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EXECUTIVE SUMMUARY
PEL and PEL appliances fall under the SAIGOL Group of Companies. PEL has long been
known in as a company that produces quality products. PEL has created a brand loyalty
among its users and the company credits that to its high quality and vast product range.
PEL has been continuously adding new products to its range. As a result PEL has registered
a significant increase in its sales volume, during the last ten years.
One sector in Pakistan that has grown considerably in the past is the Home Appliances
Division. There is great competition in this sector and PEL has survived this competition
with great flair.PEL enjoys good reputation in the market for its home appliances.
PEL is in a growth phase in this sector. This sector carries a lot of potential and PEL can
capitalize on this fact.
“To excel in providing engineering goods and services through continuous improvement.”
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PEL was established in 1956 with the technical collaboration of M/S AEG Germany and is
the oldest electrical equipment manufacturing unit in Pakistan.
In October 1978 the company was taken over by the SAIGOL Group, which is one of the
leading industrial and commercial groups of Pakistan. The products manufactured by PEL
have always been of a high standard and the name “PEL” is synonymous with quality all
over Pakistan. PEL, since its inception has been acting as an institution working for the
advancement and development of engineering and modern technology in Pakistan.
Since its inception, the company has been working for the advancement and development
of engineering know-how in Pakistan. The company has produced hundreds of engineers
and skilled workers and technicians through its apprenticeship schemes and training
programs.
PEL has been continuously adding new products to its range. As a result, PEL has registered
a significant increase in its sales volume, during the last ten years. In 1978, the SAIGOL
Group of Companies purchased the major shares of company. At that juncture the company
was only manufacturing transformers and switchgears. With the SAIGOL in the
management, PEL started expanding its product range by entering into Air Conditioner
manufacturing.
In 1981, PEL window type air conditioners were introduced in technical
collaboration with General Corporation of Japan.
In 1986-87, the company started manufacturing of refrigerators in technical
collaboration with M/S IAR-SILTAL of Italy.
In 1987, PEL deep freezers were also introduced in technical collaboration with
M/S Ariston of Italy.
In 2006, the company has started manufacturing of split type of air conditioners of
various capacities as the customer choice has shifted from window to split type. The
product has been well received in the market. This encourages the company to
multiply its production in the coming year.
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PEL is the pioneer manufacturer of electrical goods in Pakistan. The company is listed on all
the three stock exchanges of Pakistan. Its principal activity is manufacturing and sale of
electrical capital goods and domestic appliances. But now, PEL is operating a single
business entity without any division. There are following departments in the PEL:
PRODUCTION DEPARTMENT
Research Development
Quality control Department
Human resources Department
Marketing and Finance Department
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APPLIANCES DIVISION:
PEL’s Appliances Division is the flag carrier of the SAIGOL GROUP
involved in home appliances manufacturing.
Air conditioners
Refrigerators
Deep freezers
Microwave oven
Washing machines
Generators
POWER DIVISIONS:
PEL Power Divisions manufactures energy meters,
Transformers
Switchgears
Kiosks
Compact stations
Shunt capacitor banks
Energy meters
Generators
All these electrical goods are manufactured under strict qualities control and in accordance
with international standards. PEL is one of the major electrical equipment suppliers to
Water and Power Development Authority (WAPDA) and Karachi Electrical Supply
Company (KESC) , which are the largest power utilities in Pakistan. Over the year, PEL
electrical equipment has had been used in numerous power projects of nation importance
within Pakistan.
In spite of stiff competition emerging local and multinational brands, PEL Group’s
appliances and electrical equipment have remained in the spotlight due to constant
innovation. Strategic partnership with multinationals of repute have enabled the PEL
Group to incorporate new technologies into existing product ranges, thus giving the
Pakistani market access to innovative, affordable and quality products.
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REFRIGERATORS
Premier Series:
Door : Galaxy
Compressor : Danfoss
Warranty : 3 years compressor & 1 year parts & service
PC 20185 - 16Cft
Capacity 420 Lts. (Approx)
Price (Rs.) 34,800
PC 20175 - 15 Cft
Capacity 400 Lts. (Approx)
Price (Rs.) 33,700
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PC 20165 - 14Cft
Capacity 380 Lts. (Approx)
Price(Rs.) 32,100
PC 20145 - 13 Cft
Capacity 350 Lts. (Approx)
Price (Rs.) 30,900
6 SERIES:
Door : Galaxy
Compressor : Danfoss
Warranty : 3 years compressor & 1 year parts & service
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PC 6400 - 12Cft
Capacity 325 Lts. (Approx)
Price Delux (Rs.) 29,800
Price Smart Galaxy (Rs.) 29,100
Price Smart (Rs.) 28,500
PC 6300 - 11 Cft
Capacity 295 Lts. (Approx)
Price Delux (Rs.) 29,200
Price Smart Galaxy (Rs.) 28,600
Price Smart (Rs.) 28,000
PC 6200 - 10 Cft
Capacity 260 Lts. (Approx)
Price Delux (Rs.) 28,100
Price Smart Galaxy (Rs.) 27,600
Price Smart (Rs.) 26,500
AIR-CONDITIONERS
SPLIT
PEL presents Cool life Split AC which is a technologically advanced model especially
designed for Pakistani market. This masterpiece from PEL provides maximum cooling even
at very high temperatures while minimizing electricity consumption.
COOL FEATURES:
Free Installation Kit Compressor Warranty Self diagnosis and auto-protection
Auto restart function Two-direction air flow (SLR)
Environment friendly refrigerant R22 Independent dehumidification
Anti-rust outdoor unit Trapeziform Inner groove tube
Easy-cleaned panel Hydrophilic aluminum fin
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SILVERLINE (QB):
Rs.
Price 2 Ton
50,900
Rs.
Price 1.5 Ton (H&C)
40,500
Rs.
Price 1.5 Ton
37,600
Rs.
Price 1 Ton (H&C)
32,300
Rs.
Price 1 Ton 29,300
XPRESSION:
Rs.
Price 2 SF
50,400
Rs.
Price 1.5 Ton
37,000
Rs.
Price 1 Ton 28,800
IMAGE:
Rs.
Price 2 Ton
52,000
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FLOOR STANDING
FS 600 - 5 Ton
Rs.
Retail Price 5 Ton
125,000
FS 480 - 4 Ton
Rs.
Retail Price 4 Ton (H&C)
105,000
Rs.
Retail Price 4 Ton
95,000
FS 300 - 2.5 Ton
Rs.
Retail Price 2.5 Ton (H&C)
75,600
Rs.
Retail Price 2.5 Ton
64,500
OVENS
SILVERLINE
PEL the trustful company name in home appliances all over the country, now introduced all new
models of "PEL Silver line" Microwave Ovens.
Now PEL customers can have different models of PEL Microwave Ovens in which they can
enjoy the grilling feature as well. PEL Microwave Ovens are available in different sizes and
inner cavities (steel & painted).
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Cook, Bake, Roast or Grill with the all new PEL Microwave. With cutting edge technology and
advanced features..... cooking was never this easy!
Cool Features:
Smart Intel-menu - Preset cooking menu's
360 degree cooking system - Cook-Bake-Roast-Grill
Engrave features - Energy Savings
3 years Magnetron Warranty - Peace of Mind
PMO 9036 B8
PMO 8021
PMO 8021 M:
21 Ltrs.
Capacity
(approx.)
Price
Rs. 5,900
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MICROWAVE
PMO 8019 SD
20 Lts.
Capacity (approx.)
Price Rs. 6,100
PMO 8019 SM
20 Ltrs.
Capacity
(approx.)
Price
Rs. 5,300
WASHING MACHINES
MAGIC CLEAN – PWM.7700-N:
The PEL Semi Automatic Luxury Wash - 7700-N equipped with Japanese technology has a
100% rust proof plastic body with a big multi pilaster. It can handle heavy loads and has a quick
dry spin.
In addition, it supplements a drain switch that quickly drains out all the excess water. So treat
yourself with the Luxury Wash - washes away heavy loads and dries them up quickly.
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Cool Features:
One year parts & service warranty Magic Clean PWM 7700 N
Japanese technology
Super large multi pulsator Capacity Twin Tub
Quick dry spin Retail Price (Rs.) 9,350
Drain switch to drain all excess water
Semi automatic
Ability to wash extremely heavy loads
Low noise & easy operations
100% rust & shock proof unbreakable plastic
body
The PEL Econo Wash 512 is made from Japanese Technology with 100% rust and shock proof
unbreakable plastic body. It's a top load with a powerful motor that provides a brighter wash and
has a build in energy saver that gives you excellent energy efficiency. So save the energy with
this Econo Wash - consumes less electricity as it gives more output.
Cool Features:
One year parts & service warranty Magic Clean PWM 512 Single Tub
Japanese technology
Capacity 10 Kg
Two Spin Efficiency Wash Cycles
Retail Price (Rs.) 6,850
Energy Friendly AAA Rating
Optimized Design
Super Large 10Kg Capacity
Low Noise & Easy Operations
100% rust & shock proof
Unbreakable plastic body
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WATER DISPENSER
SILVERLINE
Water dispensers are a welcome addition to PEL range of home appliances. Our Silver line and
Life-Stream water dispensers make life a little easier and fridge space a bit more plentiful. While
Cold water refreshes your mood in burning summer, Hot water on demand is great in the office
for packets of soup, instant coffee and tea.
Cool Features:
Hot & cold water
Refrigerator
Separate Freezer
Compressor Cooling
Stainless Steel Water Tanks
Super Quiet Design
Energy Saving
CFC Free
1 Year Warranty
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PLS 681 SL
Retail Price Rs. 11,900
LIFE STREAM
Water dispensers are a welcome addition to PEL range of home appliances. Our Silver line and
Life-Stream water dispensers make life a little easier and fridge space a bit more plentiful. While
Cold water refreshes your mood in burning summer, Hot water on demand is great in the office
for packets of soup, instant coffee and tea.
Cool Features:
Hot & cold water
Refrigerator
Separate Freezer
Compressor Cooling
Stainless Steel Water Tanks
Super Quiet Design
Energy Saving
CFC Free
1 Year Warranty
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PLS 801
Price (PLS 801 Silver) Rs. 10,600
Price (PLS 801 White) Rs. 10,100
PLS 326
Price (PLS 326) Rs. 10,000
Delux design
Safety device for low water
High efficiency compressor cooling
Stainless steel water tanks
Refrigerator capacity with 15Ltrs.
Refrigerant R134a
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Sales during the 3rd quarter ended SEPTEMBER 30, 2010 period at Rs. 16.719 billion
registering an increase of 24% over corresponding-period and net profit also grew to Rs.
3.50 from 194 million showing an increase of 80%. Summary of financial result for 9
months ended on SEP 30. 2010 is as under:
(Rs. in Millions)
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Dividend %
Cash Dividend - - - - - 10%
Production Data
Transformers - MVA 1,010 2,466 2,385 2,243 2,022 1,356
BALANCE SHEET:
As at December 31, 2009
December
Note June 30, 2009
31, 2009
(Rupees in thousand)
4,186,906 4,007,358
NON CURRENT LIABILITIES
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7,183,256 5,720,534
CURRENT LIABILITIES
7,191,289 6,553,832
22,935,220 19,070,035
December
Note
31, 2009
June 30, 2009
ASSETS
NON-CURRENT ASSETS
13,968,272 10,303,534
Long-term deposits 20 92,152 80,179
CURRENT ASSETS
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8,851,890 8,664,551
22,935,220 19,070,035
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The strengths, weaknesses, opportunities and threats of PEL are discussed below:
STRENGTHS
PEL has the following strengths.
Brand Name
Strong Dealer Network
Quality Products
Best Sales Services
Market leader in WRAC
Number TWO in refrigerators in Pakistan
Strong Management Team
Distribution of Authority
Research and Development Department
Free Customer Services
BRAND NAME:
PEL has created a strong brand image in the mind of the customers through
high quality and low prices. The customers of PEL always prefer its home appliances like
Window A.C, split A.C. and Refrigerators, during the time of purchase. PEL is a popular
company in Pakistan every one knows about the PEL products and its brand name. That’s
why PEL is a market leader when it comes to Window A.C.
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QUALITY PRODUCTS:
PEL is also in a strong position because it provides superior quality
products to customers. So it gives an edge to company over its competitors. Due to best
quality, guarantee of products of PEL is more than its competitors.
DISTRIBUTION OF AUTHORITY:
Top management of PEL delegates the power to the
subordinates for achieving the marketing objectives in a specified time period. So every
manager has an authority to take decisions to achieve the goals of company. In this way
they save the time and work quickly.
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WEAKNESSES
Like other companies PEL has some weaknesses. If PEL overcomes these weaknesses then
it can become a market leader in home appliances. PEL looses some competitive edge in the
following areas:
Financial Problems
Lack of advertisement
System variations
Lack of Product range
Less Utilization of capacity
FINANCIAL PROBLEMS:
Sometimes PEL faces the financial problems because its stocks are so
much piled up in the stores that creates problem of cash flow because when the stock are
not sold and the production is in process for 24 hours a day then the company faces such
problems.
LACK OF ADVERTISEMENTS:
It is a second major weakness of PEL that it is not a vigorous
advertiser. Only recently PEL has invested a considerable amount in advertisement, but
when we look at its competitors, PEL still has to do a lot in this sector.
SYSTEM VARIATIONS:
It is also the main weakness of PEL that there is a rapid change in
policies of selling the products. That creates problems for the selling team to sell the
products to the dealer because the top management requires urgent amount of money.
Thus the products are sold on hard cash that reduces the prices of products that creates
problems for the management.
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OPPORTUNITIES
For PEL, there are more opportunities for expansion in business. Following are the
opportunities for PEL:
Exploration of market in Pakistan
Increase in product range
Export opportunity
Increase in production capacity
EXPORT OPPORTUNITY:
PEL has also the opportunity to export there products in other
countries like U.A.E, Saudi Arabia, other Gulf and African countries.
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THREATS
CIHINA’s PRODUCT:
China’s products are another threat for Pakistani companies because these
products are cheaper than the Pakistani companies. China products stress the indigenous
companies to lower the quality and prices that will not be profitable in the long run.
PRICE WAR:
As there is stiff competition in the home appliances market that will cause the price
war.
INSTABILITY OF GOVERNMENT:
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TAX DEPARTMENT:
Tax department is another major threat for company that will restrain the
business expansion. There is a most tax complicated procedure operating in the country
that creates hurdle in the production and smooth functioning of different companies in
Pakistan.
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ORGANISING ADVERTISEMENT:
A firm can manage its advertising program through
following ways:
By developing an internal advertising department
By using an outside agency
By using a combination of both
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ADVERTISING DURATION:
Exhibitions
Road Shows
Promotion Schemes
WINNER OF CUSTOMER
CHOICE AWARD
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First of all we should divide the task accordingly to the strategy among the group members.
There should not be a one man show in the completion of the project. All the group
members must be taken on board before taking any decision.
If we had a field visit of PEL Company, we would certainly have been able to compile even a
better project. A lot of outdated and non-concerning material is available on internet which
can distract the assignee from the relevant things so do analyze your data first.
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