A PROJECT OF

WTO Agreements & Its Biz

Concerns
ON

RAFHAN
Prepared by
Umer Zia
Maria Ashraf
Qurat-ul-Ain Liaqat
Engr. Ali Imran

Presented to
Sir Yawar Abbass

UNIVERSITY OF AGRICULTURE
FAISALABAD

Table of Contents

Acknowledgements............................................................................................
..............
Abstract .............................................................................................................
................
Introduction of
Rafhan.....................................................................................................
Vision .................................................................................................................
.................
Mission
Statement..............................................................................................
.
Core
Values ................................................................................................................
.......
Financial Highlights
.................................................
SWOT
Analysis..............................................................................................................
.......
Exports.
..
Exporting Products &
Countries........................................................................................
Export Financial
Highlights...........................................................................
Importing Products &
Countries................................................................................
Reasons for increasing
Exports..
Recommendation.

Acknowledgements
Firstly we would thank to Allah for giving us the opportunity and the
resources to be able to do something productive with our lives. Without
His blessings we would not have been able to come as far as we have.
Then our sincere thanks to sir Yawar Abbass for helping us throughout
this report. His guidelines have been very useful for us in preparing this
report. He helped us find new ways of being innovative and creative.
This report would not have been possible without his cooperation and
continuous direction.

Abstract
This report is about the WTO impacts on Rafhan as an organization. We
discuss the introduction of Rafhan, EXPORTS & IMORTS ,pre 2005 era &
post 2005 era, current situation, differential analysis. We discuss the
SWOT analysis in which we talk about the strengths, weaknesses,
opportunities, and threats the organization is facing s. Then the PEST
analysis is generally about how the external factors affect the growth
and stability of the product. We move further to talk about
Recommendations.

Introduction of Rafhan:

Rafhan Maize Products Co. Ltd. started its operation as a pioneer corn
refining industry in Pakistan. From the relatively modest start, the
operations of Rafhan Maize have grown into one of the largest agrobased industries in Pakistan over the last 47 years.
Rafhan Maize , No.1 producer of corn refining products, is an affiliate of
Corn Products International Inc. who are one of the worlds largest
corn refiner.
It produces;
High-quality food ingredients & industrial products derived from wet
milling of corn & other starch based products.
Sweetener line includes various types of Rafhan liquid glucose , globe
glucose syrup, Cerelose dextrose mono-hydrate, Mor-sweet & Nu-Bru
high maltose syrups & Enzose Hydrol, Rafhan caramel color & Karo
golden syrup.

PRODUCER OF HIGH QUALITY PRODUCTS:

Rafhan maize is a pioneer in application of starch , including unique
modified starches for basic industries such as:
Textile
Paper making
Corrugation
Rafhan Maize produces high quality food ingredient & industrial
products. All these products have leading market position & are being
used in more than 50 different types of industries, as essential raw
material from local resources.

Major consuming industries include:

Textile
Paper
Corrugation
Confectionary
Pharmaceuticals
Chemicals
Baking
Beverages
Ice cream
Processed food
Tobacco
Foundry
Syrups & squashes
Tanning
Poultry, cattle & fish feeds, & so many other food & non-food
industries

The company has expanded & modernized starch plant to

produce wide range of products branded as: Rafhan, Coragum,
Globe, Snowflake, Penetrese, Amisol, Tex-o-film, Q-tac & Coratex
for multiple applications.
Sweeteners line includes various types of Rafhan liquid glucose ,
globe glucose syrup, Cerelose dextrose mono-hydrate, Mor-sweet
& Nu-Bru high maltose syrups & Enzose Hydrol, Rafhan caramel
color & Karo golden syrup.

Vision
To be premier provider of refined agricultural based ingredients &
products in region.

Mission Statement
To grow business consistently through positive relationship with
customers to attain full customer satisfaction and to bring continuous
improvement by adopting those business practices which add values to
our customers, employees & share holders.

Core Values
1.
2.
3.
4.

Integrity
Excellence
Respect
Financial Success

Financial Highlights:

SWOT Analysis
Strengths
1. An Affiliation with Corn Product International.
Rafhan is an affiliate of CPI Inc. USA , so it always enjoy the status &
respect of leading MNC during exports & imports or any transaction.

2. Monopolistic Organization.
In Pakistan, Rafhan Enjoys monopolistic status as there is no big rival &
no cut throat competition .

3. Positive response from customers.

According to our research Rafhan always gets positive response from
its customers because the innovative & customer focused approach of
its management.

4. Highly Professional Team.

In Rafhan ,mostly people are very high caliber, potential, profile that
makes it in always Top 25 companies of Pakistan.

5. Strong believers of Kaizen.

Rafhans management philosophy is kaizen i.e continuous
improvement.

Weaknesses
1. Focus on industrial Products not on FMCG.
Their focus is Marjory on industrial products & Rafhan mostly involves
in Business to Business transactions. Due to this reason they are not
enjoying bulk of profit, they should go for consumer goods Marketing.

2. Packaging.
As a monopolistic organization, some time they neglect the importance
of good packing material to save cost, but it is very harmful during
exports.

3. Lack of diversification.
Rafhans major focus on corn & its derivatives , they never plan to
diversify their business although they have greater brand equity.

4. Non Availability of its own Energy Unit.

A lot of generic firms like Sitara ,Kohinoor & Ibrahim ,established their
own energy /power plants but Rafhan wont. They should focus on it.

5. Lack of Production Capacity to meet Export Demands.

Rafhan is not fulfilling demand of PAKISTAN properly due to lack of
production capacities, thats why they wont go for intensive export
marketing.

Opportunities
1.Increased demand of highly standardized quality
products.
Due to ISO , WTO ,demand of high standard products is increased and
Rafhan is meeting all standards , so they can get peaks.

2. Increased consumption of Starches in Middle East.

In middle east due to some adoption of western life style , consumption
of starches has been increased , so Rafhan can get benefit from it.

3. Awareness
Growing dissatisfaction with competitors and increasing awareness
about health and hygiene issues have led to increased Rafhans
product consumption.

4. Reduction in Import Tariffs & Duties in Mid East & Asian

Countries.
Before WTO , Mid East & some Asian countries had applied high duties
on import of starches & glucose in their countries ,but now they have
reduced up to certain level.

Threats
1. Competition.
After solely implementation of WTO, Rafhan have to face strong
competition with Indian & Chinese companies which are producing low
cost & high quality products.

2. Shortage & high price of single raw material Maize.

Rafhans focus is only Maize for its production, but due to one or
another reason growers are not growing maize in bulk which yields
shortage and high prices.

3. Energy Crunch of country.

Due to present energy crises its Herculean task to meet demands of
exports in time.

EXPORTS
Rafhan has made extra efforts to increase export volumes by
enhancing its presence in the global markets to earn valuable foreign
exchange. Major contribution in export came from starches. The Middle
Eastern market continued to remain the major buyer of our products
due to geographical proximity and traditional business relations. There
is a big potential and growing demand in these markets particularly in
food business which your Company plans to exploit further. Rafhan
Maize has also explored new opportunities in other countries in the
region which resulted in significant increase in export business of
Company in the year 2007 as compared to last year. We believe that
Rafhan Maize is well positioned to take advantage of its experience,
knowledge and innovative product line to further expand export
business in the region.

Exporting Products:
1.
2.
3.
4.

Liquid Glucose
Cerelose
Dextrine
Starches

Exporting Countries:

Dubai
Afghanistan
Uzbekistan
Turkmenistan
Lebanon
Philippines
Egypt
Yemen
Abu-Dhabi
Ecuador
Colombia
Malaysia

Middle East
African countries

Export Associates:
1.
2.
3.
4.

Corn Products International Kenya.

Stanford Food Industry, Malaysia.
Indumaiz Del Ecuador S.A ,Ecuador.
Industriaz Del Maiz S.A, Colombia

Export Financial Highlights:

Net
Sales
Rs.
Million
Export
Rs.

2007

2006

2005

2004

2003

7578

6127

5194

4534

4031

856

625

478

367

326

Million
%Age
11.3

10.2

9.2

8.1

8.1

Importing products:
1.
2.
3.
4.
5.

Activated Carbon
Filter aid
Resins
Electrical & Electronics Equipments
Mechanical Equipments

Importing Countries:
China
US
EU

Reasons for increasing Exports in terms of quantity &

percentage:
1. WTO Agreement on Standards.

Export of Rafhan is increased gradually, due to certain standards which

are implemented by WTO globally, its competitors are relatively facing
difficulties to adopt such standards.
-

Standards about Environmental pollution control

Standards about Sanitary & phytosanitary issues
Standards about Food safety like HACCP , GMP

2. WTO Focus on Tariff reduction.

For exporting Starches , Glucose before 2005 , there was high tariff
duties approx. 22.5% in middle east but after 2005 they have
voluntarily decreased duties up to 14.2% although WTO is not
implemented yet,
Thats why Export of Rafhan have been increased.

3. RESEARCH AND DEVELOPMENT

Driving continuous improvement is not new at Rafhan with the passion
to provide best value of money to its customers. There is a constant
endeavor at all levels of the organization to better the Companys
performance by offering best quality and ser vices. Research and
Development is an integral part of Companys operations to keep pace
with the technological advancement and maintain the
competitiveness. That is why, we have further expanded our research
and development activities, focusing on market-driven innovations,
value-added ingredients and new fields of knowledge. Rafhan
production facilities are supported by R & D Team who can simulate
manufacturing processes and tests to meet the particular requirements
of valuable customers. Rafhans Customer Application Technological
Support Team truly differentiates Rafhan Maize in the market. Focusing
on optimizing productivity, running trials to improve performance and
trouble shooting to provide solutions have earned Company the
reputation of being the provider of customized products and solutions.

4. Change before Change Changes you

INTEGRATED QUALITY AND
ENVIRONMENTAL MANAGEMENT
SYSTEMS
Quality has always been an integral part of Companys operations.
Rafhan recognize that our strength lies in the strength of our
customers and is committed to provide them with quality and services
which exceed their expectations. Rafhan is constantly striving to
achieve excellence in our Quality Assurance and Environmental
Management Systems as defined under ISO-9001:2000 and ISO14001:2004. Furthermore, in accordance with Corn Products
International and Company policy, Rafhan is adopting possible
measures for the protection of surroundings by constantly monitoring
emissions and other discharges from manufacturing facilities. The
Company has already implemented ISO-9001:2000 standards at all
departments and facilities. Quality circles are formed to highlight
issues, study them and come up with workable solutions to
continuously improve the operations in the Company. Rafhan next
strategic plan is to integrate ISO-18001:1999 OHSAS along with ISO9001:2000 QMS and ISO- 14001:2004 EMS. Implementation of ISO14001:2004 EMS and ISO-18001:1999 Occupational Health, Safety &
Series (OHSAS) are in progress. Implementation of all these standards

set by Internal Organization for Standardization will further boost your

Companys image in the national and global markets after
implementation of WTO, as Quality, Environment, Health and Safety
conscious supplier of world class products and ingredients.

Recommendations:
1. To meet export demands, Rafhan should
install power plant otherwise they will loose
their identity in export competition.
2.To meet export demands they should
expedite work on 3rd plant in interior Sindh
to lower down transportation costs too.
3.Rafhan should improve its Packaging ,
which is relatively weak point.