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Sun Crop Group A Success Story in Agri Business Of Pakistan

SCP - Letter Kaleem Sb.doc

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Page 1: SCP - Letter Kaleem Sb.doc

Sun Crop Group

A Success Story in Agri Business Of Pakistan

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Over View Sun Crop group established in year 2000, at D.G.Khan on a very small scale with a

sales of only 0.0375 billion in first year & now over period of 14 years sales crossed

7.81 billion in 2014 & in 2015 group is looking forward to a mile stone of 10 billion.

Sun Crop Group is a blend of versatility in Agro business from open dealer net work

to semi franchise & finally having largest Agri based franchise system in Pakistan.

Sun Crop Group comprises of five business units (companies) Total business is being

looked after through 8 Divisions, 24 Regions,296 territories and 5 International

collaborations.

All such business operation is being controlled by Sun Crop Group Head office 8-B

Industrial Estate Multan under the dynamic & visionary leader ship of Dr.

Muhammad Shafeeq.

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Nature of Organization

Sun Crop Group is basically an Agro based group dealing in

Seeds

Pesticides

Fertilizers

Farm Machinery

Services

Sun Crop is a leading Group in Pakistan that provide farmers community a wide range

of quality seeds such as Cotton, Rice, Wheat, Corn, Sunflower & Tomato, These seed

varieties are well known having good yield potential and a reasonable sales volume.

Pesticides are the back bone & foundation stone of the group, with arrange of

traditional chemicals to the state of the art cutting edge products and because of

pesticides Sun Crop Group is undoubted present in the queue of top companies of

Pakistan & looking forward to became Number One group among national companies

in 2015 with a sales of 10 billion.

Fertilizers are essential part of Agro based industry & Sun Crop Group is proudly in

leading position among national companies.

Farm machinery is a big opportunity & group is now focusing & working to grab the

share.

Services include, Field Advisory Services (FAS), After Sales Services (ASS) Tele

services though our well trained Skilled & experienced staff throughout Pakistan,

which leads toward not only growth of sales of the group but as a matter of fact help

in the prosperity of farmers and ultimately leads towards prosperous Pakistan

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VISION STATEMENT

MISSION STATEMENT We combines the power of science and technology with the human element to find

out the solution which are essential for the farm and farmer’s progress. The compamy

connects the chemistry for sustain ability to help and address farmer problems for

increasing agricultural productivity.

Group Companies

Sun Crop group consist of

Sun Crop Pesticides.

Green let International

Sun Gro (Pvt) Ltd

Sun Crop Industries Pakistan Ltd

Sun Crop Pesticides

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Sun Crop pesticides is the beginning of group, established in year 2000 in a small office in

D.G.Khan with a team of only 5 sales person & achieve 0.375 billion sales in first year,

which now become a group of companies with a sales of over 7.81 billion in 2014 Up till

2004 major business was through open dealer net work in 2005 company took a major

decision & entered in franchise business & start their out lets with the name of Leader Zari

Markaz in 2015 we modify and modernize the out lets & rejuvenate, re organize, & change in

outlook & color scheme with new name Sun Crop center.

At present Sun Crop pesticides have 450 Sun Crop centers across Pakistan with a sales force

of 685 persons 120 among which are on four wheals & 565 on motor bikes.

Sun Crop pesticides have three Cost Centers called division.

North Division - Fahim Siddiaue

Central Division - AG Changwani

South Division - Waqar A Shamsi

Green let International

Green let International is the 2nd company established in 2002, with the objective

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To fulfill the demand of the market

To fill the vacuum created by the conversion of Sun Crop pesticides to

furnishes system

Obviously to achieve extra market share for the group.

Green let is working on open dealer net work with

600 dealer’s nationwide

Sale team of 400 Representatives

85 on four wheal

315 on bikes.

Green let also have three cost centers called division

North Division - Kaleem Ullah

Center Division - Malik Shahid Aleem

South Division - Shahid Soomro

Sun gro

Establish in 2012 having a team of 591 sales persons, 91 among them are on four

wheel & 500 on motor bikes.

Sun Gro is Pakistan’s largest national company with Exclusive Franchise network

named “Tahfuz” with the concept of all Agri solutions under one roof.

Sun Gro believe in demand generation through FAS & ASS to the end consumers.

Sun Gro is a fastest growing Agro franchise network a trusted name in agri

community of Pakistan

Sun Gro like other group companies have three cost centers called division

North - Ghulam Yeasin

Center - Nadeem Khan

South - B.A. Mahar

With one GM Sale & marketing G.H. Mahar & GM operation Nafees Ahmed

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Sun Crop Industries (Pvt) Ltd

Established in 2012, to fulfill the requirement of fertilizer manufacturing specially

SSP (Single super phosphate)

BOP (Bio organic Phosphate) and many other brands for farmer community to cater

their Fertilizer needs.

SCIPL having small but smart team creating value for the group and also a well

reputed & trusted name in fertilizer industry

Departments HR

Imports

Finance

Sales Accounting

Internal Audit

Sales

Marketing/Tele Marketing

Supply Chain

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Quality Control

Training

Security

Bulk Sales

R & D

R & D And Seed Division

R & D staff is based at all major cities in order to test different seed varieties in

different environmental conditions.

Faisalabad

Multan

Sukkur

Gujranwala

Peshawar

Sukkur

Hyderabad

Karachi

D.G.Khan

Sun Crop group has three Seed research Farms.

Multan

Lahore

D.G.Khan

Sun Crop group is working in collaboration with international companies for various

crops.

Hybrid Maize - Egyptian & Chinese Companies

Hybrid Rice - Chinese Companies

Cotton - Local

Sunflower - South Africa

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Promising Seed Varieties are

Rice Bakhtawar 121

Diamand 121

CottonLeader 1 & 3

Tahafuz 1 & 3

Maize Diamand 2031

Bakhtawar 2031

Tomato Richman

Sun Crop Group is now working with a leading Chinese group for the production of

hybrid rice seed in Pakistan and this is the first ever project in private sector that can

change the fate of country & help in saving millions of dollars in import bill

Bulk SalesSun Crop Group is a leading bulk supplier of products to a large no of small

companies of Pakistan and having a sales of over two billions per anum and being

supervised by single handed Mr. Muhammad Ali Zafar ,a major contributor in sales

growth & also play role in cash flow of group.

Supply Chain In today’s world timely supply is the key to success & Sun Crop Group is focusing

on this very keenly.

Prompt supply is the specialty of Sun Crop Group and this is possible through our

country wide ware houses right from Hyderabad upto Peshawar where a minimum

level of inventory is being maintained on daily basis

Quality Assurance

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Quality is our strength No compromise on quality and it is being done by a state of the

art quality control lab fully equipped with latest equipment & well trained, skilled

staff

QC lab make it sure to manufacture, formulate and packing of product as per

international standards & operate as per SOP of Group.

Manufacturing & Formulation

SCG has all basic plants of latest & state of the art technology. To run a pesticide

group successfully a variety of plants required. SCG has all required facilities.

Liquid formulation plant having capacity of 18,000 lit/day.

Powder formulation plant having capacity of 20 tons/day.

Granules formulation plant having capacity of 120 ton per day.

SSP fertilizer plant having capacity of 100 tons/day.

Sales Accounting/Audit/Finance

SCG has well established nationwide interlinked Sales Accounting system. All

transactions are through banks, Sales team collect payments & deposit using various

instruments of banks like, CC,DD, on line transfers etc, raise PR & Send it to sales

account & sales accounts raise the invoice which is then forwarded to supply chain &

supply chain immediately deliver the product to the customers.

Audit branch make it sure that all sales is being done as per company policy

Finance department is primarily mend to arrange finances for various projects,

responsible for cash flow tracking, taxation, imports etc.

IT department, not the less sales accounting which is centrally linked & controlled by

H.O is responsibility of IT department. They also look after mail server & group

website maintenance.

Sales & Marketing Department

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The largest department of the group undoubtedly the cash cow of the group.

Responsible for target achievement of the group maintain & enhance the cash flow.

Dealer’s / Franchisee management is the core responsibility in order to achieve high

volumes of sales

Product Lines

Major Segments

Seeds

Fertilizers

Insecticides

Herbicides

Fungicides

Seeds

Seeds varieties

Quality seed of high yielding varieties, eg., (Rice) Bakhtawar, Diamand 121 (Corn)

Bakhtawar, Diamand 2031, Sunflower Wheat seed & cotton.

Fertilizer

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Macro & Micro fertilizer available with the group, from SSP 18%, DAP BOP, Urea

Phosphate, Ammonium Nitrate & also have a large range of Micronutrients

Insecticides

A wide range of product is available from traditional chemicals to the new

Chemisties, which covers almost all crops, their pests and are considered as proven

solutions

Herbicides

Unique & specialized products for corn weeds in KPK & SWL area with market

leading positions also have herbicides for all crops & all weeds.

Services

Sun Crop group believe in farmer education to help them to become self-sufficient for

diagnosing & selecting products/solutions at their own.

PLAN OF INTERNSHIP PROGRAM Where I did my Internship :

I complete my internship at Head office of Sun Crop Group, which is situated at 8 –

Industrial estate Multan. Industrial estate is well known because of Pesticide industry.

Almost all major companies and groups have their major installations at this location.

Some of them are Syngenta , Bayer Crop Sciences , FMC ,Arysta Life Sciences ,

JBL , Ali Akber Enterprizes , 4 Brothers, Allah Din group , Solex Chemicals and Aziz

group. More over Cotton & textile units , Suzuki showrooms and gourmet are other

big companies at this location.

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STARTING AND ENDING DATES OF INTERNSHIP. 1.7.2015 -15.8.2015

NAME OF DEPARTMENTS WHERE I spend my tenure /

DURATION OF Internship:

Human Resource Department , Supply Chain department, Sales Accounting

Department, Production Department, IT Department & Quality control lab.

The duration of my internship was 6 weeks.

ORIENTATION PROGRAMA detailed orientation done at Sun Crop Group head office By Manger Business &

Training Mr. Kaleem Ullah

Human Resource DEPARTMENT: I have worked primarily in human resource department which is the back bone of the

company. HR department in Sun Crop Group is working very efficiently and they

believe in smart working rather hard working & it also reflects from their number of

personal in this department only three staff members including HR manager is the

total strength of this department.

HR manger is promoted from bottom so he knows all the core issues and suggest

immediate remedies.

Prime policy of HR department is to solve the problems of staff at urgent and

immediate basis. During my stay I observed that no file remain pending in the office

at day end.

Main function of HR department is to generate & transfer salaries, Expenses of team

reimbursement, keeping record of leaves, vehicle files maintenance, Medical bills,

telephone bills tracking, issuance of appointment letters, record keeping of belonging

issued to various staff member ( Assest management ) and finally maintenance of

personal files.

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Work/Assignments done by me during InternshipDuring my stay as internee at Sun Crop Group I spend two to three days in various

departments in order to understand the working and on ground issues and their

remedies. These departments are;

Supply Chain department

Sales Accounting Department

Production Department

IT Department

Quality control lab

In all above mentioned departments briefing of job description of staff was given in a

briefing session by nominee of the department, followed by detailed guest tour of

whole department where I used to serve very initial level assignments like filing, time

keeping, phone representative.

I spend my remaining tenure in human resource department under kind supervision of

HR manager Mr. Muzaffar Ali who give me proper guidance in all respects. During

my stay at HR department I perform various assignments on day to day basis assigned

by HR manager

Record keeping of in ward & out ward mails.

Leave record maintenance of all staff of group manually & in software.

Vehicle record updating

Arranging/coordination for the survey of accidental cases of vehicles from the

field.

Coordination with audit department for the reimbursement of expenses of field

team.

Monthly cell phone bills monitoring / coordination and keep all cell nos of staff

( head office & field staff ) operational to provide hassle free services.

Salary of temporary staff of production department and field staff on the basis of

salary requests received from departmental / divisional heads

I also used to help different employees in their work as per requirement / assigned

by the HR manager

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My work timings were from 9am to 5pm, six days in a week.

SWOT Analysis

“SWOT analysis is situational which includes strengths, weaknesses, opportunities and

threats that affect organizational performance.”

In SWOT analysis the best strategies accomplish an organization’s mission by:

1. Exploiting an organizations opportunities and strength.

2. Neutralizing it threats.

3. Avoiding or correcting its weakness.

STRENGTH:

Group is enjoying a peak of image in the market

Group has a complete range of all basic infrastructure required.

Major bulk supplier to the small distributors

Provide formulation / packing facility to these small distributors who are an excellent

source of advertisement and image building of Group.

Self-financed & self-sufficient in funds availability & not dependent on banks or

external forces of the market.

Extend credit to the market which turns into high profit margins for the group

Quality is the major strength of the group.

Customer’s reliability on the group is at its peak.

Covering almost all over Pakistan & all customer types through versatility in

business.

Highly motivated team with most experienced, skilled, motivated, self-driven middle

& top management.

High paid organization in terms of salaries, bonuses and sales incentives.

Timely supply & availability is the key factor in success of the group which is

complimented & appreciated not only by customers but also competitors.

Sales accounting system is one of the best in industry.

Customers can ask at any time their ledgers / account statement.

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Periodically company send ledgers to the customers for accounts reconciliation which

results in confidence building of customers on the group.

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WEAKNESS:

Staffing issue at some places company is over staff and some other staff is too low

which effect efficiency of the organization.

Due to facilities given to other small distributors sometimes they become major

competitors for the group in the market

As company is group is extending heavy credit to the customer which may become

serious if not recovered.

Upfront Salary packages are the hindrance in new joining of staff.

Lower staff is not much skilled

No roll of HR in hiring / firing of staff

GMs/ BMs/ departmental heads are responsible for the new recruitment which

sometimes results in bad selection which ultimately effects the group cost /

profitability / image

OPPORTUNITY:

Sun Crop group compete its competitors by extended ceredit to the market dealers. So

in such a way it plays an important role as financer for the market .

R & D department is working at its full capacity to explore new and latest chemistries

that are required to meet the upcoming problems in agriculture.

Main stream staff is regularly being engaged in staff training on job coaching to

enhance the capability of the staff.

Group is looking into the new world through entering into the new markets of

agriculture in order to reduce the fix cost and to ensure maximum profits with the

need satisfaction of end user community & the channel partners.

Farm machinery is the next destination of the Group.

Fertilizer is the main chunk of the market and as a leading group now it is the time to

grab the opportunity and few new products in fertilizer range like Urea Phosphat, Bio

Organic Phosphat & ammonium sulphate are few examples.

Seed is also a big market in agriculture and all other things applied if seed grows so

keeping in mind group signed an agreement with a Chinese group for the production

of hybrid rice seed in Pakistan and a pilot project is in progress I south division.

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THREAT:

Internal competition among the group companies is a big threat for the group.

Education level of field staff is not upto the standard.

Hiring / Firing is only done by the GMs/BMs, no role of HR except file work.

Sun Crop group is facing a strong competition by its competitors, as they are

struggling their best to grab the market share.

Low ever prices of the commodity products like Rice, Wheat, Cotton, Maize, Potato

and Sugar cane crush the market and badly effect the cash flow for all players of the

market, which results in unhealthy norms & strategies to enhance the cash flow by the

competitors.

High prices of Sun Crop group may become a big threat.

Strictness in sales policies and not extending the dates can also damage the cash flows

which turns into low sales.

Large teams, fix cost, large inventory may also be a threat.

CONCLUSION

Sun Crop Group is established In year 2000 at DGKhan from a scratch and in 14 years of

time now it’s a large group of Pakistan with over sales of 7.81 billions and aiming for 10

billions in 2015 and is strong candidate of leader of the market among national companies/

groups.

RECOMMENDATONSCost Centers/ Division

All divisions are independent in their decisions like staff hiring, trainings, sales policies etc,

which may be a hinderence in sales growth I suggest there must be a uniform policy for staff

hiring and sales policies.

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Professional Training

Sun Crop Group is spending a huge amount on staff trainings mainly through external

trainers but that doesn’t pay back to the group because of

Heterogeneous groups ( no basic qualification is mandatory employees are Matric to

technical education and also have MBAs)

No follow up

No or very low intensity of internal trainings

It is recommended to establish an internal training department, with urdu slides regular

follow ups and finally on the job coaching by middle management.

Delegation of Authority

Although cost centers / divisions are independent in their decisions but this delegation must

be transferred to middle management in order to take quick decisions with in parameters

given by the senior management.

Performance Appraisal

During Internship I felt that there is no or very less appraisal of any ones performance. There

is a format for annual appraisal but the contents and features of that appraisal format are not

communicated to the staff and once in a blue moon GM/Bm does it at his own. It must be in a

systematic way that staff must be informed the parameter on which their performance will be

judged, staff and manager should sign the what to do sheet, and there must be a road map to

evaluate periodically and on the basis of that appraisal increments and other benefits may be

given.

Basic Policies

Sun Crop Group is providing its staff with a minimum level of medical coverage that

applicable only if someone admit in hospital and not on outdoor. It is recommended to

enhance its limit and also coverage.

Provident Fund, LFA, Gratuity, old age benefits etc are not covered by the group. It is

recommended to formulate a comprehensive policy to cover all such benefits in order to

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motivate the team which in return will increase the retention of staff.

Life insurance is also need to address.

Leave policy is not clear it is the discretion of manager that when & where leaves can be

approved. It is recommended to have a uniform policy that also include leave encashment if

needed.

Need of Qualified Staff

There is a need to set a minimum qualification criteria to boost up the standard of staff.

Service Book / Rules

No such book let is available that has to be given to newly hired staff along with their

appointment letter. It is recommended that such book must be developed at urgent.

Orientation

This is observed no orientation program is available for new hiring. Management take it

granted that all new people know all about the market. Which some time cause serious

damage. It is recommended that it must be mandatory for all newly hired staff an orientation

of at least three days at Divisional level to make new staff familiar with the culture of the

company, policies, product knowledge and also the rules and regulations of the group.

Job Description

I felt during my stay that no one knows exactly his job description. It is recommended that a

clear self-explanatory easy to understand and realistic job description for each level must be

developed and it has to give to all new & old employees in order to make them clear in what

to do and what not to do. And finally all rewards and punishments must be on the basis

appraisal according to the job description.

Reference and Sources UsedMainly by Mr. Kaleem ullah Manger Business & Training during his orientation session and

also telephonically with him .

Mr. Muzaffar Ali HR manager

Web Sites.

www.Sun Cropgroup.com