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Introduction

PEL is one of the oldest manufacturing uni t of home appl iance in

Pakistan. It manufactures => A.C => deep freezer => Refrigerator .

The products manufactured by PEL have been of high star ted qual i ty

through out the years. PEL was establ ished with Technology

Collaborat ion of AEG Germany in 1956, 1980 PEL expanded into

consumer domest ic market with introduct ion of window by PEL A.C.

into October 1978 PEL was taken by sagol family. According A then

PEL is Now a company on the goes on.

The head of HR department is cal led HR manager. I t has 180

employees working in i t . Among whi ch 27 are doing cler ical job.

PEL has cont inued on the path of recovery and the business in both i ts

divisions power and home appl iances have grown. Efforts for

improvement in product ivi ty, qual i ty of our products and diversif icat ion

have yielded posi t ive resul ts and the company has earned a net profi t

af ter tax of Rs.94.100 mil l ion ( last year 59.000 mil l ion) . Since the

company had suffered losses in the past , which had eroded i ts equi ty

leaving huge bank borrowings, the dept servicing remains a major burden on i ts operat ions. Simultaneously increasing business volumes

requir ing addi t ional working capi tal have not al lowed the much needed

ease in i ts cash f lows which could offer a smoothness in i ts operat ions.

Business in Power Division is propel l ing posi t ively and is expected to

grow further in the ensuring years. PEL is exploring export market for

our Power division products, Crystal brand Refrigerator launched in

1998 has developed into a major source of our consistent growth. This

trend is expected to cont inue in the fol lowing years. On the other hand

air-condi t ioner sales have not reached desirable levels due to someserious weakness in import procedures and smuggled goods, shrinkage

in the size of market and working capi tal constraints. The

cont inuous gain in the value of US dol lar upto the September 11,2001 incidence (which is now a decl ining trend) has resulted infurther negat ive impact on Rupee-Dollar pari ty. The decrease inthe value of Rupee could not be ful ly covered up in the pr ices ofour products due to low purchasing power result ing in reduct ion of

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gross margins. The company wil l thus have to maintain i ts thruston high volumes alongwith further reduct ion in costs and improvedquali ty measure to consistent ly maintain the prof i t path in thefuture.

In order to achieve less dependabi l i ty on single customer bases

company is moving towards a st rategy of diversif icat ion of i ts product

and customer base. As a resul t Appliances Division is being

strengthened whereby market ing network has been widened with a focus

on st rengthening sales team as wel l as the dealers network. Concept

of 3S introduced earl ier is working sat isfactori ly in our After Sales

Service network. A special focus is being given on widening the product

range introducing new models, sizes, colours and new finishes. The

demand of appl iances products especial ly refr igerators which is growingat a rapid pace is augmented mainly by increased role of consumer

f inancing through the f inancial inst i tut ions and the convent ional hire

purchase sche mes by the retai lers.

PEL is the only authorized distributor of Carrier products, services and spare parts in

Pakistan. PEL's HVAC organizational strength in Pakistan is consisting of reputedmanagers, high caliber engineers and well trained experts. PEL in the capacity of

solution provider for HVAC & Controls is always available to guide and advise our

esteemed clients and assist the consultants with providing design tools like HAP etc.,

new concepts with value engineering optimization and specifications for HVAC system

design; application and product selection.

Pak Electrons Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan.

It was established in 1956 in technical collaboration with M/s AEG ofGermany. In

October 1978, the company was taken over by Saigol Group of Companies. Since its

inception, the company has always been contributing towards the advancement and

development of the engineering sector in Pakistan by introducing a range of quality

electrical equipments and home appliances and by producing hundreds of engineers,

skilled workers and technicians through its apprenticeship schemes and training

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programmes.

The company comprises of two divisions:

y Appliances Divisiony Power Division

y

y POWERDIVISION

Products manufactured in Power divis ion are Transformers,Energy Meters and Switch gears. Business in this divis ion hassuffered badly in pervious years due to problems in WAPDA andKESC. The most needed upgradat ion of WAPDAs distr ibut ionpi l ferage was started by the new management. The energy meter

product ion of single phase and three phase are moving toward anopt imum level. P lans for further improvement in product iv i ty andquali ty of our meters are also in progress. Our shares for thesupply of distr ibut ion transformers to WAPDA has taken aquantum leap recent ly. Accordingly, PEL is planning to increaseour product ion capacity of t ransformer plan through thetechniques of improved product ion operat ions includingmanpower ut i l izat ion, product innovat ion, process reengineering.We are expect ing to obtain the product ion capacity level of 2000transformer per annum. A break through in the Switch gear

business has been already achieved. PEL has successful lysuppl ied a large order of Switch gear f rom WAPDA againstInternat ional Tender. Since ent ire business of Power Division isnow being carr ied out against L /C, internat ional tenders oradvance payments, chronic problem of delayed payments hasalso been resolved.

APPLIANCES DIVISION

Business in appl iances division has shown mixed t rend but the Company

is f inal ly on the r ight t rack. Crystal Refr igerator with Aero designand Danfoss compressor with performance cert i f icat ion by Danfoss

Germany was launched in the February 1999. This has been received

very wel l in the market and our refr igerator sales have shown an

increase of ver 125% since 1999. This thrust is expected to cont inue in

the fol lowing year as a resul t of companys innovat ive approach in

product development coupled w ith an aggressive market ing st rategy.

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Deep Freezer tested and cert i f ied by Danfoss Germany and

with improved aesthet ics has also been wel l received by the market . We

have already been supplying our Deep Freezers to Coca-Cola

internat ional and lever Brothers and intend to cont inue our focus oninst i tut ional sales of this product .

Sales of window Air-condi t ioners is almost at the same level of

last year but have not reached the desired level with a pressure on

prices and exchange rates impact causing increase in losses to the

subsidiary PEL Appliances Limited. Main reason of this si tuat ion is a

huge influx of imported product as a resul t of change in custom

valuat ion recorders al lowing imports at during prices and underinvoicing. In addi t ion supply of smuggled air-condi t ioners also

cont inued even after Governments announcement to impose controls on

such act ivi t ies. This is expected to discont inue af ter old stocks of

smuggled goods are exhausted and fresh suppl ies are not al lowed.Thecompany in order to address the above situat ion has embarkedupon a major plan to improve product q ual i ty, widen product range,introduce power ef f ic ient models, add competi t ive features l ikeremote control, added f i l ters etc. And to improve the productaesthet ical ly. After consistent ef forts in the recent years PEL havebeen able to develop a new range of models under the brandsname of Energy Saver . The cool ing and balanci ng i f this machineis tested & cert i f ied by Copeland of USA. This has received a veryposit ive response from the market due to i ts ef f ic ient energysavings, cool ing, low noise, compact size, nature fr iendly features.PEL ant ic ipates that the company wil l make a break through in thevolume of Energy Saver as what we have successful ly performedin case of Crystal brand Refr igerators. In addit ion a major exerciseis being done to reduce material cost and improve manufactur ingprocess. Technical support and know how is being obtained frominternat ional companies and foreign laborator ies to achieve this

object ive.

PELAPPLIANCESLTD. Deep Freezers and window air-condit ioners are the products of

subsidary PEL I t is expected that PEL Appliances L imited should

move into a healthier si tuat ion in the ensuing years.

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History and background

Pak Elektron was setup in 1956 as a Public Limited Company with the object of

initially producing transformers, switchgears, and electric motors. AEG experts

and PEL personnel carried out the designing and production of this equipment

jointly. After the conclusion of joint venture agreement with AEG Saigol Group

acquired the PEL COMPANY in October 1978.The company floated its shares to

the general public and was listed on Karachi Stock Exchange (KSE) and Lahore

Stock Exchange (LSE).

In 1980, Appliances Division was established and in 1981 it started the production

of Window Type Air Conditioners with the technical collaboration of General

Corporation of Japan. These air conditioners were well received in the market for

its quality. Subsequently in 1987 the production of Refrigerators and Deep

Freezers was started.

In 1993 the company has started the assembly of Compressors for Refrigerators

and Deep Freezers under technical collaboration with Messrs. NECCHI

COMPRESSORI ofItaly.It was in early 70s that PEL became known in overseas

markets due to its quality. The company started its export to countries like Saudi

Arabia, Abu Dhabi, Qatar etc. Later on PEL supplied electrical equipments to

various other countries in the Middle East, Far East and Africa with great success.

PEL (Pak Elektron Limited) is the flag holder of the Saigol Group of Companies.

Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods inPakistan. It was established in 1956 in technical collaboration with M/s AEG of

Germany. In October 1978, the Saigol Group of Companies bought the company.

Since its inception, the company has always been contributing towards the

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advancement and development of the engineering sector in Pakistan by introducinga range of quality home appliances.

In the year 1980 the company expanded into consumer products with the

introduction of Window Type Air Conditioners and today also manufactures Split

Air Conditioners, Refrigerators, Microwave ovens, Deep Freezers and

Compressors etc. PEL products right from the beginning have been of a high

standard and the name PEL is synonymous with QUALITY all over Pakistan.

Since its inception, the company has been acting as an institution working for the

advancement and development of engineering know how in Pakistan. The

company has produced hundreds of engineers, skilled workers and technicians

through its apprenticeship schemes and training programs.

In October 1978, the company was taken over by the SAIGOL GROUP, which is

one of the leading industrial groups in PAKISTAN, having diversified business

activities in the fields of: Textile, Engineering, Banking & Finance, Fuel &

Energy, Trading, Automobiles.

Vision Statement

To excel in providing engineering goods and services through continuous

improvement.

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Mission Statements

To provide quality products & services to the complete satisfaction of our

customers and maximize returns for all stakeholders through optimal use of

resources

To focus on personal development of our employees to meet future

challenges

To promote good governance, corporate values and a safe working

environment with a strong sense of social responsibility.

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