4. ICL was established in 1962 under the name of United Chemicals
by a private entrepreneur.
The initial plant was set up by M/S Oronzio Denora of Italy.
The factory is strategically located on the 19th/20th Kilometer
of GT Road and spread over an area of 106 acres
Under the Economic Reforms Order, United Chemicals was
nationalized in 1971 along with other industries of the country and
renamed as Ittehad Chemicals
It was initially managed by the Board of Industrial Management
and thereafter the Federal Chemicals & Ceramics Corporation Ltd
under the Ministry of Production, Govt. of Pakistan
ORIGIN
5. The factory was ultimately denationalized in 1995 by the
Privatization Commission Govt. of Pakistan.
Accordingly, the company established its own state-of-the-art
Power Plant of 30 MW capacity in the year 2005.
With a rich and illustrious history, ICL is the founding
company in Pakistan for the Chlor-alkali industry.
With a growing interest for ICL products in the international
market, the organization has made the necessary arrangements
(and will continue to do so in the future) to cater for the
growing demand.
6. › Create an environment to attract
and retain the best talent.
› Optimize cost and securitize energy
through latest technology.
› Serving the Customers to their
satisfaction levels.
› Ensuring that we are environment
friendly & zero Injury Company.
› CSR is our forte.
Mission
7. VISION
An "Ittehad" of Pakistan's best
talent and technology that
serves as a catalyst to deliver
sustainable chemical products to
its customers thus optimizing
returns for investors
19. Competitors Analysis
› 2011 market share
After Engro Polymer & Chemicals limited (EPCL)
entry in this industry, the market has become more
competitive for the other players as witnessed in the
declining trend in capacity utilization of all caustic soda
producers.
EPCL has increased its market share to around
34%, whereas, Sitara Chemicals remained around the
previous year’s level (41%) while market share of
Ittehad Chemicals dropped to about 25%
20. •2013 market share
Share price has increased 28.8% in the last three months as
opposed to the benchmark KSE 100-Share Index that inched up
merely 2.9% over the same period
While the company’s top line has crossed Rs 4 billion, there is still
no price discovery in its stock
ICL’s average daily volume for the last three months has been only
30,769 shares.
22. Strengths
› Ittehad Chemicals has large numbers of competent
workers these are near about 4000 employees 40 of
them are permanent and others are at daily wages
or contract basis.
› It has two chemical plants in Lahore one is
manufacturing chemicals and second is
manufacturing products from these chemicals and it
also uses the waste on one plant in second as a raw
material.
› It has a large product length as capered to its
competitors in Pakistan as well as in Asia.
› It uses modern technology to manufacture
chemicals.
› It is the king of chemicals manufacturing industry.
› It also has its own carriage container to distribute
the chemicals in all over the Pakistan.
23. Weaknesses
› The company has a labor union that consists of many top
level supervisors to deal the problems of the workers in
the company but this union is very harmful for the company
that many times it happens the union leader black mail the
top management with the power of workers as strike and
etc.
› Company has its own energy source but it is not enough for
the company to maintain its power in this period as there is
lack of electricity in Pakistan
24. Opportunities
› There are no big competitors of Ittehad
Chemicals Limited in the market expect Sitara
Chemicals Pvt. Limited. But Sitara Chemicals
does not have a large product length and line
that it can compete the Ittehad Chemicals Ltd.
It is big opportunity for ICL that it has
competitive edge over its competitor.
25. Threats
› In this modern period Ittehad chemicals
Limited also facing many problem from the
pressure groups.
› The most growing competitor of Ittehad
Chemicals Limited is Sitara Chemicals that
is increasing its product line and length
towards the ICL and SCPL manufacturing
the same product and selling them to their
customers that are diversifying from ICL
to SCPL.
26. Problems facing by ICL:
Inefficiency of Plants
High Transportation Charges
Capacity Issues
Excess Of inventory
Unskilled Workers
High Maintenance cost
Union of workers
27. Conclusion
We conclude that:
It is a very informative and worth learning project
Ittehad Chemicals is a competing company.
It is going towards progress but also facing many issues. They have
no shot term plans, they only deal with big plants and therefore they
don’t lease it or don’t opt for any other option
They only predicting demand and forecasting they determine their
capacity requirements.
There is also a problem in their inventory that is they have excess of
unnecessary inventory which is not beneficial for them as they have
to bear maintenance cost on it
Another issue they face is of their competitors, engro chemicals is a
huge competitor of Ittehad chemicals, the market share is high and
also competitive advantage is towards engro due to the by-product
28. Recommendations
They are using DSA plant which is now getting ruined due to
becoming old, because of this, they are facing lose, getting
down in market position. They have to replace their plant DSA
with IEM plant, which is more efficient and less costly as well.
They should gives wages to their employees, give more
incentives to them and divide their duty in shifts
Market needs more and rapid production of products and gives
preference to those companies which follows these tips, so we
recommend ICL to makes their new plant for rapid production.
If they give space to their employees and gives high
preference to their customers need, make order according to
the demand , they will definitely reach towards success and
have a good market place.