CANTEEN STORE DEPARTMENT

FIRM INFRASTRUCTURE:

Canteen Stores Department (CSD) has passed through various stages, since its inception in
1913. Army Canteen Board was the first venture, initiated primarily to cater for the British
Forces in India. During 1927-28 this Board was liquidated in favor of Canteen Contractors
Syndicate (CCS) Limited. In 1942, CCS became CSD Government of India. In August 1947,
assets of the CSD India were divided between Pakistan and India. Thus emerged the CSD
Pakistan. It had three Transit Depots located at Karachi, Rawalpindi and Patanga (now
Bangladesh) with a capital outlay of Rs 2.8 Million.

CSD used to get a large allocation of foreign exchange and was primarily trading in imported
goods. In 1959, CSD was re-designated as a Full-Fledged, Self-Sustaining Commercial
Organization under the Ministry of Defense and CSD switched over to wholesale and retail
merchandising.

In the past sixty years, CSD network has undergone rapid growth. Today, it comprises 6 Zones,
109 Retail Outlets, 12 Uniform Shops, 35 Hire Purchase Business Centres,6 Zonal Depots and 3
Petrol Pumps.

Expansion in the network, dedication of CSD staff and confidence of clientele helped the
exponential growth of CSDs business. Despite facing tough competition from the newly-
established Multinational retail stores in major cities, CSD has made tremendous strides.

Employees are getting competitive wages and comprehensive benefits. These benefits include
both full-time and part-time people. Some of These benefits are holiday pay, medical coverage,
leave of absence, private counseling and dental coverage programs.

In recruiting new associates the company begins a new comprehensive program. Recruitment
programs are well publicized and convenient, providing an opportunity for job applicants.
When a new employee start at CSD they are presented to the basic rule of CSD:

Customer First:
Central theme of CSDs functioning has been Convenience, Accessibility and Reaching-out to
the Customers. Steps taken towards this end include enhanced range of products and wider
array of our network. Valued customers are facilitated, by providing Everything Under One
Roof in major CSD outlets, increased shopping hours/days by keeping the shops open for
maximum time.

TECHNOLOGICAL DEVELOPMENT:
Automate; IT-intensive Inventory Management and Warehouse / Information Management
Systems have been introduced at all CSD outlets and Zonal Depots.
Electronic Data Interchange: A computer to computer exchange of business documents.

OPERATIONS:
CSD strive to provide safe shopping experience for customers and safe work place for
associates.
They are continuously striving to ensure affordability while maintaining the highest
quality of the products. Our procurement strategy is customer-oriented and not profit-
oriented. This guarantees lower prices for the best quality.
CSD continues to expand its inventory, to include more items, thus providing wider
choice to the customers. Overall shopping environments are being augmented with
improved ambience and better customer service.

LOGISTICS:
SALES & MARKETING:
SERVICES:
Opening hours at CSD generally ranges from 9:30 a.m.to 23:00 p.m.seven days a week. All CSD
stores maintain uniform prices, also CSD provides daily-use items to all clients at a price 6-8 %
lower than the market. Sales are primarily on a self service, cash and carry basis with the
objective of maximizing sales volume and inventory turnover while minimizing expenses.
Profit Sharing with Customers:

Profit sharing is the major business virtue, around which our marketing strategy revolves.
Acknowledging that we owe the growth of CSD business to our valued customers, we constantly share
our profit with them through concessional/discounted rates and Loyalty Cards.
 No Credit Card Fee:
Service fee charged on all purchases made through Credit Cards from CSD outlets has been
waived off. This expenditure is being paid to Banks by CSD out of its own profit.

Special Sales / Promotional Packages:

A number of Sales/Promotion Packages are launched periodically. These offer significant
reduction in the prices of a wide array of articles, grocery and other items.

Shopping Environment:
Some of the major CSD outlets can be compared with any modern retail store in the country or
abroad. All kinds of businesses have been brought under one roof, with state-of-the-art
facilities, improved customer service and the best ambience.

Waiver of Hire Purchase Dues:

In case of Shahadat or death of a member, all outstanding dues are waived off. In the past 4
years CSD has waived off Rs 13.00 Million in this regard.

Refund/ Exchange Policy:

We offer refund/exchange of the goods, purchased at any CSD Shop, within 7 days of purchase.

Vendors are the The products are Once the products After the products A number of
suppliers of CSD. delivered to the are delivered to the are delivered, they sale/promotion
They can be a distribution center. distribution are placed on packages are
firm/company or CSD is able to centers, they are appropriate shelf launched. Refunds
proprietors. bargain for the sorted and placed locations. CSD and exchange
lowest price on trucks to be stores are located policy is offered.
because of tender delivered to the throughout Modern retail store
announcement. stores/outlets Pakistans cantt environment with
Therefore, it passes around the areas. a wide range of
its savings to its provinces. items at low rates.
customers.
 suppliers inbound logistics CSD zonal distribution marketing and sale
CSD store
centre

OUR STAKEHOLDERS:

Our stakeholders are defined as those parties that have a direct stake in our business because they can
affect or be affected by our activities, objectives and policies; they are:

Our customers through our 110 stores we transact with millions of customers and we invest
every effort to responsibly satisfy their expectations of product quality and value.
Our employees we employ over 10,000 people across our operations, and recognize our duty
to implement responsible, fair and enlightened employment practices.
Our shareholders as a JSE listed and publicly traded company, we have numerous
shareholders in South Africa and abroad, ranging from major institutions to individuals.
 Our communities we operate in Pakistan and appreciate the need to become meaningfully
involved in community upliftment initiatives in the areas within which we operate.
Our suppliers we source goods and use the services of over 9 000 active suppliers and we
strive to provide them with a highly competitive and socially responsible channel to markets.

In addition to the major stakeholders identified above, we maintain close relationships with NGOs,
business associations and civil society organizations on the understanding that they play an important
role in advocating responsible business practice. We also actively engage with government departments
and the legislature in areas of mutual interest with keen awareness of the positive impacts that private
partnerships with government can have in all spheres of business and society. In recognizing the
important role that the media plays in reporting issues of financial and public interest to investors,
customers and broader society, we aspire to provide the media with ready access to Group and
divisional executives.