Bareeze (pvt) limited

The Project Team:

• Zubair Saleem CEO

• Anila Ashiq Director
• Azmat Ali Director
 Introduction of Appliance
Industry
• It is very large and growing business
sector in Pakistan. In Pakistani home
appliance market, there are two types of
companies involved in appliance business
those are local and imported
manufacturers and marketers.
 Air Conditioners:

• An air conditioner (often referred to as

AC) is a home appliance, system, or
mechanism designed to dehumidify
and extract heat from an area. The
cooling is done using a simple
refrigeration cycle.
 Quality raw material is from
Chinese suppliers:
• 1. Ningbo Silva Industrial Co., Ltd.
 Executive summary:

• Title: “Breeze Assembly Plant ”

• Project Assignment:
• Each student of M.com 4th semester is required to
prepare a Project Assignment. The Project assignment is
given to Increase our knowledge about “Project
Management”.
• Objectives:
• Swot analysis of Appliance Industry?
• How Assembly plant or unit works?
• What is a production Process?
• What is Cost of unit, Means of finance, estimated income
statement, Estimated Balance sheet, etc?
• What is production process of Air conditioners?
• Approach to Project:
• The Team of project will, analyze, summarize,
and interpret the data which is collected different
primary and secondary sources.
• Data Collection:
• Both primary and secondary means of data will
be used to collect the Data. Like Books, internet,
personal visits, teacher guidance etc.
• Primary Sources:
• The Team of Project personally visited the
the Air conditioners manufacturing plants
for practical view: Unit selected is;
• Haeir Company
• Internet:
• We have conducted a thorough analysis and extracted
all the relevant information from website and links which
pertain to our project.
• Data Preparation & Analysis:
• After collection of all the data through both primary &
secondary means, team has used MS. Word, MS. Excel,
MS. Power point etc.
• Time Frame:
• Time period allowed is one month 15/04/2010 to
15/06/2010.
• Limitation:
• Team has visited the various people but the information
given by them is just based of approximation.
 History (Brief):

• In 1902, the first modern electrical air

conditioning unit was invented by
Willis Haviland Carrier in
Buffalo, New York. The first "air
conditioner," designed and built in
Buffalo by Carrier, began working 17
July 1902.
 SWOT ANALYSIS OF OUR
COMPANY (breeze):
• Strengths:
• Low labor cost.
• Company is equipped with latest Assembly line
Technology.
• Economies of Scale.
• Registered as private. Company.
• Central location in country.
• Skilled Labor
• Efficient Management
• One and only company in Bahawalpur.
 Weaknesses:

• Electricity failures
• Company has a fixed rate to sell product.
• High cost of split units (for a company
without brand equity and is on initial
stages)
 Opportunities:

• Sole- producer of Air conditioner and

refrigerators in lower Punjab.
• Capture the market of lower Punjab initially then
sindh and upper Punjab, as the plant is based
on central location of the country.
• Including room environmental control technology
in split units.
• Increasing the awareness in people for a
environment friendly and healthy hygienic life.
 Threats:

• The political Conditions.

• Fast changing technologies
• Decreased prices of competitors
• Huge brand names in the market to
compete with.
• Such as Mitsubishi, Pel, L.G,
 Competitive Factor
• The basis on which the customer
differentiates between different
competitors within this industry in the
purchasing decision.
 COMPETITIVE STRATEGY and
GROWTH STRATEGY

• The competitive strategy of breeze is that it has a major range of products

and at relative
• low prices.

• Breeze focuses on cost leadership strategy in its power division appliances.

The prices of its power division appliances are high but they are of very high
quality. Bareeze has a competitive advantage of its brand name.

• Breeze has high quality products in appliances because most of the raw
materials are imported from china and these raw materials are of very high
quality.

• Further breeze company will also look for strategic alliance after it makes a
mark in the appliance industry and gains a foothold in market by achieving a
good market share.
 Stages of Air conditioner
assembling
• The most important stages in Air conditioner production
are:
• Raw Materials
• Air conditioners are made of different types of metal.
Copper or aluminum tubing,, provide superior thermal
properties and a positive influence on system efficiency.
• Self-contained units that house the refrigeration system
will usually be encased in sheet metal that is protected
from environmental conditions by a paint or powder
coating.
• The working fluid is typically a liquid with strong
thermodynamic characteristics like freon, hydrocarbons,
ammonia, or water.
 Design

• All air conditioners have four basic components:

a pump, an evaporator, a condenser, and an
expansion valve. All have a working fluid and an
opposing fluid medium as well.
• Two air conditioners may look entirely dissimilar
in both size, shape, and configuration, yet both
function in basically the same way.
• As the working fluid or refrigerant circulates
through the air-conditioning system at high
pressure via the pump, it will enter an evaporator
where it changes into a gas state,
 Creating encasement parts from
galvanized sheet metal and
structural steel
• 1 Most air conditioners start out as raw
material, in the form of structural steel
shapes and sheet steel. As the sheet
metal is processed into fabrication cells or
work cells, it is cut, formed, punched,
drilled, sheared, and/or bent into a useful
shape or form.
 Making the Parts

• Easily formed metal or plastic.

• metal and plastic parts.
• Sheet stamping Large,
• vacuum forming.
• If the metal used is steel, it is then
galvanized.
• Galvanization
 Punch pressing the sheet metal
forms

• CNC (Computer Numerical Control)

• punch press
• (Computer Aided Drafting/Computer Aided
Manufacturing) program or from an
independently written CNC program.
Fins press Machine cost 2.5 mil $
 Cleaning the parts

Powder coating.
Various cleaning
For additional corrosion protection,
 Bending the tubing for the
condenser and evaporator

The condenser and evaporator both act

as a heat exchanger in air conditioning
systems and are made of copper or
aluminum tubing bent around in coil form
to maximize the distance through which
the working fluid travels.
 NC press brake.
The mandrel is raked back through the
inside of the tube when the bend has been
accomplished.
 Joining the copper tubing with
the aluminum plates
• Technical explaination
• A major part of the assembly is the joining
of the copper tubing with the aluminum
plates.
• The condenser is manufactured in a
similar manner, except that the opposing
medium is usually air, which cools off the
copper or aluminum condenser coils
without the plates.
 Installing the pump

• purchased from an outside supplier.

• Designed to increase system pressure
• circulate the working fluid, by support
brackets.
• It is bolted together
• covered by the wrapper or sheet metal
encasement..
 Quality Control

• Quality of the individual components.

• Outsourced parts
• Dimensional inspection
• Quality assurance representative
• Performance test
• Testing Room:

• After completing the fitting of compressor

in outdoor unit it is being sent to a huge
testing room and is put on assembly line
while it is turned on and its cooling is being
checked before packing it
 Assembly

• Once the exterior parts are made, the air

conditioner is ready for assembly. Most
compressors, the device that compresses the
gas that transfers the heat through the
condensers, are also pre-built. Assembling the
air conditioner is a matter of installing the
compressor,
• Outdoor Assembly line
• Indoor Assembly line
• Packing Assembly line
• Testing Assembly line
 The Future

• Efficiency
• Lowering costs..
• New research.
• The competitiveness of the industry
• Packaging:
• International standards
• Attention to detail
• Aravelling and deliveries,
• The large assembly lines and moving
belts, on which the skilled workers pack
hundreds of unit daily
Ready for Dispatch and Delivery:

• After the split units and refrigerators are

manufactured, they are being being stored
in a large room and ready for dispatch and
delivery to all the country,
• Company profile:
• 1-Name of the company:
• “Breeze (pvt) Ltd. Bahawalpur”
• 2-Mission statement of the company:
• “To provide optimum quality and better products at reasonable
low cost in order to fulfill the customer’s needs and
requirements”
• 3-Vision of the company:
• “To become the market leader by offering unmatched quality,
durability at affordable prices”
• 4-Scope of the company:
• “To cover the domestic market by covering all the cities of Pakistan
and then endeavor for Middle east and African market”
• 5-Address of the company:
• “Breeze (pvt) Ltd. Bahawalpur”
• University Road behind Khurram Petrol pump
• 6-Contact:
• Head office: “Breeze (pvt) Ltd. Bahawalpur”
• Tel: +92-62-2881032
• Fax: +92-62-2881033
• Contact Person: Zubair Saleem
Khan
• ( CEO)
• E-mail: zskhan88@breeze.com
• 7-Location of the company:
• University road 0.5 kilometer behind khurram petrol
pump. Bahawalpur
 Products of Our company:

– Split Air conditioner

• Breeze presents Cool life Split AC which is
a technologically advanced model
especially designed for Pakistani market.
Split air conditioners are available in three
capacities
• 1 ton
1.5 ton
2 ton
 UNIQUE SELLING POINTS/
FEATURES
• Free Installation Kit Compressor Warranty
• Auto restart function
Environment friendly refrigerant
• Anti-rust outdoor unit
• Easy-cleaned panel
• Self diagnosis and auto-protection
• Two-direction air flow
• Independent dehumidification
• Trapeziform Inner groove tube
• Hydrophilic aluminum fin
• Name of the Bank:
• Saudi Pak bank
• Circular Road Branch Bahawalpur
• Waheed Associates Engg (pvt) ltd   
• Architects & Builders
Contractors & Decorators
Landscape & Interior Designers
• Contact Info
6-7-8, 1st floor, 35 civic center, main blvd johar
town, Lahore 54880, Pakistan
Phone: 92-42-5189973 Fax: 92-42-5170410
• www.waheedassociates.cjb.net
 For suggestions and visits
• Name of Civil Contractor :
• Mr. Dilshad Abbasi Civil Engineer
Shahzad & co.
• Bahawalpur
• Contact # 0313-6800085
 Suppliers
• TIANJIN KELETRI MACHINERY&ELECTRIC E
QUIPMENT CO,.LTD.
NO.1923,CORE MALL OF TIMES
SQUARE,ANSHANXI STREET,NANKAI
DISTRICT,TIANJIN,CHINA Phone: 86-22-
27522480 Fax: 86-22-27522480 Contact: ammy
yao (trade assistant) Mobile: 27522480
• 2.Shantou Orient Everbright Machinery &
Equipment Co., Ltd. [ Guangdong, China
(Mainland) ]
 Industry SWOT Analysis
• Before making the decision, whether to invest in this
sector SWOT analysis is very important.
• Strengths:
• Fully modernized industry.
• Having internationally compatible products
• Capacity to manufacture and assemble 400000 units
annually.
• Potential to produce the complete range for central air
conditioning system of textile industry.
• Strong entry barriers by government on entrance of new
competitors
• Well established repute of domestic companies in
consumer markets.
• Excellent marketing and sales channel of distribution and
networks
 Weaknesses:

• Requirement of very high initial working capital.

• Tendency of skilled labour to shift to other companies
• High cost of electricity.
• Electricity failures.
• Economic conditions.
• Under utilized capacity of manufacturing units
• Shut down units into industry
• High cost of production.
• Declining growth of the industry
• Absence of export in international market.
• Opportunities:
• Opportunities to penetrate into middle east
and African markets
• Can convert from window type air
conditioner to split units and centrally air
conditioning system.
• Threats:
• Imported air conditioners into local
markets, (cheap Chinese brands).
• Smuggled items in the market.
• New world trade order of open trade
• PROJECT VISIT HIGHLIGHTS
Brief Information
On
Visited
Company

HAEIR COMPANY
 ABOUT HAIER

• Incorporation
• Transnational company
• Wide recognization
• Wide range.
• International promotion framework
• Improvement in the quality of life.
• The joint venture
• 2nd largest producer
• Global expertise
 Facts and Figures:

• Leading brand
• Giant multinational corporation.
• Diversification Strategy
• Internationalization Strategy.
• "China's Top 10 Global Brands“
• by Financial Times for the second time.In
June 2008, Haier ranked 13th and 1st
among Chinese companies on the list of
the world's "600 Most Reputable
Companies",.
 Market Share:

• According to the latest data released by

Euromonitor, with a market share up to 5.1
percent, Haier ranks first washing machine
is 10.4 percent and 8.4 percent
respectively, both ranking first in the
industry.
 Achievements:
• Haier has won international recognition in
standards field. Haier has leaded or taken
part in the preparing and revising of a total
of 232 national standards, 188 of which
have been issued and 10 awarded the
China Standards Innovation & Contribution
Award
 Innovation:
• Entering into the fifth-year in implementing
its global brand building strategy, Haier, in
2010, will continue to promote its
enterprise spirit of "creating resources and
winning global reputation" and work style
of "individual-order combination, quick
decision-making",
 Designing according to the
needs of Pakistan
• In order to satisfy consumer demands in
Pakistan, Haier designed a "gown washing
machine." Pakistani weather is famously
hot, and Pakistanis prefer to wear soft-
textured gowns, with a single family
needing to wash at least ten such gowns
each day.
• One Pakistani woman commented, "These refrigerators
are larger, but also tall, and I can hardly reach the top
shelf." Haier staff researched local conditions and
learned from a Pakistani institute that the average height
of women there is 1.57 meters, which is shorter than the
average Chinese woman, concluding that end-users in
Pakistan required large--but not tall----refrigerators. The
solution: make the refrigerators wider! The Haier-
designed wide refrigerators have since become the most
popular foreign brand in the Pakistani refrigerator
market.
 Major products
• Split units
• Refrigerator:
• Washing machines
• Microwave oven:
• Television:
 MAJOR
COMPETITORS/INDUSTRY
OUTLOOK:
• Major competitors are
• Mitsubishi
• L.G
• Pel
• Waves
• Dawlance
• Future Strategies:
• With the development of information technology
and ever faster global economic integration, the
world is flattening. Every minute of every day,
there are 1.4 million internet search requests; we
live in a global information age. For some
companies, over 30% of their innovation comes
from outside sources. Haier believes that no
individual, company, or country can survive
without the support of a wider community. The
new rule for international businesses today is
 GOVERNMENT POLICIES AND
INCENTIVE FOR THIS SECTOR
• 1. Industrial Trading Estates
2. Technical Training Centers
• 3. Tax Concession
4. Research Institutes
• 5. Protection Policy
• 6. Export Processing Authority/Zones

• 7. Export Promotion Bureau

• 8. Provision of Industrial Credit
• 9. Investment-Friendly Rate of Interest
• 10. Revival of Sick Companies
 CONCLUSION:

• Electrical appliances for home and office

use are manufactured in Pakistan, and
people have faith and trust on local as well
as joint venture initiated foreign
companies. Because of climatic conditions
which are hot in most of the regions of
Pakistan, air conditioners and refrigerators
are never out of demand, the peak season
for its sale is from March to July.
 Recommendations:
• Based on the facts and figures we have evaluated through intensive
study and analytical assessment, we recommend that it’s a
profitable business in a country like Pakistan, it requires a huge
amount of capital investment, and to be realistic the chance of
survival depends upon the intensity of working capital being put on
the operations as well as advertising , the company will not survive
because of the stiff competition in the markets if it does not come up
with a competitive approach.
• Besides the machinery is taken on credit in our project so it further
increases the financial burden and adversely affects the profitability
ratios, if some huge investor has a large amount of his personal
equity then profitability will further increase.
• We further recommend that any investor considering to invest
should first have analytical assessment and strong market study,
otherwise there is every likelihood of the whole investment being
drowned, we have already mentioned that there are entry barriers
by the government in this sector, but due to stiff competition survival
of the fittest theory applies in here, in appliance industry, in spite of
the fact that it looks pretty much sound and attractive on papers, but
to have a realistic approach one should undergo all the analysis,
such as marketing analysis, technical analysis, and expected
financial statements of the 3 years.
• There is still a lot of room for improvement in split unit
manufacturing, by acquiring the unique selling features which are
state of the art in Pakistan.
• This was a good practical learning experience for us, and we
recommend investing in appliance industry, but once again ground
realities and vibrant market conditions should be considered very
carefully.
• We want to Pay Special Thanks To:
• Almighty ALLAH and
• then these respected personalities who guide
and assist us in completing our work.
• Muhammad Naeem Chaudary
• Haeir company
• Shakeel Anava
• Haeir
• Shoaib Iqbal CEO TESLA
• Regards:

• Zubair Saleem Khan

• Anila Ashiq
• Azmat Ali