smppresentation_shadabalam

8/8/2019 SMPPresentation_ShadabAlam

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Strategic Marketing & Planning


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Agenda


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Fast Facts

Sole manufacturer of PVC (Polyvinyl Chloride) Resin

Integration project (cost US $ 255 million) has

helped increase production capacity to 150,000

tons of PVC (from 106,000 DMT of caustic soda)

Increased revenues from selling around 18 MV

electricity from its power plan to KESC


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Consumption Ratio


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Market Structure for Caustic Soda


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Where is EPCL Placed?

Catering to all segments

Direct supply to textiles and MNCs

A

lso supplying through dealers 5 dealers with dealership contracts


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Market Capacity (By Segment)

REGIONCAUSTIC SODA -

LIQUID

CAUSTIC SODA

FLAKES

SOUTH 90,000 15,000

NORTH 170,000 25,000

TOTAL 260,000 40,000


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Market Capacity (By Sector)

SECTOR CAUSTIC SODA - LIQUID CAUSTIC SODA - FLAKES

.

NORTH SOUTH

TOTAL

SECTOR

WISE

NORTH. SOUTH.

TOTAL

SECTOR

WISE.

Textile / Dying Units 82,000 42,000 124,000 15,000 7,000 22,000

Soap and Detergents 47,000 25,000 72,000 8,000 5,000 13,000

Paper and Board 20,000 - 20,000 - - -

Hypo 12,000 - 12,000 - - -

Others 9,000 23,000 32,000 - - -

Sugar - - - 2,000 1,000 3,000

Solvent Extraction - - - - 2,000 2,000


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A Growing Market (By Volume)

SEGMENT 2006

Growth

% 2006

2007

Growth

% 2007

2008

Growth

% 2008

2009

Growth

% 2009

OVERALL

GROWTH

P.A.

CAUSTIC SODA

LIQUID 224,000 - 236,000 5% 245,000 4% 257,000 5% 5%

CAUSTIC SODA -FLAKES 34,412 - 36,507 6% 37,636 3% 38,800 3% 4.5%

A Growing Market (By Value)

SEGMENT 2006

Growth

% 2006

2007

Growth

% 2007

2008

Growth

% 2008

2009

Growth

% 2009

OVERALL

GROWTH

P.A.

CAUSTIC SODA -

LIQUID 5,343 - 6,048 13% 7,848 30% 8,185 4% 13%

CAUSTIC SODA -

FLAKES 1,112 - 1,225 10% 1,440 18% 1,446 0.4% 10.0%


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Future Trends (By Volume)

SEGMENT 2010

Growth

% 2010

2011

Growth

% 2011

2012

Growth

% 2012

2013

Growth

% 2013

OVERALL

GROWTH

P.A.

CAUSTIC SODA -

LIQUID 272,000 6% 288,000 6% 305,000 6% 323,300 6% 6%

CAUSTIC SODA -

FLAKES 41,500 7% 44,400 7% 47,500 7% 50,800 7% 7%

Future Trends (By Value)

SEGMENT 2010

Growth

% 20102011

Growth

% 20112012

Growth

% 20122013

Growth

% 2013

OVERALL

GROWTHP.A.

CAUSTIC SODA -

LIQUID 8,663 - 9,172 6% 9,714 6% 10,297 6% 6%

CAUSTIC SODA -

FLAKES 1,547 - 1,655 7% 1,770 7% 1,893 6.9% 7%


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Assumptions for Growth

New demand of caustic soda from natural resources industries

Possible increase in export of textile products to Europeanmarkets

Increase in production of viscose rayon Increase in local demand of textile products

Increase in consumption of soap and detergent

Increase in paper and board consumption

Macroeconomic environment will become more challenging Potential to create demand


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Caustic Soda PLC

PRODUCT SEGMENT INTRODUCTION GROWTH MATURITY DECLINE

Caustic Soda Liquid

Caustic Soda - Flakes

Denotes Caustic Industry

Denotes EPCL position


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Competition

COMPETITION

CAUSTIC

SODA -

LIQUID

CAUSTIC

SODA -

FLAKES

OVERALL

REVENUE

S

Sitara Chemicals Industries 42% 20% 3,908

Ittehad Chemicals Limited 29% - 2,516

Engro Polymer & Chemicals Ltd 29% - 2,450

Imported - 80% 1,237

Historical Growth ++ +/- ++

Proejcted Growth ++ +++ ++

Company Profitability +++ - +++


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Distribution Channels

CHANNEL CAUSTIC SODA LIQUID CAUSTIC SODA FLAKES

2009 2013 2009 2013

Authorized Dealers 60% 75% 70% 80%

Direct to End Users 40% 25% 30% 20%


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INTERNAL ANALYSIS


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Financials Analysis

In million Rs 2009 2008 2007 2006 2005

Net sales revenue 11,571 7,868 6,063 5,278 5,553

Profit after tax (232) 353 422 381 303

Capital expenditure 19,361 16,135 4,709 2,443 2,278

In Rs. 2009 2008 2007 2006 2005

EPS (earning per share) -0.45 0.68 1.64 2.14 1.70


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Purchase Criteria

Factor Name Absolutely

Critical

Very

Important

Quite

Important

Nice to

Have

Not

Significant

Dont

Want

Price

Quality (free from iron

content & blackish

color)

Concentration Testing

Availability

Delivery in Safe

Manner

On-time delivery

Dealer Price

Industry Education


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Rating against Purchase Criteria

Quality & Price EPCL Sitara Ittehad

Weightage

%

PRODUCT RELATED

Price 14 1.2 1.1 1.1Quality (Free from Iron

contamination & blackish

color)

14 1.4 1.0 1.0

Availability 20 1.5 1.9 1.7

SERVICE RELATED

Concentration Testing 4 .4 .2 .2Delivery in safe manner 10 1.0 .8 .8

On-time Delivery 20 2 1.8 1.6

Dealer Price 14 1.2 1.1 1.1

Industry Education 4 .4 .3 .2

TOTAL 100 91% 82% 77%

Has quality gone up/down inpast4 years

Nil ++ ++


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SWOT Analysis


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BUSINESS OBJECTIVES


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Vision & Mission

Vision: To be premier Pakistani enterprise with a global reach,

passionately pursuing value creation for all stake holders

Mission: To create value for our customer by offering products atcompetitive price, on-time deliveries, business development and

technical support to achieve growth while maximizing safety,

environment and ethical standards as well as enhancing value for

our stakeholders while maintaining high standards of ethics, safety

and environmental responsibility


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Values


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Corporate Strategic Objectives

Increase sales volume and higher profit

Corporate Social Responsibility

Employee and organization Development

Customer Focus

Health, Safety and Environment

Enhancement in knowledge and know how to

manufacture on quality and production parameters Increase share holders value


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KEY ISSUES FACED


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Key Issues (to be addressed)

Availability of Natural Gas

High turnover of technical side employees

Less outlet coverage in North region

Current high leverage position of company

High distribution cost for Northern Region

Weak brand image in North


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STRATEGY & FUTURE DIRECTION


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Five (5) Generic Competitive Strategies


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Conclusion


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Thank You

smppresentation_shadabalam

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