After spending memorable time at Plasticrafters Ltd., the manufacturers of Pakistan's #1 water coolers and household plastic goods under the brand name 'Rahber,' I landed in Chloride Pakistan Ltd., a subsidiary of Chloride plc England. Chloride England was the world leader in automotive batteries and Chloride Pakistan was the market leader in Pakistan.
Chloride Pakistan had advertised the position of Sales Manager for the sales of automotive batteries throughout Pakistan. It was a new position created at the Head Office in Karachi. I was first interviewed by Mr. S. I. Ahmed, Director Marketing and then by Mr. S.H.M. Zaidi, Managing Director. Finally, I was selected and asked to join C-Pak in Nov 1982.
The year 1982 witnessed the massive inflow of foreign batteries. The foreign brands were sold to the consumer at approx. 40% less price than the locally made brands. NS40 for cars was the leading battery type in foreign brands. Since the car segment constituted around 33-35 percent of the total market, foreign brands began to cause a major dent to the domestic brands, mainly Exide and AGS. Another advantage for foreign brands was the plastic body as compared to hard rubber body of domestic brands.
Chloride Pakistan had advertised the position of Sales Manager for the sales of automotive batteries throughout Pakistan. It was a new position created at the Head Office in Karachi. I was first interviewed by Mr. S. I. Ahmed, Director Marketing and then by Mr. S.H.M. Zaidi, Managing Director. Finally, I was selected and asked to join C-Pak in Nov 1982.
The year 1982 witnessed the massive inflow of foreign batteries. The foreign brands were sold to the consumer at approx. 40% less price than the locally made brands. NS40 for cars was the leading battery type in foreign brands. Since the car segment constituted around 33-35 percent of the total market, foreign brands began to cause a major dent to the domestic brands, mainly Exide and AGS. Another advantage for foreign brands was the plastic body as compared to hard rubber body of domestic brands.
Although there was no warranty on foreign brands in contrast to domestic brands carrying 15-month warranty (6-month free and 9-month graduated), the price difference and the confidence in the foreign brands proved good enough for the buyers. Some innovative battery dealers also offered their own 6-month warranty on foreign brands and charged a premium.
Chloride Pakistan had long been planning to introduce batteries in polypropylene containers as the company's annual budget documents showed. However, no efforts were made to initiate the process of importing the technology, machines and moulds. When I came into Chloride, I realized that the salvation of our brand and company lied in the speedy introduction of batteries in plastic containers. That was the norm not only in Japan but also in the whole of South Asia.
The person who vehemently opposed the introduction of batteries in polypropylene (PP) container was the Director Marketing himself who had been preparing the budget document year after year and proposed the launch in almost every document. I could not really figure out why such a stance was taken by him. Mr. Andrew Cameron, Deputy Chairman of Overseas Division of Chloride England also impressed upon C-Pak to launch pp batteries while on his regular visits to Pakistan.
Under pressure from the market and Chloride England, the company finally decided to go ahead with the project. It took us two years to complete the process of selecting battery types, technology, machinery and moulds etc. Finally, we were able to launch Exide in pp in selected types in 1985.
The new product hit a nose-dive in the market place. The percentage of claims shot up beyond imagination for initial battery failures and short life. It was the strength of the brand name, support from the trade and the hardwork put in by the sales force that the company survived the terrible crisis and eventually overcame the quality defects in a few months' time
In 1985, Adamjee Group initiated a joint venture with Furukawa Battery Co. of Japan to launch their brand FB in Pakistan. A public limited company by the name of Automotive Battery Co. Ltd (ABCL) was formed for the purpose. Chloride's Director Marketing through his own initiative or the Adamjee's initiative, I really don't know, was selected to head the company as Chief Executive. He was appointed in 1985 for joining the company in 1986.
I received a tip from a source that Mr. S. I. Ahmed had been selected and would be joining ABCL in 1986. I informed Mr. S.H.M.Zaidi, Managing Director of Chloride. Mr. Ahmed was on 30-day annual leave at the time. When I broke the news to Mr. Zaidi, he was stunned. The first sentence that he uttered on hearing the news was: "The burden will now be on you." He was virtually frightened that Mr. Ahmed's exit would cause a major dent to Chloride in the market place. I told him nothing would happen if we made certain changes in our sales and marketing strategies, distribution network and organizational structure of the dept. He agreed and gave me the go ahead to do whatever was necessary to protect Chloride and make the competitor's entry as difficult as possible.
When Mr. Ahmed came back from leave, Mr. Zaidi asked him point blank about his joining FB. He categorically denied. However, he found out from Mr. Zaidi or somebody else, I don't know, that it was me who had given the tip to Mr. Zaidi. He also expressed his serious displeasure and vehemently criticized the changes made in his absence.
As soon as Mr. Ahmed resumed office, he took the first step to isolate me from sales and marketing functions. Although my designation was that of Sales Manager but I was made responsible for both sales and marketing functions. At that time, Chloride had stuck up payments of over Rs. 8 million, dating back to several years, with Pakistan Army against batteries supplied to them.
Chloride Pakistan had long been planning to introduce batteries in polypropylene containers as the company's annual budget documents showed. However, no efforts were made to initiate the process of importing the technology, machines and moulds. When I came into Chloride, I realized that the salvation of our brand and company lied in the speedy introduction of batteries in plastic containers. That was the norm not only in Japan but also in the whole of South Asia.
The person who vehemently opposed the introduction of batteries in polypropylene (PP) container was the Director Marketing himself who had been preparing the budget document year after year and proposed the launch in almost every document. I could not really figure out why such a stance was taken by him. Mr. Andrew Cameron, Deputy Chairman of Overseas Division of Chloride England also impressed upon C-Pak to launch pp batteries while on his regular visits to Pakistan.
Under pressure from the market and Chloride England, the company finally decided to go ahead with the project. It took us two years to complete the process of selecting battery types, technology, machinery and moulds etc. Finally, we were able to launch Exide in pp in selected types in 1985.
The new product hit a nose-dive in the market place. The percentage of claims shot up beyond imagination for initial battery failures and short life. It was the strength of the brand name, support from the trade and the hardwork put in by the sales force that the company survived the terrible crisis and eventually overcame the quality defects in a few months' time
In 1985, Adamjee Group initiated a joint venture with Furukawa Battery Co. of Japan to launch their brand FB in Pakistan. A public limited company by the name of Automotive Battery Co. Ltd (ABCL) was formed for the purpose. Chloride's Director Marketing through his own initiative or the Adamjee's initiative, I really don't know, was selected to head the company as Chief Executive. He was appointed in 1985 for joining the company in 1986.
I received a tip from a source that Mr. S. I. Ahmed had been selected and would be joining ABCL in 1986. I informed Mr. S.H.M.Zaidi, Managing Director of Chloride. Mr. Ahmed was on 30-day annual leave at the time. When I broke the news to Mr. Zaidi, he was stunned. The first sentence that he uttered on hearing the news was: "The burden will now be on you." He was virtually frightened that Mr. Ahmed's exit would cause a major dent to Chloride in the market place. I told him nothing would happen if we made certain changes in our sales and marketing strategies, distribution network and organizational structure of the dept. He agreed and gave me the go ahead to do whatever was necessary to protect Chloride and make the competitor's entry as difficult as possible.
When Mr. Ahmed came back from leave, Mr. Zaidi asked him point blank about his joining FB. He categorically denied. However, he found out from Mr. Zaidi or somebody else, I don't know, that it was me who had given the tip to Mr. Zaidi. He also expressed his serious displeasure and vehemently criticized the changes made in his absence.
As soon as Mr. Ahmed resumed office, he took the first step to isolate me from sales and marketing functions. Although my designation was that of Sales Manager but I was made responsible for both sales and marketing functions. At that time, Chloride had stuck up payments of over Rs. 8 million, dating back to several years, with Pakistan Army against batteries supplied to them.
It was Mr. Ahmed who had always been handling the defence business. He probably thought his action would demoralize me and force me to seek a job elsewhere thus strengthening his bargaining position vis-a-vis Mr. Zaidi to ensure his succession as Managing Director of Chloride when the former finally retired. He had adopted the same strategy in 1975 when Mr.Zaidi had just joined Chloride and both the departmental head and his #2 Mr. Ahmed resigned at almost the same time (reportedly with mutual concurrence). Mr. Zaidi brought back Mr. Ahmed from the company he had already joined and promoted him as departmental head.
I accepted the challenge with grace and recovered most of the overdue amount with just three visits to Rawalpindi but the whole year of 1985-86 was taken by the technicalities and filing of missing documents to obtain payment which in several cases had become time-barred.
In March 1986, Mr. Ahmed resigned. Mr. Zaidi called me in his office and asked me to start taking charge of the department. Mr.Ahmed was encouraged to leave the company before the expiry of his notice period. Mr. Zaidi issued a circular to the trade announcing the resignation of Mr. Ahmed and assumption of responsibilities by me.
I accepted the challenge with grace and recovered most of the overdue amount with just three visits to Rawalpindi but the whole year of 1985-86 was taken by the technicalities and filing of missing documents to obtain payment which in several cases had become time-barred.
In March 1986, Mr. Ahmed resigned. Mr. Zaidi called me in his office and asked me to start taking charge of the department. Mr.Ahmed was encouraged to leave the company before the expiry of his notice period. Mr. Zaidi issued a circular to the trade announcing the resignation of Mr. Ahmed and assumption of responsibilities by me.
Continued to http://livethylife7.blogspot.com/
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