Business Helpline Report – Syed Sheharyar Ali is the executive Director of Treet Group of Companies, a renowned business group of Pakistan. The group engaged in manufacture of various products. Treet Corporation Limited is the parent company of the group that manufactures shaving blades and disposable razors and is well known company in the country. First Treet Manufacturing Modaraba looks after Packaging Solutions, a corrugated box manufacturing company, Packsol Paper and Board mill, that manufactures paper and FTMM Soap Division that produces different kinds of soaps. M/S Treet Corporation Limited recently participated in the Family festival that was held at Fortress stadium Lahore, in which several companies related to food, engineering, home appliances industries were present. Business Helpline is bringing out a special coverage report on the family festival in form of a special supplement for which the given below exclusive detailed telephonic interview was recorded.
In response to the questions from the representative of the newspaper of BHL, Mr. Sheharyar Ali explained the operations of the group and announced the launch of Global Econo Trade (GET) Motorcycle Project that will start assembling motorcycles this month. He truly believes that GET Motorcycles will be a valuable addition to Pakistani motorcycle market.
Putting up the question by the reporter that your company is dealing in different projects, and your company has just participated in this festival. There are many types of exhibitions held on international basis as well as in Karachi. Would you think you get any depiction out of them?
Replying to this, he expressed that they are not well aware about the exhibitions you have quoted, though we have participated twice in the exhibitions held in Karachi. He added that their company possess different kinds of products, which are of superior quality than those available in the market. Consequently, we have large number of distributors and buyers having access in the market for our products.
Giving an introduction of his business activities. Mr. Sheharyar spoke that Treet Corporation was established in the year 1954 at Hyderabad. Thereafter Lahore factory started operating in 1984. For the last 50 years we are successfully enhancing our business operations.
The correspondent asked that it is your well-known brand that has penetrated in the minds of public. It has also been proved that success of any company is reflected when a brand is penetrated on the minds of people and now a large community is well aware of your brands. Now various companies in Pakistan have introduced different kinds of blades and disposable razors, while China has introduced various types of razors and blades in local Market. What is your opinion about its impact on our country’s products as well as your marketed products?
Replying to this question, he said that they are dealing with best quality products in Pakistan. Moreover, they are generating foreign exchange for Pakistan as well. He added that they are bound not to export or import ant thing in Pakistan without paying due taxes or duties levied by the Government. However, various types of parties including in unfair means and smuggling such products without paying any taxes whatsoever puts a negative impact on country’s products. These types of imported items are of inferior quality. On the other hand, we take responsibility to replace any product if a distributor or buyer is not satisfied of it.
He further added that the cost of production is increasing day by day which ultimately adds to the selling cost of any item. Having poor purchasing we are price conscious and rush to cheaper product than quality. This is the reason we are generating less revenue than previous times. He claimed that by receiving fewer profits ultimately affects the earnings of the Government as well. A number of times we have been writing to the government to discourage those people who are indulged in such activities but still not received constructive response from the government. The prevailing conditions of the country are also well known to you, how can this type of smuggling be stopped? He further uttered that if you pay visit to nay premises of armed forces you also experience of various kinds of smuggling items being used there.
The reporter asked Mr. Sheharyar that if there is any authority available with the Government who can put restrictions on such kind of smuggling? My another question was that you have just explained that there are number of disposable razors available in the market. In my opinion an ordinary razor cost just Rs5/- and if he purchases as blade of your brand, it also cost Rs5/-. What do you think is not better if he buys a disposable item of the same cost instead of what you company is offering? What is your explanation in this regard?
Replying to the above question, he elaborated that their company manufactures high quality products and those people who know that what kind of products we are offering. He defiantly prefers it and will never buy sub-standard material. Moreover, if he feels that if by paying just two rupees more, he is getting much better product. He prefers to buy our products. So, we don not feel that much impact in comparison to those prevailing in the market.
By putting another question by the reporter that rising Electric and Gas chargers have enhanced the cost of production in adding to the government’s specified duties and taxes. How it is possible for an industry to survive while facing such hurdles? What do you say about this?
Replying to the question, he said that if we have to survive and compete in the market, we have to see that on which points we have to curtail our production cost. There are many kinds of wastage where by saving them we can decrease our cost of production. You will appreciate that Treet corporation is the only industry in Pakistan that has been exporting its product in China. You know that China is very expert in making different kinds of items but fortunately we have been exporting a considerable amount of our products to China.
However, Mr. Sheharyar admitted that their company was not generating same revenue what they were earning ten to fifteen years back but still we they are competing in the market in well manner. Therefore, for building good relationship with the parties, it is our strategy that we cut down our profit margin in order to facilitate our distributors and awarding them more percentage in the profit. Consequently, distributors pass on our some relief to their buyers as well.
While answering to another question from the representative of the Business Helpline regarding shortage of electricity and now the gas load shedding. What is his opinion and suggestion about its impact on our industries sin Pakistan, he was of the view that definitely there is immense impact on shortage of electricity on our industries? But in order to carry out our routine workings, we have to depend on Generators in absence of electricity compensating our lost working hours. It runs on diesel and you know that the cost of petroleum products has enhanced tremendously. Due to inadequate accessibility of electricity, small industries and cottages are getting closed. It is very unfortunate for this country that industries are going to be clogged instead of growing.
On response to another question about his suggestions and what he would like to request and what kind of subvention he is expecting from the Government for the betterment in future, he viewed that the expenses of main utility items should be truncated which will ultimately effect on cost of production and it is the only way we can survive and the industry can grow. But these must be one who desires and should do the workings with his entire truthfulness and honesty. He further requested not to fill his own pockets but to care the pockets of the other inhabitants living in the country. The corresponding inquired about other products which they are manufacturing other than Treet blade. Mr. Sheharyar described that his Company has introduced four kinds of soaps in the market namely ‘SABA’, ‘NOVA’, ‘BODY GUARD’ and ‘AKS’. You have seen that Bodyguard soap is red Color carbolic Soap and it is the only variant in Pakistan produced by us that no other industry is making such kind of product.
The reporter spells out that he has been meeting the Producers and executive of various companies that are engaged in making variety of soaps in the country. They have been complaining that a range of duties have been imposed on this product. Being a manufacture of same kind, what do you have to say about this context?
Replying to the above question, he appreciated that paying of duties is a national that paying of duties is a national cause and we should do it. But I don’t think that more than 10 – 20% of manufacturers pay duties in this context. As far as we are concerned, we pay duties and taxes in all manners. However, we cannot say that a large number of duties are levied on production of soaps, therefore, it is not a matter of much concern.
Replying to another question from the reporter of BHL, regarding the used oil their company is importing for manufacturing of soaps. Additionally, some companies engaged in the business of cooking oil. What is his opinion in this regard? He waited for an instant and said that this answer will be delivered by one of his staff Mr. Habib, but unluckily he could not be contacted.
By giving an introduction of his business activities and his brief profile, Mr. Sheharyar said that he got MBA degree from America and joined this company near by 2005. His grandfather whose name is Syed Wajid Ali was founder of Treet Corporation. He further added that Syed Shahid Ali is his father who is the Managing Director of Treet Corporation.
In response to another question from the representative of the newspaper about the problems being faced by his company, he said that he said that the cost of oil and petroleum products have been raised considerably. You know that growth of industries in any country results in creation of more employment opportunities. If industries are going to be bunged, how can chances of employment be increased? I earnestly requested the government to help-out the industries in every manner in order to increase employment opportunities. By acting on the suggestions being placed by the industrialists, it will certainly bring prosperity for the people as well as Pakistan. Moreover, Government should provide subsidies to the industries in the fields of electric, gas and also give relief in the taxes and sale duties etc. He elucidated that unless the Government cares about the affluence of the industries, how can they develop and grow. On replying to the question of reporter regarding the irregularities of the traffic of electricity, he was of the view that it is strange, a person who uses more electricity he pays more though the tariff should be less if he uses the electricity in bulk. Such kind of example is not available in any country except Pakistan.
