IN THE NAME OF ALLAH, THE MOST GRACIOUS AND MERCIFUL, THE BENEFICENT First of all I would like to bend

over my head in front of ALMIGHTY ALLAH. It was HE who direct me in every stage of my life, and who bestow me with capability to accomplish the best and helped me to conquer every attempt and difficulty I faced during my journey of getting professional education at IBIT. I am extremely thankful to my dearest parents and friends who helped me in preparing my report with love, moral support and encouragement. Then I would like to thank my teachers for providing me a sufficient amount of knowledge, which helped me to work with the experienced employees at PEL and answer their questions about what I have already learnt.

. I am thankful to the staff of PEL and especially to their managers for their cooperation. My deepest gratefulness is to Mr. Muhammad Shahid who trained me to complete my internship project with the help of different marketing activities. I am also gratified to Mr. Tanveer (Marketing Officer), Mr. Sohaib Irfan (Marketing Executive) they helped me a lot in performing all the activities and in gaining the practical knowledge of marketing. I also thankful to Miss. and Mr. kahlid to give me a knowledge about Distribution and credit control. They checked my all activities and gave me the best suggestions to perform all the assigned tasks in an effective manner. Finally, I would specially like to thank my internship advisor, Miss Akasha Gulzar .

History 1956(Setup by Malik Brothers)

PAK ELEKTRON LIMITED was set up in 1956 as a joint venture with one of the largest and renowned manufacturers of electrical equipment Messrs. AEG of West Germany for manufacturing Transformers, Switchgears and Electric Motors etc. The entire job of machinery requirements and layout of the factory building was planned and implemented by AEG who produced very well balanced facility for the design and manufacture of the above equipment and the commercial production was commenced on 22 November 1956. 1958(Technical collaboration agreement with AEG company ): Up to 1962, when AEG finally phased out, the designing and manufacturing of all equipment was carried out jointly by AEG experts and PEL personnel. PEL staff, in theme an time, had received specialized training in USA and West Germany which enabled PEL to establish itself as the leading manufacturers of electrical equipment in the country with an excellent reputation for high quality and thus PEL came to be known as "THEQUALITY CONSCIOUS COMPANY" After conclusion of agreement with AEG, total share holding of AEG was purchased by the then sponsors - Malik Brothers. The production continued with AEG designs with much greater emphasis on the quality and reliability of the products which earned unique distinction of supplying electrical equipment to projects of paramount national importance like Mangla Dam and Tarbela Dam Projects. PEL equipment was approved by consultants of international repute including Preece Cardew & Rider (England),Binnie & Partners (England), Harza Engineering International (USA) and Miner & Miner International Inc. (USA) 1978(PEL acquired by saigol group of companies): The majority shares were acquired from Malik Brothers by Saigol Group on 11 October 1978 and immediately on takeover the new management chalked out both long term and short term plans to put the company back on the path of progress. As a part of first phase of its BMR Programmer the new management injected the additional working capital of Rupees 8.98 million and Bridge Loan of Rupees 7.50 million (against the public issue of its shares) was provided by the ICP-led Consortium. (1981 Manufacturing of air conditioners) As a part of long term plans, the manufacturing of window type Air conditioners was taken up in 1981 and was immediately established for quality with assistance of Fujitsu, Japan

(1988Acquired license to manufacture VCB's)

During the year the company has signed an agreement with Messrs HITACHI of Japan for the manufacture of Vacuum Circuit Breakers. (1992 Agreement with ABB ) The company did agreement with ABB USA to manufacture energy meters. (1997 Acquire technology from Carrier, USA) The company acquire technology from Carrier , USA to manufacture window A/c. (2004 Acquire technology from Ganz and Hungary ) To produce power transformers PEL acquire technology from Ganz and Hungary. (2005 Agreement signed by Pauls Belgium) This agreement was taken to produce distribution transformers. (2009 Agreement with LG) The agreement was taken with LG to distribute its home appliances. (2010 Acquired Licensing From General Electric) Acquired Licensing agreement from General Electric (GE), USA to manufacture LV Switchgear. PRODUCTS AND SERVICES DIVISIONS OF PEL: 1) Power Division. 2) Appliances Division. Power Division PELs Power Division manufactures transformers, switchgear, energy meters, kiosks, compact stations, shunt capacitor banks etc. All the power equipment is assembled under strict quality control and in accordance with international standards.PEL is a major power equipment supplier to Water and Power Development Authority(WAPDA) and Karachi Electrical Supply Corporation (KESC). Over the years, PELs power equipment has been used in numerous power projects of national importance. Most of these are tailor made to buyers specifications. Due to strict quality standards, PEL has been able to prevent Chinese manufacturers from gaining any market share. However, new entrants represent a threat and the Company is responding by introducing innovations to its existing products. One such innovation is digitization of its electrical meters which is in the development stage

In-spite stiff competition from emerging local and multinational brands, PELs appliances and power equipments have consistently gained marked share due to constant innovation and high quality standards. Strategic partnerships with Copeland, Danfoss, Samsung and others have enabled the Company to incorporate new technologies into existing product ranges, thus introducing new product features. During the year 2006, PEL retained its market leadership in the Power Equipment market, increasing its market share from 33% in 2005 to 36% in 2006 in the switchgear market and also maintained share of 35% in 2006 as well in the energy meters market .PELs leadership in the Power Equipment market is largely due to its strong Research and Development knowledge and high product quality. Power Division accounted for 47% of the Net Sales of the Company as of June 30th2006. The sales and profit participation by the Division is high due to high quality standards and future growth opportunities. The Power Division comprises of three departments; 1-Manufacturing and Quality Control 2-Design and Development 3-Marketing PRODUCTS POWER DIVISION 1.ENERGY METERS 2.TRANSFORMERS 3.SWITCH GEAR 4.GENERATORS TRANSFORMERS PEL has vast experience in design and manufacturing of standard and special purpose transformers. New technical designs for improved efficiency and quality against special orders of non-standard transformers are continuously being explored. These transformers are available for various applications. i)Distribution Transformers ii)Auto Transformers iii)Furnace Transformers iv)Welding Transformers PEL transformers have been successfully type tested for impulse voltage and short circuit tests by KEMA Laboratories of Holland. Customized transformers, in accordance with domestic and international

clients specifications have also been manufactured for use within and outside Pakistan. Transformers are normally supplied in a period of 3 4months after the receipt of orders from respective distribution companies of WAPDA and varied supply time for private customers. The Company provides one year after sales service warranty to WAPDA, KESC and private sector customers. Main Competitors are Siemens, Transfopower, Elmetec and Climax, while PEL having a market share of 38 %. ENERGY METERS following types of meters are manufactured: Electro mechanical Single phase Three phase_ Direct connected Three phase _CT operated Static/Digital Single Phase Three Phase Directed connected Three Phase_CT operated Three Phase_TOU PEL manufactures three types of energy meters; Single Phase and Poly Phase. The electro-mechanical energy meters are manufactured under license from ABB of USA. The quality of PEL meters has been certified by KEMA Laboratories of Holland. PEL meters are superior to others due to their ability to lower revenue losses through accurate& precise operation and reduction of maintenance expenses. Single Phase energy meters provide maintenance-free operations over a long period and accurate measurement of electrical energy. Poly Phase energy meters improve load performance and precision accuracy. The meters require minimum maintenance and can withstand abuse from surges and magnetic tampering. Three phase digital electronic meter with dual tariff capability recently launched and supplies to WAPDA has begun this year Energy meter orders from WAPDA are received annually and their supply period is 9 -10months. Energy meters to KESC are supplied in a period of 3 - 4 months. The Company provides one year after sales service warranty to WAPDA, KESC and other customers. In the supply of Energy Meters PEL share accounts for 35 % of the total supplies while the rest is shared by Syed Bhais, Escort and Telephone Industries. SWITCHGEARS:

Switchgears are one of the highly technical and specialized power products of PEL. They are produced for indoor and outdoor installations complying with international installation standards. A major customer for this product is WAPDA. The Company provides one year after sales service warranty to WAPDA, KESC and other customers. In Switchgear, PEL enjoys market share of 33 % while competitors are Alstom, Siemensand Fico. POWER TRANSFORMERS owing to massive growth in power sector, demand for power transformers is also growing proportionately for all ratings from 66KV to500 KV. PEL has stepped into this activity by starting the manufacturing of 132 KV transformers, being the most demanded rating, and for this purposes has formed a strategies partnership by signing the two agreement. Based on the demand forecast of Power Transformers for WAPDA, KESC and other projects, PELs market share is initially targeted to be 20%, growing in five years. APPLIANCES DIVISION The Appliances Division of PEL is the pioneer manufacturer of electrical goods in Pakistan. The Divisions product portfolio comprises of air-conditioners, refrigerators, televisions, microwave ovens, and split air-conditions. PEL is one of the three leading players in the home appliances market. The Company is engaged in the manufacturing and/or marketing of the following home appliances. The Companys Appliances Division contributed significantly to its sales in2005-06. The main reasons for this growth are increase in market sizes along with PELs strong brand image accompanied with its extensive dealership network spread nationwide with over one thousand outlets and an after sales service network with over 100workshops. Another major reason for the increasing growth in the home appliances market is the easy availability of consumer financing at lower interest rates. PEL itself is involved in selling its products through a marketing wing for sales against consumer financing. Availability of Chinese products at very competitive prices has not proven to be that big a threat to the local industry. This is because of the improved quality of the local products and cost efficiencies due to economies in product and raw material purchases hence making the local products competitive with the Chinese imports. In 2005-06, the Appliances Division contributed around 53%to the Companys sales whereas the Power Division made up the remaining 47%. Refrigerators and Split air conditioners were the main source of revenue in the Appliances Division, whereas transformers and energy meters are the main revenue drivers in the Power Division. The Appliance Division accounted for 53% of the Net Sales as of June 30th 2006. The Appliances division comprises of four departments; 1.Manufacturing and Quality Control 2.Research and Development

3.Marketing 4.Consumer Finance