Master of Business Administration
Faculty / School
Faculty of Business Administration (FBA)
Project Coordinator (Internal)
Dr. Nasir Afghan, Asad Ilyas, Salma Mirza
Project Coordinator (External)
Ms. Sadia Malik
Engro Polymer and Chemical Limited (EPCL)
MBA Research Project
Abstract / Summary
The report is an analysis of Engro Polymer and Chemicals Limited (EPCL) considering the opportunity to enter the market for PVC Additives. Engro Polymer & Chemicals Limited (EPCL) is a subsidiary of Engro Chemicals Pakistan Limited. The company is the leading PVC manufacturer in Pakistan. Company’s plant is located at Port Qasim, which is about fifty kilometers from the city of Karachi. EPCL is a long established name in the PVC market and has long been associated with quality products since its inception. It boasts of its very own PVC manufacturing facility at Port Qasim, Karachi with capacity of 150,000 metric tons per annum. It is this facility which ensures a constant supply of PVC to its very satisfied customers. With this long standing history and customer satisfaction in mind, this report was made to develop the feasibility for entering the market for PVC additives. This was done by an explicit demand and supply analysis for which explicit dealers and customers were called and interviewed to ascertain the popular additives and brands that were keenly traded in the market. Then we had to ascertain a reasonable supply chain format that could be used by EPCL. Once the brands, their sourcing and packaging were determined the next step was to make the additives and PVC available to the customers in a convenient format. Not only was the packaging an important factor at this moment but also the pricing mechanism and to determine what prices were customers willing to pay and also the degree to which they were volatile based on both local and international market trends. Thus came in the concept of One Pack Solutions for PVC. This means that certain PVC additives were combined together in the required recipes for certain products and then sold off as one pack solutions to the convenience of the customers. This concept not only proposes to make the manufacturing process for the customer easier but also ensures standardization and quality management. Once the idea of one pack solutions was devised, it was imperative to ascertain the appropriate promotion strategy for this product. The concept was to begin with the existing PVC customers that have been partners of the company for years and win their approval before moving on to new customers. Thus a promotion strategy was devised and the cost included in the overall costs of the project. Given the customer willingness to pay for and accept such a product along with the costs involved, a feasibility plan was developed to ascertain whether it was financially viable for the client i-e EPCL to enter the market for additives. The financials included tools like the P&L account, Balance Sheet, NPV and IRR. These financials were then used to advise EPCL to enter the market both based on qualitative as well as quantitative data analysis. We recommend that EPCL should enter into this business despite low earnings in the early years. The reasons for this are; This will give EPCL a foot in the door in the additives and related markets. The revenue potential is going to increase over the years. EPCL will get a complete grab on the PVC market by this business as it complements its PVC resin business and will ultimately provide synergies. Doors to future growth opportunities would be opened.
Tahir, M. S., Malik, K., Warind, F. N., Faraz, M. A., Ikram, U., & Durrain, U. (2011). Business feasibility plan for importing PVC additives in Pakistan (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mba/176
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