1.

COMPANY ANALYSIS:

1.1 Company’s history

K&N's, an establishing pillar and signal for Pakistan's Poultry Industry began in 1964 by Khalil
Sattar. He had the vision to anticipate a need to build up a poultry farm. His advantage led him to
start a small broiler farm of 1,000 chicks. Little had he realized this run was to turned into the
establishment stone of K&N's.

1.2 Company’s Vision

“To give better nutrition through poultry products for nation’s happiness and good health”.

1.3 Company’s Mission

“To focus on producing best quality products those are hygienic under regular development in
order to pursue perfection”.

1.4 Goals and Objectives

K&Ns set a single minded objective that provides a better health and nutrition to the nation.
K&Ns have achieved this objective through poultry expertise, commitment to food and safety
and integrating all poultry production activities under one umbrella to ensure quality and food
safety managing and controlling all stages of production.

1.5 Products
K&N's provides a wide range of value-added, safe and healthy chicken products, with a variety
of whole chicken, karahi cut, boti cut, qorma cut and premium boneless meat, with a broad
choice of ready-to-cook and fully cooked chicken products.
 1.6 SWOT Analysis
STRENGTHS WEAKNESS

a. Own logistics, shops and production farm a. High prices are affecting sales as the
b. Recognized brand name consumers are moving to their competitors
c. Ease of Access, availability in most stores, b. Discounts are for regular customers only
super markets and hyper markets c. Targeting upper class of society
d. Halal (certifications)
e. Less time consuming – Ready to eat
products

THREATS OPPORTUNITIES

a. Threat from competitors like Menu, Man- a. Exporting distribution channels in order to
o-Salwa, Dawn food expand business
b. Diseases in the poultry like bird flu, b. Foreign Markets
Influenza, Hydro pericardium syndrome c. More franchises across Pakistan to increase
etc. local sales
c. Growing prices of equipment
d. High Inflation
 1.7 Backward integration of K&Ns
The company follows backward integration as they have their own feed mill and they are
producing their own bird. Quarter millions of birds are used in company’s own farm and rest is
placed with contract growers. Some part of logistics is also being own by the company to be
more cost efficient.

1.7.1 K&Ns Manufacturing Process

I. Poultry Breeding
K&Ns is maintaining a layer and boiler parent stock populations in different regions of Pakistan.
Broiler parents are bred in colder mountainous northern region while Layer parent stock farms
are located in the south region.

To guarantee severe bio-security, all breeder farms work on the important principle of all-in-out
to avoid multiple ages at any breeder farm. Breeding stock is housed in condition
controlled houses outfitted with most present day ventilation, cooling and
warming gear. A portion of the world's best performance have been accomplished
at K&N's.

II. Hatching
K&N’s operates several strategically located hatcheries covering throughout the day-old chick
markets to guarantee the delievery of high quality layer and broiler day-old chicks to commercial
farmers throughout Pakistan.

All hatcheries are equipped with most modern cooling, heating and humidification systems to
provide a uniform and consistent hatchery environment independent of varying outdoor weather
conditions.

Incubators from world-renowned manufacturers are installed at all hatcheries and their
performance data is recorded and monitored by a computerized incubation monitoring system.

Upon arrival from breeder farms, hatching-eggs are candled at all hatcheries to remove eggs,
which may have cracked during transit. Sanitation and hygiene is upgraded by mechanically
transferring eggs from one type of tray onto another until chicks are harvested from hatchers.
Maximum care is exercised while handling, reconstituting and administering vaccines using
proper techniques and modern equipment. To ensure chicks get off to the healthiest start and stay
protected from viral diseases, they receive inject able and spray vaccinations at the hatchery.

Day-old chicks are delivered to farmers in environment-controlled chick delivery vehicles to

maintain quality during transit. After making deliveries, vehicles are washed and
disinfected before entering the hatchery premises to avoid any risk of carrying
disease causative agents back to the hatchery from the field.

III. Broiler Growing

K&N’s is also engaged in broiler growing at company owned farms to produce broilers for our
poultry processing plant.

The chickens freely strut around, breathe fresh air, eat at will and drink fresh, cool and pure
water. They take sips from “nipple drinkers” which allow chickens to peck individual water jets,
which release one sip of water at a time to avoid water contamination.

IV. Feed Milling

To ensure consistent performance with high standards, chickens really live on a healthy and well
balanced diet. It is based on: natural grain products such as corn, corn gluten, rice
and wheat; oil seed meals such as soybean, canola and sunflower supplemented
with multi-vitamins and minerals.

Feed is always tested by the quality assurance lab to ensure it is wholesome

because K&N’s does not compromise on quality. Feed is also supplied to the day-old chick
customers and growers for realizing the profit potential of K&N’s quality day-old chicks.

V. Poultry Processing
At K&N’s state-of-the-art poultry processing plant, only healthy chickens are used to produce
high quality, safe and healthy chicken products. Chickens are slaughtered in a
Halal way strictly according to The Shariah.

After Halal slaughter, chickens are prepared in the most hygienic,clean and
automated way. During preparing, the birds are washed inside out and
veterinarians constantly examine the birds to confirm they are healthy.
Cleaning is steady and each night the entire operation is completely washed and sanitized.
Simply after intensive examination, the plant starts task every day. All chickens go through
veterinary examination to affirm they are healthy.

Some chickens are packed as a whole; others are packed as bone-in cuts or boneless products.
Products for quality and food-safety conscious institutions - such as hotels, restaurants, airlines,
clubs and international restaurant chains - are cut according to their specific requirements and
packed in bulk packaging. Products for retail are packed in K&N's branded packaging and
individually weighed, adding another step to K&N’s quality control.

VI. Quality Assurance Labs

K&N's at each stage has guaranteed quality support to convey sound and healthy products to
customers. They have quality assurance lab at their assembling plant so as to test entire
production process from feeding the chickens till planning or preparation of the products. They
guarantee the chicken and products to fulfill their moral guidelines.

1.8 Reasons behind K&Ns success

Company is successful so far in the wake of confronting more terrible financial and social issues.
Purpose behind this massive achievement is they have proficiently fill the market gaps, vertical
integration gave them a decent chance to spare a great deal of money and control quality in the
meantime.

The following factors are major reasons for K&Ns success:

i. Certifications

Chickens are HALAL slaughtered by hand strictly according to slaughter rules of the Shariah.
The slaughtering procedure has been checked and certified by Darul-Ifta of authentic institutions
for granting Halal certification.

a. Food & Safety Management System at K&Ns is FSSC 22000:2010 certified.

b. K&N's ensures food-safety by implementing the HACCP (Hazard Analysis & Critical
Control Points) system.
c. Quality Management System at K&N's is ISO 9001:2015 certified.
 ii. Quality assurance labs:

K&Ns tests the whole process of production (from feeding chickens till preparation of the
products) through Quality Assurance Labs that are being established in manufacturing plants.
Along with Quality Assurance Labs, they have established research institute.

iii. Future strategic planning:

K&Ns with its mission and vision to provide quality and healthy poultry food is working for
better in future.

iv. Strong business plan:

Strong business plan and thought had worked out and had made K&Ns effective around the
world. It will likewise make them to prosper in future as well.

v. Backward Integration:

K&Ns is doing backward integration by producing their own chickens. They do breeding,
growing hatching on their own and guarantee legitimate quality control. This empowers
straightforwardness and grabs customer trust and loyalty.

vi. Fully cooked and Ready to cook chicken products:

K&Ns deals in both fully cooked and ready to cook products with best quality. Customers like
working ladies can rely on these in today’s busy world. They use proper equipment and ensure
quality control. This is also convenient for customers.

vii. Customer oriented services:

K&Ns teach its customers through handouts and on the spot specialized expertise besides it has
nutritionists who manage customers. This leads to increase customer knowledge and awareness
regarding healthy and hygienic diet and will ultimately increase the sales of K&Ns products.
viii. Value Added Chicken:

K&Ns offers some benefit included, safe and healthy chickens. Well being and cleanliness is a
noteworthy concern in this period. In addition they give entire, designer cut, bone-in and
boneless chicken.