoor Media
Billboards
Hoardings
Transit Adv.
Posters
Word Of Mouth
Relative
Friend
Other
Ary
Geo
Yes
No
Positive : _________________________________
Negative :_________________________________
No impact
Akhbar-e-Jahan
Mag, the weekly
Aurora
Family magazine
Others Specify_____
Hum
Dunya
Nawa-i-waqt
Jang
Daily Express
Dawn
Other _____
Yes
No
Q10: Please rate the current progress of advertising efforts of Nippon Paints.
Very effective
Good
Average
Ineffective
Very rarely
Rarely
Often
Very often
Yes (Specify________________________________________)
No
Q13: Have you ever tried to match your wall paints with your sofa, curtains etc?
Yes
No
Q14: If yes, did you search for the shades you are looking for?
Yes
No
Yes
No
Q16: Have you ever heard about or experienced the ALL COLORS scheme launched by
Nippon Paints providing more than 3000 shades?
Neutral
Agree
Strongly Agree
Survey Report
Total respondents were 263.
Q1: Do you recognize this logo?
Yes; 31%
No; 69%
Others; 10%
Broadcast Media; 34%
Word of mouth; 30%
Geo; 44%
Nawa-i-waqt; 9%
Family Mag; 19%
Jang; 42%
No; 41%
Yes; 59%
Positive; 32%
No Impact; 64%
Negative; 4%
Others; 13%
Akhbar e Jahan; 28%
Others; 9%
Nawa-i-waqt; 21%
Dawn; 15%
Promotion; 13%
Place; 11%
Product; 40%
Price; 36%
Joint; 36%
Children; 11%
Male; 36%
Female; 17%
Yes; 17%
No; 83%
Very effective; 5%
Ineffective; 22%
Good; 27%
Average; 46%
Often; 25%
Rarely; 37%
Q12: Have you noticed anything related to Nippon Paints at the arrival lounge?
Yes; 8%
No; 92%
Q13: Have you ever tried to match your wall paints with your furniture?
No; 22%
Yes; 78%
Q14: If yes, did you search for the shades you are looking for?
Page 155 of 159
No; 15%
Yes; 85%
No; 19%
Yes; 81%
Strongly Agree; 4%
Agree; 31%
Disagree; 31%
Neutral; 19%
Conclusion
Nippon Paints Limited is the largest manufacturer of a wide variety of decorative and industries
paint in Pakistan. Nippon paints aims to delight and inspire customers to transform their
surroundings at home and work with performance products and colors. With some of the
Pakistans top paint and decorative product brands, serving both the professional and DIY
markets, Nippon Paints has products to prepare and care for all building materials.
At Nippon they believe that their job does not stop at merely supplying the paints. This is
important to them as it is to the user that good results should be obtained from their products. We
set great value to their technical Service Department, which is staffed by individuals of wide
practical experience in the use of paint under all conditions. This experience is readily available
to paint users requiring advice and assistance in the choice of paint to the preparation of painting
specifications.
Their products are based on continuous research and product development carried out by their
R&D Department. ICI is employing and putting into use best available technology in the world
for their users.
Nippon paints has a very bright future in spite of the fact that it has a large number of local and
foreign competitors. It can improve its operations and increase its sales in the coming time as
people are becoming more conscious about the brand and quality of the products and better
performance of the paint.
Nippon Paints has a very friendly and Islamized environment that enriches the mind and soul at
the job and urges the employees to work honestly. The owners of the company are not greedy of
profit and money.
Nippon paints is a proud product manufactured in Pakistan which is total quality based and it has
very good options to expand and progress in the future.
Recommendations
In the end, I would like to recommend some suggestions for the betterment, growth and
improved business activities of Nippon paints.
Nippon paints, without any doubt, is a high quality brand in the paints industry of
Pakistan, it must have some long term growth plans and strategies to achieve them.
The employees should be given to time for the entertainment activities for they could be
relaxed and perform their job with open heart as there is very conservative environment.
The job timing is lengthy and tiresome. It should be minimized to get the maximum
improved.
It must start an attractive promotion and advertisement campaign in order to better
material.
Keeping in hand the competitive advantage, it should improve those qualities for which it
efficiently.
It should increase its market from Punjab to all over Pakistan and increase its distribution