Thanks to our respected

ma’am Raima Adeel

Group Members
 Sharjeel Habib( Group Leader) Roll No: MBKE-18-18
 Muhammad Shahid Roll No: MBKE-18-03
 Zeeshan Rafiq Roll No: MBKE-18-08
 Talha Farooq Roll No: MBKE-18-22
 Shahzad Mehboob Roll No: MBKE-18-26
 Abbas Ali Khan Roll No: MBKE-18-28
Report on

Orix Leasing Company

Table of Contents
 History of Orix Leasing Company
 History of Orix in Pakistan
 Products
 Advantages and Disadvantages of Leasing
 SWOT Analysis
 PESTEL Analysis
History of Orix
 Established in Japan 1964
 Working with 43 companies in 26 countries
 It is listed on Tokyo and New York Stock Exchange
Orix in Pakistan
 Started operation in 1987 as a joint venture between Orix
corporation, Japan and local sponsor
 Initial investment 15.45 billion
 OLP has played major role in promoting the leasing
industry in Pakistan
What is Leasing?
 Lessor (owner) give assets to leassee(user) for
a specific period of time against some value
Types
 Financial Lease
 Operating Lease
 Ijarah(Islamic form)
Products
 Certificate of Deposit
 Corporate Lease
 Commercial Vehicle Leasing
 Consumer Auto Lease
 Islamic Finance
 Micro Finance
 Agri Finance
 Rentec
Certificate of Deposit
 Smart savers invest in ORIX Certificates of Deposit
(CODs)
 Service, Security and Stability are the identification of
ORIX CODs
 Offer flexible investment with ranging 3 months to 5 years
 Accidental hospitalization and accidental life insurance
service provided to investors
 Doorstep convenience of profit payments
 Lease / Loan facility against pledge of certificates
 No maximum limit for deposit
 Personalized service at its best
Corporate Lease
 For machinery, vehicles and office automation products
 Offer lease for both medium and long terms
 Fixed and variable rate (KIBOR based) leases
 Sale and lease back
 ORIX will have the economic ownership of the asset
whereas the lessee will avail the economic usage
 Leasing is acceptable within the Islamic modes of
financing as fixed rental payments are made
 ORIX provide leasing throughout Pakistan
 How does it work?
Commercial vehicle leasing
 Leasing can provide up to 90% financing - the use of the
commercial vehicle is obtained only on 10% capital outlay
 Leasing is acceptable within the Islamic modes of
financing
 Leasing leads to tax saving - generally all rentals are tax
deductible.
 lease rentals can be tailored according to income
projections of the lessee
 Leasing as a hedge against inflation - Lessee pays rentals
based on today's vehicle price out of tomorrow's profits.
Consumer Auto Lease
 ORIX Consumer Auto Division offers both leasing and
financing facilities of vehicles.
 An auto lease contract is a non-cancellable contract for a
specific period of time, typically from three to five years
 The lessee will receive the full benefits of all warranties,
guarantees, etc., offered by the manufacturers.
 The auto lease comes with a complementary Tracking
Device option
 ORIX can lease almost all types of vehicles ranging from
small to large ones
Islamic Finance
 ORIX leasing Pakistan Limited (OLP) has established
Islamic Finance on April 1, 2011
 OLP vision is to provide you a full range of Islamic products
in Islamic Way
 OLP Islamic Finance offers following Shariah Compliant
Products.
1.Ijarah
2.Diminishing Musharkah
1.Ijarah
• Offer lease for vehicle, plant and machinery rental basis.
• For medium to long term facility

2.Diminishing Musharakah:
Medium to long term facility for vehicles , plant and
machinery on joint ownership (Shirkat ul Milk) basis.
Diminishing Musharakah contract comprises of following
• Joint ownership agreement between OLP and Customer.
• Ijarah Agreement between OLP and Customer.
• Unit Purchase Agreements between OLP and Client
Micro Finance
 The microfinance program is to strengthen the urban and
rural poor by increasing income.
 Micro Leasing
Micro leasing scheme is for equipment and machinery like
generators, photocopiers.
 Microcredit
ORIX Micro credit loans are based on peer groups of five
women and credit council of 20 borrowers
 Poverty Alleviation Program
Providing soft term financing for income generation to
fully recovered patients
NGO Linkage
ORIX has started providing financing to women of the poor
households. ORIX is working in close relationship with the
following NGOs:
•ASASAH, Lahore (Punjab).
•Centre for Women Cooperative Development (Punjab).
•Indus Resource Centre, Sehwan (Sindh).
•Marvi Samaji Tarakeyati Tanzeem, Hyderabad (Sindh).
•Young Samaji Tanzeem, Juhi (Sindh).
•Villagers Development Organization (Sindh).
Agri Finance
 ORIX’s Agri Lease makes tractors and harvesters
affordable for farmers
 Giving tractors and harvesters to farmers for greater
productivity and better results.
 ORIX has the flexibility to adapt its product according
to its customer’s requirements.
Rentec
 Brand new cranes.
 Skilled and certified operators.
 Over 20 Years Experience in equipment and operators.
 High Quality and Certifies Equipment.
 Health and safety as per international standards.
 Nationwide Network Support.
 Mounted Cranes available in 30 tons, 50 tons and
75 tons.
Competitors
 PAK-GULF LEASING COMPANY LIMITED
 Sindh Leasing Company Limited
 Elegance Leasing Company
Advantages of Leasing
 Less initial expense
 Tax deductible
 Flexible terms
 Easier to upgrade equipment
Disadvantages of Leasing
 Higher overall cost
 You don't own it
 Obligation to pay for entire lease term
SWOT Analysis
 S for Strength
 W for weakness
 O for Opportunity
 T for Threat
Strength
 The company has over 25,000+ employees in over 1800
locations
 Biggest leasing company of Pakistan
 Good and reliable marketing network
 Provide services on door step
 It gives interest above KIBOR rate. While the bank gives
interest below the KIBOR rate
weakness
 Presence of competitors has reduced its market share
 Less number of branches in Pakistan
 No media advertisement
 It is not proper working in Islamic financing in
Pakistan
Opportunity
 Increasing adoption of online services will also enable
Orix to provide new offerings to the customers in
Rental & Leasing industry
 Offer investment certificate, because they have done
very less progress in this field
 New customers and untouched areas of Multan region
are the good opportunities for the company
Threat
 Banking sector is a big threat for Orix
 100 % risk can’t be minimized so risk of default of
client is always there
PESTEL analysis
 P for Political
 E for Economic
 S for Social
 T for Technology
 E for Environmental
 L for Legal
PESTEL Analysis
Political Factor
 Political stability and importance of Credit Services
sector in the country's economy.
 Intellectual property protection
 Product labeling and other requirements in Credit
Services
 Mandatory employee benefits
 Taxation - tax rates and incentives
Economic Factor
 what type of economic system there is and how stable
it is.
 Labor costs and productivity in the economy
 Economic growth rate
 Unemployment rate
 Inflation rate
 Interest rates
Social Factor
 Demographics and skill level of the population
 Education level as well as education standard in the
ORIX Corporation ’s industry
 Culture (gender roles, social conventions etc.)
 Attitudes (health, environmental consciousness, etc.)
 Entrepreneurial spirit and broader nature of the
society. Some societies encourage entrepreneurship
while some don’t.
Technological Factor
 Technology's impact on product offering
 Recent technological developments by ORIX
Corporation competitors
 Technological diffusion
Environmental factor
 Climate change
 Laws regulating environment pollution
 Attitudes toward “green” or ecological products
Legal Factor
 Discrimination law
 Employment law
 Health and safety law
 Data Protection
Conclusion
 Orix has a bright future
 Offers products and services with better features
 High Market share against his competitors
 Online services are opportunity
Any Question ?
Any Question?
Thank You