Free Essay

Packages Limited

In: Business and Management

Submitted By hiaa
Words 1615
Pages 7
BWCL 32.00/500 1.43 CEPB 21.45/1000

Packages Limited | Business Recorder
1.12 CHCC 40.20/500 0.10 COLG 1200.00/100 15.28 CPL 215.00/100 2.25 All

Pakistan's Premier Financial Daily

Login Register






Market Data




Just in: More states back EU financial transaction_
You are here: Home » Company News » Pak istan

» Packages Limited

Packages Limited
April 24, 2012 RECORDER REPORT 0 Comments

Packages Limited is an integrated packaging company, established in 1957 as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden. Incorporated in Pakistan, the company produces paper and paper-board products, provides customised packaging material for consumer goods industry, and produces consumer products like tissues, towels and napkins. In 1968, Packages established its first pulp and paper mill having capacity of 24,000 tons per annum, with IFC's participation. In 1981, the company modified its paper machine to produce tissues, and launched the "Rose Petal" brand. Later, it started producing toilet paper, kitchen roll and table napkins too. In 1986, Packages established a flexible packaging unit to meet the increasing demand of sophisticated packaging. In 1995, Tri-Pack Films Limited was established as a joint venture with Mitsubishi Corporation of Japan for the manufacture of Polypropylene films in NWFP. Packages also established Packages Lanka (Private) Limited in Sri Lanka which started manufacturing flexible packaging material in 1998. Packages launched the Bulleh Shah Paper Mill project in 2005 to expand the paper & paper-board capacity to 300,000 tons per annum. The project completed in 2009. In 2008, the company installed a new tissue paper manufacturing machine with a capacity of 31,000 tons. During CY11, capacity at its brown paper machine (PM-6) was expanded by 30,000 tons. Moreover, the upgradation of the Corrugator Machine at Kasur plant during the year increased its capacity by 14 percent. Packages has equity in many concerns, including its subsidiaries, DIC Pakistan Limited (54.98 percent) and Packages Lanka Limited (79.07 percent); its associated undertakings, IGI Insurance Limited (10.61 percent) and Tri-Pack Films Limited (33.33 percent); and other related parties, Tetra Pak Pakistan Limited (one million non-voting shares) and Nestle Pakistan Limited (8.04 percent). Revenue Generation The packaging giant enjoys both local and external sources of revenue; however it is largely dependent on domestic business. During CY11, the Company's net sales increased by 4.53 percent to Rs 19.375 billion, owing to 11.1 percent increase in local sales. The export sales, however, dropped by over one billion rupees to come down to Rs 214 million during the period. Compared to this, CY10 seems to be a rosy year when local sales grew by 30.57 percent and exports rose by 63.58 percent. The Company paid Rs 3.7 billion in sales tax and excise duties to the government in CY11. There are three major production divisions at the Company. The Packaging division achieved net sales of Rs 13.2 billion during the year, Consumer Products Division Rs 1.96 billion, and the rest was contributed by the Paper and Board Division. However, the external sales of paper and paper-board dropped by 39 percent over CY10 owing to the planned 1HCY11 shutdown of the brown paper machine (PM-6), energy shortages, boiler outages in 1HCY11, and dumping of imported writing & importing paper in the domestic market. It must be noted that in November last year, there was a fire incident at the Company's Lahore Plant, 1/3

NY Closing

World Indices

The Rupee
1.3016 1.6190 0.9307 78.5000 1793.100 72.090 91.440

Sterling Swiss Franc Y en Gold Cotton Oil

Text Ads Trade Leads China Jobs China Wholesale jumelles Pakistani Classifieds

which damaged stocks, tissue conversion equipment, and stores and associated buildings. The Company had to outsource its conversion operations to third part converters, but expects to resume commercial production of its consumer products during 2QCY12. Cost of sales According to Packages, raw materials account for approximately 75 percent of the total buying budget of the company. In the paper & paper-board segment, major raw materials used are wood pulp, wheat straw, waste paper and chemicals; whereas polyethylene, printing inks, packaging films (BOPP, polyester film, and PVC films) and solvents constitute major raw materials for the industrial packaging segment. The cost of sales rose by 7.11 percent during CY11, greater than the topline growth yet much less than the 29.15 percent growth in CY10 and 21.76 percent in CY09. The Company attributed the growth in cost to increased gas curtailment, electricity load shedding, higher usage of furnace oil, along with the rise in prices of imported wood pulp and local waste paper during 1HCY11. During CY11, the cost of sales as a percentage of gross sales increased to 82.21 percent compared to 81.24 percent in CY10. Other expenditures Expenditures on administration and selling & distribution activities have always been volatile for the packaging giant. During CY11, the administrative expenses grew by 21.33 percent, but the distribution costs came down by 2.76 percent. During the period, the 'other operating expenditures' decreased by 93.3 percent due negligible expenditures on workers welfare fund. The other operating income, however increased by 77.7 percent to Rs 359 million. During CY11, the Company charged impairment losses to the tune of Rs 391 million on investments. Previously, impairment charges worth Rs 1.794 billion were introduced in the profit & loss account in CY09 due to decline in value of shares of Nestle Pakistan Limited classified as available for sale investment. Finance Cost Finance costs for the company increased by a huge 34.38 percent, and consumed 7.04 percent of gross sales in CY11, compared to 5.54 percent in CY10 and 7.73 percent in CY09. Investment Income Investment income - which accounts for dividend income Packages receives from related parties and gains on sale of long-term and short-term investments - always provides a breather to the company's operating performance. The income increased by 4.31 percent to reach Rs 1.04 billion in CY11. Profit Margins The Company made a net loss of Rs 1.568 billion in CY11, making it the second successive loss year. The EPS was at negative Rs 18.58 for the shareholders. Revenue slippages along with rising operating and financial costs led to a severity in the extent of the loss. Liquidity The company's liquidity position had deteriorated during CY11. The current and quick ratios have dropped to a three year low. However, the operating cycle has improved to 80 days. Debt Management There's less debt accumulation in Packages' capital structure as the debt to equity ratio came down to 0.28 in CY11 from 0.3 in CY10. However, the company seems to be burdened by debt expenses as the interest coverage ratio has declined to 0.09 during CY11, in sharp contrast to 0.74 in CY10 and 5.55 in CY09. Future Outlook As the demand for packaged goods increases, the packaging firm would benefit. However, there are significant pressures from the consistent increases in energy costs as well prices of local and imported raw materials. Despite receiving gas supply guarantees from SNGPL, the Company faces gas load shedding just like other industries located in Punjab. To mitigate some of the challenges on the cost side, the Company is setting up its own waste paper collection operations, and is also considering alternative Agri-based fuels such as straw and corn stocks to reduce reliance on furnace oil, diesel and natural gas. The Company already has its own captive power plant with a capacity of about 40 megawatts but the cost of producing energy from this plant is high in the absence of natural gas supplies. On the revenue side, capturing the market of imported, high-quality paper products can be extremely rewarding for Packages. Moreover, international expansion plans in countries like Kenya, Ethiopia and Tanzania, which are still meeting most of their paper and paperboard requirements through imports, can help diversify the revenue streams away from the local market.

Econom ic Indicators

Market at Close

Foreign Debt Per Cap Income GDP Growth Av erage CPI

$65.562bn $1,372 3.7% 10.08%

Trade Balance Exports Imports

$-1.774 bln $1.911 bln $3.685 bln

Reserv es

October 02, 2012
$14.841 bln

Top Traded

Price 61.40 3.49 5.70 6.46 5.92 Change 1.08 0.26 -0.75 0.06 0.12

Volume 19,333,500 17,865,000 12,755,000 11,888,000 6,882,000

Currency Converter


From: Canadian Dollar (CAD) To: U.S. Dollar (USD)


Packages Limited | Business Recorder
Copyright Business Recorder, 2012




Add comment Name (required) E-mail (required, but will not display) Website

1000 sym bols le ft

Notify me of follow-up comments Send

BUSINESS RECORDER: Pakistan News World News Business & Finance News Market News AAJ TV: Latest News World News National News Exclusive News Business News KHISTOCKS: Market today live Top 25 Live BRIndex Rules KSE30 Movement PLAY TV: Entertainment News Home Pakistan World Programs VJs Videos Markets Market Data Sports Entertainments

Sports News


Business & Finance

Copyright Business Recorder. All rights reserved. Disclaimer Privacy Policy Terms of Use Contact Us Careers Help Site Map


Similar Documents

Premium Essay

Employee Package

...EMPLOYEE BENEFIT PACKAGE PROPOSAL The following is intended to represent a summary of NASSCO benefits. By implementing the correct SWP (Strategic Workforce Planning Systems) by ultimate objective is to understand our workforce dynamics so that talent can be managed proactively to ensure that future business goals are met. Should there be conflict between this information and that appearing in plan documents or summary plan descriptions, provisions in the plans will apply. NASSCO may alter or discontinue these benefits at any time, with or without notice. The following are proposed benefits available for our workforce. Health care A variety of medical and dental options are available to cover the majority of your health care needs and to provide you and your eligible dependents with coverage for extraordinary expenses. •When Coverage Begins •Coverage for you and your eligible dependents begins on your date of hire. •Annual Enrollment If you are enrolled in one of the medical/dental plans NASSCO offers, you may change to one of the other medical/dental plans during the annual enrollment period which is two weeks in November each year. Once you change your medical or dental plan or both to another medical/dental plan, your new coverage becomes effective the following January. •New Dependents To have coverage from the time you acquire a new dependent, you must enroll him or her within 31 days following the date you acquire the new dependent. Coverage......

Words: 2368 - Pages: 10

Free Essay

Foot Limited

...Square Foot Limited As part of the REA Group (ASX: REA) the world's largest property portal, our mission at is to be Hong Kong's leading provider of print and online advertising solutions for the real estate industry. We are full of innovative, proactive, responsible and enthusiastic people. Our growth is at an all-time high and we are looking to hire TALENTED individuals. Our team is non-hierarchical and non-bureaucratic. We all just want to be the best, to work well together and do a brilliant job. Web Programmer (5 Days work) Requirements: * Knowledge in PHP, MySQL, XML, Javascript, HTML, CSS, JAVA & Ajax * Extensive knowledge in web services, internet security, search engine optimization (SEO) and web analytics tools and technologies * Assist in the operation of large databases * Sound knowledge of database import format such as CSV or XML * Familiar with web engineering and software development methodologies * Proficiency in Object Oriented Programming Responsibilities: * Maintenance, modification and further development of PHP/MySQL based website portal * Design, build and maintain web based applications using PHP, MySQL, Javascript, XML, HTML, CSS & Ajax * Development and creation of additional online products * Training and technical support of portal users * Any other IT support needed with regards to our online and print business Interested applicants please send a full resume with......

Words: 250 - Pages: 1

Premium Essay

Fujitsu Limited I would involve people in decision-making and try to create an open and collaborative working environment. The company culture is based on trust, teamwork, and communication and shared goals. Conclusion In this report we have reviewed the organizational structure of one of the world’s leading ICT companies- Fujitsu Limited. From the research we can see that it’s a very successful company with a great managerial system. It has a lot of competitors but it remains stable, as it has a large number of competitive advantages. References ‘Business Link’ (2011), Lead and motivate your staff [online] available from STUDIES [accessed 20 Mar 2011] 'Company Spotlight: Fujitsu Limited' 2007, MarketWatch: Global Round-up, 6, 7, pp. 197-201, Business Source Premier, EBSCOhost, viewed 20 March 2011. 'DATAMONITOR: Fujitsu Limited' (2010), Fujitsu, Ltd. SWOT Analysis, pp. 1-10, Business Source Premier, EBSCOhost, viewed 16 March 2011. 'Fujitsu Limited' n.d., Datamonitor Company Profiles Authority, EBSCOhost, viewed 20 March 2011. ‘Fujitsu America’ (2011), Fujitsu PRIMERGY BX900 Blade Server System Raises the Stakes in Virtualization and Energy-Efficiency [online] available from [accessed 20......

Words: 4878 - Pages: 20

Premium Essay

Serveu Limited

...ServeU Limited Table of Content 1.0 Company Summary 2.0 Services 3.0 Market Analysis Summary 4.0 Strategy Implementation 5.0 Management Summary 6.0 Financial Summary 7.0 Assumptions 1.0 Company Summary 2.1 Vision ServeU Limited aims to be the leading provider of dentistry services in which affordability; quality and honesty are the hallmarks to which we aspire to serve our clients and maintain eternally mutually benefiting relationships 2.2 Mission ServeU Limited works towards, whitening the world one broad teeth smile at a time by offering valued added dentistry services to clients that are always to the clients’ satisfaction and those of their love ones. 2.3 Motto Always be caring, responsive and honest and show empathy even if it means giving it away free but never compromise on quality. 2.4 The Company ServeU Limited (“the company”) is an Omaha, Nebraska limited liability corporation owned by Jay Simmons. 2.5 Business Services and Products Possible related services include: * Tooth Whitening * Smoking Abstainment Treatments * Practice Management Seminars * Dental School Instruction * Tempromanibular Joint Disorder Treatment * Implant services * Free screenings for children in severely/profoundly retarded care centers and schools * Having a yearly “Sealant Day” and “Dental Awareness Day” at local grade schools * Nursing home screenings ......

Words: 2387 - Pages: 10

Premium Essay

Aci Limited the practitioners, update their knowledge, and make them aware of the new therapies and medical technologies. Clinical meetings ACI arranges clinical meetings, covering case related medical problem faced by the physician in their daily practice. Every meeting is being supported by audio-visual media. Responding to doctors’ queries It is the most regularly performed task of the marketing team of ACI. The company has developed a postage paid business reply card attached to every literature in which the doctors usually send their queries. ACI tries to provide a comprehensive answer to the queries of the physicians covering all the details. Medical illustration and audiovisual aids ACI is ready to assist in preparing presentation packages including computer slides, transparencies and printed text whenever medical experts wish to share their experiences and results of their research with the health care community. Reprint services ACI provides the doctors with reprints of selected publications on topics that can assist the doctors in their professional practices. Info Medicus ACI publishes quarterly medical news letter for the physicians with current medical information particularly emphasizing common diseases. Market Domestic market Being a developing country, the pharmaceutical market and at the same time, the pharmaceutical industry of Bangladesh is growing. In this growing market, ACI has been able to maintain its growth through its innovative marketing......

Words: 1844 - Pages: 8

Premium Essay

Boeing Australia Limited

...Boeing Australia Limited Executive Summary My decision is to continue on the same course that Boeing Australia Limited (BAL) is on. I feel, after reading this case study that BAL has been on the correct path with regard to building their systems architecture. There is a need for a more sophisticated procurement process and the issue of a procurement application may be easily found. The key is the process by which BAL has implemented all other IT applications, they have been very successful. They are thorough and have processes in place to rationalize whether a new by-in application or an in-house developed program would be best. My thought is that at least one, if not more; of the current systems have an appropriate off the shelf application that would work for BAL’s procurement needs. Further investigation through the Materials Management Process Council should reveal an appropriate tool for BAL to use. In this case study I will outline the reasons for my decision and some of the potential cost savings involved. Statement of Issues The main issue of this case is to buy a new e-procurement application or to continue to wait for the best case scenario application to come along. It is an important decision that affects many aspects of the business. The potential to lose a client or a critical supplier is possible during this process. An in depth analysis of the situation must be conducted prior to any move toward a process change. Initially, change is difficult......

Words: 2302 - Pages: 10

Premium Essay

Woolworths Limited

...Woolworths Limited Business Model [pic] 7241MGT Business Process Models Major Assignment Semester I, 2005 Abstract The firm selected for this project is Woolworths Limited which is an Australian leading retail company made up of a number of businesses all providing the customers with quality, range, value and everyday low prices. Woolworths is built on a passion for retail, attention to detail, working hard, ensuring the safety of their valuable customers and people, and having fun. Woolworth’s mission is to deliver to customers a better shopping experience - each and every time. The project initially carries out preliminary business analysis where it recognizes the market structure and describes the value chain in that industry segment that earns the companies income. Further analysis has been done about the changes that have been done in this segment in past two decades. Also the challenges Woolworths faces from its competitors are described. It identifies Porter’s five forces model influencing the company viz. Substitutes, Rival groups, Buyers, Sellers and Potential New Entrants. The project has done the strategic analysis of the industry’s current position and identified the likely challenges Woolworths may face in the near future. It also studies the various risks which has impact on the company such as “Cyclical risk”,......

Words: 2909 - Pages: 12

Free Essay

Packages Limited

...Packages limited Packages Limited was established in 1957 as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden, to convert paper and paperboard into packaging for consumer industry. Over the years, Packages has continued to enhance its facilities to meet the growing demand of packaging products. In 1968, with IFC participation, Packages integrated upstream by establishing a Pulp and Paper Mill with a capacity of 24,000 tons per year based on waste paper and agricultural by-products i.e. wheat straw and river grass. With growing demand the capacity was increased periodically and in January 2003, total capacity was nearly 100,000 tons per year. In 1982, Packages modified a paper machine to produce tissue paper in response to growing awareness and demand for hygienic and disposable tissues. The “Rose Petal” brand name was launched with facial tissues and was later expanded to include toilet paper, kitchen roll, and table napkins. In 1986, the Company established a flexible packaging unit to cater to the increasing demand from consumers for sophisticated packaging used primarily in the food industry. In 1993, a joint venture agreement was signed with Mitsubishi Corporation of Japan for the manufacture of Polypropylene films at the Industrial Estate in Hattar, KPK. This project, Tri-Pack Films Limited, commenced production in June 1995 with equity participation by Packages Limited, Mitsubishi Corporation,......

Words: 2341 - Pages: 10

Premium Essay

Flight Limited

...booked over the internet As shown in Figure 3, in 2004 ‘accommodation in Australia’ and ‘international air travel to Australia’ were the most common items booked over the internet by international visitors. Other Accommodation in Australia Rental or leasing of cars or campervans in Australia Organised tours in Australia Air travel w ithin Australia International air travel to Australia 0 10 20 2001 2002 30 2003 2004 40 50 Figure 3: Items booked via the internet for international visitors (2001-2004) % Source: Tourism Australia 2004a 6 Package Tours The 2004 IVS data suggest there has been little change in package tour travel for international visitors over the past five years. The percentage of international visitors to Australia arriving on packaged tours is around 30%. There is a greater tendency for travellers in the 20-30 years age group (14%) to purchase travel packages. It is also apparent that a high proportion of Asian travellers from Japan and China use inclusive packaged tours and group tours (IbisWorld 2005). The Domestic Market There has been little growth in the domestic tourist market over the last two decades. This market has grown at around half the rate of real GDP (i.e. 2% compared with 3.4% for real GDP) and with growth of only 1% for pleasure/holiday trips. During the 1990s the growth of holiday/pleasure travel slumped further to average around 0.5% per annum. While there has been some growth in interstate......

Words: 7483 - Pages: 30

Premium Essay

Huaraz Limited

...Huaraz Limited Huaraz Limited (Huaraz) is a private Canadian company, incorporated 18 years ago. Huaraz was audited for the first time in the year ended Dec. 31, 2014 and it received a qualified audit opinion because the company didn’t record depreciation expense. During the current year, the CFO has indicated that the company wishes to have an unqualified opinion for the year ended Dec. 31, 2015 as he anticipates that the company will go public in three to five years. Management believes that a pattern of smooth earnings will be the most attractive to potential shareholders and allow the company to receive the highest possible price for its shares. The CFO has provided you, an accountant who works in Huaraz’s finance department a list of contentious accounting issues facing the company. Required: Prepare a report to the CFO that addresses the contentious accounting issues. Provide support for your recommendations. (You should provide brief solutions to each of these issues. In coming up with a solution you should recognize that not every problem has a definite solution. Accounting decisions often require judgement and interpretation of facts. So before coming up with THE answer, consider the context: Who are the key players in the situation and what do they want? Who are you and what are you trying to do? Are there any limitations on what you can do? If there are, what are they? Once you establish the context then draft a response.) Contentious Accounting......

Words: 517 - Pages: 3

Premium Essay

Limited Partnership

...Assignment 2: Limited Partnership Allison Bynum Strayer University LEG205 Corporate and Partnership Law Prof. John Taulane February 1, 2016 When deciding to form a limited partnership (LP), one must understand the pros and cons of a limited partnership. It is much like a general partnership, but with a few considerable differences. A limited partnership is one or more partners are general partners, and one or more are limited partners united to conduct a business jointly, and in which one or more of the partners is liable only to the extent of the amount of money that partner has invested. (Investopedia, 2016) General partners are personally liable for the business's debts and judgments against the business; they can also be directly involved in the management. Limited partners are essentially investors (silent partners) who do not participate in the company's management and who are also not liable beyond their investment in the business. Some state laws determine how involved limited partners can be in the day-to-day business of the firm without jeopardizing their limited liability. For example, this business form is especially attractive to real estate investors, who benefit from the tax incentives available to limited partners, such as being able to write off depreciating values. (Reference for Business, N.D.) Limited partners do not receive dividends, but enjoy direct access to the flow of income and expenses. When deciding to form a limited partnership, it......

Words: 694 - Pages: 3

Free Essay

Internship Report at Packages Limited

...HISTORY: PACKAGES Ltd is the among the most prestigious, versatile and advanced companies of Pakistan. It is surely the market leader when it comes to providing packaging solutions. With the best business practices and most modern systems deployed, Packages Ltd is on top of the market. Packages Ltd. is an industrial organization manufacturing packaging material which provides services for other industries. Its business is to provide packaging materials for the products of different industries. It also produces all types of tissues available in the local market as well as for export purposes. There are more than 3000 employees working in the company. Packages Limited has had a joint venture with Tetra Pak International in Tetra Pak Pakistan Limited to manufacture paperboard for liquid food packaging and to market Tetra Pak packaging equipment. Packages commissioned its own paper mill with a production capacity of 24,000 tonnes in 1968. The mill produces paper and paperboard based on waste paper and agricultural by-products like wheat straw and river grass. With growing demand the capacity was increased periodically and in 2003 was nearly 100,000 tonnes per year. In the beginning 22 Swedish Experts came to Pakistan to run the factory and to train the Pakistani staff. Packages Limited was established in 1957 as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden, to convert paper and Paperboard into packaging for consumer industry in......

Words: 26025 - Pages: 105

Premium Essay

Stimulus Package

...Running head: THE STIMULUS PACKAGE The Stimulus Package: The Definition Zandra Roderiques AIU Online Abstract For this assignment, I chose to talk about the stimulus package. In the following paragraphs, they will discuss the benefits of the stimulus package. They also discuss the way the government went about developing the stimulus package. Lastly, they will discuss the views of the stimulus package by the people. The information on the subject that I found actually proved to be quite useful. The Stimulus Package: The Definition Introduction The stimulus package is designed to help both women and men who need financial help. There are many benefits to this package. It can be very helpful to people who are having difficulties in life. The main people who qualify for the stimulus package are people who are poor, unemployed, or disabled. The stimulus package has effects on everybody across the world. The Benefits of the Stimulus Package The stimulus package contains a large amount of money. For example, the United States’ stimulus package consists of approximately $787 billion. However, “the bulk of the spending will occur over two years; in a single year, the package amounts to about 3 percent of GDP (Women, the Recession, and the Stimulus Package). It also includes programs such as WIC, child care, grants, SNAP, unemployment, SSI, and Medicaid that are specifically designed to help people who meet the requirements of the programs. People could......

Words: 637 - Pages: 3

Free Essay

Barcastle Limited

...5.Wilful disobedience of reasonable instructions Dismissal EXHIBIT II BARCASTLE tTD. Management’s Rights Clause 1. Employees are obligated Supervisor’s instructions. to carry out their immediate 2. The Company offers employment and will pay for same on the understanding that a standard is produced in return for the wage paid.’ It is understood that the general duty of all is to produce the best possible products according to modern standards of hygiene and to offer the utmost satisfaction to the general public. The Union recognises the exclusive right of the Company to organjee, conduct, and manage their operations to provide for efficiency arid to perform other functions of Management such as, but not limited to, the introduction of technical improvement, to modify or cease operations, to designate the type of work and the manner in which it is to be ac complished provided however, that in the exercise of these rights this agreement is in no way violated arid further provided that the Union may at any time raise any matter with Management in the scope of this agreement. 3. 4. The Company has the right at the discretion of Management to reprimand, engage, transfer, retrench. promote, demote, The Union suspend employees and dismiss ciem for cause. will be informed of proposed or intended retrenchments. •• •‘ “ .1’ EXHIBIT lit BARCASTLE LTD. Procedure for the Avoidance and Settlement of Disputes 1. All requests......

Words: 1492 - Pages: 6

Free Essay

Bunge Limited

...CASE STUDY 1 BUNGE LIMITED Jonathan West ‘We are at a very special moment in the history of Bunge. We have reached one plateau. Now, we need to go to the next round of change. We constantly need intellectual jolts to the company.’ (Alberto Weisser, CEO of Bunge Limited) In July 2002, Bunge, a global agribusiness and food company, announced that it would purchase Cereol, a global oilseed processor, based in France. The acquisition would transform Bunge, making it the world’s leading oilseed-processing company, and give it a more balanced geographic footprint, as well as access to new products, but would substantially increase the complexity of the company’s product lines, locations and personnel. Less than a year before, on 2 August 2001, Alberto Weisser, Bunge’s CEO, rang the opening bell on the New York Stock Exchange, as Bunge successfully went public after more than 180 years as a private company. The company had primary operations in North and South America and worldwide distribution capabilities. Bunge was the largest processor of soybeans in the Americas and among the world’s leading exporters of soybean products. It was the largest fertiliser producer and supplier to farmers in Latin America. It was also a leader in vegetable oil and wheat-based food products for food manufacturers, food service companies1 and consumers. Bunge’s net sales in 2001 were $11.5 billion (see Exhibits 1 and 2 for Bunge’s financials). Bunge had undergone a dramatic transformation......

Words: 11861 - Pages: 48