4.

Executive Summary:

Master Tiles was formed in 1995 by Sheikh MahmoodIqbal. Master Tiles is one

of the biggest manufacturers in Pakistan. Master Tiles provides the opportunity to

upgrade the life style by introducing granite Tiles for the first time in Pakistan with latest

Italian technology. Master Tiles have a capacity to produce more than 33000 Sq/meter

Tiles per day. In local market Master Tiles is a well-known Tiles manufacturing company.

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Mater Tiles captures about 60% of local market share. It manufactures both wall and

floor tiles. It manufactures good quality tiles at affordable prices.

The marble and granite processing industry is closely related to the development

of the building materials and modernization which leads to progress of the tile industry.

In the past two decades people have been using chips and marble for floor finishing. As

the time is changing the traditional construction styles and finishing materials are also

changing into modern construction which saves the time and cost factors gives people a

readymade finishing for a life time.

The Tile industry in Pakistan has a huge potential in future. Availability of raw

material and also the increasing demand makes it a growing industry. People want

change. This trend shows increase in the demand of tiles. In future the local industry is

trying to increase the production capacity.

5. Purpose of the study:

6. The Company History:

It's a tale of thirty years, more than 1\4 of a century. It's a tale of a vision realized

against all. It's a matter of a commitment which really matter. It's an account of an

climbing task transformed into mere peanuts through a clear vision, narrow focal point,

sheer devotion, meticulous hard work, dependable belief and stable quest for fineness

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 It Started in 1982 as a small setup with big thoughts, high ideals and honest

commitment, Master today, stands as an unparalleled leader in world class wall and floor

tiles, sanitary fittings and plastic garnishes along with a host of other high quality

products.

In 1982: launch as company developed and advertising high quality sanitary

fittings, with clarity of concepts, the target at that time was to provide a well-coordinated

complete bathroom to our clients.

In 1987: Established as the pioneer and market leader in world class sanitary

fittings, Master introduced the concept of matching bathroom accessories in technical

collaboration of England and Germany.

In 1995: At a time when the market was busy with import wall tiles as the only

quality option, as they called it, Master once again took the lead. Based on the world’s

top of the line Italian technology, Master launched its range of double fast fired wall tiles.

Far superior in quality and artistic values than imported ones, Master tiles took the

market by storm and immediately gained a major share of the market.

In 2000: Master tiles were such a tremendous hit in the market, to meet the

growing demands, production capacity had to be tripled in the year 2000. Same year,

Master added up world’s best plant and acquired best recipes for in house production of

tiles raw materials including frits and colors. These advanced recipes in frits and colors

resulted in giving an entire new look to the product appearance, quality and finish.

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Adding endless possibilities to the imagination of our valued customers, Master

introduced a range of decorative tiles including strips, trims, motives, panels and mosaics.

To facilitate the customers in better applications and maximizing their benefit, Master

provided its own brand of quality grout and adhesives.

In 2005: Master Granite Tiles:

bring a true revolution in the tile industry, this was the year when Master proudly

introduced Granite tiles, which were by their quality standards, second to none in the

world. The years that followed witnessed an innovative approach setting new benchmarks

in product quality, range spread, accessibility through a wider network and a bundle of

value added services like customer alertness and direction campaign unmatched after

sales service and complaint handling.

In 2010: Customer Focus:

After 10 years , Customer direction remains the key word in all our plans and

execution. Reaching at the doorstep of our clients, wherever they are, we are making sure

we are closer to their needs, aspiration, and affordability and after sales hope

7. Nature of the Organization:

Master industry is continuous to make innovative and glorious products for the

people over three and half decades. They are involved in technologically advanced

products with a view to provide an ease and betterment of the society. Their endeavors

have resulted in bringing greater heights of luxury in every body’s range with affordable

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prices. According to a research launched by them in 2002, a large gap was in the demand

and supply of quality flooring and facing materials in Pakistan. With the increase in

economic development in the country, the gap was widening further day by day. They

took it as a challenge and were all out to face it with commitment to make investments in

terms of material and human resources and filled the gap with not only the quality but

also with the affordability.

8. Mission Statement:

The ceramic tiles industry is a major force for the improvement of quality of life

across the world. Master aims to be the leading manufacturer of best quality ceramic tiles

and pledges to provide its customers with latest designs, varieties and innovative products

in line with the internationally changing trends. Through achievement of our aim we will

enhance the wealth and well-being of our stakeholders, employees and communities,

whom we serve and in which we operate.

9. Vision statement:

Master’s vision is to lead the market with innovations in product development to

improve the quality of life and lifestyle of its customers. With timely adaptations to

rapidly developing technologies and meaningful investment in human resource training,

Master will strive to maintain the differentiation edge through provision of unmatched

10. Products:

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 There are following few products which are being manufactured by the Master

Tiles. These products are available in different sizes.

 Glazed wall tiles

 Glazed floor tiles

 Granite floor tiles

 Homogenized Porcelain tiles

 Other products

Strips
Trims
Motives
Mosaics

11. Management structure:

Management structure of Master industry’s head office..

Chief Executive officer:

 Sheikh MahmoodIqbal

Directors:

 Sheikh Muhammad Akbar

 Sheikh Muhammad Asghar

Company secretary:

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 Sheikh Muhammad Asghar

General Manager Finance:

 Mr. Amir Bashir

General Manager Sales & Marketing:

 Mr. Mehmood-ul-Hassan

General Manager HR & Admin:

 Mr. Umer Bilal

12. Departmental functions of the organization:

The departments of the Master Tiles are working at two different locations, one at

the main head office of the Master group of industries and one at the main factory site of

Master Tiles. The main head office is located at GT Road main city area Gujranwala,

while the factory is located at Main GT Road near Moore Eminabad Gujranwala.

1) Departments at factory site:

1. Production department
2. Designing department
3. Dispatching department
4. Architecture department
5. Display center

2) Departments at head office:

1. HR and admin department

2. Finance department

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3. Sales and Marketing department
4. Customer services department
5. Legal department
6. IT department
7. Media and advertisement department
8. Tax department

12.1. Departmental functions:

The functions of each department are different. Master Tiles has employed the

best people for these jobs. Their success is due to the good functioning of these

departments. The following are the functions of the departments working in Master Tiles.

1. Production department:
The production department is responsible for converting inputs into outputs through

the stages of production processes. The Production Manager is responsible for making

sure that raw materials are provided and made into finished goods effectively. The

manager production makes sure that work is carried out smoothly; supervise procedures

for making work more efficient and more enjoyable. At Master Tiles the raw material is

purchased by the production department, the raw materials used in the manufacturing of

tiles are different types of clays. Some of the clays are named as KD9 clay, ceramic clay,

granite stones, phosphorus, feldspar and other additives.

The production department in Master tiles is headed by Italian; the General Manager

of production department is Andrew D Rosa. He has been employed in the Mater Tiles

from the last 14 years. The production plant of Master tiles is imported from Italy so they

have hired foreigners to operate that plant and for the repairing of the plant.
Sir Geo is the head of electric department in Master tiles, Sir Geo belong to Brazil.

The local production manager who supervise the production is Mr. Anwar Khan.
There are production sub-functions:
2) Production and planning:

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 The production department set the standards and targets at each stage of the

production process. The quantity and quality of products coming off a production line is

closely monitored. The raw materials which are to be used for the production of tiles is

first sent to the lab, after the lab test the raw materials are passed for the production. If the

raw materials are not up to marks then they are not used for the production.
3) Purchasing department:
This department will provide the materials, components and equipment required. An

essential part of this responsibility is to ensure that stocks arrive on time and are of good

quality. The raw materials used in the production are easily available in Pakistan. The raw

materials are being purchased from the areas of Kohat, Mianwalli and other northern

areas of Pakistan. These raw materials are mined from the northern areas and are easily

available.
4) The stores department:
The stores department is responsible for stocking all the necessary tools, raw

materials and equipment required to service the manufacturing process. The raw

materials are stocked in the factory site in their ware house for raw materials. The store

department checks the stock available for the production and report to the purchasing

department.
5) Designing department:
The designing department at Master Tiles is responsible for the designing of the tiles.

The new designs have to be introduced to the market so that the customers should be

attracted towards the new product.

The designing department checks the designs of the tiles which are being

manufactured; they monitor the computerized system through which the designing of the

tiles is being controlled.

6) Dispatching department:
The role of dispatching department in Master Tiles is to store the final product which

is being manufactured. The product after passing through the process is then sorted

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according to the grades and then is stored in the ware houses. The product is then

dispatched to the customer/dealers and the inventory is controlled by the dispatching

department.

7) Architecture department:
Architecture department is set at the factory site, this department role is to design the

new projects of the Master Group of Industries. This department designs the new

factories, head offices, display centers and other buildings of the company. They have

hired 3 architects for this purpose.

Master tile is also providing the facility of interior decoration to the customers, the

interior designer is provided to the customers to design or decorate their buildings with

the different styles of floorings and other furnishing items.

8) Display center:
Display center is also located at the factory site; all of the designs which the company

is currently manufacturing are placed in their display center. They have displayed their

products in different designs so that customer can choose the product according to their

need and styles. The dealers of Master Tiles visit their display center to check out the new

designs and styles and place an order for the product.

Mr. Waqas is heading the display center; he deals with the customers and dealers

visiting the display center. Price list is also given to the dealers and customer upon their

visit to the display center.

12.2 Departments at head office:

1. Human Resource and Administration department:

The HR and administration department at Master Tiles is providing with various

functions.
The HR department has sub departments which are working under this department

and the functions are being reported to the head of the HR department.
Payroll department
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IR department
Administrative department
The main function of the HR department is as follows:
2. Manpower Planning:
It involves the planning for the future and finding out how many employees will

be needed in the future by the business and what types of skills manpower planning

should they possess.

It depends on the following factors:
The number of people leaving the job
The projected growth in sales of the business
Technological changes
Productivity level of the workers
3. Job analysis and Job description:
HR Department is also involved in designing the Job analysis and Job description

for the prospective vacancies.

A job analysis is the process used to collect information about the duties,

responsibilities, necessary skills, outcomes, and work environment of a particular job.

Job descriptions are written statements that describe the: duties, responsibilities,

most important contributions and outcomes needed from a position, required

qualifications of candidates, and reporting relationship and co-workers of a particular job.

4. Determining wages and salaries:

HR Department is also involved in conducting market surveys and determining

the wages and salaries for different position in an organization. These decisions are taken

in consultation with top management and the Finance department.

5. Recruitment and Selection:
One of the most important job HR department is to recruit the best people for the

organization. This is of crucial importance as the success of any organization depends on

the quality of its workforce. Recruitment takes place in a systematic process, although

they also hire the employees on reference base. The recruitment is done through a proper

channel
6. Performance Appraisal:

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 Once the employees are recruited, the HR department has to review their

performance on a regular basis through proper performance appraisals.

The focus of the performance appraisal is measuring and improving the actual

performance of the employee and also the future potential of the employee.
On the basis of performance appraisal the HR department set up an action plan for

each employee.
7. Labor management relations:
For the smooth operation of organization, it is crucial to have good labor

management relations. HR department ensures that these labor unrest relations are

cordial. In case of any labor-management conflict the HR department plays a vital role in

bringing both management parties to the negotiation table and resolving the issue.

8. Implementing organizational policies:

HR department has to coordinate with line manager and see that the

organizational policies are being implemented in a proper manner. Disciplinary action

can be initiated against employees who are not following organizational rules and

regulations. All these actions are conceived and implemented by the HR department.
9. Dismissal and redundancy:
HR Department has to take firm actions against employees who are not following

the organizational code of conduct, rules and regulations. This can result in the dismissal

of the employee.
Sometimes, an organization may no more require the services of an employee.

The employee may be made redundant. HR Department has to see that organizational and

government regulations are being followed in this process.

10. Sub departments to HR:
Payroll department:
The payroll department in Master tiles is working under the HR and

Administration department. Function of this department is to calculate the attendance of

the employees. Daily attendance is being saved in this department and at the end of the

month the attendance sheet is evaluated and then sends to the finance department. the
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salary sheet is again send to the payroll department, payroll department checks the salary

sheets and approve the attendance sheet and is sent to the finance department. After this

process the salaries of the employees are calculated and deposited to their bank accounts.

Salaries of high official are deposited in the bank while laborers are given checqueswhich

they can withdraw from the concerned bank.

Administration department:
Administrative department at Master Tiles is being head by Mr. UsmanAhsan.

The role of this department is to complete the local recruitments, control the staff,

managing the daily purchasing of the goods being used in the head office, managing the

food for the whole staff and laborers. Drivers and waiters are also being controlled by this

department, there duties are assigned by the administration department.

The food is given free of cost to each and every employee of the organization.
IR department:
IR department at Master Tiles is concerned with the government local bodies, they are

in contact with the Gas department and GESCO(Gujranwala electric power supply

company). Any issues related to these departments are being resolved by the IR

department. Dealings with environmental department, issues concerning labor laws and

social securities are also being resolved by the IR department.

13) Finance department:
The finance department at Master Tiles is being headed by Mr.Amir Bashir. The

finance department is dealing with different functions such as financing through banks,

deals with LC(letter of credit), preparing financial reports, approving the bills of

company, deals with the tax department, expense vouchers are being checked.
Mr. M Yousaf deals with the letter of credit opening.
Master Group of Industries is a big group it can not only work on its capital so it

has to finance loans from the bank. They are financing from different banks, they pledge

their properties for financing loans to run their industries.

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 The other major duty of finance department is to prepare the budget of the

company, the expenditure and income of the company is also being controlled by the

finance department.
The finance department of Master Tiles also prepares the financial reports and

manages financial accounts of the company; the annual reports are presented by the

department.
The taxation department is also being operated in accordance with the finance

department, the taxation department prepares the tax returns of the company and the

documents are then sent to the finance department, the finance department approves the

tax documents and the required amount is then submitted.

The finance department another main function is to check the expenditure bills of

the employees and the expenditure bills of their head offices and factories. The bills after

being reviewed are then pass and amount is then given to the required person.

1) Introduction:

Master Group of Industries is the trendsetting leader in sanitary fittings, wall and

floor tiles and bathroom accessories. The constant quest for perfection at Master spreads

over more than three decades. These decades have witnessed unprecedented growth in

terms if brand equity, market leadership, product innovation, human resource

development, training and application of reliable management systems. The combination

has really worked.

Master today is not only the market leader in Pakistan but is also well positioned

in the quality and service standards of the world leaders in its categories of business.

Master group of industries is in business from 1982, now with more than 8 different

industrial units.

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1. Master Tiles & Ceramics
2. Master Granite
3. Master Sanitary
4. Master Poly Plastic
5. Master Baby(dippers)
6. Master Ballpoint
7. Master Poly Pack
8. Master PPRC pipes

2) Future plans:

 Increase the production of the plant from 33000 to 44000 square meters till the end of

2014.
 They are coming up with a new diversified product named as Master cola. They are

going to enter into beverage industry with name MASTER BEVERAGES.

 They are coming up with a new housing scheme named as Master city which is

situated in Gujranwala. They are entering into real estate business.

 They are setting up the electricity generation plant till the end of 2014.
 They are also setting up a LPG plant till the end of 2013 to over comer the energy

crisis in the country.

14) Competitors of Master Tiles:

Master Tiles is the pioneer in the tile industry. They are producing the largest

number of tile in Pakistan, so they only have few local competitors and they are

competing the international competitors in this industry. Their production is about 33000

sq-meters per day.

1) Local competitors:

 Shabbier Tiles
 Sonex tiles

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 Other local manufactures

2) International competitors:

 R.A.K ceramics
 Chinese manufactures of tiles
 Spanish tile manufacturers

15) SWOT analysis of Master tiles:

Every company has its own strengths, weakness and threats from their

competitors. Master Tiles has a competitive edge over their competitors and have 60% of

market share.

1) Strengths:

 One of the major strength of Master Tiles is the production plant which they are

using. The production plant is of Italian technology, was imported in 1995. It is

operated by the Italian engineers.

 Production over 33000 m2 tiles per day, highest production all over Pakistan.
 Quality of the product.
 They have hired 14 Italians engineers to operate the plant.
 They are serving every type of customer, they have wide range of tiles starting from

600 RS to 2000 RS per square-meter

 They have a big distribution network all over the Pakistan, and have good long term

relations with their dealers.

 Highly skilled and loyal labor
 Wide range of variety in their product

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 Research and development department is always working to improve the quality of

the product and come up with new attractive designs.

2) Weakness:

 The major weakness of the company is production loss due to the shortage of the

energy all over Pakistan.

 Other weakness Master tiles is facing is by the international competitors they copy

the same design and sale it on low prices than Master tiles.
 Another weakness of Master Tiles is that networking system because all of the

communication system with their international dealers is based on this networking

system. It there is any type of problem or break down in the server all

communications stop and company has to bear loss.

3) Opportunities:

 One of the major opportunity for Master Tiles is to increase their production capacity

to meet up the future demand of tiles. The demand of tiles is increasing and this

industry has potential to grow.

 Master tiles is importing about 50% of tiles to different countries. They have potential

to increase their imports to other countries.

 Maximum of the raw material being used for the production of tiles is easily available

in the Pakistan. So they do not have to import the raw materials.

 One opportunity for the Master Tiles is that government imposed anti-dumping duties

on Chinese tile which restrict Chinese manufacturers to export tiles in Pakistani

market and sell it on low prices. Their cost increased and they have to sell it on the

same price as of the local tile manufacturers.

 High demand of tiles in foreign market.

4) Threats:

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 One of the major threat to the Master tiles is that the supply of tiles in the market with

low price by the local manufacturers.

 One of the threats to Master tiles is of new entrants to the tile industry as the tile

industry in Pakistan has a huge potential.

 High production due to increasing prices of electricity and gas and as compared to the

foreign competitors their prices are relatively low.

 Master Tile is facing a threat from the foreign players in this industry, most of the

tiles are being imported from the other countries of the low quality and being sold at

reduced prices.

16) Conclusion:

 Master Group of Industries is a big group of Pakistan, they are in business since 1982.

They are in different businesses, they have diversified products and their products are

of high quality due to which they are enjoying their brand loyalty. They came up with

the latest technology in Pakistan and they have biggest market share in Tiles and

Sanitary fittings market.

 As an internee in Master Tiles I have learned a lot about the day to day business. It

was a great experience working with Master Tiles, I came to know about the daily

operations of the firm, how the product is being produced, how it is being marketed

and sold to the end consumers. The most important I came to know was how they

were financing such a big industry. They were financing through different banks.

Their HR department is the most important department as it controls all the recruiting

of the productive employees and they were also monitoring the whole administration

of the company.

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 Master Tiles is the biggest manufacturer in the tile industry of Pakistan, they are

producing more than 33000 square meters tiles per day, and they have employed more

than 2000 employees, 1700 in factory and 300 in the main head office. They are

producing the wide range of tiles through which the customer is being attracted; they

do not compromise on the quality. The quality of their product is far better than their

competitors and the foreign players in this industry. They are having more than 60%

market share in the tiles industry of Pakistan. They are planning to increase their

production and come up with new designs and colors.

17) Recommendations:

As I have been employed as internee at Master Tiles so according to my observations

there are some recommendation by which they can increase their productivity.

Few recommendations are as follows:

 The main problem the industry is facing is of energy crisis, to overcome this

problem they should set up their own plant for generating electricity.
 They should also setup a LPG plant so that they could not face any problem in

their production.
 They should minimize their cost of production to compete with the foreign

players of this industry.

 They should increase their production due to increase in the demand of tiles, as

tile industry in Pakistan has a great potential.

 They should come up with the low price tiles as the customer are more attracted

towards low price items, the local manufacturers are producing low quality goods

at low price.
 They should make their distribution network stronger; they should also focus the

northern areas of Pakistan.

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 The prices of Master Tiles are bit higher than their competitors so they should

adjust their prices according to their competitors’ prices.

 The structure of the organization should be changed to decentralized structure so

that the managers have the authority of making decisions.

 Training should be given to the employees to increase their productivity.
 They should increase the marketing of the product; they are only using the old

strategies of marketing. They should come up with new marketing strategies to

increase their sales.

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 Bibliography:

 Mr. Umer Bilal (General Manager HR and Admin)

 Mr. Mehmood-ul-Hassan (General Manager Marketing and sales)

 Mr. Amir Bashir (General Manager Finance)

 Mr. Anwar Khan (General Manager Production)

 Mr. Waqas (Display center)

 Mr. UsmanAhsan (Manager Aministration)

Web sources:

 Mastertiles.com

 Scribed.com

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