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Consultancy Report on Chawala Aluminium.

Table of Contents
Serial No. 1 2 3 4 5 6 7 8 9 10 Description Introduction Objectives Literature Review Market Analysis Industry Analysis Methodology Analysis of Problems Solution of Problems Conclusion Refrences Page No.

Consultancy Report on Chawala Aluminium.

INTRODUCTION.
WELCOM TO CHAWLA GROUP The Journey of success that started four decades ago has today become a symbol of economic & social development of Pakistan. Yet Chawla Group of industries feels there is no end when it comes to achievements this it strives to explore the ultimate business opportunities. Being a business group based on trust, skill knowledge, and experience, we are committed to pursue the goal of discovery, reliability, and continuous growth. Chawla Aluminium is another successful leap, by Chawla Group, towards its focus on the provision of product at a higher degree of accuracy blended with excellent services to its most valued customers. With a progressive team of professionals, Chawla Group takes the challenge of consistent customer - centered growth by providing distinguished Alumunium solutions that make a significant difference in transforming the dreams into realities. Our foremost task cause is to preserve forests and nature by providing awareness and suitable products to people, so that a shift from wood to Aluminium can be achieved. So Chawla Aluminium can proudly claim an innovative contribution in masking this planet a safer habitat for mankind. Under the rich fabric of expertise, Commitment & excellence, I pray for a safe, prosperous, & developed Pakistan where we all must be adding value as per our capacity. GROUP HISTORY Mian Mohammad Munir Chawla started his business almost 40 years ago. With his charismatic personality, he grasped business market so dynamically. Later his sons joined to further accelerate the ongoing success of their father. Now Chawla Group is a well-established and trusted name due to its firm and unprecedented presence in the market. Its not only the presence but also dedicated commitment to reach unimaginable heights of excellence, which makes Chawla Group stand prominent among all its competitors in local and global market.

3 VISSION

Consultancy Report on Chawala Aluminium.

Our vision is to see the world a wonderful place to live, where technological wonders may help mankind to enjoy a peaceful life Chawla Chemical & Metal Industries (Pvt.) Ltd. Must be a partner to the technological advancement availability for the delight of mankind. MISSION Our mission is to establish Hi-tech base to develop capability enough to receive latest technology and innovate to produce sophisticated products of international standards at affordable price to serve local and global markets. DESCRIPTION OF ORGANIZATION. Chawla Aluminums is an ISO 9001 & 14001 certified company. Chawla Aluminium is the first company in Pakistan to produce 100% human-friendly aluminium architectural profiles. Production Capacity: Over 600,000 tons per Year. Quality Standards: Our manufacturing is done in accordance with BS 1474, AS TM B221, BS 3987. The Aluminium sections are anodized according to American Architectural Manufacturing Associations (AAMA). CHAWLA VALUES Integrity Capability with Honesty. Excellence Production, Marketing, Delivery, Respect Employees, Respect Employees, Customers Intermediaries, Stakeholders. ENGINEERED WITH EXCELLENCE Aluminium is Mans Truly Unique Friend: strong, durable, flexible, impermeable and lightweight, unbelievably rust free 100 percent recyclable. What else can one ask for! Yet a true friend cares and so does Aluminium by maintaining a balanced ecosystema healthy world for mankind. Chawla adds charm to this everlasting relationship. Here we give a variety of finishes; it may take many forms, allowing its use in a vast array of products especially built for building facade. We at Chawla realize that our dreams must be consistent with the hopes of our valued customers. We therefore relentlessly strive to achieve an immaculate quality, which may enable us to satisfy the needs of our valued clients.

4 We believe: if you make, make what no one makes. ABOUT CHAWLA ALUMINIUM

Consultancy Report on Chawala Aluminium.

Chawla Aluminium is another successful leap, by Chawla Group, towards its focus on the provision of product at a higher degree of accuracy blended with excellent services to its most valued customers. With a progressive term of professionals, Chawla Group takes the challenge of consistent customer - centered growth by providing distinguished Aluminium solutions that make a significant difference in transforming the dreams into realities. Our foremost task cause is to preserve forests and nature by providing awareness and suitable products to people, so that a shift from wood to Aluminium can be achieved. So Chalwa Aluminium can proudly claim an innovative contribution in making this planet a safer habitat for mankind. CHAWLA PRODUCTION Pakistans only Profiles Neutralized from Chemicals, Human Friendly, 100% Safe to Touch PRODUCTION: IMPORTED BILLE Chawla Aluminium uses superior quality imported, 6 meters length and 7 inch diameter billet, made of alloy 6063. The Billet is internationally acclaimed Aluminium raw material meeting standards of quality Aluminium profiles. These are homogenized, and 100% ultrasonically inspected billets. This ingenuity and technical expertise is what highlights our unique presence among our competitors. This distinctive feature enables us to produce profiles at any scale in a time efficient manner. HOT LOG FURNACE INTEGRATED WITH HOT LOG SHEAR Chawla Aluminium is the only Aluminium manufacturing industry in Pakistan, which is using PLC controlled furnace integrated with hot log shear technology. This furnace is equipped with three thermal dynamic stages, which are controlled by a PLC to sustain the uniformity of heat and alloy composition.

5 EXTRUSION PRESS PROCESS

Consultancy Report on Chawala Aluminium.

Chawla Aluminium uses front-loading automatic short stroke, most modern extrusion German technology from Schloemann. Extrusion is controlled by touch screen PLC system from Siemens Japan. This short stroke technology helps to reduce reloading time of billet less than 15 seconds to maintain heat uniformity as well as strength of all profiles. To make the process fast, more accurate in temperature and strength, Chawla is using 1880 tonns biggest extrusion plant in Pakistan, which makes it possible for us to extrude up to 178 mm size profiles. QUALITY STANDARDS Our manufacturing is done in accordance with BS 1474, AS TM B221, BS 3987. The aluminium sections are anodized according to American Architectural Manufacturing Association (AAMA). Anodize specification 611 -98, Class 1 as follows: Film thickness - 0.7 mils Coating Density 38g/inch PRODUCT LINE: Aluminium Extruded Rods Aluminium Extruded Tubes Aluminium Extruded Bars Aluminium Extruded profiles Aluminium Composite Panels For Building Facades Powder Coating Anodizing Billet Casting Customized Die Making MOST MODERN SHORT STROKE GERMAN EXTRUSION TECHNOLOGY FRONT LOADING DIE OVENS Chawla adopted the front-loading die oven technology for safe and speedy operations. PLC controlled sensors are used to maintain temperature stabilization. It is a very

Consultancy Report on Chawala Aluminium. critical process for high standard extrusion speed and Chawla industry has acquired excellence in this arena of their job. AUTOMATIC PULLING AND CUTTIN To ensure the straightening of profiles, a touch screen PLC controlled puller and auto cutter is used. This is an important achievement of Chawla Aluminium industry. The state of the art puller pulls the profile as far as the required size is achieved. It automatically transfers extruded profiles to the cooling table from STRETCHING TABLE Chawla uses automatic stretching system for straightening profiles. We realize that Straightening Aluminium profile is a very vital process. Having a great focus on precision of this process, Chawla Aluminium uses built in computerized camera controlled censors for straightening. This ensures no error in production line. FINISH SAW Chawla uses automatic finish saw to reduce human inaccuracy. It is the standardized way to help maximize the effectiveness of profile because it keeps the edges of profile smooth. The Saw allows cutting of every profile in high precision. AGING PROCESS By using German T^ heating technology, every profile achieves PLC controlled hardness up to 15. This is how Chawla maintains international standards. ANODIZING PROCESS To protect Aluminium profiles from corrosion, a layer of ions is applied on the surface. This process is known as Electrolyses. It is considered the best process for the protection of the surface of Aluminium profile. Chawla Aluminium is using an APC controlled rectifier from ELCA Italy for this process. APC automatically controls the desired deposition of required microns for a scratch free smooth surface. This system also enables us to get the vast range of microns from 12-90. NEUTRALIZATION PLANT Many acids are used during anodizing process. As these acids may be harmful, Chawla Aluminium took a pioneer decision to bring and install a neutralization plant for the first time in Pakistan. After precision anodizing, every profile is carefully & scientifically

Consultancy Report on Chawala Aluminium. rinsed. All acidic effects are properly neutralized to make every profile clean and human friendly. We strongly claim that every product of Chawla Aluminium is 100% safe to touch. HIGH QUALITY ECO FRIENDLY CHEMICALS & SOLUTIONS All chemical solutions utilized during production in Chawla Aluminium are imported from Europe. The chemicals are 100% environmental friendly and do not contain harmful substances. PROFILES HANDLING The most high-tech technology I used at Chawla Aluminium when it comes to stacking and packing. This is an important step in Aluminium industry. A state of the art machine is imported to wrap the profiles to keep them scratch less and glowing. A minute error in packing can ruin the quality of the profiles. We dedicate our effort at this stage to maintain quality and ensure safety of the profiles. All handling is supervised by a skilled team of professionals to ensure 100% unmatched quality. DIE WORKSHOP Chawla Aluminium has a dedicated die development department equipped with ARD wire cut machine. This department comprises of specialist product designers and engineers who are capable not only to replicate customers designs but their impeccable creativity helps us create innovative designs for export and local markets. Chawla Aluminium recognizes the value of aesthetics in life and hence satisfies our customers in this arena too. POWER GENERATION Another outstanding strength of Chawla Aluminium is, the most modern in- house power generation plant that helps us to cater all of our energy needs. Our power generation allows all time dependable and uninterrupted power supply. Our current capacity of this strength is 3 mega watts which is dynamically enough to meet our requirements to accomplish the supplies of any mega project WASTE WATER TREATMENT PLANT At Chawla, we take special measures to make sure that no environmentally unacceptable effluence is discarded into the environment. Our inimitable contribution is wastewater management. We make sure that the water we drain out is free of

Consultancy Report on Chawala Aluminium. contaminants, solid waste, oil, grease acids, alkalis and other toxic materials such as arsenic or other metals. Special consideration is given to make sure that our process is environment friendly. This whole process is possible through our most modern wastewater treatment plant. ALUMINUM PRODUCTS ANALYSIS Aluminum is in high demand as a component of many consumer products. Aluminum is used to make thousands of products, including foil, cans, car parts and even computers. The metal is in high demand globally and the industry is strong, with prices rising significantly in the past few years. Supply Aluminum suppliers have significant power over the industry. If smelters cap supply, there may not be enough metal to meet global demand. This can drive prices up. However, there is currently a disconnect between inventory levels and the price of the metal; prices are rising despite relatively steady inventory levels. This implies some volatility in the aluminum industry, which makes it unique compared to other metal industries. Demand Aluminum prices have risen sharply due to increasing demand, especially from emerging markets. As with most metals, aluminum prices respond to changes in demand for the metal. Aluminum is in highest demand from the transportation, construction, beverage and packaging sectors. Threats and Risks Since aluminum is globally traded, changes to import or export laws can significantly affect the industry. In addition, environmental concerns such as energy use by smelters mean that people are watching the industry carefully for signs of irresponsible practices. However, aluminum is readily and easily recyclable, which positively impacts the industry as smelters can use recycled resources instead of always sourcing new metal.

Consultancy Report on Chawala Aluminium. The Differences between Anodized Aluminum & Billet Aluminum Aluminum is a versatile, lightweight and plentiful metal. Aluminum is the most abundant element in the earth's crust, but it is never found in its pure form in nature. It took about 100 years from the notion that bauxite contained an unknown element (aluminum) to the perfection of the Bayer method of extracting aluminum from bauxite. Two years later, in 1888, Alcoa was formed as the Pittsburgh Reduction company, and by 1909 41,000 kilograms of aluminum were produced a day. Aluminum is light, plentiful and cost-effective for manufacturing and industry. Two common types of aluminum used in manufacturing are anodized aluminum and billeted aluminum. Pure Aluminum After bauxite is processed, pure aluminum is formed. This is a soft metal that conducts electricity better than almost any substance and does not react to magnets. It is quite reactive and is easily made into alloys with stronger metals. Because of its softness, pure aluminum is not usually useful to industry because of its lack of strength. By taking advantage of its unique chemical properties, industry has created aluminum that takes advantage of its light weight but also has the strength needed for most manufacturing. Anodized Aluminum Anodized aluminum is pure aluminum that has been oxidized. Unlike most metals, the oxidation process strengthens aluminum while still retaining its light weight. Creating anodized aluminum is relatively easy. Pure aluminum is placed into an acid bath, such as acetone. This creates a chemical battery with the aluminum being the positive charge and the acid a negative charge. An electrical current is then run through the bath causing the aluminum to oxidize. This creates a very hard and strong compound called anodized aluminum. The only drawback to this compound is that through oxidation, the aluminum loses its conductivity. Billeted Aluminum Billeted aluminum is simply aluminum or aluminum alloys that have been formed into ingots, bars or rolls by a process called extrusion. Simply put, the metal is placed into a chamber, sufficient heat and pressure are applied, and the metal will conform to the shape of the chamber. Most often, aluminum alloys are created with zinc, copper, magnesium and manganese. These alloys retain the conductivity of aluminum and also its light weight.

10 Usage of Anodized and Billeted Aluminum

Consultancy Report on Chawala Aluminium.

Anodized aluminum is most often found in high-end cookware. Heat spreads evenly and rapidly through anodized aluminum, and it also has a protective finish due to the toughness of the compound. Other uses are in building exteriors where the framework is exposed to the elements and in satellites that orbit the earth. Billeted aluminum is used in a wide variety of manufacturing. Most everything made of aluminum, such as aluminum foil, cans and consumer products, are created from billeted aluminum alloys.

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Consultancy Report on Chawala Aluminium.

Objectives.
1. To increase the sales volume and products are available in the markets frequently. 2. To increase the efficiency of the company make innovation in sales distribution 3. To increase the profitability ratio as compare to other competitors 4. Committed to increase efficiency in Sales by putting the highest quality

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Consultancy Report on Chawala Aluminium.

LITERATURE REVIEW
Sales refer to the exchange of goods or services for an amount of money or its similar in kind. Selling helps an organization attain its business goals. Therefore, managing sales in an organization is a critical activity. A sales manager needs to make sure that the sales people are motivated to perform the selling function in a way that will help the organization achieve its goals. The sales team incessantly monitors the changes taking place in the external environment regarding competitors, customers, government and other confident agencies, advances in technology, and industry trends. This provides the sales personnel with very important information regarding trends in organizational sales, product development, and budgets. By contribution the management vital inputs pertaining to such information, the sales team helps the management to develop plans regarding sales, production, and plan. Over the years, important changes have taken place in the selling atmosphere, leading to changes in the sales function. The trends that have produced the sales role include shorter product life cycles, longer and more complex sales cycles, bargain customer faithfulness, strong struggle among manufacturing firms, rising customer view, increasing buyer skill, electronic revolt in communications, and the entry of women into the sales force. In addition to having a strong sales function, companies should also have efficient sharing channels to make the products available to the end consumer. Management of sharing channels involves efficient channel design, conflict management and completion of difficult channel information systems which will improve the process of making the products available to the end consumer in a timely approach. This book, Sales and sharing Management provides an overview of the sales and sharing function. It discusses various aspects of the sales function ranging from different sales organization structures to the role of the sales manager in improving sales by hiring, training, motivating and leading the sales force. The second half of the book deals with the sharing function and discusses logistics and channel management. Control is one of the most serious functions performed by a sales manager as it measures the performance of the system and helps the manager take counteractive action if the performance of the system is not in agreement with the formulated plans. The present day forceful marketplace has forced sales managers to shift their focus in sales control from sales volume single-handedly and to lay equal stress on costs incurred in implementing the sales attempt. The objective of sales control is to make sure that the company's sales efforts are in tune with its sales plan by taking necessary measures in case of deviations. The sales control function

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Consultancy Report on Chawala Aluminium. actions the performance of the sales force and identifies the problems and opportunities that the firm is showing to. The process of sales control involves setting goals, comparing actual with the targets, and taking up corrective action if needed. The sales efforts of a company can be studied through a sales analysis that involves assembly classifying, comparing, and studying the sales data of the company. A average sales analysis involves deciding on the purpose of evaluation, comparing the sales figures with some standards and processing the data to generate reports. A sales analysis can be most revealing when the sales data is broken down hierarchically. An analysis of volume of sales by categories is very helpful in identifying the root causes of the problems in the sales activities of the firm. Though a sales analysis helps identify the problems associated with the sales activities of the firm, it is also bound by a few limitations like dependency on accounting records, inability to reflect the profitability of sales, etc. Sales analysis involves analyzing the sales volume or the total sales of the company. It includes the total sales of the company by territory, customer, and product category. A sales audit is sometimes taken up by the sales management to examine the entire selling operations of the firm. The audit involves an audit of the sales organization, the sales environment, planning systems, and sales management functions. While a sales analysis measures the sales volume achieved, the marketing cost analysis looks into the costs and expenses incurred to achieve the sales volume and their elucidation. A cost analysis involves dispersal the natural costs, allocating them to functional units, studying the profitability of the units, and implementing suitable action depending on the findings of the analysis. Just as a sales audit examine the complete sales operations of a firm, a marketing audit evaluates and enhances the expediency of a firm's marketing operations by studying its marketing strategies, policies, and practices. Sales managers use profitability analysis to relate the sales revenues to marketing costs. This helps sales managers to take desirable measures to ensure higher profitability of the firm's sales transactions. A number of principles such as the iceberg principle, the 80/20 principle and cross-classifications lead sales managers in conducting effective sales and cost analysis. These principles reveal the behavior of sales data and the actual reasons original them. They caution sales managers of pending dangers and help them to take measures to oppose them. Everyone, at some time or the other, must certainly have been sold a product that he or she did not need. Selling is a vocation that has been widely criticized for the immoral scope connected with it. Ethics is the set of rules or values that govern the conduct of a person or members of a profession. Ethics refers to an individual reliance system and consists of knowing what is right and what is not. It forms a very important part of sales and is essential for lending integrity to a salesperson's behavior. No discussion on ethics is complete without a reference being made to

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Consultancy Report on Chawala Aluminium. social responsibility. Social legal responsibility exemplifies moral performance and is defined as an persons or institution's fear for the consequences of his/its actions as these might affect the interests of others in the society. Companies doing business with no regard to social responsibility run the risk of attracting the attention of environmental groups, earning negative publicity, and losing the goodwill of society. Therefore, companies try to inspire a sense of ethics in their employees and conduct business in a socially liable way. Indian companies are now more concerned with corporate social responsibility than ever before. Companies in the past were concerned more about making profits than anything else. But in recent times, firms have realized the importance of corporate social responsibility. Corporate social responsibility has been defined as the promise made by businesses to contribute to sustainable economic development, to work with employees, their families, the local civilization, and society at large to improve the quality of life. CSR is a process that helps a firm to function ethically and make a positive contribution to the welfare of society. All companies are expected to imbibe values pertaining to corporate social responsibility in their mission and make CSR a part of the organizational policies. In order to fulfill their social responsibility, companies need to successfully communicate to the public about the company's ethical policies, set high ethical standards for themselves, and evaluate themselves on ethical performance from time to time through means of ethical audits. Several countries have passed declarations and policies regarding CSR. The Indian Government has amended the Indian Companies Act, 1956, making it obligatory for companies to conform to certain provisions of this law in order to be accepted as responsible corporate. Although Indian companies have been indulging in charitable activities of some kind or the other, corporate social responsibility is a totally different field largely. There is a much wider scope for corporate social responsibility in the Indian corporate scenario with its coverage extending to human rights, labor standards, as well as environmental issues. Companies in the current scenario are operating in an powerfully competitive environment. Especially during the past 20 years, competition has been rapidly increasing due to globalization. According to the US Chamber of Commerce, companies may conduct business on any of the following four levels of social responsibility obeying the law, meeting public expectations, anticipating new social demands, and leading the way. The fair behavior of an individual is prejudiced by that individual's stage of moral development. An individual passes through three levels of moral development -- preconvention, conventional, and principled. In organizations, the management is largely responsible for the ethical or unethical behavior of its employees. A sales manager faces ethical issues that cover the ethical dilemmas of his sales people as well as the ethical aspects pertaining to his decisions concerning hiring and evaluating of salespersons, assigning territories, etc. The ethical issues facing a sales manager may be studied with regard to the sales manager's relationship with his subordinates,

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Consultancy Report on Chawala Aluminium. the company, customers, and competitors. On the other hand, the ethical issues facing a salesperson pertain to the salesperson's accountability to the top management, and his relationship with other salespeople and with customers References

1. www.davekahle.com/article/distarticles.html Articles on sales & distribution by Dave Kahle providing valuable insight ... with a problem, the customers are instructed to call the sales person first. ... SM-D-14 Myths of Sales Management: The Entrepreneurial Salesperson by Dave Kahle... 2. www.optuminsight.com/.../sales-and-distribution-management-consul... Sales and Distribution Management Consulting ... finding answers and solving problems for leading organizations in the public, nonprofit and private sectors. 3. www.scribd.com/doc/25524063/Sales-and-Distribution-Management Sales and Distribution Management ... probe customers to learn more about their problems, adjust the marketing offer to fit the special needs of each customer,

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Consultancy Report on Chawala Aluminium.

Grphical Sales Analysis Of Market Survey Report. (Values Are in Percentage) 2MM Sliding Window
90 80 1 70 60 50 0.6 40 30 20 0.2 10 0 B (H22) Ch(B) R.P.C. S. P.C. D.S 0 0.4 0.8 1.2

Hinge Door Sections & Fix Panel.

80 70 60 50 40 30 20 10 0 N B (H22) Ch(B) R.P.C. S. P.C.

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Consultancy Report on Chawala Aluminium.

Curtain Wall Sections.

60 50 40 30 20 10 0 N B (H22) Ch(B) R.P.C. S. P.C.

Sliding Window (1.6MM) (70%).

84 82 80 78 76 74 72 70 68 66 N B (H22) Ch(B) R.P.C. S. P.C.

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Consultancy Report on Chawala Aluminium.

Coller Section / FLAT SERIES.

80 70 60 50 40 30 20 10 0 N B (H22) Ch(B) R.P.C. S. P.C.

Economy Fix/E.T.2MM / Misc.

59 58 57 56 55 54 53 52 51 50 49 N B (H22) Ch(B) R.P.C. S. P.C.

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Consultancy Report on Chawala Aluminium.

Industry Analysis
Aluminum industry of Pakistan is growing from past few years rapidly it creates 9.38% of job opportunities in the country. There are some known competitors in this industry like Chawla, Prime, Alcon, Pakistan cables and Alco etc. According to 2009 market survey following are the results of market share of these companies. N o . 1. Chawala Aluminium 2. 3. Prime Aluminium Alcon Aluminium 4. 5. Pakistan cables Alco Aluminium 37% 20% 30% 35% 39% Company Name Market Share

Column Chart of Market Share

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Chawala Prime Alcon Aluminium Aluminium Aluminium Pakistan cables Alco Aluminium

Chwalla have 46% share in the market & Alcon have 39% percent share in the market if we compare these companies. Demand of Aluminium is approximately equal in because

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Consultancy Report on Chawala Aluminium. Alumnium companies creates such image in the mind of customer. If we discuss about the local Alumnium companies the Chawala, Prime & Pakistan Cables & Alco Alumnium is the stronger parties on base of quality products as compare to local other companies like above mentioned as Lucky and Japan Metal, Sana Aluminium, Alcon, Altec etc but it cannot affect the revenue of other three companies because its used by those people who have lower purchasing power or price conscious. Alcon have not more effect to them. It sees that Alcon has to be launched 2nd time in pakistan with a new market and product design strategy. In next five years the future of Aluminium industry is very bright because our Engineer is mostly Aluminium addict they prefer Aluminium on steel or wood. There is no more market potential for any new Aluminium company if lunched then it will be limited to a city of cover not more then 15 to 20 cities because there is dopily of Chawala & Pakistan cables and Alco, Prime for example in Aluminium industry since 2002s many Aluminium companies trying to lunch its product but because of these three strong competitor they cant achieve its goals and cause a failure. In Aluminium industry Chawala is very strong competitor worldwide Chawala owned all its assets worldwide but on the other hand Prime is just providing raw material to its owner in Pakistan. The current CSI of Chawala Company is 66% it is ranked worlds 15th strongest supply chain and network. Prime is the targeting to the small level. As compare to Prime the Chawala is providing on international level and on but on other hand only on national level. The total value of Aluminium is increasing due to inflation and instability of the Economy. This puts manufacturers and distributors in a very difficult position. However, during 2012, the majority of Aluminium companies reacted to the current economic situation by attracting customer in every way possible. Furthermore war with in the country is create so much financial difficulties for investor our stock exchange not stabilized itself its rapidly pray of daily change in political instability and cause of it multinational companies are not interested to invest more in the country. The Pakistani customers are mostly open minded because they purchase those products which are newly introduce in the market they accept changes. Now there is a race is started between companies of lunching new product. People living in Pakistan accept changes in the Aluminium industry. There has been so much market potential for further growth in Aluminium industry government of Pakistan should be take it seriously because of these multinational companies creates many job opportunities in Pakistan and increase in the government revenue in shape of taxes by awareness of new products and brands the customers can be easily attract.

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Consultancy Report on Chawala Aluminium.

Methodology.
To boost up the sales size of CHAWALA ALLUMINIUM first assemble sales data from the Control Center of CHAWALA ALUMINIUM to analyze the existing sales of company product wise and vary in the volume of sales by this we have an sketch of sales in our mind. And for perceptive the system of distribution ways, argue with the manager of company. Then visit the selected area where deficiency of sales occur and discuss with the current Dealers and obtain to know about the company policy and consumer reaction regarding to the purchase of product. While on other hand a quantitative method of research is arranged & visited 50 dealers, including Small Points and collects data from the owner of that shop of every product separately to know about the availability of product of product as compare to the competitors. Some of the types of competitors in the market of Chawala Aluminum on the basis of Aluminum products & compare with Prime, Alcon, Pakistan & Alco Aluminum. In this research quantitative data is collected & in which question are related with the availability of product, availability will be ask from the shop owner by asking questions in yes or no. After collection of data put raw data into software, get result. Then Arrange meeting with our Company manager and provide him solution to how they can be increase the sales of Chawala Aluminum and make an effort to realization of proposal giving by Consultancy team. \

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Consultancy Report on Chawala Aluminium.

Framework of Channel Distribution in Pakistan of the Chawala Aluminium Company:

According to the information that is given to us in chawala Aluminium Companys distribution centre.
Channel Design Process Segmentation Channel Power Identify sources for all channel members. Channel Conflict identify actual and potential sources. Channel Implementation Process

Recognize and respond to the service output demands of the target customers.

Decision about efficient channel response 1. 2. 3. 4. 5. 6. Channel Structure what kind of intermediaries are involved who they are what they are level of channel level of intensity coverage plan Splitting the Workload Division of responsibilities Degree of Commitment 1. Distribution alliance 2. Vertical integration Gap Analysis What do I have to change? Manage/Defuse Conflict

Use power source strategically subject to legal constraint. Goal Channel coordination

Segmentation:

Insights for specific channel institutions: retailers, wholesaling, logistics and franchising.

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Consultancy Report on Chawala Aluminium. In Pakistan one plant are manufactured of Chawala Aluminium in Lahore. Franchise centre in Lahore, Faisalabad, Gujranwala, Sargodha, Islamabad, Multan, Karachi, Mirpur (AJK) and other different cities in Pakistan. This is a geographical segmentation of the company. And that is actually on the basis of service output demand of consumers. In these areas the consumers are willing to purchase the aluminium products. The Chawala aluminium deals there in bulk breaking and on spatial convenience. Although the product is mostly use in Karachi and Lahore, Islamabad, Multan city. The people are willing to get the services. And secondly in Islamabad the product is mostly established. That city is also the major part of the segmentation on the willingness of consumers. The main plant manufacturing plant of the aluminum is in Lahore situated at kahana kacha road Lahore. This is actually has total supply line of the product in all the areas of Pakistan. Service Output Demands Segmentation of Chawala Aluminium

Segment Names Home buyers Companys buyers

Business buyers (distributors, wholesellers,r etailers)

Bulk breaking low High High

Spatial Convenience low High High

Delivery/waiting time low High High

Assortment/ Variety high high high

Customer Service low high high

Information Provision medium medium medium

Explanation:
Bulk Breaking: In service output demand in consumers, the level of bulk breaking is low in home buyers because home buyers do not like to get in bulk quantity. Similarly, the company buyers in bulk breaking are high as well. The business buyers like distributors, wholesalers and retailers buy the product in bulk so bulk breaking in business buyers is high. Spatial Convenience: The consumers always focus on their convenience to buy a product. In home buyers, the spatial convenience to buy aluminum products is low because they can easily purchase it from nearest retail shop. The spatial convenience in company buyers are also high and in business buyers, the spatial convenience of Aluminium Products is high because they buy it in bulk and if they have to buy directly from the company, they will go there to buy the product. Delivery/Waiting time: The issue of delivery and waiting time in home buyers does not exist because if they want to buy products then they go to their nearest retail shop and buy it so delivery and waiting time in

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Consultancy Report on Chawala Aluminium. home buyers is low. But in different company buyers are exist because if they want to buy a products then they go to their Aluminium Company because timely availability of product affects their business productivity and consumers. The level of service output demand of delivery and waiting time in business buyers is high because timely availability of product affects their business productivity and consumers. Assortment/Variety: The assortment and variety in home buyers is medium because they do not trouble it that if they go to buy nearest retail shop and then they buy it. In business buyers, the assortment and variety of the product is high because they ensure the availability of every size of this products whether it is that customer can buy which they want. Customer Service: The customer service is high in home buyers, student buyers and business buyers because if customer want to buy the Aluminium products then availability of that product is necessary to grip the customer Information Provision: Every kind of customers has a little bit know how about the Aluminium products so information provision in home buyers, student buyers and business buyers is medium. Channel Structure: There are two types of product channel supply in Chawala Aluminium. One is internal and other one is external. Internal supply means how a product is serving internally. And the dealing within the company about the Aluminium. The external supply means how the product delivers to the customer from the warehouse, Franchise there is further two more steps in external supply of the product.

1) DIRECT DISTRIBUTION 2) INDIRECT DISTRIBUTION 1. Direct distribution: In direct distribution of the Aluminium the company managing staff involves in accounts setting. Means the company has his own warehouses or stock centre or franchise where they preserve the product. And where there is no intermediary involve the company itself dealing in the distribution of his product. It is also called zero level channel where there is no intermediary involve in the process of delivering the product to the customer. The trade has direct interaction with the end user 2. Indirect distributions: This kind of distribution means that there is someone who is outsider in the company involves in dealing and distributing the product. This is called intermediary which is outsider distributors. This is also known as the third party and that third party could be the distributor wholesaler and retailer. Sometimes some large groups are involved those are called specialized groups. The distributors itself takes the products from the company and saves them to their own warehouses and they are responsible to deliver the product in the market efficiently.

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Consultancy Report on Chawala Aluminium. Chawala aluminium always prefers indirect distribution of the product because it is time consuming for them and cost minimization tool as well. Preference channel is also called indirect distribution but depends upon the consumers wish.

1) Pakistani retailers have less buying power. They cannot store stock in the shops for as long as possible for them. 2) The second and main issue is electricity issue. 3) Law conditions should apply on target markets for the betterment and for the growth of the product. 4) Some internal issue are also occurred those should be managed Product quality Price factors In Chawala aluminium on the perspective of supply chain there are round about 677 distributors linked with the company for the distribution of the Chawala aluminium. Some of them are direct and some of them are indirect. According to the information the 70% of Chawala aluminium distributions are indirect and 30% are direct. Only in Lahore 70% are direct and 30% are indirect distributions. There are 6 sale centers on which different types of distributors are working effectively and efficiently in lahore. The distributors get two types of margins 1. Trade margin 2. Distribution margin Level of Intensity: Chawala Aluminium prefers intensive distribution of the products which is made by the company. The company has fully concentration on the distribution of the product. They have strong believed to deliver the product to the targeted customers through strong distributors. Level of channel: Three level of channel is working for the company Distributors wholesaler Retailer

Coverage Plans: In Chawala Aluminium there is no rules defined about the coverage plans specifically. This all depends upon the volumes. But still they have a very good plans regarding the coverage and regarding the volumes of the products. Following are the main target while covering the coverage plans for the distribution of the product. The Chawala Aluminium seeks first of all where the product has a big need. So that they can deliver their product and could sever the people. The major concerns are, Volumes Population Area Buying power of consumers After getting full information about the things that mentioned above the company makes a full coverage plan for the delivery of the product.

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Consultancy Report on Chawala Aluminium. The Chawala Aluminium has no proper plans for the distributors. Some distributors are covering 70% area and some are covering 30% area. This all depends upon the powers of the distributors that how much the distribution power is strong of a distributor. The stronger can get maximum benefit from the company. There is no hard and fast rule is applied on the distributors the number of outlets is divided among the distributors and each distributor has full knowledge regarding the coverage of the product on the retail shops or on the wholesaling markets. In Lahore the lot of customers of aluminium products. High Quality of metals is the major focus of the company. The company also deals that how many buyers company has his own to get the product. Indirectly those buyers are loyal to the product and they promote the product to others. In coverage plan one of the major parts is about the availability of the product. The availability can be made possible on two ways. One is in numeric the second is weighted. Numeric: Number of outlets on which your product is available, if the numbers of outlets are 100 then it must be available on 80 percent outlets. Weighted: How much share the company has in the outlets, if has something then how much that share is? Splitting the Work Load. The company has 6 sale centers in each sale centre 50 distributors are working efficiently. There tasks are defined to them from the company. There is no confusion on those tasks. For example 2 sale centers are in Lahore region and 35 distributors are working for each sale center. The company has defined each distributor completely that what kind of responsibilities he has to perform regarding the distribution of the product. This is what they need to do.

Gap Analysis: With the help of two things the gap analysis could be accurate and good enough to be minimized. 1) Quantity of work 2) Quality of work The company is identifying the gaps with the help of quality and quantity of work. Quantity of Work: According to quantity of work it is understood that if the distributor sold the product in the market on honestly then the gaps will be minimized. Chawala Aluminium has low gaps in distributions. In other cities mostly outlets does not have Chawala Aluminium in their stock. Reason is unavailability of stock. The distributors are not analyzing the gaps in the market. The Chawala Aluminium has five years budget plans and after five years the company analysis the gaps in the market that where there is still need to get improvements and to fulfill the gaps between the manufacturer and the end users. So the availability in quantity of work is very important to fulfill the gaps. The planning of the company is very long term. Quality of Work: Identifying of gaps in the quality of the work always leads towards the improvements of the product. In Chawala Aluminium the measurement of the gap in the quality of the work is simply is that if the product is making growth day by day then it means the quality of the work is ok and there is not gap between them.

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Consultancy Report on Chawala Aluminium. Implementation Process Powers of the Channel Members: The powers of the channels members can be defined as the major part of the implementation process. If the channel members are weak and has no abilities to deliver the product to safe hands then how a company can grow. The intermediary should be strong enough to deal with the customers and retailers for the betterment and growth of the company. The powers of the company channel members are, More coverage capacity Good links with the retailers Known completely about the company vision and mission Financially strong Have proper customer knowledge Dealing with the targeted customers efficiently Above mentioned all are the powers of the channels that the channel members has of Chawala Aluminium Company. Channel member Conflicts: There are no as such conflicts that the Chawala Aluminium is facing regarding their channel members but they have procedure in case of any dispute among them like, If a member violates the coverage area then simply the company terminates that particular channel member. By law a channel member can distribute the product within his area at any time any where there is no restriction upon him on that task. There are no personal disputes among channel members in the company but if any situation like this appears then the company will resolve the problem by taking the problem initiative. Powers of the channel members: The margin rate increases with the increase in the delivery of the product to the consumers. For the motivations of the distributors some activities performs by the organization that can motivate them to do their best from the available resources for the company. The company awards the high performer with the gold medal. The company arranges annually conferences and awards monitory incentives. The company provides monthly, quarterly and annually incentives as well. Co-Ordination: If the conflicts among the channel members have been resolved then the company can run a marketing channel in a proper way so that company can make sure the availability of its products for the end users and earn maximum profit. The intermediaries can earn maximum profit if they resolve the channel conflicts.