School of Business and Management Sciences Superior University-Lahore

School of Business and Management Sciences
Superior University- Lahore
Project Proposal
On
Strategic and financial analysis of Varioline Intercool Pvt Ltd.
Submitted too:
Sir Usman Sadiq
Submitted by:
Noor ul hassan MBIW-F19-061
Iftikhar waqar MBIW-F19-007
Shehroz khan MBIW-F19-051
Salman Iqbal MBIW-F19-016
Appendix A.Design Challenge Project 2020-21
Project Proposal Form for MBA
Strategic and financial analysis of Varioline Intercoll Pvt, Ltd.
1. Name and address of the Proposed Company

Company Name: Varioline intercool Pakistan Pvt Ltd
Address: 3 km khana kacha Road , khana , Lahore, Punjab, Pakistan 54010
Website: [email protected]
Haead and factory office:

Address: 3 km khana kacha Road , khana , Lahore, Punjab, Pakistan 54010
Tel: +92-42-35978245
Email: [email protected]
Sales office Lahore:

Address: 120-Temple Road, Abid Road
Tel: +92-42-36309421
Sales office Fisalabad:

Address P-70/A, East Canal Road, Near Caltex Pump, Faisalabad, Pakistan
Tel: +92-311-54-99-999
Sales Office Rawalpindi:

Address: Varioline House, Faisal Colony Main Airport Link Road
Tel: +92-51-5955947-50
Sales Office Karachi:

Address: Plot No 5/6-B State Life Building No.5 Abdullah Haroon Road, Karachi
Tel: +92-21-35630998-9
2. Name & Contact Details of the Individuals Responsible for this Project.
(Please name two individuals from your selected company who are responsible for the
interaction and communication with students on regular basis.)
1. Main Contact Person for this Project (Name & Contact Details including Phone Numbers,
Email Address)
Hamza Saleem
Executive HR
0345-4746665
[email protected]
2. Contact Person-2, (Name & Contact Details including Phone Numbers, Email Address –
Must be Different from the Main Contact Person)
Muhammad Ali
Executive Accounts
0317-8224464
[email protected]
Iftikhar waqar
Execuive Management
[email protected]
0320-4631574
3. Project Description
At least 2 pages (A4 size) on project description including company introduction, problem
statement, Action plan (project objectives) and project scope (impact).
Introduction:
Varioline intercool limited incorporated in 1988 nad is official partner with M/s V-line Europe
based in Germany is a global provider of maintenance, repair and operating materials to
industrial plantsunder tailored supply contracts that cover the need for parts and supplies to
support a plant’s entire asset base of foreign machinery and equipment. It has 10 branches across
the globe.
Variline intercool ltd established in 1995 has become a leading manufacturer of commercial
regrigeration equipment in Pakistan also exporting to over 9 countries. Offering a full range of
counter tops, conservators, chest freezers and display cabinets. The company also has business
alliances with following international commercial refrigeration manufacturers named sanden
intercool which is a well recognized brand by the beverage industries worldwide as one of the
lading brand of plug-in commercial refrigeration equipment.
Varioline kitchen pvt ltd established in 1996 is a pioneer in introducing modern integrated
kitchen solution in Pakistan. Since its inception it has continued to be the leading brand for
designing and distributing premium kitchens in the market. The company is partnered with some
kitchen cabinetry and appliances brands; M/s symphony is setting the pace in the kitchen design,
constantly introducing the most exciting ranges and product features across our brands; M/s
zanusi is a leading brand for domestic kitchen and cleaning appliances; M/s AEG appliances
have outstanding performance, versatility and reliability alongwith superb aesthetics.
Varioline platic ltd established in 2015 operates a state of an art production facility plastic
processing operations; blow molding, injection molding, thermoforming and extursion.
Varioline service ltd is a leading HVACR regional post sales services provider with a network
comprising over a 1000 trained techniions. Standard operating procedures comply with health,
safety and environmental regulations coupled with rigorous training of our extensive network
personnel ensure quality and effective services.
Purpose:
The purpose of this project is to highlight and solve all the problems faced by varioline intercool
Ltd. The vision provided by them “To succeed and grow to the utmost satisfaction of the
customers, employees and shareholders”. Every firm has such types of visions, but formation of
vision is not a big deal; Match confidently according to the prepared vision is a fantastic deal.
mission are footsteps to reach the desired vision “To strive for still higher levels of efficiency,
productivity, cost effectiveness, profitability, customer satisfaction, congenial employee’s
relations, profit sharing with shareholders and hence gaining further strength to continue to
succeed and grow”. The writer desires not to only highlight the severe problems, but also create
some necessary solutions and type suitable recommendations according to strategic management
corporate finance disciplines. There are many problems and the writer hopes that all the
recommendations will be helpful to the stakeholders of the firm in each aspect.
Problem statement:
Severe threats to Varioline Pvt Ltd
Varioline Pvt Ltd is facing very severe threats and its performance is not satisfactory. From last
many years firm faces drastic uncertainties in his financial and operating glance. After reviewed
by writer firm is not consistent in his all financial and operating aspects. There is extreme ups
and down in Earning per share, index and stock relation, equity, dividend, sales, enterprise value
and profitability and on management side. Financial disturbance and some risks have been
reported in 2019 annual report as
Primary problems
 Increased competition in local market due to lesser availability of Raw material
 Hike in the oil prices
 Increase in prices of raw and packing material.
 Increase in interest rates on financial borrowings.
 Increased rate of taxes
Secondary problems:
 In-consistency in financial and operational results
Objectives:
The writer desires to highlight all the problems clearly and effectively according to the
disciplines and fundamentals of corporate finance. First of all, the writer want to highlight all
business and financial problems, all problems would be highlighted with horizontal, vertical,
fundamental& technical and complete financial statement analysis. The first objective of the
writer is to highlight the theoretical problems in the light of corporate finance and then travel
towards factual problems. After observing the vision, mission, corporate strategy, ten years
production review, director report, six year glance review, performance snapshots of earnings
per share, index v/s stocks movements, equity ratios, dividend flow and profitability ratios, cash
flows, liquidity and solvency, enterprise value and sales graphs on SCS-PSX and financial
statements, and the second objective is to calculate some mathematical tools like operating,
financial and total leverages for better decisions.
Primary objectives:
There are several primary objectives. E.g
 Business analysis.
 Financial statement analysis.
 Increased competition in local market due to lesser availability of raw material
 Hike in the oil prices.
 Increase in prices of raw and packing material.
 Increase in interest rates on financial borrowings.
 Increased rate of taxes.
 Un-volatility in pre production plans.
 Un-volatility in raw material recovery.
 Inconsistencies in production.
 Un-volatility in days worked.
 Over valuation of share price and disturbance in 100 Index V/s share price.
 Ratio analysis interpretation.
 Horizontal and vertical analysis.
 Find out the operating, financial and total leverage of firm.
Secondary objective ( Management )
There are several secondary objectives. E.g
 Vision and mission statement
 SWOT analysis
 Pestal analysis
 Porter 5 forces model
 Competitive profile matrix
 BCG matrix analysis.
 Corporate level strategies
 Business level strategies
 Functional level strategies
 Formulation, implementation and evaluation of strategies throughout the hierarchy
Project Scope:
The writer would like to perform business analysis contains evaluation of company’s economic
prospect and risks including, analysis of internal environment including strategies, financial
position and performance.
The writer would like to perform financial analysis contains financial, accounting and financial
analysis. Financial analysis will evaluate comparative financial statements. The writer also want
to perform fundamental and technical analysis Complete ratio analysis will be conduct and
interpret accordingly e.g investor ratios, efficiency ratios, cash flow ratios, debt ratios, price to
earnings ratio, solvency, profitability, liquidity ratios, equity ratios and enterprise value ratios.
Financial and market overview will also be observed to check the overall market performance in
trading. After analyzing overall performance, the writer also want to calculate leverage of the
enterprize, leverage includes degree of operating, financial and total leverage of firm. after
calculating, results would indicate sensitivity of firm.
Theoretical problems are

 Increase competition in local market due to lesser availability of raw material: In this
section the writer would find out how varioline can manage their shortage of raw
material and high competition?
 Hike in the oil prices: In this section, the writer would find out how varioline can
manage their oil prices?
 Increase in prices of raw and packing material: In this section, the writer would find out
how it can manage increase in prices of raw and packaging material?
 Increase in interest rate and financial borrowings: In this section, the writer would find
out how it can manage increase in interest rate and financial burden?
 Increased rate of taxes: In this section, the writer would find out how it can manage
increased rates of taxes?
 Un-volatility in production plans: In this section, the writer would comment how
stability would be created in crushing plans of firm?
 Un-volatility in raw material: In this section, the writer would comment how stability
would be created in recovery of cash and inventory of firm?
 Inconsistency in production: In this section, the writer would comment how consistency
would be created in production plans of firm?
 Un-volatility in days worked: In this section, the writer would comment how consistency
would be created in production days of firm?
 Over valuation of share price and index v/s stock price: In this section, the writer would
comment how consistency would be created in production days of firm?
On the other hand the writer also want to conduct strategic management analysis. This analysis
will include all the management factors which have been highlighted in objective to analyze the
managerial performance of the firm.

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1. Name and address of the Proposed Company

Haead and factory office:

Sales office Lahore:

Sales office Fisalabad:

Sales Office Rawalpindi:

Sales Office Karachi:

Theoretical problems are

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