buxly finl
TRANSCRIPT
HISTORY AND INTRODUCTION OF BUXLY P A INTS LIMITED:
uxly Paints shares a rich tradition of excellence in the paints industry with history dating back to 1933. Khan Rahim Bux Khan, The founder of Buxly Paints Limited, first started his paint manufacturing activities back in 1933 in
undivided India in the state of Hyderabad - Deccan that was perhaps the first paint factory in that area at that time started by a local person. After the partition of South Asia in 1948 the founders setup the 1st paint factory in Pakistan under the name and style of Buxly Paints works.
BAlthough the company started its activities in Karachi but soon setup a factory in Chittagong the then East Pakistan and then setup another paint factory in Karachi in 1956. In the next few years Buxly was the largest paint manufacturing company in Pakistan. The year 1973 saw the establishment of factory in Kuwait with Buxly As knows how.
Although subsequent events lead to the loss of factories in Chittagong due to creation of Bangladesh and loss of factory in Beirut due to civil war there and loss of Kuwait factory due to Iraqi invasion, never the less Buxly in Pakistan is still the largest Pakistani national paint manufacturing company and its products still enjoy great respect in the decorative market as well as in the sophisticated coatings such as Epoxies, Polyurethanes, Chlorinated Rubber and a host of other paints too many to enumerate here.
The Company's principal activities are to manufacture and sell quality paints, pigments, protective surface coatings, varnishes and other related products.
Buxly Paints is engaged in manufacturing and marketing paints and varnishes. The company provides primers, paint remover, solvent cleaner, and thinners.
PROFILE OF THE COMPNY:
Company Profile:
Buxly Paints Limited
Ticker: BUXL
Exchanges: KAR
2007 Sales: 119,600,000
Major Industry: Chemicals
Sub Industry: Paint & Resin Manufacturers
Country: PAKISTAN
Employees: 106
Chairman M.Saeed
CEO Name H P Kotwal
HEAD OFFICE:
X/3 S.I.T.E Manghopir Road P.O BOX 3630
Karachi - 75700
TEL: 2577702-05 & 2570371
FAX: 92-21-2560468
REGIONAL OFFICE CENTRAL:
2nd Floor Garden Trust Building, Napier Road,
P.O Box: 25 Lahore-54000
PH: 7356333 & 7352186
FAX: 7222792
REGIONAL OFFICE NORTH :
Plot No. 201, St # 1, Sector I-10/3, Islamabad.
PH: 051- 4431367
MISSION STATEMENT:
Our mission is to provide protection and decoration for almost any surface requiring paint to that end, in the Decorative, Vehicle Refinishing and General Industrial areas, while satisfying the (Market) needs of its customers, better and more profitably than its competitors. Buxly’s commitment to excellent in quality extensive product research & Development, Trained and dedicated professionals manpower, emphasis on modern quality control techniques. The Company's principal activities are to manufacture and sell quality paints, pigments, protective surface coatings, varnishes and other related products.
Analysis of Mission Statement:
They provide protection and decoration for almost any surface requiring paint to that end.
It is clear from the mission statement that they do business in the paints or chemical industry.
They satisfy the needs of its customers, better and more profitably than its competitors.
Buxly commit to excellent in modern quality.
PRODUCTS OF COMP A NY:
Decorative Products :
The Company is manufacturing several water 'based paints of different qualities. These durable and resistant to humidity' and moisture. This has led to increase the demand and appreciation of most consumers. Company is offering a variety of oil paints for the benefit of architectural and civil construction. As for protection paints, there is a wide collection that covers all requirements, namely good quality primers for protecting iron from rust and water based paints that protect roofs and walls from rottenness, leaking and moisture.
Buxly's 413 Special Plastic Emulsions
Buxly's 413 Synthetic Enamel
Buxly's Weather Fighter
Buxly's 413 Matt Enamel
Buxly's Plastic Bound Distemper
Buxly's Aluminium Paint in Dual Container
Buxly's Sealon (Alkali Resisting Primer Sealer)
Buxly's Red Oxide Primer (PQA)
Buxly's Synthetic Traffic Clear Varnish
Buxly's Basekote Synthetic Undercoat
Buxly's Hameron Hammer Finish
Industry Products :
In Asian environment, Steel and concrete structures are constantly exposed to heat, dust, sand, moisture and other adverse atmospheric and climatic conditions. Once corrosion sets in, it can lead to deterioration of the structure, loss of capital investment and in some cases, danger to human life. There is much more stake in protection than simple application of paint, and Buxly Paints offers a complete system of protection for longer life and lower maintenance cost.
Marine Products :
Buxly paint remains firmly at the forefront of supplying coating for marine protection that is such a significant factor in the working life and profitability of a vessel. Each has a specific task to perform, working together to protect every part of vessel.
Aircraft Products :
Buxly Paints offers various types of primers, with glossy, semi glossy and matt finishing paints, paint remover, solvent cleaner and thinners for different types of aircrafts.
Vehicle Refinish :
They also provide the products for vehicle.
PRICES OF THE PRODUCTS:
Name of product Quantity Price
Buxly's Plastic Bound Distemper
Buxly's Plastic Bound Distemper
Buxly's 413 Special Plastic Emulsions
Buxly's 413 Matt Enamel
Buxly's 413 Synthetic Enamel
Buxly's Weather Fighter
Buxly's Sealon (Alkali Resisting Primer Sealer)
3.64liters
24kg
3.64liters
3.64liters
3.64liters
4liters
24kg
Rs.375
Rs.1402
Rs.750
Rs.775
Rs.660
Rs.840
Rs.2200
For eventual market control and to capture high market share, they set their prices low as compare to their competitors.
PROMOTION:
The company is promoting its product only through its dealer’s n brochures but there is no other source of promotion adopted by the company like advertisement and marketing.
PLACE :
The company has placed its products in the major cities of the country. The dealers of the company re in Karachi, Lahore, Islamabad, Rawlpindi, Faisalabad, Peshawar, Quett, Bahawalpur etc.
DEALERS OF THE BUXLY PAINTS IN DIFFERENT CITIES:
Karachi Dealers:
Royal Paint StoresBohra Pir, Karachi.Ph: 7722934, 7725032
Universal Paint HouseChand Bibi Road, Bohrapir,Karachi.Ph: 7721369 – 7761321
Lahore Dealers:
Ghafoor Paint & Tool ShopGanj Mughalpura, LahorePh: 6822743
Imran Brothers Near Masjid Chowk,L.C.C.H., LahorePh: 5725241
Rang Mahal Paint House192-Multan Road, Lahore.Ph: 7599628
Peshawar Dealers:
Arco Paint StoreG.T. RoadPeshawar
Sethi Paint StoreGhanta GharPeshawar
Islamabad Dealers:
Al-Asif PaintsI-8 & I-10IslamabadPh: (051) 4444559Chaudhry BrothersI & T Center G-8/1,IslamabadPh: 051-2282950
Baiga PaintsI & T Center, G-9/4Islamabad051-2851007
Ghaffar BrosG-8/4Islamabad051-2263839
Indus Paint StoreAabpara, Islamabad051-2825383
Rawalpindi Dealers:
Siddique Distributors565/D Allhabad, Westridge IIIPh: (051) 5475352 – 5474800
Al-Faisal PaintsBakra Mandi, Rawalpindi.
Awami Paint StoreSaid Pur Road, Rawalpindi.Ph: (051) 4412198
Army Paint StoreSaddar Bazar, RawalpindiPh: (051) 5567519
Waqas Paint Scheme III, Rawalpindi
About Paints:
All paints, oil-based and latex, are made of four main components:
o Binder o Pigment o Liquids o Additives
Binder is key to paint formulation. The type and amount of binder affect everything from stain resistance and gloss, to adhesion and crack resistance.Latex paints use several polymer types as binders, including:
o 100 percent acrylic o styrene-acrylic o Vinyl acrylic (or "PVA" for polyvinyl acetate).
Oil paints use a binder based on a drying oil such as linseed or soya, or some other type of modified oil (in which case these paints are called alkyds).In general, latex paints have better exterior durability than do oil-based or alkyd paints. They have better color retention, chalk resistance and resistance to longer-term embitterment and cracking.Higher quality latex paints have greater durability and other performance advantages over lower quality latex paints mostly due to the type and amount of acrylic binder used.
Quality paints with 100 percent acrylic binders are especially durable. They adhere to many different surfaces, such as:
o wood o masonry o aluminum siding o vinyl siding
These all-acrylic paints are more durable than other latex paints (with vinyl binders) on fresh masonry surfaces. Other paints will show early color loss and film deterioration while 100 percent acrylic latex paints are resistant to the effects of alkaline surfaces.
Pigments are finely ground particles or powders, which are dispersed in paint “Prime” pigments, provide color and opacity (coverage). The most common prime pigment is titanium dioxide, which is white. It is used in latex and oil-based paints.” Extender" pigments provide bulk to the paint at a low cost.
These pigments impact on properties like scrub resistance, stain resistance and chalk resistance.
Higher quality paints will have higher levels of prime pigment than lower quality paints. Also, better quality paints have less extender pigment in relation to binder level. This makes them more chalk resistant on exterior exposure, providing better color retention and durability. Though all paints will eventually fade, the rate of fading will be much lower with better quality paints.
Additives are performance-enhancing ingredients that are typically added to top quality paints more than to ordinary paints.Additives provide desirable properties such as ease of application and the appearance of the applied paint. Some also have protective qualities.
Some other additives used in latex paints are:dispersing agents (to help the pigment remain evenly distributed throughout the paint, rather than settling); preservatives (to prevent spoilage of the paint during storage); materials to minimize foaming during manufacturing and application). The liquid portion of the paint is either water (for latex paints) or solvent (for oil-based or alkyd paints).
A can of quality paint will contain a higher volume of solid material (pigment and binder) than do ordinary paints. In the case of top quality latex paints, that means more solids and less water.Therefore, if top quality paint and an ordinary paint were applied at the same spread rate, the top quality paint would dry to a thicker paint film due to its higher solids content. A top quality paint will contain 35 to 45 percent volume solids, while an ordinary paint will contain about 20 to 25 percent.
SWOT ANLAYSIS:
Strengths:
The strengths of the Buxly Paints Limited are:
The pride that Buxly takes is not only in its being the first Pakistani paint company and one of the oldest companies in the country but because it survived competition from the multinationals as well as from imported paints and it also crossed a variety of other hurdles.
It is Pakistan ISO 9000 certified company.
Trained and dedicated professional manpower.
It has very low prices as compare to its competitors in the market.
They have dealers in almost all cities.
The good quality of the product is also strength for the company.
Weaknesses:
The major weakness is that there is no advertisement of the buxly paints. The distributors feel some difficulties while dealing with the company on credit
basis.
The marketing of the product is not good.
Opportunities:
The use of new technology and innovation is the major opportunity for the buxly paints.
The company can advertise its products in the market via television, newspaper, etc. and this can increase its sale.
Threats:
The competitors in the markets are the major threat for the company, as they are all well-known and successful companies.
The technology can be another threat that other companies can get market share by using the new technologies.
The innovations of its competitors.
CRITICAL SUCCESS FACTOR :
Critical success factor is something that helps the companies to clinch the business. It can vary from one business to another or from one market segment to another market segment.
The CSF for the buxly paints is:
CSF Weighting Score out of 10 Adjusted Score*
Low prices 0.5 7 35
Quality 0.4 8 32
Vast Market Coverage
0.1 2 20
1.0 87%
Adjusted Score = score out of 10 X weighting factor *
The Critical Success factor for the company is its low prices.
BENEFIT ANALYSIS :
Standard Benefits :
The standard benefits are which are provided by the product but are not in a way unique.
The Buxly paints provide its customers the quality products i.e. it provide industry products, vehicle refinish products, and marine products to its customers which are also provided by the other companies in the market.
Company Benefits :
The availability of the products of the company is in all major cities and towns.
Differential Benefits:
The differential benefits of the Buxly Pints Limited re:
It provides lower prices to its customers It has large dealers penetration
.
Sales Report of the Company for the year 2008
The following income statement is showing the sales of the company for 31st March 2007 to 31st March 2008. The statement is sent to the stock exchange by the company. The sales of the company for 31st March 2008 are Rs.102653 and sales for 31st March, 2008 are Rs.249511. This Report provides a comprehensive Sales & Margin summary analysis for Buxly Paints Limited.
The Company's principal activities are to manufacture and sell quality paints, pigments, protective surface coatings, varnishes and other related products. The overall position of the company is good but as company is not paying attention to the advertisement of its products in this competitive era, its sales can be decreased and its customer can be switched on to other products because the competitors of the company is all multinational companies and these companies pay higher attention towards the promotion of their products. The company should increase the advertisement and marketing of its products.