Shezan International Limited: THE NAME OF QUALITY Shezan International Limited was incorporated in Pakistan in 1964; it was initially

a joint venture between Shahnawaz Group and the Alliance Development Corporation of USA. Mainly engaged in the manufacturing, and selling of juices, pickles, jams and ketchups, the company has been constantly expanding both into local and international markets. After purchasing all shares of the Company in 1971, Shahnawaz Group made it a Public Limited Company and it was listed on the Karachi and Lahore Stock Exchanges. From the recent past time, until now, Pakistan just like an organization faces many obstacles, whether it is Political, Economic, Social, Technological (PEST) which can further be seen as, poor law and order situation analyzed by witnessing increase in domestic crimes, less or no accountability, high corruption, and the most important factor terrorism which has affected the social and economic life of the people and as a result Pakistan lacked behind in technological advancements comparing from other neighboring countries. In the era of Musharraf, GDP growth of the country almost touches 6.00 percent. Many foreign companies wants to invest in Pakistan but the issues of LAL masjid 3 July 2007 made economically and politically unstable due to the foreign agency pressures and the issues of iftaker Ch, judicial system was unstable. Shezan international is continuously facing NonIslamic tag associated with Ahmedis in Pakistan. The people of Pakistan boycott their products just because of associated with Ahmedis group. The objective of the company is to expand their business, to capture the market share and international recognition. To gain these objectives they should move to other country. The research and development department conduct the survey and they should recommend that we should move to the Canada because company suffer freight cost and shipping cost. Canadas climate is dominated by extreme long and cold winters. With the exception of the Pacific coast. Just 8% of Canadas land area is farmland; more than 30% of Canada is forest. The forest between New found land and the Yukon is one of the worlds biggest. More northern areas are occupied by tundra and the arctic islands are covered by permanent ice caps. Canada is a federal state with a parliamentary political system.Canada has tenth largest economy in the world. The Currency of Canada Canadian Dollar and associated with the Trade Organizations: NAFTA, OECD, WTO & others. The tiny Canadian province of Prince Edward Island is home

to all of Canada's tax-free zones, two of which are new additions as reported by CBC News. The existing business parks and tax-free zones were created in the hope of attracting private business and development investment to some of Prince Edward Island's more rural regions.There are Main Industries Transportation Equipment, Chemicals, Processed & Unprocessed Minerals, Food Products, Wood & Paper Products, Fish Product, and Petroleum & Natural Gas. During 2008 the company strength that there are financially strong and dealing with the quality pulp. Shezan international send their product (juices, James) through shipment where the costumers are much aware the product ingredients because they are health conscious. Shezan identified the market and conduct usability test of their product to analyze that whether their demand of pure juices and James high. They provide pure and healthy juice; they determine that demand of their product (juices, James) is high. Shezan alters organization structure because company suffers a lot manufacture cost and shipping cost. They decided that we should move to Canada because there is tax free zone country, skilled labor, customer awareness and they make some position over the market on the basis of pure juices. At last on 2008 Shezan international company shifted their production plant to the Canada. The major raw material pure pulp is purchases from the procurement and sent through shipment. Shezan international hire the expertise from Canada also recruit skilled employee. The cost pressure and local responsiveness is moderate in Canada. They make strategy to make position in the target market and promote their product through T.V, radio, billboards and held awareness events. The current situation of FMCG industry in Pakistan is that population of younger demographic is 67% of total population.so the FMCG industry is leading to increasing size of target market. Overall size of Pakistani juice market increasing. The industry is leading to higher profits. Increased investment in the food & beverage sector on the stock exchange beside of currency value decreasing day by day. There is a huge distribution network for diversification of business as Shezan has enough capital to expand. They have a huge distribution network, and leading to greater quantities demanded abroad. There is very intense competition within the juice manufacturing industry in Pakistan. Due to awareness of customer, there is huge increasing trend of having nutritional drinks rather than artificially flavored ones. Market is moving towards fragmentation.

The first quarter in FY13 saw Shezan's turnover climb to Rs 1.4 billion up from Rs 1.3 billion during the same period last year as the demand for the company's products saw a heavy increase amidst an ever expanding food and beverage sector. Gross profit percentage for the quarter also saw a significant improvement, climbing up to 30.08 percent as compared to 27.72 percent of the corresponding quarter of last year. As the firm's production requirements increase on account of expanding demand, the overall requirements of working capital have also witnessed a significant growth. In order to meet its working capital needs, the Company availed short term financing facilities from commercial banks, which saw the company's finance costs rise up to Rs 12.28 million during the quarter under review. During the last three months, distribution cost for

the firm also expanded on inflationary lines, increasing by 14.09 percent to Rs 242 million. This was largely due to soaring POL and freight costs and expenses incurred on advertisement and promotional activities. Similarly, Administrative expenses also increased by 16 percent during the period. Overall, for the quarter under review, profit before tax clocked in at Rs 115.725

million as against Rs 93.455 million of the previous accounting period, additionally, Earnings Per Share were Rs 12.62 for the quarter as against Rs 9.91 in the comparable quarter last year, rounding off the company's impressive results in the face of increased costs of POL and energy costs during the aforementioned period.

Exports during 1QFY13 were higher by 13.83 percent as compared to the corresponding quarter of last year. The firm's production facility at Karachi continued to meet the export requirements in Middle East, Africa and Europe, churning out profits marking a quarter that was healthier than expected. The demand for Shezan's products has increased manifold over the last year, abetted by the company's efforts to re-invent their products, introducing newer packaging, designs and products. Therefore, production requirement has also significantly increased, which has translated into the firm's maintenance of higher inventory levels of raw and packaging materials. The local business environment has also become very competitive and resultantly, Shezan's profits have been much affected by commodity inflation, however the firm's, operating profit increased from Rs 250.963 million to Rs 371.206 million at the close of the last quarter in FY12. The Company added Rs 839.071 million to the net sales in the last as consumer acceptance of their juice brands in tetra packaging and bottled juices increased significantly.

Shezan has also engaged a number of new channel partners during the year and the existing ones

were made more efficient to maintain and increase the company's sales. Moreover, the firm is currently working on giving another facelift to its product range and introducing new packaging for its food products and juice brands. The additional task of adding capacities and upgrading infrastructure also continues. Despite continuous pressure exerted by the depreciation of the

Rupee, soaring inflation, frequent break-downs, gas load shedding and significant increase in POL prices, Shezan was able to not only maintain, but increase gross margins as a percentage of net sales, on account of efforts made by the management in order to ensure sustainable growth in profits. Going forward, the next quarter is likely to be less than stellar for the food producing firm that will see sales fall during one of its leanest seasons-namely winters, which will see the demand for juices and other bottled fruit drinks decline greatly. However, the company has the opportunity to cover some ground through the sales of seasonal products such as tinned foods as well as steady demand for other condiments such as its jams, jellies and pickles. In future it is recommended to Shezan to keep their business in Asian market because there is a lot of opportunity like weather, labor cost, there is less differentiation in culture and values. They easily market or target their customer taste. The objective of the company is to expand their business and to capture the market share. To gain these objectives they should move to other country. The research and development department conduct the survey and they should recommend SRILANKA. Sri Lanka is a democratic, socialist republic and a unitary state which is governed by a semipresidential system, with a mixture of a presidential system and a parliamentary system. It constitutes a parliamentary system governed under the Constitution of Sri Lanka understanding these political environment Sri Lanka has gone through a changing political scenario over the years and specially after the end of the civil war in 2009 and have gained a considerable political stability as the present government has a majority in the parliament. However there is a concern that too much power is centered among few individuals in the present governing regime and had been instances where politicians having interferences with the businesses and policy changes either to assist or restrict company operations. Sri Lanka is recognized as a fast growing middle income country. According to the International Monetary Fund, Sri Lanka has a yearly gross domestic output of US$64 billion as of 2012. It has a GDP of US$158 billion in terms of purchasing power parity. Sri Lanka is in terms of per capita

income, with a nominal value of US$2,435 and PPP value of US$5,220.It recorded a GDP growth of 8.3% in 2012. In addition to these economic sectors, overseas employment contributes highly in foreign exchange, most of them from the Middle East. The service sector makes up 60% of GDP, industrial sector 28% and agriculture sector 12%. Private sector accounts for 85% of the economy. India is the largest trading partner of Sri Lanka. Sri Lanka enjoys a tropical climate with varying temperatures according to location. Coastal or upland areas benefit from Cool Mountain or sea breezes all year round. The per capita income of Sri Lanka has doubled since 2005.During the same period, poverty has dropped from 15.2% to 7.6%, unemployment has dropped from 7.2% to 4.9%, market capitalization of CSE has quadrupled and budget deficit has doubled.90% of the households in Sri Lanka are electrified. Income inequality has also dropped in recent years, indicated by a GINI coefficient of 0.36 in 2012. Sri Lanka has a population of little over 20 million people and is far ahead of her South Asian neighbors in the accomplishment of human development goals. Life expectancy at birth is currently 75 years, and is close to the estimated lifespan in the developed countries. Low mortality rates of 14% in 2012 and the steadily declining population growth of below 1%; reflect the countrys progress in the sphere of social development. More than 67% of the population is in between 15 to 64 years old and as a result the country has a big skilled labor force. In recent years in Sri Lanka, there have been many significant legal changes that have affected firms' behavior. Sri Lanka has many government authorities to regulate and protect the environment and many amendments were made to the constitution over the years. Shezan activities are focused on markets where the Group has the strength and the right products to secure a leading position. Due to the variation of the markets, the contribution to growth, earnings and development within the Group differs, both at present and in the longer-term projections. Against this background, the Group has defined its ambition: To be the fastest growing global company measured in terms of average organic growth in net sales and growth in operating profit over a three year period. In countries where shezan has no breweries, the Group sells its products through exports and licensing agreements. We aim to establish and develop strong market positions for our international premium brands through dynamic partnerships with licensing, export and duty-free partners around the world. The Shezan

business portfolio includes more than 250 brands. They vary significantly in volume, price, target audience and geographic penetration. The brand portfolio includes the well-known international premium brands. The island nation of sirlanka could potentially be a new, in expensive hub food for manufacturing company wanted to be tap the booming Asian food market. Establishing in 1964, shezan is one of Pakistan largest and oldest food and beverage companies and it make fruit beverages under the real brand name for both domestic and export market. Shezan international joint venture with the lion brewery cylon in srilanka because lion brewery having a good share in FMCG market, the growth rate of company is above 37%,and they have a good distribution channel and operate operation effectively for this venture. The CEO of company told Food Navigation Asia that the company set up his plant to cater to the demand for real beverage in srilanka and venture made business sense in view of free trade agreement between two countries.Shezan international hire the expertise from Srilanka also recruit skilled employee. The cost pressure in srilanka is low because company signed an agreement with government and local responsiveness is high because customers are aware product quality. They make strategy to make position in target market according to the customer preferences and tastes. They promote their product through T.V, radio, billboards and held awareness events. The other big reason for establishing base in srilanka was to services the south market, a region that competitors have not been addressing effectively. Our juices are today sold primarily in North, East and West of Asia and we have not been able to sufficiently cater to the demand south Asia. With a plant in srilanka the freight cost for shipping juices to would be much cheaper and would give the company greater penetration and presence in this market. Our fruit juices business is a today growing at around 28 to 30 percent quarter to quarter this new manufacturing facility in srilanka will have a capacity to produce to 280000 cases of fruit based beverages every month.