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

0

10

20

30

40

50

60

Annual

Berger

ICI

Other

List Of Paint ManufacturersThe 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 productsBerger 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 PAINTS7 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 :111-237-437Adress:D-31-south avenue S.I.T.E Karachi

Factories   Karachi

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

Lahore

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

Organizational Chart

ss

President

CEO

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

Product managerLogistic manager

Management trainee

Supply Chain Integration Business Vertical

Supplies

Procurement

Store

Manufacturing Karachi& Lahore

Warehouse

Central Region

Southern Region Northern Region

Distributors

Retailer

End consumer

pigments Extender

Cartons Solvents

Labels Binder

Containers

Distributors

Retailer

End consumer

Dealers

Retailer

End consumer

SCORE Modal

Plan

Source

Make

Deliver

Return

PlanFirstly 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 Suppliers1 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 

MakeDetail 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 FilingAfter 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.  

 

DeliverThey have their distribution zonal wise, which are as followed

 sSouthern 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

 KARACHIphone :111-237-437Adress:D-31-south avenue S.I.T.E KarachiCapacity: 0.7 Million litersLead Time from Lahore: 42-72

HYDRABADphone :0221-720908Adress: shop no 06, Nana Bhai Center, Bohri Bazar SadarCapacity: 40,000 liters QUETTAphone :081-822772-3Adress: M/S K.M Khan & CO< Suraj Ganj Bazar Basant singh RoadCapacity: 40,000 litersLead Time from Karachi: 36 hours

Northern Region Warehouse

LAHOREphone :111-237-437Adress:36 Industrial are kot lakhpatCapacity: 1.0 Million litersLead Time from Karachi: 42-72 hours 

GURANWALphone :0431-711206Adress: Butter Trades 106 C Satellite TownCapacity: 0.2 Million liters Lead Time from Karachi: 48-70 hoursLead Time from Lahore: 24-36 hours  MULTANphone :061-517501Adress: asharfia plaza, chawk fawaraCapacity: 70,000 litersLead Time from Karachi: 48-60 hoursLead Time from Lahore: 24-36 hours

Central region Warehouse

ISAMABADphone :111-237-437plot no 201, street no 01, sector 1-10/13

Industrial areacapacity: 0.4 million litersLead Time from Karachi: 72-90 hoursLead Time from Lahore: 12-24 hours RAWALPINDIphone :051-444648Shan distributors,471 D,6th road Settlite TownCapacity: 50,000 litersLead Time from Karachi: 72-90 hoursLead 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 baseShelf 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 basewater 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

AreaShahzore 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,queta,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) SuzukiYamahaToyotaChina Bike Industry  

General Industry (institutional sales) 10 % Pakistan NavyPakistan ArmyCity District Govt. Karachi (for black and yellow colors for footpaths and roads signs) Pakistan state oil company ltdSemins PakistanFan Industries GujranwalaPell refrigerators   

Exports

Country: AfghanistanQuantity Exported: 18000 to 20,000

liters per year