Haleeb Foods Ltd

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    Haleeb Foods Limited (HFL):

    Corporate Introduction

    Haleeb Foods Limited, the largest Dairy Processing company in Pakistan, is the first dairy unit to

    acquire ISO 9002, HACCP and ISO 14000 certification. Haleeb Foods is committed to satisfy itsconsumers with wholesome and healthy food products of the highest international standards.

    History:

    Haleeb Foods was established in 1986 and its first product was Haleeb milk. Since then, it hascontinued to provide quality products to its consumers with product and packaging innovations.

    Other products and their dates of launch are as follows:

    1997 Haleeb Asli Desi Ghee

    1998 Haleeb Cream, Candia Skimz Milk Powder1999 Candia Milk, Candia Skimz Liquid Milk

    2000 Tropico Juice Drink, Haleeb Dairy Queen

    2001 Haleeb N'rish Instant Full Cream Milk Pow

    2002 Haleeb N'rish Fortified Instant Full Cream Milk Powder

    2003Candia Tea Max Dairy Whitener, Haleeb Butter, Haleeb Plain Yogurt,Haleeb Lassi Drink

    2004Haleeb Good Day Pure Juice, Haleeb Fun Day Juice Drink,Candia Candy' Up Flavoured

    Milk2005Haleeb Cream with Honey, Haleeb Tea Max with Cardamom, Haleeb Labban, Haleeb

    Good Day (Mix Fruit, Red Grapes, MangoPineapple)

    2006 Haleeb Reshmi Pack, Candia Classic, Skimz Pouch, Tropico Nectar

    2007Haleeb Cheddar Cheese Haleeb Foods is Pakistans number 1 and fastest growing packagedFood Company.

    A sof fiscal 2006, its annual turnover is Rs.9 Billion.

    International Certifications: HFLs products are made with great care, and marked with our

    quality seal of recognition. HFL is the only dairy company in Pakistan that undertakes 21 carefulqualities control tests on every portion of the milk collected by collection centers. Haleeb Foods

    is the only food company in Pakistan that has the following international certifications of quality

    and prestige:

    HACCP (in process controls for safer products)

    ISO 9002 (better quality forgreater customer satisfaction)

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    ISO 14000 (environment-friendly operations)

    Products:

    Haleeb Asli Desi Ghee:Haleeb Asli Desi Ghee is obtained from pure milk through the traditional procedure of heating

    butter slowly. Haleeb Asli Desi Ghee is free from all artificial ingredients; it has pure and natural

    taste and is nutritionally preserved. It comes with 1 year shelf life.Dairy Butter:Dairy Butter is the best natural source of Vitamins A & D for everyone, and by far the ideal way

    of starting yet another busy day. It is rich in its taste and revitalizes your energy for a longtiresome day.

    The Premium Cream:

    The premium cream processed hygienically from pure fresh milk, Haleeb Cream isluxuriouslyrich in its thickness and nutritional value. It promises the richest assortment of tempting

    toppings, delicious desserts and creamiest coffee with its unique taste, also great for eating with

    bread etc. Packed in 6-layered Tetra Pack Brick Aseptic packaging and has a shelf life of 6

    months.

    Dairy Plain Yogurt:Dairy Plain Yogurt meets the highest quality standards and gives consumers unmatched quality,

    freshness and taste with every spoonful. Offered in 450g, 200g and 900g packing, with afreshness seal that keeps the product attributes fresh throughout its life.

    Haleeb Liquid Tea MaxIn tune with the Haleeb Foods tradition of providing consumers high quality and valueadded

    products, Haleeb Tea Max is the ideal choice for all tea and coffee lovers. Tea Max is specialmilk that provides a rich taste in your beverage. It is packed in a 6-layered Tetra Pack Brick

    Aseptic packaging and has a shelf life of 3 months.

    Haleeb Powder Tea Max:In tune with the Haleeb Foods tradition of providing consumers high quality and value-added

    products, Haleeb Tea Max is the ideal choice for all tea and coffee lovers. Tea Maxis special

    milk that provides a rich taste in your beverage, carefully packaged in a safe and hygienic pouch.

    Haleeb Cheddar Cheese:Haleeb Foods makes a new addition, Haleeb Cheddar Cheese, to its healthy and wholesome

    product range. Discover great taste, premium quality and the power of vital 3in every recipe

    made with Haleeb Cheddar Cheese. Vital 3 is the right combination of calcium, protein andvitamins in Haleeb Cheddar Cheese, which acts as a source toenhance the brainpower, especially

    for growing children. Haleeb Cheddar Cheese is specially made with Halal ingredients at the

    state-of-the-art dairy plant conforming to international quality standards. And for the first time inPakistan, it is also offered in customized 2 slices pack. The product is sealed and packed in air-

    tight packaging, which keeps the product fresh and tasty.

    Haleeb Good Day:Haleeb Good Day offers consumers a range of 100% pure juices, without any added sugar

    flavors or preservatives. For consumption absolutely anywhere and anytime, Good Days fourpremium juices (apple, red grape, orange, and fruit cocktail) give you the absolute delight in

    taste, and revitalizes you at the same time. It is packed in a 6-layeredTetra Slim Pack Brick

    Aseptic packaging with easy opening.

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    Haleeb Milk: Consumers everywhere know that only Haleeb Milk makes the best tea ever

    because of its thickness. Haleeb is pasteurized, homogenized, and standardized pure UHT milkof the highest standard with 3.5% fats and 8.9% solid non fats. It is Haleeb Foods premier brand,

    and the choice of quality-conscious consumers who only go for the best. Packed ineasy to open,

    6-layered Tetra Pak Slim Brick Aseptic packaging, it comes with a 3months shelf life

    The first process in supply chain is supply chain stages. HFLs supply chain process entails the

    five basic stages of

    Supplier

    2. Manufacturer

    7.Distributors

    8.Retailers

    9.Customers

    The process of supply chain stages that is being by milk suppliers both processed

    likeHFL and a traditional milkman can be vaunted with the help of this diagram:

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    team of highly competent and skilled people, which performs four basic functions. These

    functions are:

    1. Agro-services:

    This team includes veterinarydoctors and agriculture specialists, who visits village to village anddairy forms, examines the animals and provide them medical treatment if needed. They also

    give farmers free suggestions regarding animal husbandry practices, fodder cultivation,veterinary care and breed improvement. This process really helps HFL in selecting the supplier

    of prime quality milk.

    2. Engineering:

    This is a team of engineers which fixates plants, chillers in the selected areas for Milk CollectionCenters. They also execute daily affairs regarding the maintenance and repair of plants and

    machinery in collection centers and PHEs.

    3. 0preation

    This team oversees the daily operations at collection centers and PHEs. It also coordinates theactivities of agro- services and engineering teams.

    3. Quality:

    This team examines the quality of supplied milk at all collection centers to ensure that only

    standardized and nutritious milk is being supplied. HFL has a strict quality policy regardingintake of raw milk. At every PHE meticulous quality tests are conducted to ensure that only fresh

    milk of the prime quality is accepted at the plant premises. The internationally recognized tests

    are used to check for:

    AdulterationMicrobiological contamination

    Adequacy of nutritional contents

    Fruits:The process of getting the supply of fruits is quite different than milk as it is influenced entirely

    by seasonal factors. Basically HFL is offering three juices flavors that include:

    Orange

    Mango

    GrapesFor these different types of fruits, HFLs chosen areas are

    Sargodha,Multan and Chaman for Citrus, Mangoes and Grapes respectively For the purpose of

    getting supply of these fruits, a manager of visits in the determined areas and collect the samples

    from different farmers, which are dispatched to head office later on for the approval. After theapproval is received, a team sets up a camp in a central town of city and offers auctions

    among the farmers whom samples are approved by quality management. The lowest offer is

    accepted and purchased. If the required quantity of fruits is not fulfilled, team manager persuadesother farmers to sell their stock at pre-set lowest price. Another most important supplier HFL is

    Tetra Pack, which provides the company packing material that is necessary to maintain the

    quality and standard of its milk, creams and juices for an appropriate time period.

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    2. Manufacturer:

    Recently, HFL has two production facilities where all processes, from preparation to quality

    assurance and to packaging, are undertaken employing state-of-the-art technology andequipment. These facilities are situated in the districts of:

    3.62 km Yar, Khan Bhai Pharoo 4. RahimDue to insufficient financial position and comparatively lower demand than past, only the facilityof Bhai Pharoo is open, which is not being fully utilized too. These both facilities can produce

    1.4 to 1.5 million liters of milk on daily basis if fully utilized.

    HFLs production process is categorized into four stages that are performed indifferent sections.First stage commences when a team of quality control management receives the trucks arrived

    from PHEs. After their approval, milk is passed to Standardize and Pasteurize Department. In

    Pasteurizing process, total quantity of milk is divided and sent to different assembly lines

    according to planned target for the production of different dairy items like UHT milk, creams,powder milk, yogurt and tea mix. Whereas in Standardization process, different ingredients are

    added into milk, which are essential to produce quality, prime and nutritious milk according toRecommended DietaryAllowances (RDA).A 250 ML glass of Haleeb Milk contains thefollowing percentage of different

    After Standardize and Pasteurize, milk is passed to Ultra Heated Technology (UHT) function,

    where it is heated in the temperature of 90 to 110 degrees. This process increases the shelf life ofmilk up to 90 days without any lose in quality, standard and taste. In the last stage of production

    process, milk and other products are packed in different sizes of packs and stored in facilityswarehouse for a particular time period that should not exceed from one week, as targeted by

    HFL.

    3. Distributors:

    HFL have very strong contract based distribution network in all over the Pakistan with a motive

    tobe very close of its big markets that are Lahore and southern Punjab. HFLs warehousestructure is divided on the bases of Divisional Categorization, where all big divisions like

    Lahore, Karachi, Rawalpindi, Gujranwala, Faisalabad, Sialkot, Multan, Rahim Yar Khan

    And Peshawarare covered with 2 distribution center, whereas small divisions are located with

    single distribution center. Capacity of all the warehouses varied in between 500000 to 1000000liters of milk and juice. Decision regarding the capacity is depended on the market demand and

    delivery lotto each warehouse. All the warehouses and transportations are controlled by third

    parties, which are acquired by HFL on rent.

    4. Retailers:

    HFL delivers its final to products to ultimate customers through an intensive retail store chain

    both in rural and urban areas of Pakistan. These retail stores include Convenience Stores, which

    can be found even in each and every Street, as well as big shopping mall chains like Makro,Metro and Hyper star in metropolitan areas of country. All of HFLs goods are placed in shelves

    for customer pick-up HFL pays Slot-n-Fee to acquire shelf space in big shopping malls and the

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    owners of convenience stores are offered discounts, schemes and gifts to build and retain healthy

    relationship for long span of time. HFLs marketing teams are obliged to visit all markets onregular basis and explore

    Demand and peoples purchasing habits. Sales staff, in the response of that reports, directs the

    distribution centers manager about how much, which type and in which sizes ofHFLs brands

    will be allocated in each market

    5. Customer

    The most important stage of any supply chain management process is its customers, for which allPre-described stages integrate with each other to get the optimal results that are necessary in

    fulfilling customers needs. Basic target market of HFL is households and families both male and

    female living in all the rural and urban areas of Pakistan, who wants to get the high quality and

    standardized packed milk for home consumption purpose. For this purpose, HFL offer its milk,cream and juices in different sizes and prices, resulted people from all classes and

    income backgrounds can acquire HFLs products. HFLs basic aim is to serve the people from allstatus through prime quality products.HFL has very strong market as far as its business tobusiness customers who include restaurants, hotels, Ice cream Manufacturers and sweet/milk

    shops are concerned. Besides this all, HFL also launched a toll free telephone number for its

    customers to receive valuable suggestions and comments regarding quality, taste and varietyof products form its customers. Customers can access to company through its Care Line0800-

    13500 at any time.

    Supply Chain Cycle Views:

    The pre-described five stages of HFLs supply chain stages are integrated into following fourcycles, in which an exchange of information, products and funds occurs between the buyers and

    sellers of each cycle. These cycles include:

    Procurement Cycle Manufacturing Cycle

    Replenishment Cycle

    Customer Order Cycle Brief description of the procedures in which all these cycles are

    performed by HFL is asunder.

    Procurement Cycle:Procurement Cycle occurs between suppliers of milk or fruits and HFL itself. HFL have

    established a Planning and Forecasting Department where the demand of each market is

    estimated on weekly basis. These targets are disseminated to all functions within the company.Procurement Department, in the response of that plan, sets out its targets of milk collection. For

    this purpose, staff of each Milk Collection Centers goes to farmers and dairy farms and tells

    them about the quantity of milk that will be needed during next seven days. These teams alsoexplore the availability of milk and prepare a feasible report whether the targets will be

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    achieved or not. Their reports are mailed to Head Office, where the planning about alternative

    sources is done, if any shortage from supply side exists. HFL has a policy to receive milk ondaily basis and make the payment just after the supply. Since milk is collected after watchful

    scrutiny, hence any quality lose is not imposed on suppliers and considered as companys

    liability, this results in no return to and refund from farmers to HFL.

    Manufacturing Cycle:

    This cycle happens between HFL and its dedicated distributors. First, distributor tells HFLs

    head office about total capacity and the number of products he will need to meet market demand.These orders are responded how and when the products will be delivered to distributors.

    Payment is made by distributors as scheduled. In case of any defect, items are returned to HFL

    with refunded sum of money.

    Replenishment Cycle:In this cycle, HFLs products are delivered to convenience stores and shopping malls fromdistributors on weekly and bi-weekly basis, according to quantity sold by them. For this purpose,

    active sales teams go shop to shop and receive orders from shopkeepers. On next day,distributors deliver goods to them. Payment and repayment is always made on the spot in case

    any defected items are returned.

    .customer order cycleLast stage of supply chain cycles is customer orders, when HFLs customers purchase desired

    products from retails stores. Customers are educated about the availability, variety and price of

    HFLs products through intensive media campaigns in which both indoor and outdoor

    advertising sources are used. In case of any genuine complaint from customer about the qualityor taste of products, they are replaced immediately.