Live case interview

MR. SHOAIB SIDDIQUI

Premier Mercantile Services (pvt.) ltd

PRESENTED BY:
Quratulain Riaz (146.06)
Mehreen Raza (419.06)
 The Entrepreneur:
– Name: Mr. Muhammad Shoaib Siddiqui
– Age: 50
– Work Experience: about 35-40 years.

– Education: BA (private) from Pakistan, ITC (Inter transport course),

ICD Course from UN and CILT (Chartered institute of Logistic &
Transport)
– Designation: Director Operations of Premier Mercantile Services,
– Other companies started: Started Al-Hamd International in
partnership with a foreign company but left it after a few years; Plans
to establish another Inland Dry Port in Lahore.
 The company
– Founded by Mr. Haleem Siddiqui and his younger brother Mr.
Muhammad Shoaib Siddiqui in 1964.
– PMS has been engaged in providing cargo handling services at the
Karachi Port since its inception in 1964.
– PMS was one of the first companies in Pakistan to invest in modern
container handling equipment.
– PMS is the oldest and largest stevedore and Terminal Operator
working on Karachi Port
– PMS Provides on-board stevedoring service to over 30,000 Container
Units per month
– PMS is the only company in the history of KPT to have its own State
of art Shed for the handling and storage of export cargo.
– PMS had Most modern equipments, and Skilled and efficient staff for
the handling of cargo as well as containers.
 Source of the idea
• The inspiration and idea to start the project came from Karachi
port trust
– which lacked in efficiency and productivity.

• The brothers felt the need of private stevedoring and terminal

operating company to capture the large market
– by providing better services,
– improved quality and efficient handling by installing
modernized equipments and latest machines;
– and by installing a computer based system.
Funding:
– All the initial investment was made by obtaining loans from banks.

Locations:
– The company’s first office was on rent in Writer's Chamber,
– with the passage of time, the company moved its offices at Business
Center;
– now the company has huge offices and plans to establish a separate
building for PMS.

Basic competitors:
– In general there are 30 other stevedoring companies but following are
the two major competitors of PMS:
– M/S Badaruddin Stevedore
– M/S Friends Corporation Stevedore (pvt) ltd.
EFFECT OF ECONOMICAL CONDITIONS
• The economy of Pakistan plays a vital role in the stability of the company.
• the import and export of the country depends on the economy of the
country,
• Presently the export and import of the country has reduced up to 35%,
which has also affected the company.
• In such conditions, the export and import reduces, which lessens the
number of containers eventually.
• The number of containers due to the present situation has reduced from
60,000 to 40,000.

To Maintain Stability:
• Does not downsize,
• the company cuts the number of equipment for handling of the cargo on
port.
• The company avoids making any additional investments in the period of
recession.
 Problems Faced
• The company has faced many hurdles from time to time;
– the interference of brokerage
– And the government;
• the involvement of the government refrained the company from
bringing change in terms of modernization of equipments.
• The company had to fight with the government for permission in
this regard for 15 years (1980-1995) .
• The delay in the modernization and installation of new equipments
effected the growth of the company.

– Legal obligations.
• The company is bound by law that they have to hire DLB (dock
labor board).
 Competitive Advantage
• The company has large amount of latest equipment.
• They have the expertise in this field..
• Services
– Efficient handling of cargo
– Prompt delivery
– Reduce chances of damages
– Compensation of damages
• They charge relatively low prices.
 Future plans
• Mr. Siddiqui plans to start a mega project; an inland dry port
in Lahore in the August 2009.
– Challenges of the new project
• Mr. Siddiqui had planned Lahore inland dry port about 5 years ago, but Government
has delayed the project.
• which in turn caused delay in receiving loans from the banks.

– Strengths of the new project:

• Government has dry ports but does not attract customers due to lack of marketing.
• This new dry port would offer efficiency and reliability to the customers.
• They would provide guaranteed transit time, no fluctuation in freight charges, no
need of security deposits, one window operations;
• they would offer direct custom documentation.

– Marketing for the future project:

• Personal marketing
• Newspaper and magazine advertisement in “Murad Shipping Advertisement”.
 Success Factors
• Mr. Siddiqui believes that three factors play a significant role
in company’s success.
• Services
• Commitment;
• And honesty.
 Qualities Of An Entrepreneur

• Patience.
• Time Management.
• Commitment.
• Avoid Hastiness and Rapid Success.
Thank you!!