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About The National Foods

National Foods is a well-known name in


market. It was founded in 1970 and
started out as a Spice company. 3
decades later it has diversified into a
versatile Food Company with over 150
and above products and 100 and
above SKUs (Stock Keeping Unit) for
the domestic market and over 100
different products for the international
markets

FOUNDERS PHILOSOPHY
National Foods must focus on
customers needs and serve them
with quality products at affordable
prices at their doorsteps
National Foods research must
continuously produce new
adventurous products scientifically
tested, hygienically produced in safe
and attractive packaging

MISSION STATEMENT
To deliver consistent quality to National Foods
customers using pure ingredients, authentic
recipes and the best available technology
To maintain close and direct contact with
National Foods customers through consumer
insights and dedicated service
Dedicated to continuous improvement
through active alliances with international
companies to expand technological and
product horizons

VISION STATEMENT
To be an innovative, marketing and
research oriented company
To be an innovative, marketing and
research oriented company

Company CEO
Mr Abrar Hasan has been with National
Foods since 1993. During his decade of
association with the company he has
successfully spearheaded the
organization to its present position.

Board of Directors
Mr. Iqbal Alimohamed
Mr. Ebrahim Qassim
Mr. Abdul Majeed
Mr. Waqar Hasan
Mr. Zahid Majeed
Mr Khawaja Munir Mashooqullah

Product Brand
As National food is a known name in
market, it has already different brands
in market like Jams, ketchup, Achar,
Kheer mix, Custard powder, etc. Now
National food is introducing a new
brand named Rivaaj

National food is introducing


the six different Rivaaj
pastes.

Biryani Paste
Bombay Biryani Paste
Karahi Paste
Quorma Paste
Shahi Curry Paste
Chicken Jalfrezi Paste

Product Categories

Ketchup
Jams
Rice
Desserts
Powered Drinks
Pickles
Chinese
Snacks
Salt
Plain Spices
Recipe Masala

Selecting the pricing method


National Foods will go for retrograde
pricing because there are a lot of
alternatives available and competitors
are also there in the market. National
Foods have to establish ourselves in
the market so it will be better to set
the market price and then analyze it
whether it is suitable or not after
taking out the profit margin

Selecting the pricing method


Pricing can be of two types
1) Cost oriented pricing
2) Retrograde pricing

Distribution Channel

Producer
Wholesaler
Retailers
End user/Consumer

EXPORTS
Providing you the exotic taste of
Pakistan, National Foods products are
distributed in over 35 countries in 5
continents, through National Foods
strategic partners. And with National
Foods continuous success, National
Foods are rapidly making inroads into
new markets worldwide

Financial Growth
Coming off a stellar year, National
food's performance during 1QFY13 has
been nothing short of spectacular.
Having declared a hefty 30 percent top
line growth during FY12 and recording
the highest ever PBT earnings in its
history to boot, the firm is enjoying the
unprecedented hike of consumer
interest in the convenience food
segment and has been doing

Financial Growth
The first quarter in FY13 saw the firm's
key product categories including the
recipe mix, sauces, pickles and
desserts performing exceptionally well,
allowing National Foods to sustain and
build upon its growth momentum.
Consequently, sales grew by 17
percent year on year while the NPAT
hiked up by 125 percent year on year,
hitting the Rs200 million mark

Financial Growth
An efficient sales mix management
strategy, and strong cost control
measures have allowed the firm to
keep a lid on its expenditures, thereby
helping improve margins in an industry
where both fixed and raw material
costs are spiralling rapidly out of
control. Consequently, over the last 12
months National Foods has managed
to improve their Gross margins by

Financial Growth
Moreover, a tight working capital management has
allowed the firm to improve its cash flows- leading to
investment of the surplus cash which has yielded
attractive returns for the firm during the quarter
under review. On the whole, increased efforts into
increasing the visibility of the brand within its local
and overseas consumers has also helped strengthen
the firm's bottom line, which, as a percentage of Net
sales has climbed up to 8.5 percent this quarter- as
compared to 4.4 percent recorded during the same
period last year.

Operational Growth
The cost control & cost management
programme that the firm launched in
face of hiking operational costs has
yielded excellent results for the firm
over the course of the last 12 months.
An effort to remove business wastes
and improving process efficiencies has
been the biggest reason for National
Foods success in the face of the
depressing economic clime of the

Operational Growth
Additionally, the company has recently
finished their consolidation phase
which was in order to modernize and
automate majority of the firm's
business processes, consequently
allowing National Foods to elevate
their product quality while maintaining
price levels in the face of greater
competition in the market.

SWOT Analysis

Strengths
Broad product line
National food has very broad product
line that includes different types of
Masala powders, Kheer mix, Ketchup,
Custared powder, Pastes, Achar and
many more.

Strengths
Broad Market Coverage
National food occupies 80% market share
in powder mix market and one very
obvious reason for that is strong and very
broad market coverage. According to Sales
and purchase Manager National food, they
have excellent market coverage all over
Pakistan and citizens of each city have
easy access to sales and display centers.

Strengths
Manufacturing Competence
National food has engineering and technical
staff of the highest caliber that is capable of
manufacturing such products that
differentiates National food products from its
competitors. National food possess specific
manufacturing competence for example use
of imported machinery and a high quality
ingredients in manufacturing of powder mix
that maintain the quality of product.

Strengths
Good Marketing Skills
National foods efficient marketing
team in Pakistan has over the years
played a crucial role in developing
public awareness. National food has its
own in-house advertising agency for
promoting all National foods products.

Strengths
Enhanced Research and Development
National food emphasizes on Research and
Development department to a great deal.
Chief executive of National food has hired a
team of R & D himself and he makes sure
that on going improvements in the existing
National food products range is a
continuous activity. Efficient R and D
department is considered as a vital strength
of company.

Strengths
Brand Name Reputation
National food is among those few brand
names that have earned a lot on the basis
of its brand reputation. However the fact is
that company has seen tiring 34 years of
hard work to achieve this brand image.
Brand name is a source of vital strength for
the company and is known all over the
market place.

Strengths
Appropriate Organizational Structure
Organizational hierarchy at National food is
very functional and appropriate. Company
top management consists of the Chief
executive and Managing director. Then
there are middle managers of concerned
departments like Marketing, Production,
R&D and Finance.Company believes
strongly on good relationship with its
human resource.

Strengths
Good finance Management
Finance department of National food is
efficiently working to allocate
resources to each of its business
portfolio. Good finance management is
yet another strength of company that
is helping company out in assessing
the exact financial situation.

Weakness
Microbilogical hazards
Hazards can enter foods at many points from
production to consumption.
The prevalence and concentration of hazard
changes markedly at different points along
the food production chain.
Health risks are usually acute and result from
a single edible portion of food.
Individuals show a wide variability in health
response to different levels of hazard.

Opportunities
Expanding into foreign markets
The biggest opportunity for National
food currently is exploiting new market
segments. After achieving good market
coverage all over Pakistan, National
food is now trying to expand its
business in Middle East and Central
Asian states.

Opportunities
Expansion of core business
National food started as powder mix
producers but soon after gaining rapid
market shares in powder mix,
Company considered expansion of core
business as a major opportunity. Today
Company has wide range of products
that it has achieved by expanding the
core business.

Opportunities
Entering Related Business
Entering those new businesses that
are related to current business is a
high potential opportunity. For example
company has entered the related
businesses like Kheer mix, Ketchup,
Custared powder, Pastes, Achar and
many other things.

Threats
New Entrants
The biggest threat for the Company has
been the entry of new competitors in the
market has made National food
management think that they will have to
adjust the pricing or to provide some
handsome incentives to customers in
competition with other brands in market
because Company does not want to lose its
market share.

Threats
No barriers on Entry
Government has not fixed any hard
rules upon the entrants in this industry.
Any group of companies that is
financially strong can enter this
industry without facing any strict
barriers. This is another threat for
National food that more and more
entrants coming in this industry and
the profit margin shrinking gradually.

Threats
New form of Industry competition
In Pakistan, some other companies like
Star has started competing National
food with its Custared powder and
Achar. It has formed a new form of
industry competition. Star is producing
its products at a cheaper price and
price war is already on.

Threats
Government Legislation
The production department of National
food uses special machinery that has
to be imported from abroad.
Government has fixed a quota system
that company cannot import it more
than a specific ratio. This quota system
is creating a threat for company and
soon company needs to find an
alternative.

Victory in Brand Elections 2010


The annual Brand Elections are the truest
gauge of which names rule the hearts of
Pakistani consumers.Brand Elections
2010 were conducted across an
electorate of 10,000 voters in 50 cities of
Pakistan, and National Foods Limited
emerged as the firm favorite in 5 food
categories; Recipes; Jams, Jellies, and
Marmalades; Pickles; Spices and Ketchup.

Victory in Brand
Elections 2010
Overall National Foods Limited won 1st
place in Food/Household brands, and
were 1st runner up in the general
Elections, competing against a total of
3500 brands.

Certificates
ISO 9001:2008 (Quality Management
system)
ISO 22000:2005 (Food Safety
Management system)
ISO 17025:2005 (Laboratory
Accreditation)

Certificates
Halal Foods certification
PSQCA product certifications for all
mandatory food products which
includes Jams & Jellies, Marmalades,
Vinegar, Iodized Salt, Pickles, Red
Chilli, Turmeric and Curry Masala.