Itthad Chemicals

ITTEHAD CHEMICALES LIMITED
The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 1

AKNOLEDGEMENTS
All the praises are for ALLAH, who is the master of judgment day
& who is merciful, beneficent to his creation. We have the pears
of our eyes to admire blessings of the compassionate &
omnipotent because of the words are bound, knowledge is limited
and time is short to express his dignity.
I along with all of my team members offer my humblest thanks
from the deepest core of our heart to the HOLY PROPHET HAZRAT
MUHAMMAD (PBUH) who is forever a model of guidance and
knowledge of humanity.
I on behalf of my entire team wish to express my deep sense of
gratitude to my worthy teacher Sir Shahid Yaqoob under whose
kind direction this report has been completed.
I am also thankful to my dear members for their help, association,
good wishes and encouragement, which enable me to complete
this report.
I specially acknowledge all the persons who helped and supported
in regard to provide information for my report directly or
indirectly.
Mr. Imran Ashraf
BBA (Hons) 1st Semester

TABLE OF CONTENTS
Summary 4
Mission & Vision 5
History 5
Board of directors 7
Management 7
Corporative Governance 10
Product Mix 11
Caustic Soda 11
Sodium Hypo chloride 14
Liquid Chlorine 16
Hydro Chloride 18
Shaffaf (Bleaching Earth) 20
Zinc Sulphate 24
Barium Sulphate 28
Marketing Segmentations 29
Core Values & Culture 41
Audit 42
External Audit 43
Financial Report 43
Financial Report Enclosed 43
Bankers 44
Health 45
ICL and Community 46
SWOT Analysis 48
Conclusion 49
Reference 50

SUMMARY
Ittehad Chemicals Limited (ICL) was established in 1962 under
the name of United Chemicals by a private entrepreneur. ICL was
commissioned in the year 1964 with an installed capacity of 40
MT/day of Caustic Soda. The initial plant was set up by M/S
Oronzio Denora of Italy. The factory is strategically located on the
19th/20th Kilometer of GT Road and spread over an area of 106
acres. It is approachable from the Lahore-Islamabad Motorway as
well as from the main city of Lahore, being less than an hour
drive. The place is known as Kala Shah Kaku, an industrial site
which has seen the growth of industries over the past decades
stretching up and beyond Gujranwala along the G.T Road.
Apparently, Kala Shah Kaku and its neighboring vicinities have
both gained tremendous importance and become a hub of
commercial, economic and educational activities. As
industrialization flourished over the years, a large number of
small townships also mushroomed in and around the vicinity due
to availability of livelihood to the local residents at their
doorsteps. Ittehad Chemicals Limited (ICL) Lahore Pakistan is the
leading chemical organization in Pakistan as well as in Asia. It has
a unique image/goodwill to manufacture the eight types of
chemicals that are very useful in many industries like Textile
fabrics, dying, printing and other industries of Pakistan. ICL
growing its business smoothly in the competitive environment
maintain no. 1 position in the market. It manufactures eight
chemicals Caustic Soda (Liquid, Solid, Flakes), Sodium
Hypochlorite, Liquid Chlorine, Hydrochloric Acid, Shaffaf
(Bleaching Earth), Zinc Sulphate and barium Sulphate. Ittehad
Chemical Industry Limited work for its customers to provide a
trusted and reliable source of chemical products. Hence, through
constant innovation and research ICL pride it selves on its
unrelentless drive to continuously add-value to its stakeholders,
employees, and customers. ICL strive for sustainable growth in

harmony with our environment and suppliers to foster a cordial

and mutual relationship.

MISSION
We work for our customers to provide a

trusted and reliable source of chemical
products. Hence, through constant
innovation and research we pride
ourselves on our unrelentless drive to
continuously add-value to our
stakeholders, employees, and
customers. We strive for sustainable growth in harmony with our
environment and suppliers to foster a cordial and mutual
relationship.
VISION
To be the first choice of preference by customers looking for

premium quality chemical products. We aspire to be a trend
setter in our industry and always look to the future with courage
and a commitment to excellence in all our practices.
HISTORY
Ittehad Chemicals Limited (ICL) was established in 1962 under

the name of United Chemicals by a private entrepreneur. ICL was
commissioned in the year 1964 with an installed capacity of 40
MT/day of Caustic Soda. The initial plant was set up by M/S

Oronzio Denora of Italy.
The factory is strategically located on the 19th/20th Kilometer of

GT Road and spread over an area of 106 acres. It is
approachable from the Lahore-Islamabad Motorway as well as
from the main city of Lahore, being less than an hour drive. The
place is known as Kala Shah Kaku, an industrial site which has
seen the growth of industries over the past decades stretching up
and beyond Gujranwala along the G.T Road. Apparently, Kala
Shah Kaku and its neighboring vicinities have both gained
tremendous importance and become a hub of commercial,
economic and educational activities. As industrialization
flourished over the years, a large number of small townships also
mushroomed in and around the vicinity due to availability of
livelihood to the local residents at their doorsteps.
Under the Economic Reforms Order, United Chemicals was

nationalized in 1971 along with other industries of the country
and renamed as Ittehad Chemicals. It was initially managed by
the Board of Industrial Management and thereafter the Federal
Chemicals & Ceramics Corporation Ltd under the Ministry of
Production, Govt. of Pakistan.

During the state enterprise period its production capacity was

raised by another 90 tons/day during the year 1984-85. The
factory was ultimately denationalized in 1995 by the Privatization
Commission Govt. of Pakistan. It was acquired by the Chemi
Group of Industries, a Karachi based dynamic entrepreneurial
group. The new management immediately undertook the task of
refurbishing the factory, its infrastructure, and updating its
production line to improve efficiency and capacity. Shortly after
the takeover, the plant capacity was soon raised to over 200
tons/day. The environmental friendly “Ion Exchange Membrane
Plant” was added to the production line in the year 2003 with a
capacity of 163 tons/day. This was shortly enhanced to 240
tons/day with the addition of more IEM Electrolyzers. The new
technology is not only environment- friendly but also power-
conscious. However, due to its subtle and urbane nature, it
requires an uninterrupted power supply for trouble-free
operations. Accordingly, the company established its own state-
of-the-art Power Plant of 30 MW capacity in the year 2005.
With a rich and illustrious history, ICL is the founding company in

Pakistan for the Chlor-alkali industry. It has paved the way for
other organizations competing in the local market. With a growing
interest for ICL products in the international market, the

organization has made the necessary arrangements (and will

continue to do so in the future) to cater for the growing demand.
BOARD OF DIRECTORS
The board acknowledges its responsibility for the overall strategy,

management, identification and solutions for risks and
challenges, sustained business prosperity and safeguarding the
rights of shareholders. It endorses the best practices of the Code
of Corporate Governance as an effective tool in discharging these
duties in addition to enhancing the timelines, accuracy,
comprehensiveness and transparency of financial and non-
financial information through accountability and integrity.
Mr. Muhammad Siddique Khatri Chairman & Chief Executive

Mr. Abdul Sattar Khatri Director
Mr. Abdul Ghafoor Khatri Director
Mr. Mansoor Ahmed Khatri Director
Ms. Farhana Abdul Sattar Director

Mr. Fawad Yousuf Director
Ms. Noor-ul-Huda Director
MANAGEMENT COMMITTEE

The scope and purpose of the management committee is to

assess the current standing of the organization and provide
direction for future endeavors. This includes investment
proposition in the light of current market dynamics and prevailing
competition. Members include departmental heads and other top
management officials who bring a wealth of experience to the
table.
Management Committee profile:
Mr. Usman Ghani Mr. Ghulam Mustafa Mr. Abdul Sattar

Khatri Khatri Khatri
Mr. Syed Mohsin

Mr. Anwar Hamid Mr. Javed Iqbal
Rizvi

CORPORATE GOVERANCE
Board of Directors of the company has always strived to adopt

best practices towards managing the company and providing
policy guidelines. The promulgation of Code of Corporate
Governance through amendments in the Listing Regulations of
Stock Exchanges has further defined the responsibilities of
directors in this regard. Corporate Governance strengthens
investors’ trust and ensures a long-term partnership that helps in
fulfilling the quest for achieving significant value addition, growth,
and profits. The company has made significant progress towards
implementation of principles contained in the Code and status of
compliance is set out in the compliance statement. The Board of
Directors has taken adequate measures for the implementation of
the regulations of the Code of Corporate Governance issued by
the Securities & Exchange Commission of Pakistan. We have
summarized below our statement on corporate and financial
reporting framework. The financial statements prepared by the
management of the company presents fairly its state of affairs,
the result of its operations, cash flows, and changes in equity.
Proper Books of Account of the company have been maintained.
Appropriate accounting policies have been consistently applied in
preparation of these financial statements and accounting
estimates are based on reasonable and prudent judgment.

International Accounting Standards, as applicable in Pakistan,

have been followed in preparation of financial statements and
any departure there from has been adequately disclosed. The
system of internal control is sound in design and has been
effectively implemented and monitored. There are no significant
doubts upon the company’s ability to continue as a progressive
concern. There has been no material departure from the best
practices of corporate governance, as detailed in the listing
regulations.
PRODUCTS & MARKETING MIX
CAUSTIC SODA (LIQUID / SOLID / FLAKES)
Caustic Soda, also known as

Sodium Hydroxide, forms a
strong alkaline solution when
dissolved in water. ICL
produces Caustic Soda in the
form of flakes, solid, liquid
(31% and 50%
concentration). In solid form,
it is hygroscopic and as such

readily absorbs water from the air. Hence, it is stored in airtight

containers.
Caustic Soda is used in a wide variety of industrial applications. It

is used as a reactant for the manufacturing of other sodium
components, which themselves may be intermediate or end- use
products, such as Sodium Hypochlorite, having its use as a
household Bleach and Disinfectant and Sodium Phenolate,
required for making antiseptics and for the manufacturing of
Aspirin. It is used in the manufacturing process of Soaps and
Surfactants used in soap powders and also in the Textile Industry
to remove containments. As bleach, it is used in the treatment of
scoured cloth and to improve luster and dye absorption. Caustic
Soda Liquid (31% and 50% conc.) Caustic Soda Liquid is
manufactured commercially by the electrolysis of brine in
electrolytic cells, where 31% membrane grade and 50% Rayon
grade Caustic Soda liquid is produced. Caustic Soda (Solid /
Flakes)
It is produced by evaporation of liquid Caustic Soda solution to
the anhydrous state, and subsequent conversion to either a Solid
or a Flakes form.
CAUSTIC SODA Flakes

Liquid Liquid
SPECIFICATION Solid
(50%) (31%)
S

White
White
Physical Colorless Colorless Deliquesce
Deliquescent
Appearance liquid Liquid nt fused
Flakes
mass
Concentration
50 ± 0.2 31 97.0 ± 1 97.0 ± 1
(NaOH) % Min.
Sodium Chloride
0.02 0.012 0.04 0.04
(NaCl) % Max
Sodium
Carbonate 0.5 0.3 1 1
(Na2CO3) % Max.
Iron (Fe) ppm
3.0 1.0 10 10
Max.
Nickel (Ni) ppm
Nil - Nil - 6.0 6.0
Max.
In 25 Kg Net,
In M.S. In M.S.
Woven
Road Road In 250 Kg.
Polypropylene
Packing & Tankers Tankers Net, M.S.
Bags (Sleeved
Transportation of 10-30 of 10-30 26 SWG
inside with low
M.T. M.T. Drums
Density
capacity capacity
Polythene liner)
Applications:
• Textile finishing process

• Soap, detergent and cleaners
• Paper and pulp
• Oil and gas processing
• Rayon industry
• Vegetable oil and ghee

• Agricultural industry (Fertilizer)

• Pharmaceuticals
• Beverages and dairies
• Mineral water and sewage treatment.
Material handling:
Caustic soda solution is a chemically stable product. To extend

the storage life of caustic soda solution, minimize its exposure to
air and its direct contact with iron-containing metals. Use care
when diluting concentrated solutions of caustic soda. In addition
to using proper personal protective equipment, ALWAYS add
caustic soda to tempered water with constant agitation to
minimize a rapid temperature increase and the potential for the
solution to boil, splatter or violently erupt.
SODIUM HYPOCHLORITE
Sodium Hypochlorite is used for a wide range of applications

where its powerful disinfection and oxidation properties are
utilized to deliver technical and commercial advantage. It is
manufactured by passing gaseous chlorine through a well-cooled
solution of dilute Caustic
Soda.

SODIUM HYPOCHLORITE (NaOCl) SPECIFICATIONS

Physical Appearance Greenish Yellow Liquid
Available Chlorine W/V % 19.75 ± 0.25
Alkalinity as NaOH % 0.8 - 1.2
o o
Specific Gravity (Be at 25 C) 29.0 – 30
Iron contents ppm Max. 5
Stability (Loses Av.C12 per day
at:) %
0.2 - 0.5
depending upon storage
temperature
Suspension Nil
Transportion:
• Transported in M.S. Hard Rubber-lined Road Tankers of 10-

30 M.T. capacity
• In PVC/HDPE Carboys and drums
Applications:
• Bleaching (widely used in paper, carpet washing, and textile

industry)
• Formulated disinfectants
• Potable and waste water treatment
• Swimming pool water treatment
• Process and cooling tower treatment
• Odour control
• Chemical intermediates in agriculture, pharmaceutical,
printing and metal processing industries
Material Handling:
Sodium hypochlorite is considered a strong oxidizer. Products of

the oxidation reactions are corrosive. Solutions (more than 40%
weight) can burn skin and cause eye damage, particularly when
used in concentrated forms. The containers should be kept tightly
closed and in a cool ventilated area.
LIQUID CHLORINE
Every time you drink a glass of water, read your

newspaper, put on your raincoat, clean your teeth
or drive your car, you are using Chlorine in some
form. Without Chlorine, Modern life and most of its
conveniences would be impossible.
Chlorine is the single material on which production of other

chemicals mostly depends. It is used in 60% of all Commercial

Chemistry, 85% of all Pharmaceutical Chemistry and 95% of all
yield enhancing or agrochemical chemistry.
Products manufactured with chlorine as a raw material include

Water Treatment Chemicals, Plastic, Detergents,
Pharmaceuticals, Disinfectants and Agricultural Chemicals.
Chlorine is also used directly in water to make it safe for drinking
by chlorination.
Chlorine is obtained by passing an electric current through a
solution of brine to produce Caustic Soda, Chlorine and Hydrogen.
LIQUID CHLORINE (Cl2) SPECIFICATIONS

Purity as Chlorine (Cl2) % Min. 99.9
Moisture Nil -
Sulphate (SO4) Nil -
Packing:
In specially designed steel cylinders of 100 Kg and 900 Kg
capacity, respectively.
Applications:
• Water disinfection and treatment

• Paper and board

• Cooling towers
• Production of plastic, such as PVC
• Pharmaceuticals formulation
• Agro-Chemical production (insecticides, herbicides &
fungicides)
• Production of chlorinated solvent, hydrocarbons and
derivatives.
Material Handling:
Need to wash thoroughly after handling. Avoid breathing the

vapors. Vacate poorly ventilated areas as soon as possible. Do
not return until the strong odors have dissipated. Open
the cylinders with care and do not intake internally.
HYDROCHLORIC ACID
Hydrochloric acid is second only to Sulphuric Acid

in its numerous and diverse uses in
manufacturing industry and synthetic chemistry.
Hydrochloric acid is a solution of the Gas
Hydrogen Chloride (HCL) in water. The Hydrogen Chloride Gas is
derived from the burning of Chlorine and Hydrogen.
HYDROCHLORIC ACID SPECIFICATIONS

Physical Appearance Slight yellow clear liquid

Concentration % 33.0 – 34.5
Density at 20oC g/ml 1.164 – 1.172
Iron (Fe) ppm Max. 3.0
Free Chlorine ppm 20 – 50
Arsenic (As) Nil -
Lead (Pb) Nil -
Mercury Nil -
Transportation:
• M.S. Rubber lined/Fiberglass Road Tankers of 10-70 M.T.

capacity
• PVC/HDPE Carboys and drums
Applications:
• Textiles
• Steel and galvanizing industry
• Metal pickling
• Gelatin
• Dyestuffs
• Pharmaceuticals
• Synthetic rubber
• Metal Chlorides manufacturing
• PVC

Material Handling:
Advised to store in a cool, dry, well ventilated storage area with

acid resistant floor and good drainage. In order to avoid physical
damage, it should be kept clear of direct sunlight, exposure to
heat, water, and other incompatible materials.
SHAFFAF (BLEACHING EARTH)
De-coloring of vegetable oil, fats and

mineral oils has remained in practice for
centuries. Raw material used consists
mainly of Bentonite Clay or
Montmorillonite, which has little or no
decolorizing property in raw state. By
treatment with acid, the bleaching
power has considerably exceeded that of natural clay. This
characteristic is developed due to surface alter, and important
changes in its chemical or physiochemical nature.
Term “BLEACHING” is reserved for the treatment designed solely

to reduce the color of the oils. The standard method of bleaching
by using Activated Bleaching Earth is based on bleaching by
adsorption. In addition to its power to remove Red and Yellow
pigments, Acid Activated Bleaching Earth is also quite effective in
removing Phosphatides and various mucilaginous materials
present in most of the oils, referred to commonly as “Gum” or

“Slime”.
Ittehad Chemicals Limited is the pioneer in introducing the “Acid

Thermal Activated Bleaching Earth”, in Pakistan. ICL, through the
efforts of its competent technical professionals and continuous
research, have succeeded in developing “Acid Activated Earth”
from the indigenous raw-material, which is strongly competing
with the imported “Bleaching Earths” available in the Market
Shaffaf (Bleaching Earth) Specification

Free Moisture (at 110oC ) %
2.7
Max.
Loss on Ignition (at 1000oC)
2.7
% Max.
Bulk Density:
- Loose g/litre 300 - 370
- Tapped g/litre 400 - 500
pH (10% Aquous Slurry) 3-4
Particle size:

Through 100 Mesh % Min. 96

Bleachability: 70 – 75
tested on fresh neutralized and
refined (de-gummed and de- 70 – 75
hydrated) soya bean oil %
Acidity as HCL % less than. 0.05
Oil Retention % Max. 35
Filterability (minutes) 40
PACKING:
In order to ensure the quality of the product during shifting,
storage, and transportation to the customers, ICL has selected a
packing material of international standard in strength and quality
with printed woven Polypropylene bags having inner liner of high
density Polyethylene. The packaged product is available in 25 kg
bags.
APPLICATIONS:
“SHAFFAF” (Acid Activated Bleaching Earth) has excellent
bleaching properties and helps in achieving the desired color
values at considerable reduced production costs.
For the bleaching of:
• Edible / cooking oil / vegetable oil.

• Lubricating oil
• Mineral oil
• Fat in soap manufacturing
Material Handling:
Should be kept in a well ventilated and covered area. Avoid

contact with other chemicals, especially all acids.
ZINC SULPHATE
Zinc Sulphate Monohydrate is free
flowing white powdery material,
which is highly soluble in water.
Zinc Sulphate (monohydrate) Specifications

Physical appearance Off-white granular powder
Zinc contents% Min 33.0

Packing:
10 kg Net, woven Polypropylene bags (sleeved inside with HDPE
liner) containing 2 x 5 kg polythene bags.
Applications:
• Agriculture: added to fertilizers as trace nutrient and animal

feed to correct dietary deficiencies.
• Chemical: as a source of Zinc for the manufacturing of other
Zinc chemicals.
• Textile: Viscose Rayon.
Material Handling:
Wear appropriate protective clothing and chemical resistant

gloves as needed to prevent skin contact. Clean contaminated
clothing and protective equipment before reuse. Wash thoroughly
after handling material. Store containers in well ventilated areas
preferably with an exhaust duct.
HYDROCHLORIC ACID
Hydrochloric acid is second

only to Sulphuric Acid in its
numerous and diverse uses
in manufacturing industry
and synthetic chemistry.

Hydrochloric acid is a solution of the Gas Hydrogen Chloride (HCL)
in water. The Hydrogen Chloride Gas is derived from the burning
of Chlorine and Hydrogen.
HYDROCHLORIC ACID SPECIFICATIONS

Physical Appearance Slight yellow clear liquid
Concentration % 33.0 – 34.5
o
Density at 20 C g/ml 1.164 – 1.172
Iron (Fe) ppm Max. 3.0
Free Chlorine ppm 20 – 50
Arsenic (As) Nil -
Lead (Pb) Nil -
Mercury Nil -
Transportation:
• M.S. Rubber lined/Fiberglass Road Tankers of 10-70 M.T.

capacity
• PVC/HDPE Carboys and drums
Applications:
• Textiles

• Steel and galvanizing industry

• Metal pickling
• Gelatin
• Dyestuffs
• Pharmaceuticals
• Synthetic rubber
• Metal Chlorides manufacturing
• PVC
Material Handling:
Advised to store in a cool, dry, well ventilated storage area with

acid resistant floor and good drainage. In order to avoid physical
damage, it should be kept clear of direct sunlight, exposure to
heat, water, and other incompatible materials.
BARIUM SULPHATE

Barium Sulphate prismatic

crystal as amorphous
powder, hardly soluble in
water, ethanol, and acid, and
easily forms lumps in dry air.
Barium Sulphate (BaSO4)

Physical Appearance White fluffy powder
Purity % Min. 99.5
Moisture % Max. 0.2
Particle Size Passes through 325 mesh
pH (10% aqueous slurry) 6.5 – 7.5
Oil Absorption % 20 – 22
Water soluble matter % Max. 0.2
Packaging:
Supplied in 25 kg polypropylene bags.
Applications:
• Filler of different paint, oil, pigment, printing ink, cosmetic,

textile, glass, pottery, wireless industry, paper making,

plastics (household electrical appliance, construction

plastic).
• Suitable for making enameling material for pottery and
enamel industry.
• Filling agent for insulation plastic cement and rubber
products of high grade.
• Surface coating agent of impression paper and copper
paper.
• Sizing agent in textile industry.
• Cathode expansion agent for accumulator (storage
batteries).
• Clarifier and helps prevent scratches on glass products by
increasing the luster.
• Protective wall material against radiation.
• Other uses are like ceramic, porcelain enamel, spicery, paint
and raw-material of Barium salts.
Material Handling:
Must be kept in a dry and well ventilated covered place. Long

shelf life is expected if stored in dry place.

MARKET POSITIONING & SEGMENTATION
Patients seek Caustic Soda treatment (510) Spontaneous

-w/o Rx (122) 24% Ask chemist for recommend. (24) 20%
Ask specific product (98) 80% Chemist doesn’t recommend
(Dispense Caustic Soda) (324) 84% Chemist recommend
Caustic Soda (22) 92% Clerk recommend generic/other
brand (2) 8% Patient buy Caustic Soda (91) 93%
Source of Business
37: MARKITING PROCESS
SEGMENTATION OF BRAND
Segmentation Process per CPO
TOP 5 BRANDS PER CPO Sales Generated by PHYSICIAN %

of Brand M&S spent on Drs Sales Generated by
PHARMACIST % of Brand M&S spent on Pharmacy
programmers Sales Generated by PATIENT % of Brand
M&S spent on Patient programmers Of all pts entering a
pharmacy with intention to buy Caustic Soda (510)*
Caustic Soda gets 437 pts (86%) (Actual Business) 324
74% Xx% 22 5% xx% 91 21% xx% Customer Segmentation
A2B Shift and Local Physician Segmentation Not initiating

Caustic Soda Using Caustic Soda 2nd line when other

drugs fail Uses in specific patients/CG where efficacy
matters most Uses Caustic Soda first line in 40: MARKITING
PROCESS
The primary drug for all epilepsies except absence seizures

Excellent Efficacy
Painful Diabetic Neuropathies
Target Audience: Physicians, GPs, RMOs
Well documented & proven Efficacy Better than NSAIDs
Better than Gabapentine as it its effect doesn’t diminish with the

lapse of time
MARKET POSITIONING
Brand Vision
Maintain RX base of Caustic Soda in Epilepsy & Neuropathies &

sustain the leadership position
Brand Positioning

Caustic Soda is the treatment of first choice in epilepsy because it

has proven efficacy & better tolerability, which brings them back
to normal life Caustic Soda is the only right treatment for
neuropathies because of its efficacy & treatment
Cost is better than competition
Strategic Imperation
Positioning By Attributes
As an AED drug, Caustic Soda positions itself on its attributes with

high efficacy and economical pricing.
Positioning Statement: “Caustic Soda is the treatment of

choice for epileptic patients and their caregivers for whom
efficacy is the priority over tolerability/convenience.”
Strate Gic Imper atives Help GPs to diagnose & Treat Epilepsy
Convince Physicians & GPs to prescribe Caustic Soda in PDN
Patients should be aware that Epilepsy is a treatable disease-&
treat with Caustic Soda Get Switched patients from Barium
Sulphatel Ensure to educate chemists not to substitute Caustic
Soda
MARKETING MIX

The most interesting part of commerce is the marketing; this is

the latter addition of the business tools. It starts with conceiving
idea of presenting a product, traditionally producers were
interested in producing those goods only which has existing pull,
whereas now because of marketing tools they are producing with
the intention of pushing the product into consumer’s hand.
Marketers use numerous tools to elicit desired response from
their target markets. These tools constitute a marketing mix.
Marketing Mix is the set of marketing tools that the firm uses to
pursue its marketing objectives in the target market. McCarthy
classified these tools into four broad groups that he called the
four P's of marketing:
 Product
 Price
 Place
 Promotion
Product
Defining the characteristics of your product or service to meet the

customers' needs, wants and demands.
Price
Deciding on a pricing strategy, Even if you decide not to charge

for a service, it is useful to realize that this is still a pricing

strategy. Identifying the total cost to the user (which is likely to

be higher than the charge you make) is a part of the price
element.
Place or distribution
Looking at location (e.g. of a library) and where a service is

delivered (e.g. are search results delivered to the user's desktop,
office, and pigeonhole - or do they have to collect them).
Promotion
This includes advertising, personal selling (e.g. attending

exhibitions), sales promotions (e.g. special offers), and
atmospherics (creating the right impression through the working
environment). Public Relations are included within promotion by
many marketing people.
PRICING PLAN
Breakup of the Pricing of Caustic Soda Manufacturer

Distributor Wholesaler /Retailer

Caustic Soda – 200mg (50 Tablets) Selling Trade Price 121

Retail Price 142 Margin per Distribution Pricing in
Comparison to the Competitors:
S.no Product Retail Price per Tablet per mg
1 Caustic Soda Rs 3 200mg
2 Barium Sulphatel Rs 4 250mg
3 Sodium Hypo chloride Rs 20 50mg
4 Liquid Chlorine Rs 5 2mg 51Pr5%o%fit Margin
5 Lamictal Rs 15 100mg Action Plan Implication
According to the KOLs, they believe that Caustic Soda is a high-

value product i.e. premium product that has not been premium
priced, thus this adds as an additional value towards the
attributes of the drug.
Key learning of the pricing strategy
Bottom line cost should be lowered to gain cost-plus advantage

from the product Caustic Soda should double its pricing to gain
competitive advantage Most cost of production is inculcated from
raw materials imported and R&D, Caustic Soda should apply
range extension to its current range line i.e. 200mg Caustic Soda

can consider more cost effective ways to produce or distribute its

products
OPERATIONAL PLAN
TACTICAL PLAN
Changes
 There should be further steps taken for the brick walling of

customers
 Due to rapid changes in Customer Loyalties a more focused
strategy should be implemented
 There should be an effective execution of Leader
Development Program Right customers selection process
should be executed to organize meetings
 Epilepsy Project should be expanded
 Focus to minimize substitution
Key Learning
 More Focus on RMOS

 Better Awareness of Epilepsy Project
 Refine Advertisement media
 More sustained branding
 Powerful message delivery

 Monitor promotion in different indications

Product Plan
The product plan is based on the external and internal analysis of

the company. Caustic Soda has a very strong and innovative
brand image and its main strength is its continuous innovation
and product line. As per the survey conducted to assess Caustic
Soda non-financial performance critical points that are of
importance to the preparation of a sound product plan are: ICL
has a strong corporate image which has a positive impact on the
overall strategic positioning of Caustic Soda in the market. This
induces the relations with the Key Opinion Leaders.
Caustic Soda has a strong sales force which is effective and

efficient as compared to competition sales team hence it has
managed to gain high market share and has the ability to expand
its market. The rate of efficacy is very high in Caustic Soda thus
due to this there is a shift of patients from other AEDs to Caustic
Soda in later stages of treatment
PRODUCT PORTFOLIO ANALYSIS
This BCG matrix has been developed using the Rx trends. The
strategies to be used according to this approach are
Product BCG Position Recommendation
Caustic Soda Cash Cow Invest to retain market share

Barium Sulphatel Star Invest further to increase market share
Sodium Hypo chloride Star Invest further to increase market

share
Liquid Chlorine Dog Harvest then divests.
Implication
The CNS Unit of ICL has a consistent product line as all these are
specialty products and go through the same distribution channel.
These lines are closely related to each other as they perform the
same functions for buyers i.e. treatment of neurological disorders.
Suggested Strategies for ICL Product Mix
 Product line should be stretched by introducing high priced

molecule to cater the Epilepsy market
 Caustic soda should enhance its product depth by
introducing suspensions for children
 Liquid Chlorine should cater the young adult market by
providing low dosage tablets in 75 mg and 150 mg tablets.
 Sodium Hypo chloride should extend its product line and
introduce new product that is already in the pipeline for
schizophrenia patients.
 Hydro Chlorine The dementia segment should stretch its

line by introducing low priced products to cater to a low
priced segment.
 Zinc Sulphate should extend its product mix depth by
introducing 50 mg tablets.
PROMOTIONAL PLAN
Positioning
 Express Barium Sulphate (brand extension) is the treatment

of choice in dementia patients with
 Noticeable Change causing distress, because it helps
stabilize patients with superior efficacy that endures.
 CPP “Stability in a time of change”
 Actions Focus strategy and communication where need for
efficacy drives the treatment decision Convince Neurologists
/ Psychiatrists of the importance of dose Strong
communication of the clinical data to improve efficacy and
tolerability perception
C4 Insights Gap Analysis
Customers/Physicians
Understand what data/messages physicians request to support

Barium Sulphate’s benefits in target segments?

Customers/Payers
Understand what information will drive future decisions

concerning access to treatment in AD How to position “entire
clinical package”
Consumers/Patients
Confirm overlap between patients with rapid disease progression

and patients with demanding caregivers Refine target segment
description keep focus on Noticeable Change patients
1. More effective drugs Improving symptoms
Stabilizing the patient as long as possible
Action: Focus on unique efficacy data
2. Drug which is well tolerated and convenient to use
Action: 4 week dose period to be highlighted
3. Guidance on how and where to use available treatments

(differential usage), supported by meaningful data
Action: Focus strategy and communication on targeting AD

patients and caregivers.

CORE VALUES
We have made a commitment to our customers to deliver the

highest quality of chemicals in our chosen segments of operation.
Our purpose is to honor this promise and continue to meet and
exceed both our customer and stakeholder expectations.
CULTURE (PEOPLES)
The tremendous success of ICL has attracted high profile

employees from near and far. ICL is located at Kala Shah Kaku,
District Sheikhupura. This area is reputed for growing high quality
high aroma extra long grain rice. The quality of its rice produced
is second to none and is acclaimed world-wide. The skilled / semi
skilled workers mostly belong to this area and its surrounding
vicinity. The establishment of ICL way back in 1962 brought about
a revolutionary change in the life style of the people of the area.
By nature, the people of the area are hard-working and pride
themselves on their commitment. Over the years, Kala Shah Kaku
has developed into a hub of commercial, industrial, and
educational activities contributing directly towards the prosperity
of the local people
CULTURE QUALITY & TRANING
We believe that quality input can only produce quality output.

Accordingly, we develop training programs that help polish our
human intellectual capital. Our training programs are based on in-
house and on-the-job exposure. Accordingly, we constantly
monitor the performance and value-addition of our employees
through an annual appraisal and compensation system. This
assures that our employees are motivated, committed, and
constantly updating themselves for the benefit of all parties
involved

THE AUDIT
The Board of Directors of the Company has always strived to

adopt best practices in managing the affairs of the company and
in providing policy guidelines. An Internal Audit Committee is in
operation to look after the affairs of the Internal Audit
department.
To ensure Good Corporate Governance, ICL has established ,over

a period of time, an internal audit department comprising unique
blend of professionals like Chartered Accountants (ACA),
Association of Chartered Certified Accountants (ACCA), and
Masters in Business Administration (MBA) along with old staff
having experience of 30 years plus.
The mission of the internal audit department is to provide

independent and objective assurance, designed to add value and
improve the operations of the organization. It helps the
organization accomplish its objectives by bringing a systematic
disciplined approach to evaluate and improve the effectiveness of
risk management, control, and governance processes.
The scope of work of internal audit department is to determine

whether the organization’s network of risk management, controls
and governance processes, as designed and represented by
management, is adequate and is functioning to ensure
compliances with all policies, procedures and regulations.
To provide independence to the internal audit department, its

personnel report to the Head of Internal Audit department, who
reports functionally to the Audit Committee and administratively
to the Chief Executive Officer. The internal audit function is
accountable to the audit committee.
An annual audit plan prepared by applying risk-based approach,

approved by an internal audit committee, is in operation. A

quarterly internal audit report, supplemented by inter- office

memos issued to the process owners regarding controls grey
areas highlighted during different audit works, is being issued to
Chairman and Chief Executive Officer for appropriate action.
Management is responsible for ensuring timely corrective

measures keeping in view the audit findings, related root causes
of audit findings, recommendations and action plans
communicated through inter-office memos by the internal audit
department.
EXTERNAL AUDIT
M/s BDO Ebrahim & Co. Chartered Accountants, 2nd Floor, Block-
C, Lakson Square Building No.1, Sarwar Shaheed Road, Karachi
FININCAIL REPORT
The key financial indicators of the Company for the quarter ended
September 30, 2009 are as follows:
Increase
First Quarter Ended September (Decreas
30, 2009 e)
%age
2009 2008
---------- Rupees in Million ----------
Net Sales 740.845 858.691 (14)
Gross Profit 195.858 201.870 (3)
Operating Profit 113.762 136.718 (17)
Profit before Tax 58.620 81.562 (28)

Profit after Tax 38.432 52.379 (27)
Earning Per Share
1.07 1.45 (26)
(rupees)
BANKERS TO THE COMPANY
Askari Bank Limited, Habib

Metropolitan Bank Limited, MCB Bank
Limited, Saudi-Pak Industrial &
Agricultural Investment Co. (Pvt.)
Limited, Pak-Libya Holding Co. (Pvt.)
Limited, Pak-Kuwait, Investment Co.
(Pvt.) Limited, Bank of Punjab, Allied
Bank Limited, Faysal Bank Limited,
United Bank Limited, KASB Bank
Limited, My Bank Limited, Standard
Chartered Bank Limited Citi Bank
HEALTH AND SAFETY
We, at ICL, realize that our

natural resources are limited
and while we have to perform

our business as a manufacturing concern, we also have a duty

and responsibility to protect and preserve the nature and
environment. The company provides and maintains, so far has
practicable equipment, systems and working conditions are
concerned, a safe and risk free environment to all its employees,
visitors, contractors, and the local public.
ICL AND ENVIORNMENTAL SUSTAINABILITY
Management has maintained its strong commitment to a safe

environment in its operations throughout the year. We apply
strict environmental criteria in all our activities, thereby ensuring
that projects are integrated into the community with the least
possible impact on the environment and the maximum social
consensus. Energy conservation is a key issue world-wide.
Through successful Energy Conservation Management, we can
vastly reduce energy wastage, bring down the cost of production,
and ensure we respect the limited resources of our planet.
ICL has taken important measures starting with the formation of

an Energy Conservation Task Team (ECTT) to identify various
conservation measures and constraints. The team constantly
analyzes system design, process design, and re-engineering of
various factory operations in order to make the processes more
efficient and minimize wastage of resources. Through the
implementation of powerful IT solutions (e.g. SAP), the company
is moving ever close towards a paperless environment. Through
awareness we have arisen to confront the challenges to ensure a
sustainable future for generations to come.
ICL AND THE CUMMUNITY

has a unique and intrinsic relationship with its community. The

following projects have been established for the welfare of its
workers and for the locals.
Project No.1 Sports Activities for Workers (On-going):
In order to create a healthy environment and social activities,

respective teams of cricket and badminton, constituting ICL
workers, have been selected with the entire tournament funding
arranged by the company.
Project No.2 Free Medication/Medicine for Locals (On-

going):
For facilitating the local residents, the company doctor will visit
local residential areas to provide free medicine and medical
check-up.
Project No.3 Renovation of Local Mosques:
Requests for renovation and other equipments for the locally

established mosques have been received from residents. As such,
the two mosques are renovated every year.
Project No.4 Sewing School for Girls (On-going):
Two sewing school for local girls are in operation with twenty girls
registered in each school. Two lady teachers are hired to teach
sewing and stitching, with a third school being set up in a nearby
locality.
Project No.5 Up-gradation / Renovation of Local Schools:
To raise the standard of the local schools up-gradation and

renovation have been planned. Few of the local schools need a
science laboratory and some schools are in need of computers.
Apart from this, most schools need their buildings to be

renovated.
Project No.6 Water Taps for Local Residents:
Forty clean drinking water hand pumps have already been

installed for the local residents. Other areas have also been
identified for boring and providing clean water. One hand pump
each month is to be installed.
Project No.7 Free Eye Camps for Local Residents:
Free eye camp was setup a couple of years ago for the local
residents. A medical team of doctors from Karachi were arranged.
A similar eye camp has been planned in Nov.2009.
Project No.8 Bi-cycle Scheme (On-going):
This scheme is for workers below the grade scale of supervisor

cadre. The procedure adopted for giving the bi-cycles is on six
equal monthly installments. Twenty bi-cycles will be given in this
project on installment basis. Project is on continual basis until the
requests for bi-cycles end.
Project No.9 Wedding Gift (On-going):
To help employees at the time of marriage of their daughters,

financial assistance is provided. This scheme is in progress and
the employees below supervisor cadre benefit from it.
SWOT ANALYSIS
The analysis is made at the end of the project that what are the
strengths, weakness, opportunities and threats of the Ittehad
Chemicals Limited situated in Lahore district. There are many

competitors of the company and it has faces many problems
internally and externally that are disused as under.
STRENGTHS:
Ittehad Chemicals has large numbers of
competent workers that are working under good conditions these
are near about 4000 employees 40 of them are permanent and
others are at daily wages or contract basis. It has two chemical
plants in Lahore one is manufacturing chemicals and second is
manufacturing products from these chemicals and it also uses the
waste on one plant in second as a raw material. It has a large
product length as capered to its competitors in Pakistan as well
as in Asia. It uses modern technology to manufacture chemicals
and it is the king of chemicals manufacturing industry. It also has
its own carriage container to distribute the chemicals in all over
the Pakistan.
WEAKNESS:
The company has a labour union that consists of many
top level supervisors to deal the problems of the workers in the
company but this union is very harmful for the company that
many time it happens the union leader black mail the top
management with the power of workers as strike and etc..
Company has its own energy source (power generation) but it is
not enough for the company to maintain its power in this period
as there is lack of electricity in Pakistan.
OPERTUNITIES:
There are no big competitors of Ittehad Chemicals
Limited in the market expect Sitara Chemicals Pvt. Limited. But
Sitara Chemicals does not have a large product length and line
that it can compete the Ittehad Chemicals Ltd. It is big

opportunity for ICL that it has competitive edge over its

competitor.
THERATS:
In this modern period Ittehad chemicals Limited also
facing many problem from the pressure groups and the most
growing competitor of Ittehad Chemicals Limited is Sitra
Chemicals that is increasing its product line and length towards
the ICL and SCPL manufacturing the same product and selling
them to there customers that are diversifying from ICL to SCPL.
CONCLUSION
Itehad Chemicals Limited (ICL) Lahore Pakistan is the leading

chemical organization in Pakistan as well as in Asia. It has a
unique image/goodwill to manufacture the 8 type of chemicals
that are very useful in many industries like Textile fabrics, dying,
printing and other sectors of Pakistan. ICL become a hub of
commercial, economic and educational activities. As
industrialization flourished over the years, a large number of
small townships also mushroomed in and around the vicinity due
to availability of livelihood to the local residents at their
doorsteps. Ittehad Chemicals Limited (ICL) Lahore Pakistan is the
leading chemical organization in Pakistan as well as in Asia. It has
a unique image/goodwill to manufacture the eight types of
chemicals that are very useful in many industries like Textile
fabrics, dying, printing and other industries of Pakistan. ICL
growing its business smoothly in the competitive environment
maintain no. 1 position in the market. It manufactures eight
chemicals Caustic Soda (Liquid, Solid, Flakes), Sodium
Hypochlorite, Liquid Chlorine, Hydrochloric Acid, Shaffaf
(Bleaching Earth), Zinc Sulphate and barium Sulphate.
REFERANCE
All the information of ICL is obtained from the ICL website and
some from our personal sources. For further information visit the
www.icl.com.pk , www.google.com , www.find.com and to visit
the site (factory) enjoy the journey to Lahore.
ITTEHAD CHEMICALS LIMITED
20 KM GT ROAD OF SHEIKHUPURA ROAD
LAHORE, PAKISTAN
WITH BEST WISHES

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ITTEHAD CHEMICALES LIMITED

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 1

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 2

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 3

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 4

harmony with our environment and suppliers to foster a cordial

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 5

We work for our customers to provide a

To be the first choice of preference by customers looking for

Ittehad Chemicals Limited (ICL) was established in 1962 under

MT/day of Caustic Soda. The initial plant was set up by M/S

The factory is strategically located on the 19th/20th Kilometer of

Under the Economic Reforms Order, United Chemicals was

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 7

During the state enterprise period its production capacity was

With a rich and illustrious history, ICL is the founding company in

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 8

organization has made the necessary arrangements (and will

The board acknowledges its responsibility for the overall strategy,

Mr. Muhammad Siddique Khatri Chairman & Chief Executive

Mr. Mansoor Ahmed Khatri Director

Ms. Farhana Abdul Sattar Director

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 9

The scope and purpose of the management committee is to

Management Committee profile:

Mr. Usman Ghani Mr. Ghulam Mustafa Mr. Abdul Sattar

Mr. Syed Mohsin

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 10

Board of Directors of the company has always strived to adopt

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 11

International Accounting Standards, as applicable in Pakistan,

PRODUCTS & MARKETING MIX

CAUSTIC SODA (LIQUID / SOLID / FLAKES)

Caustic Soda, also known as

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 12

readily absorbs water from the air. Hence, it is stored in airtight

Caustic Soda is used in a wide variety of industrial applications. It

CAUSTIC SODA Flakes

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 13

• Textile finishing process

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 14

• Agricultural industry (Fertilizer)

Caustic soda solution is a chemically stable product. To extend

Sodium Hypochlorite is used for a wide range of applications

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 15

SODIUM HYPOCHLORITE (NaOCl) SPECIFICATIONS

• Transported in M.S. Hard Rubber-lined Road Tankers of 10-

• Bleaching (widely used in paper, carpet washing, and textile

Sodium hypochlorite is considered a strong oxidizer. Products of

Every time you drink a glass of water, read your

Chlorine is the single material on which production of other

chemicals mostly depends. It is used in 60% of all Commercial

Products manufactured with chlorine as a raw material include

LIQUID CHLORINE (Cl2) SPECIFICATIONS

• Water disinfection and treatment

• Paper and board

Need to wash thoroughly after handling. Avoid breathing the

Hydrochloric acid is second only to Sulphuric Acid

HYDROCHLORIC ACID SPECIFICATIONS

Physical Appearance Slight yellow clear liquid

• M.S. Rubber lined/Fiberglass Road Tankers of 10-70 M.T.

The Islamia University Of Bahawalpur, Rahim Yar Khan Campus Page 20

Advised to store in a cool, dry, well ventilated storage area with