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[INTERNSHIP REPORT]
This is the internship report of PEL , prepared during the internship from 11 July 2013 to 23 August 2013 for the COMSATS institute of information technology.
ACKNOWLEDGEMENT
In the name of ALLAH, the most Merciful and Beneficent
I think honestly reflects on who I am, how I got here, what I think I might do well, and so forth, I discover a debt to others that has shaped my life. The work of some unknown people makes our lives easier every day. I believe its appropriate to acknowledge all of these unknown persons; but it also necessary to acknowledge those people I know have directly shaped my life and my work.
Firstly, I wish to place on record my indebtedness to my parents for the continuous support and encouragement I received during my academic career.
I would like to express my gratitude to those people who personally help me through out in studying. Last but not the least; I am very thankful to all the team of corporate sale of PEL who helped me gaining the practical knowledge of making sale a well as dealing with customer during my internship program.
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1 3 6 7 7
INTRODUCTION
POWER DIVISION:
POWER PRODUCTS:
APPLIANCES PRODUCTS: 9
ORGANIZATION STRUCTURE
MANAGEMENT HIREACHY: BOARD OF DIRECTORS: AUDIT COMMITTEE; 11 11 11
10
DEPARTMENTS
11
12 13
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FUNCTIONS:
14 14
14
PLACEMENT PROMOTION
SWOT ANALYSIS
STRENGTHS: 22 WEAKNESSES:
21
23 23 24
25
DIVISION OF LABOR 26
STP
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INCOME:
27 28
EDUCATION:
30 30
36
CONCLUTION BIBLIOGRAPHY:
Internet sources: Person sources
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EXECUTIVE SUMMARY
I have worked as an intern at PEL for the duration of 6 weeks (11th July 2012 to 24th August 2012) I made this report while working with PEL especially in marketing department. The whole staff was very cooperative. I have learned a lot from this organization which I have mentioned in this report. This report will provide its reader knowledge about the history and background of PEL its overall strategies, objectives, Owners organization structure, its departments & their working, its competitors goals, SWOT analysis, STP analysis,, competitive as well as marketing strategies ,business process analysis, my research findings results in PEL, and its overall analysis in the market,. Finally this report contains my practical learning recommendations and suggestions. The purpose of this internship was to learn while working in the practical field, especially the knowledge related to the sales and marketing department it has really helped me to observe to what extent the text book knowledge is being practical in real field how it can help to enhance our knowledge. As PEL has been considered as the renowned provider of appliances in Pakistan so I preferred to work in the appliances divisions marketing department of PEL and also this whole report gives the information about the appliance division
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MISSION STATEMENT
TO provide quality products and services to the complete satisfaction of our customers TO maximize returns for all stake holders through optimal use of resources To focus on personal development of our employees to meet future challenges To promote good governance, corporate values and a safe working environment with a strong sense of social responsibility
VISION STATEMENT
To excel in providing engineering goods and services through continuous improvement.
OBJECTIVES
The continuous improvement of all products and services through total involvement of employees. The development and strengthening of joint ventures and partnerships with external and internal customers and suppliers. Providing innovative and higher quality to achieve total customer satisfaction by understanding their requirements and anticipating their future expectations or needs through Monitoring annual targets for quality improvements in all areas and functions of the organization Valuing people by understanding and drawing upon the strengths i.e. abilities and knowledge and make efforts for their training and development.
With a dedicated team of professionals the company is striving to improve the quality of life in Pakistan home through reliable equipments for power distribution and home appliances.
HISTORY
PEL is a synonymous with quality all over Pakistan. It was established in 1956 with the electrical collaboration of m/s AEG (former German electronics and electricalequipment company. as one of Germanys leading industrial companies through much of the 19th and 20th centuries, AEG manufactured products for industrial and domestic use.)AEG experts and PEL employees carried out the designing and production of these equipments jointly. 7|Page
In 1978, the SAIGOL GROUP of companies purchased major shares of PAK ELEKTRON LIMITED. At that Time Company was only manufacturing the transformers and switchgears. It has mainly two divisions power and appliances division with the SAIGOLS in management, PEL started expanding its product range by entering into air conditioner manufacturing and, In 1980 the company expanded their business into consumer goods with the introduction of window type air conditioners. In 1981,PEL window type air conditioners were presented in technical collaboration with General Corporation of Japan. In 1986-87, the company started manufacturing of refrigerators in technical collaboration with m/s IAR-SILTAL of Italy. In 1987, PEL deep freezers were also presented in technical collaboration with m/s Ariston of Italy. In the power division it has the transformers, switchgears, cage induction motors, energy meters, generators, capacitors In2006, the company has started manufacturing of split type air conditioners of various capacities as the customer choice has shifted from window type to split type air conditioners. The product of PEL has received good response from the market, and until then it is producing refrigerators, microwave ovens, split air conditioners, washing machine, deep freezers, compressors and water dispensers. It encourages the company to multiply its production in the coming years, but now days PEL was suffering with financial crises which has restricted them on just refrigerators Today, PEL has become a household name. Its products are not only in great demand in the local market but the company has also started exporting its appliances to foreign markets.
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INTRODUCTION
PAK ELEKTRON LIMITED is the renowned company in the home appliances sector. It was established in 1956 it is the oldest composite electrical equipment manufacturing unit of Pakistan producing power and consumer products. It has divided into two divisions. Power division Appliances division
POWER DIVISION:
It is one of the major electrical equipment suppliers to WAPDA (water and power development authority) and KESC.PEL equipments has been used in various power projects of national importance within Pakistan over the years. PEL has had the privilege of getting its equipment approved and certified. In power sector it has different power products.
POWER PRODUCTS: The list of power products are: TRANSFORMERS ENERGY METERS, SWITCHGEARS,
. APPLIANCES DIVISION: This division of PEL consists of home appliances manufacturing. In 1981 PEL introduced window type air conditioner in collaboration with corporation of Japan. In 1986 company introduced refrigerators in collaboration with corporation of Italy. In 2006 company introduced split air conditioners in various capacities,it has different product ranges. APPLIANCES PRODUCTS: Refrigerators Split type air conditioner Microwave Deep freezers 9|Page
Today, PEL has become a household name. Its products are not only in great demand in the local market but the Company has also started exporting its appliances to foreign markets
ORGANIZATION STRUCTURE
Organizational structure mainly consists of organizational hierarchy.
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MANAGEMENT HIREACHY:
A committed team of highly qualified, professional, experience and well reputed managers manages the company. The management hierarchy of PEL is stated below.
BOARD OF DIRECTORS:
MR. MIAN NASEEM SAIGOL(Chairman/chief executive officer) MR. MUHAMMAD AZAM SAIGOL MR .SHAHID SETHI MR. HAROON AHMED KHAN ( Managing Director ) MR. MUHAMMAD MURAAD SAIGOL MR. HOMAEER WAHEED MR. GULL NAVAZ MR. MASOOD KARIM SHEIKH (NBP Nominee U/S 182 OF ORDINANCE) MR. TAJAMMAL H.BUKHARI (NBP Nominee U/S 182 Of Ordinance) MR. WAJAHAT A. BAQI(NBP Nominee U/S 182 Of Ordinance)
AUDIT COMMITTEE; MR. AZAM SAIGOL(Chairman/Member) MR. HAROON A KHAN(Member) MR.TAJAMMAL H. BUKHARI (Member)
REGISTERED HEAD OFFICE: 17 AZIZ AVENUE ,CANAL BANK GULBERG V , LAHORE OFFICE 14 KM , FEROZPUR ROAD LAHORE-54760 GP.D BOX NO 1614 LAHORE PAKISTAN TEL : (+92 42 )(5811951-59) EMAIL :shares@saigols.com Website :www.PEL.com.pk
DEPARTMENTS
There are 5 major departments of PEL 11 | P a g e
MARKETING DEPARTMENT FINANCE DEPARTMENT PRODUCTION DEPARTMENT HUMAN RESOURCES DEPARTMENT RESEARCH AND DEVELOPMENT DEPARTMENT
MARKETING DEPARTMENT
This department is headed by category manager Mr. MUHAMMAD SHAHID. Then further down in hierarchy there are Marketing executives (Mr. TANVEER AHMAD, Mr. SOHAIB, Mr.IBRAR, Mr.ASHHAD) Marketing Research Executive (Mr. ALI ZAFAR) Media coordinator (MR AFRAZ AHMAD) Pricing in charge (Mr. ISHTIAQ)
There are 6 regions of PEL in Pakistan. They are headed by regional sales manager (RSM). The sales policies are recommended by regional office for all regions. The policies for customer service are defined by general manager customer service at head office. Targets are given to regional sales manager of each particular region and then the RSM gives further target and incentives to sales officers to achieve the demand targets In Lahore the market is majorly divided in two areas: ABID market Patiala market
ABID market (In ABID market there are 20 dealers and 30 sub dealers) Patiala market (In Patiala market there are 16 dealers and 21 sub dealers)
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FINANCE DEPARTMENT
This department is controlled by general manager finance and it has been divided into 3 areas: Finance Accounts Credit control Finance Finance deals with banks
Accounts Accounts deals with costing systems, billing and booking transactions as well as internal auditing and the next department in the finance is listed below is also an important section.
Credit control Credit control deals with credit and recovery procedures in the finance department
PRODUCTION DEPARTMENT
This department looks after the manufacturing of products .this department is given target by top management to produce a specific number of products which are ascertained by previous sales data and market conditions. This department is responsible for quality control as well as it sees there are no defects or shortcomings in the products .it also oversees the new technologies as well as it also contains updates regarding the new machinery or other equipment for better product performance. After manufacturing the product is sent to Germany for technical assessment to DANFOSS Company. After approval from it then its bulk production is started.
FUNCTIONS: Recruitment Selection Training Transfer Firing decisions Labor affairs Staff welfare
MARKETING STRATEGY
My report concerns about the home appliances department of PEL so I will briefly explain you about the marketing mix of the home appliances. Generally it includes the 4 Ps and that they are: PRODUCT PRICE PLACEMENT PROMOTION 14 | P a g e
PRODUCTS
In products it includes a various sub varieties in a single product and it mainly includes the PRODUCTS: REFRIGERATORS AIR CONDITIONERS WASHING MACHINES WATER DISPENSERS MICROWAVE OVENS
DESIRE MORE ARCTIC SERIES DESIRE SERIES DELUXE SERIES SMART SERIES
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AIR CONDITIONERS: In air conditioners it has three types Split type AC Floor standing AC
WASHING MACHINES: In washing machine it has two series: PMW 7700(Rs. 9350) PMW 512(Rs.6850)
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WATER DISPENSERS: In water dispensers it has two series: Silver line Life stream
MICROWAVE OVENS: In microwave ovens it has three series: SILVER LINE OVENS MICROWAVE OVENS XPRESSION SERIES
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PRICE Prices are kept according to the competitors level .PEL has consideration that the market should not to be shrink because of pricing criterias The company has appointed various informers who consistently visit and check the retailers shop and check that either they had maintained the PEL prices or not. Then those informers inform the company about those retailers in case of any irregularity and then company takes an appropriate action against those retailers. Pricing depends upon market conditions and it is important from the sales point of view. Marketing manager has full authority in this region but he also has to take permission from the companys top management.
PLACEMENT
The distribution setup of PEL has undergone many changes. In 1988; the setup was very simple .there were only four sale officers who use to manage area offices in Multan, Rawalpindi, Lahore and Faisalabad. In 1989 the company decided to form an effective dealership network. The company had its dealers in all major cities. In 1993 management planto form a region to further improve the distribution system. The whole country was divided into four major regions. In 1996 It is further improved, by increasing regions from 4 to 6.
CHANNEL LEVELS; PEL has two channel levels DIRECT MARKET CHANNEL INDIRECT MARKET CHANNEL
DIRECT MARKET CHANNEL: In has no intermediary level. PEL through sales officers directly sales its products to large organization and corporate sectors.
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It is a channel with one or more intermediary levels. The general public can buy PEL products through authorized dealers. PEL has different networks like regional sales force is connected with dealers and core customers are directly attached with them and also dealers visit and analyze the distribution systems. During selection of dealers the PEL mostly considers the Worthiness of dealers Potential demands related to those dealers. PROMOTION The main advertisement criteria used by PEL in appliances division is through media. The main types of media used in PEL Are mentioned below.
TYPES OF MEDIA: There are major 3 types of media: Electronic media Print media Outdoor media
ELECTRONIC MEDIA: The electronic media mainly includes different channels and It Includes HUM, ARY, GEO, PTVworld and prime TV
Electronic Spending
CCTV 1% Radio - Mr. J 7%
GEO 37%
CNBC 1%
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PRINT MEDIA National newspapers e.g. Jung, news, dawn, and etc Magazines as herald, news lines, banking business
Print Spending
Frontier Post 11% Wahdat 3% Express New s 25%
Khabrein 21%
OUT DOOR MEDIA: It includes: Bill boards Neon signs Tri visions
PROMOTIONAL ACTIVITIES
PEL participate in exhibition time to time. It also participates in the electronic exhibitions in order to recall the brand in the minds of the customers and It includes: Dawn life style 2012 Dealer shop display Musical clarity concert sponsorship
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SWOT ANALYSIS
The strengths, weaknesses, opportunities and threats of PEL are discussed below: 21 | P a g e
STRENGTHS:
Strong brand image Super brand award High market share Strong Dealer Network Strong Holdinthe Home Appliances. Strong Research and Development Department
PEL has established a strong brand image in the mind of the customers with the strenuous effort of more than 50 years through higher quality and low price.
PEL is the first Home Appliances Company in Pakistan Industry to achieve the super brand award. This shows that the company is now able to complete the market in such a way that people have got faith in them.
PEL was the market leader for a long time in window ac. Because of that brand image, PEL had captured the high market share.
PEL has more than 1600 appliances dealers all over Pakistan and it shows that it has also developed the strong dealer network in the appliances market.
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PEL is one of the companies, which is having a strong grip in the home appliances. PEL is penetrating the market by introducing the new series of home appliance.
PEL has a strong research and development department that is continuously trying to develop new technology and features for its products. R&D department spends huge amount of money for the development of product.
WEAKNESSES:
Like other companies PEL has some weaknesses in operating the business. If PEL overcome these weaknesses then it can become a market leader in the home appliance. PEL lose some competitive edge in the following points:
A bit high in prices then the competitors Less ATL advertisement Lack of product range Less utilization of capacity:
Best quality always requires more prices. In particular scenario of refrigerator market PELs refrigerators are bit high in prices then the competitors like DAWLANCE, HAIER and other local brands.
The major weakness of PEL that creates hurdle in selling the products is less advertisement and customers is not aware of the changes, which are introduced in products by the company time to time.
Lack of product range: PEL introduce more products of consumer items but there are more needs to develop new consumer items like PEL washing machines and vacuum cleaners. 23 | P a g e
Less utilization of capacity: due to lack of finance company cannot utilize its resources on its full capacity
OPPORTUNITIES:
If PEL take advantage of the opportunities it has, then it will be more fruitful and profitable it can have following opportunities by.
Outsourcing its products Increase in its product range opportunity to export its products
Having a strong and nationwide network throughout Pakistan and with a long and enduring relationship with major industrial sector in Europe, Asia and America. PEL has massive opportunity of outsourcing partial and fully developed products. Company has also an opportunity that it can increase its product range to attract more customers towards its products. Due to lack of product range, company can earn limited amount of profit. The Company also has an opportunity to export its products. As they have skilled and crafted foreign procurement department which use to import raw material from almost all over the world. This activity will not only reduce the reliance on one market but also helps to improve the revenue for the company and will make PEL as a global brand. Through all these acquisition of opportunities the PEL can gain a more better position than that its competitors.
THREATS
PEL Company in such a competitive era has many threats as well. Company should make its policies and strategies accordingly. So following are the main threats for the PEL:
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Tough competition in the home appliances Chinas products Technological changes Change in the govt. policies
There is very tough competition in the home appliance market. So every company tries to get maximum share in the market. It reduces the profit margin of each company. Chinas products are another threat for the Pakistani companies because these products are cheaper than the Pakistani products. Even Chinese products are not well in quality but it is comparatively in low prices.
As technology is changing drastically and new ways of production is generating the increase in revenue. This change can give a competitive edge to the organizations. The changes in government policies will become threats for the companies because every government adopts its own policies for the industries.
forecast is very critical for the company as a wrong forecast can lead to shortage or surplus of the product. The raw material is stored in the raw material stores where from the concerned departments demand the material when needed. The Production Manager issues a material requisition voucher to the store and also feeds its entries in the web system of the company. After receiving this voucher the store issues the material to the department and also does the entries in the network system which also maintains the inventory of material.
dispatcH
purchase R.M
order receives
R.M store
F.G stored
production
The organizational hierarchy of PEL is both flat and tall span of administration in case of lower level of hierarchy (the workers and their supervisors) the span is wide but as the level goes up it becomes tall The managing director is answerable to the chairman hold position. General Managers are answerable to the managing director and are responsible for respective divisions, managers are heading some departments and assistant managers AS is leading some deputy managers and others there are senior engineers who are section in charge supervisors and foreman reports to hem
EXECUTIVE LEVEL
At executive level executives report to the manager and who then report to the general managers.
WORKER LEVEL
At worker level usually 10 to 30 workers report to a foreman .three to seven foreman reports to a section in charge.
DIVISION OF LABOR
Permanent employees Temporary employees
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SEGMENTATION
BEHAVIOURAL
DEMOGRAPHIC
PSYCHOGRAPHIC
GEOGRAPHIC
BEHAVIORAL SEGMENTATION
PEL provides the quality products for their customers based on local demands and needs
DEMOGRAPHIC SEGMENTATION:
AGE: The percentage of people especially whose ages are between 25-40 and it also focuses on the people above 40
OCCUPATION: It considers the people of all sectors containing the businessman, industrialists, govt. employees, bankers, teachers as well as people doing the private jobs.
INCOME: Considers the people mainly having income more than 15000 per month
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PSYCHOGRAPHIC SEGMENTATION
Psychographic features are mostly decided on life style; LIFESTYLE: It focuses mainly on middle class people.
GEOGRAPHIC SEGMENTATION
It has been divided according to north (Punjab, NWFP) and south (SINDH, Baluchistan) Zones and there are six regions of PEL in Pakistan: Karachi Lahore Multan Gujranwala Rawalpindi Faisalabad
TARGET MARKET: Our customers belong to A, B+ & B classes. These all have their income level more than Rs.15, 000 per month. The young and old adults, working ladies and housewives are also the target market of PEL. All the married and unmarried decision makers or joint decision makers for the purchase of consumer durables. The age of females should be between 25-40 years and males are between 2845 years. TARGET CUSTOMER NEEDS: The basic needs desired by their target customers are as follows. Quality Product Product range (colors, sizes) 28 | P a g e
Better Value for the price. Warranty Prompt and efficient after sales service
POSITIONING:
Positioning is what the customers believe and not what the provider wants them to believe.PEL adopts different positioning strategies for its products. Products are designed according to their attributes, customer needs and preferences and it also designs the products in comparison with its competitors and it has positioned itself as change your life. Position is the way a firms product, brand or organization is viewed relative to the competition by current and prospective customers. Positioning is a firms use of all the elements at its disposal to create and maintain in the minds of a target market particular image relative products. PEL has different positioning levels for different products, In case of refrigerators the company is challenger of DAWLANCE. In case of air conditioners company is challenger for WAVES and MITSUBISHI. In case of televisions company is challenger of LG and some other companies.
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2. Visit different super stores of Lahore including Hyper Star , Al Fatah & Metro etc.
3. Collect data like company name , models, different sizes available in market.
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B2B Market:
Visi Coolers and ice cream freezers are business products so it have a business to business market. Manufacturer directly sells their products to corporate clients. The major clients of visi coolers are Coca Cola Pepsi-co Nestle
These 3 corporate names take the most of the market share of visi coolers. But there are some many other small clients which varies region to region. Even the small business of local markets purchases it directly through manufactures. The major corporate clients in Lahore of Visi Coolers are.
Gourmet Doce Rahat Sweet and bakers Butt sweets Adam Dairy Anhaar milk Hyper star Metro
These are the major corporate clients of Lahore. Likewise every rejoin have its own local clients But the major market available in major cities.
There are some descriptions of clients who are in contract with different manufacturers. Client Manufacturer
Varioline intercool Varioline intercool & Caravell Varioline intercool & Caravell Varioline intercool & Caravell Varioline intercool &Caravell Pak laser 31 | P a g e
Reputable stores and departmental stores are also purchasing directly through manufacturer.
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Hyperstar
20 18 16 14 12 10 8 6 4 2 0 MARKET PLAYERS
HYPERSTAR MART
VARIOLINE INTERCOOL CARAVELL PAK LASER
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Al fatah mart
9 8 7 6 5 4 3 2 1 0 MARKET PLAYERS
AL FATAH MART
VARIOLINE INTERCOOL CARAVELL
Doce
DOCE
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6 5 4 3 2 1 0 MARKET PLAYERS
Gourmet
6 5
GOURMET
4 3 2 1 0 MARKET PLAYERS VARIOLINE INTERCOOL CARAVELL
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Market shares: Through market survey we analyzed that Varioline intercool is the market leader with highest 60 % share of market following by Caravell, Haier and Pak laser as shown in above chart. Market Share
MARKET SHARE
VARIOLINE INTERCOOL CARAVELL PAK LASER HAIER
Market Figures
Varioline Intercool is supplying about 50,000 Visi Coolers and Chest Coolers to its Valuable Clients. Waves are supplying approximately 6,000 ice cream freezers to Beverages Industry of Pakistan and about 45,000 Freezers to domestic consumer market. About 7,000 Coolers and Freezers are being supplied by ,Caravell & Dawlence in local market.
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Conclusion
In Current market there is opportunity to penetrate with quality product to capture the market. PEL has a history in appliances so it has advantage of BRAND IMAGE in the eyes of market. Visi coolers by nature is expensive product and manufacturers are charging high prices against it.
PEL has also an advantage of available infrastructure for the production of visi coolers .Major clients of visi coolers are bound to purchase visicoolers from Varioline intercool because there is no else to challenge them strongly. For PEL there is a very good opportunity to manufacture Visi cooler for the market and challenge the current players with their quality product and services.
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BIBLIOGRAPHY:
Internet sources:
http://www.PEL.com.pk http://www.google.com http://www.scribd.com/doc/16962719/PEL-Ltd http://www.scribd.com/doc/27836099/Internship-report-of-PEL http://www.scribd.com/doc/27189959/PEL-Internship-Report-Introduction http://www.scribd.com/doc/27836099/Internship-report-of-PEL
person soure
Mr. Mahmood Ahmad Mr. Khalid bashir Mr. Yousf ali (business development executive) (marketing executive) ( sales coordinator)
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