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SHELL PAKISTAN LIMITED
 
Shell is a superior brand name with a 100 year history in this region - in fact the company is still in possession of a fuel storage tank from 1899. However, the documented history of the Royal Dutch/Shell Group in the Indo-Pakistan sub continent dates back to 1903 when a partnership was struck between The Shell Transport and Trading Company and the Royal Dutch Petroleum Company to supply petroleum products in Asia. In 1928, to enhance their distribution capabilities, the marketing interests of the Royal Dutch/Shell Group and Burmah Oil Company Limited in India were merged and the Burmah Shell Oil Storage Distribution and Storage Company of India was born. After the Independence of Pakistan in 1947, the name was changed to the Burmah Shell Oil Distribution Company of Pakistan. In 1970, when 51% of the share holding was transferred to Pakistani investors, the name of the company changed to Pakistan Burmah Shell (PBS) Limited. The Shell and Burmah group retained the remaining 49% in equal proportions. In February 1993, as a result of a decision by Burmah Oil to divest in Pakistan and the deregulation policy of the Government, the Shell Petroleum Co. bought the shares of Burmah Oil Company and 2% shares from the market to become the major shareholder in Shell Pakistan Limited (SPL). In February 2002 The Shell Petroleum Company Ltd increased its shareholding to 76.1% which further demonstrated Shell's continued confidence in the country's economic progress and in the oil and gas sector.

Shell Pakistan is divided into six functional areas i.e. Retail, Commercial, Aviation, Operations, Finance and Human Resources. It is presently headed by Mr. Farooq Rahmatullah, who is the Chairman and Managing Director. Company controls a market share of approx. 30% for white oil products in Pakistan. Shell Pakistan's long- term commitment towards developing the industry in Pakistan was reflected by the disbursement of the final tranche of its investment in the White Oil Pipeline Project amounting to Rs. 1,788 million, thereby raising cumulative investment of the company in the project to Rs. 1,872 million. Additionally Capital Expenditure amounted to Rs. 814 million compared to Rs. 703 million last year.

The primary goal of the company is to position itself as the preferred oil company in Pakistan, leading the field in its commitment to customer service, quality of products, safety and environmental protection.

Current Performance:
In the financial year 2002-03 after tax profits increased to Rs. 1,255 million from Rs. 1,063 million last year, an increase of 18%. The growth in profits mainly results from the increase in distributors margins coupled with the shift in sales mix to higher margin products.

The Company’s pro-active approach to developing the CNG business is embedded in our overall Retail strategy with 54 sites now offering CNG to consumers and more to come. Shell Pakistan is providing refuelling facilities for the first batch of CNG fitted busses in Karachi. This supports our CNG strategy, whilst protecting the environment by promoting the usage of cleaner, greener fuels in congested cities.

During the year an Urban mass transit bus fleet was signed up for supply of Lubricants and HSD in Lahore and Multan and we prudently commenced sales into the Afghanistan market with the shipment of our first consignment of lubricants in early January 2003.

Numerous Customer Value Propositions were delivered at our retail outlets that include the first ever drive-through ATM, first ever pharmacy, the commissioning of Rimula Service Centres and we now provide our customers with the convenience of paying household bills at several pump sites in the major cities of the country.

Strategies have been developed to enhance the efficiency of the Retail network, based on an extensive study and analysis of the Pakistan Retail market and our existing network, conducted with support from Shell's international experience and expertise.

Shell Pakistan ran a nationwide campaign entitled "Quality and Quantity" to create awareness among customers. Ten dedicated Quality Control Units now operate around the clock and play a key role in the quality assurance process. We also remain committed to our rigorous training program for the forecourt staff. These activities demonstrate our commitment to maintaining premier levels of customer service.


Placement In The Industry:
SHELL PAKISTAN LTD is the second largest Oil Marketing Company with a market share of 30% of white oil products. During the current year, we captured a further 4% share in the lubricants market raising our share to 44%. Although we did feel the effects of a shrinking fuels market this year, Shell Pakistan’s fuel sales declined by 6.3%, compared to an industry average of 6.8%. Shell Pakistan’s average throughput per petrol station is of 2.2 million litres as compared to an industry average of 1.6.
Through OCAC Shell has taken the lead role for the revision of the standards enshrined in various laws relating to the petroleum sector.

Technology:
Shell has embarked on a Group Infrastructure Desktop (GID) Project to provide an efficient, global and uniform standard suite of software and hardware (desktops, notebooks, file servers and networks) for all companies in the Shell group with centrally managed information security. This will enable global communication, organizational flexibility, and knowledge sharing to meet the challenges of doing business in today’s world.

Health, Safety And Envoirnment:
Road safety initiatives previously launched have been further consolidated to ensure the safety of our road tanker operations. This includes introducing new vehicles meeting all the requirements of National Highway Authority axle weight regulations and Shell Group Standards, promoting haulier professionalisation, providing route information and health checks for the drivers, and spreading road safety awareness amongst the general public.

Development Of Human Resource And Society:
The Company supports a broad range of social development initiatives in the areas of health, education, sports, heritage and community developments.
A major initiative this year was the launch of the youth enterprise community project ‘Tameer’, a local version of the international Shell project Livewire which encourages young people aged between 16 - 32 years to see starting a business as a viable career option.

The company has launched a major Diversity & Inclusiveness initiative to position itself for future growth. Diversity is not just about gender targets but in a traditionally male-dominated industry, it is a priority for us. In recognition of our efforts in promoting Diversity, your company received a Recognition Award for Gender-Sensitive Management from Workers-Employers Bilateral Council of Pakistan (WEBCOP) jointly with the Alliance Against Sexual Harassment.

Over 40 of our employees are currently working in Shell Group companies worldwide. Staff members who have completed their assignments abroad have returned and are contributing to SPL’s performance.