Company Profile

The name of BERGER has been associated with paints manufacturing for more than two
centuries. In Pakistan, BERGER has been the pioneer in organized paint manufacturing and was
the first company to introduce premium quality paints in Pakistan, Berger stated its operation in
Pakistan in 1950.
 BERGER PAINTS PAKISTAN becomes a public limited company in 1974, when 49.38% of its
share was acquired by Pakistani investors, while the remaining 50.62% were held by the U.K
parent company, Jenson & Nicholson Limited. Soon afterwards, Jenson & Nicholson limited was
taken over by Hoechst, one of the world’s major manufacturers of chemicals and allied products.
 
Slotrapid Limited, a U.K based company with diversified business interests, acquired the control
of BERGER paints Pakistan limited in 1991.
 
BERGER paints launched its second paint manufacturing facility in 2006 located in Lahore, this
is a state-of-the-art plant geared to incorporate the latest technologies to produce paints and
coatings for a variety of applications.
  
 
 
 
 
 Berger's
Mission Statement
 

        We
will vigorously promote and safeguard the
interests of our employees, our shareholders, our
suppliers and all our others business associates.
        We will achieve corporate success through an
unwavering commitment to provide our customers
high quality products to their ultimate satisfaction.
 Industry Overview

• Market Share Company Vise

60

50

40

30 Berger
ICI
20
Other
10

0
Annual
 List Of Paint Manufacturers
The total sale of in Pakistan is 50 million liters per annum . There are about 8 paint
manufacturers out of which two are multinational and other are local.

1. Berger paint
2. ICI paint
3. Nelson paint
4. Penguin paint
5. Reliance paint
6. Jouton paint
7. Gobi paint
8. Point paints
 Supply Chain Mission Statement

Mr. Tanveer (Head of Supply Chain, Berger Pakistan) quoted

 
“Our Supply Chain starts from
Sales and ends up with the Sales”

Means
They do forecast from sales

Arrange material against forecast

Production

Distribution

Sale
 Berger's products
Berger has 600 products in all and 1800 SKU’S depending on type of paint, and shades.

1 DECORATIVE: (Household Paints)

Water base
•  Plastic emulsion
• Economy emulsion
Oil base
• Berger elegant
• Berber enamel

2 AUTOMOTIVE PAINTS:
3 POWDER PAINTS:
4 TIMBERCOAT RANGE OF PAINTS
5 BERGER ROAD SAFETY
6 DEFENCE MARINE PAINTS
7 PRINTING INKS:
 Berger's customers for AUTOMOTIVE PAINTS
  Cars assemblers
•Honda.
•Toyota.
•Chevrolet Joy.
•Revo.
 
COMMERCIAL VEHICLES
• Zabardast, Truck.
• Master Truck.
• Star Truck.
• Kalash Pick-up.
• Hino Buses.

MOTORCYCLES:
• Honda.
• Yamaha.
• Suzuki.
• 25 Chinese brands.

TRACTORS:
  Fiat Tractors.
sUniversal Tractors.
 
 Berger’s other customers
GENERAL INDUSTRIAL PAINTS:  
Singer.
Philips.
Siemens.
Pak Fan.
PSO.
PBS.
Caltex.
KSB Pumps.
 
PROTECTON: (Heavy Duty Coatings)
 

National Refinery.
Pak Arab Refinery.
Karachi Fish Harbour.
White Oil pipeline project.
Telecommunication Towers of Ufone, Telenor, Mobilink, Paktel and Al Warid
  
POWDER PAINTS:
 
Appliances of PEL, Waves, Philips , Dawlence

 BERGER ROAD SAFETY. Paints for road and runway markings:

 
•Islamabad – all CDA roads.
•Motorway.
•Kohat Tunnel.
•DHA, Karachi.
•Karachi – Hyderabad Highway.
•Mai Kolachi Road.
•Shahbaz Airfield.
•Bahria Town.
•Lahore -Sheikhupura Expressway.

DEFENCE MARINE PAINTS:

 
Specialized paints for Army, Navy, Air Force, Shipyard and Fish Harbour.
 
 Company Location
 Head Office:
phone :111-237-437
Adress:D-31-south avenue S.I.T.E Karachi

Factories  
Karachi
Phone: 111-237-437
Adress: D-31-south Avenue S.I.T.E Karachi

Lahore
Phone: 111-237-437
Address: plot 20 Multan road Lahore
 Organizational Chart
ss

President

CEO

Director sales GM technical GM Finance& audit Controller personal& admin Controller production planning

Logistic manager Product manager

Management trainee
 Supply Chain Integration

Business Vertical
End consumer End consumer
End consumer
Retailer
Retailer
Retailer
Distributors

Distributors Dealers
Central Region

Northern Region Warehouse Southern Region

Manufacturing Karachi& Lahore

Store

Labels Binder pigments Extender

Procurement

Containers Supplies Cartons Solvents

 SCORE Modal

Plan

Source

Make

Deliver

Return
 Plan
Firstly the company’s plan includes sales forecast followed by the planning of
material procurement and planning for other processes. Basically
Forecasting is done for different products based on two bases as follow
 
 
a. Quarterly basis:
 
On quarterly basis the sales forecast is done one quarter earlier. Suppose if they
need the required target in August they do the sales forecast two quarters
earlier in between January and March.
 
b. Monthly basis:
 
On monthly basis the sales forecast is done one month before, they check the
inventory if there is sufficient amount of stock available in that than they
are meeting with the forecast requirements, but in case if there is a
shortage in inventory they increased their production till the time they
meet to their required target.
 Demand Trend
High Demand
• Months
October, November, December, January , June, July
Reason
Due to marriage Season ,Eid season and rainy season

Low Demand
Months
February, March, April, August, September
 Source
 In making the paints and other products there are 2500 different raw materials are
used. Of which 60% is imported and 40% is acquired from local suppliers

Suppliers:

Raw material is acquired by three types of suppliers as mention earlier that 60% of the total raw material is
imported and other by local suppliers.

Local suppliers:
Local suppliers are those from which we purchased our raw material local from the market that is 40%.
 
Local Imported Suppliers:
Local importer suppliers are those who import the raw materials and sale out that to them, they play a third
part role; they do that kind of procurement when they required less amount of raw material.
 

Overseas Suppliers:
These are the suppliers where a company directly does the procurement from them. These are the overseas
suppliers.
 List of overseas Suppliers
1 Japan:
•Nippo Trading
•Mitsui co.
 
2 Taiwan:
        Eternal chemical
 
3  Korea:
        Kukdo chemical
 
4 China:
        Deping chemical
        Runfa Ltd
        Sinochem international
 
5 Dubai:
  Enoc international
  Patio chemicals
 
6 India:
  Essac international
  Pedilite chemical
 
 Make
Detail of Manufacturing units
Karachi
Location D-31-south Avenue S.I.T.E Karachi
Production capacity Manufacturing capacity of maximum 30 million liters per month
Average production No average 0.7 million liters is produced
Type of paint produce decorative, automotive, powder, and industrial paints are produced

Lahore( Established in 2006)

Location plot 20 Multan road Lahore

Production capacity Manufacturing capacity of maximum five laces liters per month
Average production No average 0.3 million liters is produced
Type of paint produce Only Decorative paints are produced
 Manufacturing process
 
1 Acquisition of material:
The procurement department controls store and it is issued as per the production schedule.
 
2 Charging:
In this process the raw material is put in to machines in different batch sizes. Minimum of two hundred and
onwards.
3 Grinding:
Here the solid raw material is put in to grinder in order to make a paste of that to mix it in liquid raw material.
4 Mixing:
This is the last process of manufacturing, they’re liquid and paste and other material like bonging, gloss, and
base is added.

 5 Quality check:
Quality of the product is checked in all terms it include color, shine , base , drying time.
 
6 Filing
After the paint is cleared by the quality control then it is filled. Order of tins provide at the same time when
production schedule is made.

7 Storage:
In last the tins of the paint is stored in the warehouse located in the factory.
 
 
 Deliver
They have their distribution zonal wise, which are as followed
 s
Southern Zone:
 In southern zone they have the cities of Sindh and Baluchistan, where they deliver their product.
They have their own dealers.
 
Northern Zone:
 In Northern zone they have the distribution in cities of Punjab like Multan, Gujranwala etc. Their
major distribution in Punjab is in Gujranwala because it is used for the manufacturing in electric
appliances over there.
 
Central Zone:
 Where as in a central zone all the area that comes in the region of Islamabad. They also do their
exports to Afghanistan but it is just a 1%.
 
Lead Time:
 Nation wide they have their lead-time of minimum 04 days and maximum 06 days, where as
during the export to Afghanistan it is 15 days.
 
 
 Territory division in Karachi
Territory A
Nazimabad, Orangi town, Shairshah, Golimar,
Kamari,

Territory B
Defence, Clifton, Ghazari

Territory C
Landahi, Korangi, Malir, Gulshin
 Return
Damage Material
As per the company policy every distributor or salesman has entitled of returning 2%
damage material of its total sale , if any damage occurs

Expired Material
Normally return of material due to expiry occurs rarely . But if ever it occur

they recycle the returned material.

 Warehouses
Berger has mainly two warehouses located at Karachi factory named RG-1 and EB-4 and Lahore from these
warehouse location finished products are transported other regional warehouses. Details are given below

Southern Region Warehouses

 KARACHI
phone :111-237-437
Adress:D-31-south avenue S.I.T.E Karachi
Capacity: 0.7 Million liters
Lead Time from Lahore: 42-72

HYDRABAD
phone :0221-720908
Adress: shop no 06, Nana Bhai Center, Bohri Bazar Sadar
Capacity: 40,000 liters
 
QUETTA
phone :081-822772-3
Adress: M/S K.M Khan & CO< Suraj Ganj Bazar Basant singh Road
Capacity: 40,000 liters
Lead Time from Karachi: 36 hours
 Northern Region Warehouse
LAHORE
phone :111-237-437
Adress:36 Industrial are kot lakhpat
Capacity: 1.0 Million liters
Lead Time from Karachi: 42-72 hours  Lead Time from Karachi: 72-90 hours
GURANWAL
phone :0431-711206
Adress: Butter Trades 106 C Satellite Town
Capacity: 0.2 Million liters
Lead Time from Karachi: 48-70 hours
Lead Time from Lahore: 24-36 hours
MULTAN
phone :061-517501
Adress: asharfia plaza, chawk fawara
Capacity: 70,000 liters
Lead Time from Karachi: 48-60 hours
Lead Time from Lahore: 24-36 hours
Central region Warehouse
ISAMABAD
phone :111-237-437
plot no 201, street no 01, sector 1-10/13 Industrial area
capacity: 0.4 million liters
Lead Time from Lahore: 12-24 hours
RAWALPINDI
phone :051-444648
Shan distributors,471 D,6th road Settlite Town
Capacity: 50,000 liters
Lead Time from Karachi: 72-90 hours
Lead Time from Lahore: 12-24 hours
 Capacity chart of Warehouses

City Capacity in liters Lead time in hours

Karachi Lahore

Karachi 700,000 42– 72hrs

Hydrabad 40,000
Quetta 40,000 36 hrs
Lahore 10,00,000 42– 72hrs
Gurawala 200,000 48-70 hrs 24-36 hrs
Multan 70,000 48-60 hrs 24-36 hrs
Islamabad 400,000 72- 90 hrs 12-24 hrs
Rawalpindi 50,000 72-90 hrs 12-24hrs
 Dispersment of finish good to warehouse

• Paints are placed and stored in the shelve in color or paint type vise

• Dispersement of paint is done on the basis of First in firs out that is (FIFO)

• For distribution with in the city paints containers are not packed in cartons

• If distribution out side the city then containers are packed in cartons.
 Shelf life
Oil base
Shelf life for oil based paints is more than 6 months. after
six months these paints get fungus in it , and expiry oil
based paints get some chemical reactions in it.

Water base
water based paints having shelf life of 6 months and if it is
not sold out , it gets fungus, then anti fungal agents are
added and paint is reprocessed.

Note
These paints gets expire in rare cases it is return to company and
reprocessed again to be converted it in to new shelf life.
 
 DISTRIBUTION SYSTEM

Vehicle No of Vehicle Capacity in liter Distribution

Area
Shahzore pick up 15 2000 liter With in Karachi
Suzuki pick up 20 700 liter With in Karachi
Mazda truck 20 5000 liter With in Karachi

Container 40 ft 5 25000 liter Islabad,Lhr,que

ta,m
Total 60 32,700 liters
  
Export documents
• Form E (Bank)
• Letter Head (Overseas Chamber of Commerce)
• Form fillings
• Commercial Invoice
• Performance invoice (Placing $ rate)
• Certificate of origin
• Form E submission to accounts
• Two Director Signatures from the company
• Endorsement by Bank
• Two-clearance certificate (Chamber of Commerce and Overseas)
• Certificate of Origin}
• Commercial Invoice
• Sales tax Invoice
Procurement process

BILL OF MATERIAL

PRICE NEGOTIATION

SOURCES OF SUPPLIIERS

ESTABLISH LC

PURCHASED ORDER

RECOVERY OF DOCUMENTS

CLEARING AGENTS

POSSESSION OF MATERIAL

GOODS RECIEPT NOTE

 A Commitment to Excellence

   
BERGER is an ISO-9001:2000 certified company. A trusted name in quality
paints, coatings and allied products for household, commercial and
industrial use, Berger makes no compromises in its quality standards.

A test facility has been established at the factory in Karachi to achieve and
maintain standards of the highest quality and reduce testing periods. The
company has also made investment in new equipment.

 Berger places great emphasis on marinating rigid quality control

standards. This includes training of personnel in the latest manufacturing
methods and procedures, application of rigorous testing measures at the
finished product stage and introduction of computerized color matching
technology.
 
 Sales Performa
Local:
 
Decorative Department 70%
 Decorative includes all house Paints in all territories
 s
Automotives 20%
 Honda Motors (Lahore 100% Shades)
Suzuki
Yamaha
Toyota
China Bike Industry
 
General Industry (institutional sales) 10 %
 Pakistan Navy
Pakistan Army
City District Govt. Karachi (for black and yellow colors for footpaths and roads signs)
Pakistan state oil company ltd
Semins Pakistan
Fan Industries Gujranwala
Pell refrigerators
 
 
 Exports

Country: Afghanistan
Quantity Exported: 18000 to 20,000 liters per
year