TABLE OF CONTENTS

1. INTRODUCTION.....................................................................................................6
1.1Corporate Social Responsibility...........................................................................7
1.2 Qarshi Foundation...............................................................................................7
1.3 Qarshi Research international (QRI).................................................................8
1.4 Business Model.....................................................................................................8
1.5 Vision Statement...................................................................................................9
1.6 Mission Statement................................................................................................9
1.7 Qarshi Culture......................................................................................................9
1.8 Qarshi Values......................................................................................................10
1.9 The Qarshi Organization...................................................................................10
1.10 Organizational Hierarchy................................................................................10
1.11 International Business......................................................................................11
1.12 Types Of Ownership.........................................................................................12
2. QUALITY POLICY.................................................................................................12
2.1 Quality Management System..............................................................................13
2.1.1 National And International Standards.14
2.1.2 Standards on Environmental Management Systems (EMS)...14
3. SUPPLY CHAIN.....................................................................................................15
4. WAREHOUSE.........................................................................................................15
5. JOB DESIGN..........................................................................................................15
6. RESEARCH AND DEVELOPMENT....................................................................16
7. DISTRIBUTION.....................................................................................................16
8. HUMAN RESOURCE............................................................................................17
9. MAINTENANCE....................................................................................................17
10. INVENTORY MANAGEMENT...........................................................................17
11. LAYOUT DESIGN................................................................................................18
12. BUSINESS OVERVIEW......................................................................................19
13. PRODUCTS/SERVICES......................................................................................20
13.1 Food and Beverages:........................................................................................20
13.2 Natural Health and Wellness Division............................................................20
14. JAM E SHIRIN FLOW CHART..........................................................................22
14.1 Raw Materials...................................................................................................23
14.2 QRI Testing.......................................................................................................23
14.3 Distillation Chamber........................................................................................23
14.4 Storage Unit......................................................................................................24
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14.5 Syrup Cooking..................................................................................................24

14.6 Filtration Unit...................................................................................................24
14.7 Cooling Plant....................................................................................................24
14.8 Flavoring...........................................................................................................24
14.9 Finished Product Testing.................................................................................25
14.10 Bottling............................................................................................................25
14.11 Labeling And Batch Coding..........................................................................25
14.12Auto Carton Packing......................................................................................25
14.13 DISPATCHMENT:.........................................................................................25
15. SPRINGLEY (NMW) PROCESS FLOW CHART..............................................26
15.1 Water Source.....................................................................................................27
15.2 Booster Pump....................................................................................................27
15.3 Sand Filter (Media Filter)................................................................................27
15.4 Carbon Filter (Media Filter)...........................................................................27
15.5 Cartridge Filter................................................................................................27
15.6 UV Sterilization................................................................................................27
15.7 Cartridge Filter................................................................................................28
15.8 Ozonation..........................................................................................................28
15.9 Cartridge Filter................................................................................................28
15.10 Product Balance Tank....................................................................................28
15.11 Filling...............................................................................................................28
15.12 Production Capacity of Springly...................................................................28
16. SALES ANALYSIS...............................................................................................29
16.1 Qarshi Jam e Shirin Sales................................................................................29
16.2 Springley Natural Water (SNW).....................................................................30
17. CONCLUSION......................................................................................................31
18. RECOMMENDATIONS.......................................................................................31
19. APPENDICES.......................................................................................................32
Interview Questions..................................................................................................32
Process Cycle.............................................................................................................33
Process Cycle.............................................................................................................34

TABLE OF FIGURES

FIGURE 1- QARSHI INDUSTRIES.....................................................................................4

FIGURE 2- BUSINESS MODEL...........................................................................................6
FIGURE 3- ORGANIZATIONAL HIERARCHY..................................................................8
FIGURE 4- INTERNATIONAL BUSINESS.........................................................................9
FIGURE 5- CAPITAL STRUCTURE....................................................................................9
FIGURE 6- QUALITY POLICY...........................................................................................10
FIGURE 7- CERTIFICATION............................................................................................11
FIGURE 8-RESEARCH AND DEVELOPMENT..............................................................13
FIGURE 9-LAYOUT DESIGN.............................................................................................15
FIGURE 10 - BUSINESS OVERVIEW...............................................................................16
FIGURE 11- PRODUCTS OF JAM E SHIRIN..................................................................17
FIGURE 12-PROCESS CYCLE 1........................................................................................19
FIGURE 13 - PROCESS CYCLE 2......................................................................................23

1. INTRODUCTION
Qarshi Industries (Pvt.) Ltd. is one of the largest natural products companies in Pakistan. It
is a modern and progressive facility that manufactures and markets leading brands that have
become household names.
As a leading manufacturer of Natural Products, Qarshi is engaged in promoting healthy
living for over seven decades. It has been offering blend age-old Oriental and Greek herbal
preparations with the latest advancements in science and technology to provide safe and
effective products to its customers.
From humble beginning in 1968, Qarshi Industries (Pvt.) Ltd. is now Pakistan's largest
herbal pharmaceutical company. In 1968 the youngest son of Shifa-ul-Mulk, Mr.Iqbal
Ahmed Qarshi after completing M.S.C in Chemical Engineering, laid the foundations of
Qarshi Dawakhana that has now evolved into Qarshi Industries, a modern and successful
company that outweighs by far, the expectations of its original founder.
Qarshi Industries is highly rated company in its category in Pakistan. It has consolidated its
image as a quality-conscious company and has, over the year, demonstrated its firm
commitment to quality and strict adherence to international standards. Qarshi takes pride in
maintaining a high quality in its products and superior skills and acquiring the latest in
advanced technology.

FIGURE 1- QARSHI INDUSTRIES

1.1Corporate Social Responsibility

Qarshi is a socially responsible organization that fulfills its mission and lives by its values.
In daily operations, Qarshi conduct their business ethically and with integrity. They believe
in dealing fairly with all stake holders, taking care of their employees and providing needed
service to the community and the world they trade in.
They care for the environment through direct and in direct environment conservation
practices. In their manufacturing process total environmental harmony is maintained by
ensuring efficient waste conversion systems that achieve zero solid waste level all year
round.

1.2 Qarshi Foundation

Founded by Mr. Iqbal Ahmad Qarshi in July 1994, Qarshi Foundation carries out social
welfare activities with focus on Health, Education, Welfare Projects and Environment
Conservation.
Qarshi Foundation strives to bring sustainable development by raising health awareness, and
promoting professional and technical education and research activities. For this purpose, it
runs various model complexes comprising of educational and health facilities.
The foundation has established Tibbi Dispensaries, Mother Child & Health Care Centers and
Hospitals. In the area of education Qarshi Foundation is sponsoring schools, running a
Vocational Training Centre, Engineering College and QITHM.
The foundation also provides education materials to schools, gives scholarships to bright
students and offers Qarz-e-Hasna to deserving students for higher and technical studies. The
foundation also gives financial assistance to the Deeni Madaris, NGOs and Institutes etc.

1.3 Qarshi Research international (QRI)

Qarshi Research International is the 1st internationally accredited lab in Pakistan with ISO
17025 both from Norway and PNAC. Four different types of laboratories are working in
Qarshi Research International.
Chemical Laboratories
Analytical Laboratories
Microbiological Laboratories
Tissue culture Laboratories

1.4 Business Model

1.5 Vision Statement

6

FIGURE 2- BUSINESS MODEL

Distinctive Leadership in
Quality
Human Resource
Research & Development
Corporate Social Responsibility

1.6 Mission Statement

To be Premier source of knowledge and Leadership for the Achievement of Economically,
Environmentally and Socially Sustainable Development.

1.7 Qarshi Culture

Ownership
Cleanliness
Competition
Productive Hard Work

1.8 Qarshi Values

Nake Niyati
Justice
Self Respect
Positive Thinking

1.9 The Qarshi Organization

Research & Development
Commercial Business
Welfare Organization

1.10 Organizational Hierarchy

FIGURE 3- ORGANIZATIONAL HIERARCHY

1.11 International Business

Qarshi industries operations in 29 countries, footprints in over 100 countries.

FIGURE 4- INTERNATIONAL BUSINESS

1.12 Types Of Ownership

A 100% privately owned organization.

CAPITAL
STRUCTURE

EQUITY
FINANCING
100%

DEBT
0%

FIGURE 5- CAPITAL STRUCTURE

2. QUALITY POLICY

Qarshi Industries (Pvt) Ltd aim to become the global leader in Natural Health Care Products,
Traditional Sherbets, Natural Mineral Water, and Natural Juice based Beverages.
This, they believe is possible by providing quality, safe and halal products through hygienic,
environment friendly, safe processes and practices, compliant to National & International
Standards and applicable regulations addressed in Qarshi Management System.
They are committed to the total satisfaction of their customers which is ensured by continual
improvement in their system and development of a nake-niyat, competent, dependable and
hardworking team.

FIGURE 6- QUALITY POLICY

2.1 Quality Management System

The QARSHI quality management system is developed in an integrated manner and adheres

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to various global compliance and management system.

2.1.1 National And International Standards

They are certified by the following standards:
ISO 9001 (UK) quality management system (consistent quality products).
ISO 14001 (UK) environmental management system (environmental caring
practice).
ISO 17025 (PNAC) lab accreditation (international quality standards for testing).
HACCP (NETHERLAND) hazard analysis critical point (assurance of safe
products).
Organic certification (NETHERLAND) organic cultivation (chemical and
pesticides free product).
PCP certification (PAK) national standard for welfare organization.
HALAL Certification (PAK) national standard for halal (assurance of halal
products).
Green office certification (PAK) national standard for green office (reduction in
carbon footprints).

FIGURE 7- CERTIFICATION

2.1.2 Standards on Environmental Management Systems (EMS)

11

In 2000, Qarshi became the first major company in the country to earn a single global
registration to the ISO 14001 environmental management system standards. They achieved
this certificate within just one year of the finalization of the standard. Before customer
satisfaction occupational safety and health and environmental opportunities and challenges
in all operations and services areas.

3. SUPPLY CHAIN
Their products depend on a safe, high quality and affordable supply of raw materials to meet
the demands of their business and the expectations of their customers and other stakeholders.
Increasing pressure on global food supplies combines with a growing focus on greenhouse
gas management creates a new set of challenges and opportunities for their business. These
challenges and opportunities are not only connected to the raw material they need to
manufacture their herbal products, but also to a complex local supply chain that involves
hundreds of independent collector, hundreds of intermediaries and a number of businessmen.

4. WAREHOUSE
QARSHI have in house storage which have a capacity of 40,000 cartons per day. They
produces a fast moving products in a batch form and their mega product like jam e shirin
have only 2 day storage capacity. Mostly qarshi produces their product to keep just in time
inventory but they also produces some of their product as per on demand and the need of
their customer.

5. JOB DESIGN
12

In QARSHI, 2000+ labor are working and they are divided in to two categorized one is
qarshi employees which have fixed salary with 10 percent increment every year and the
other one is third party workers and they have salary in accordance with govt. orders as
13000 fixed. They are working in 2 shifts from 8am to 5pm and if they are working after 5
pm the company pay them hourly rate i.e. 80 Rs. In peak season, the labor works in 3 shifts.

6. RESEARCH AND DEVELOPMENT

QARSHI research international labs have two primary objectives:
To test the quality of the finished products.
To create new products and processes and improve those that already exists.
In order to have environmental sustainability being incorporated more and more into
products, their programs systematically assesses and optimizes the environmental
performance across the entire value chain at the earliest stage in the development of new and
innovate products

FIGURE 8-RESEARCH AND DEVELOPMENT

7. DISTRIBUTION

13

Delivering the products in high quality and on time from the factory to customer is a vital
part of their business. To continuously enhance efficiency and environmental performance in
distribution, they:
Optimize distribution networks and routes;
Plan across all their operations;
Explore opportunities to improve transportation, e.g. use sea route for their export
products
Expand training, both from a safety and environmental efficiency perspective, use
latest technology where practical, and recommend the same to their suppliers.

8. HUMAN RESOURCE
They educate all employees to live by the QARSHI corporate business principle on
environmental sustainability. They make QARSHI resourceful and therefore, they:
Train all employees on this policy;
Create favorable workplace conditions that help all employees take personal
responsibility for protecting the environment by promoting the application of this
policy to day to day activities at the workplace as well as at home;
Ensure environmental sustainability is covered as part of relevant training,
-workshops and meetings to raise commitment of our employees, suppliers, business
partners and the community at large scale.

9. MAINTENANCE
In Qarshi different types of maintenance is done like annual maintenance and preventive
maintenance etc. which is done by proper schedule by engineering department and through
requisition slip the managers raise request complain to the engineering department.

10. INVENTORY MANAGEMENT

14

The level of inventory is not fixed. It changes with the level of demand. Company maintains
all the record of how much it was produced last time and what inventory was sold and
what was left in goods management system. It also helps them to decide to how much to
produce in future. They use FIFO Method for recording Inventory.

11. LAYOUT DESIGN

Layout of the Qarshi industry is per requirements. They are using process layout design to
make production easy and smooth.

FIGURE 9-LAYOUT DESIGN

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12. BUSINESS OVERVIEW

The economic performance is an assessment for an organization of its success in areas
related to its assets, liabilities and overall market strength.
Many business operators take regular stock on either a formal or less formal basis of the
general economic performance of their company to make sure that it remains on the right
track financially. Qarshi industries based its business on zero liabilities and the economic
performance is evaluated on the basis of production and sale of products on yearly basis. It
fluctuates with market demand. Qarshi produces and markets more than 250 natural
products. The sales volume of mega products like JAM E SHIRIN and SPRINGLY
NATURAL MINERAL WATER (SNW) increased by 2.24% and 1.24% respectively during
the financial year 2014-2015.

FIGURE 10 - BUSINESS OVERVIEW

16

13. PRODUCTS/SERVICES
The Qarshi quality natural products present a majority of health and wellness products that
have been the trade mark of Qarshi since its beginning. The wide product range is divided in
to two different segments.

13.1 Food and Beverages:

Refreshing syrups
Natural mineral waters
Soft drinks
Jam, Marmalades, Murabbas
Honey
Ketchup and Sauces
Johar Joshanda
Instant Power Drinks

13.2 Natural Health and Wellness Division

FIGURE 11- PRODUCTS OF JAM E SHIRIN

17

LIFE LIGHT REFRESHING

JAM E SHIRIN

SPRINGLEY

18

14. JAM E SHIRIN FLOW CHART

JAM E SHIRIN
PROCESS FLOW
CHART

FIGURE 12-PROCESS CYCLE 1

19

14.1 Raw Materials

Qarshi is purchasing the necessary raw materials from the open market located in Lahore.
On early stage, four different raw materials are being used to make the JAM E SHIRIN,
which includes:
Rose (Rosa dmascena)
Sandal (Santalum album),
3, Ushna (Parmotrema perlatum)
Khuss (Chrysopogon zizanioides).

14.2 QRI Testing

Required raw materials are than Carried to Qarshi testing lab to ensure the standard raw
materials are only selected. For this purpose, various quality assurance tests are run in QRI
section to obtain better quality of raw materials for proceeding further into manufacturing
assembly.

14.3 Distillation Chamber

After passing through various quality tests run by QRI the desired raw material are now
ready to be used, firstly the four raw materials are boiled and the vapors are than condensed,
each raw material is distilled at 40 c in separate distillation chamber which results in:
Aqua Distillate Santalum album
Aqua Distillate Rosa damascena
Aqua Distillate Parmotrema perlatum
Aqua Distillate Chrysopogon zizanioides
No water is added or used; vapors are condensed to get the distillate which ensures the max
quantity of arq.

20

14.4 Storage Unit

The distillate than carries its journey further into the storage section where the extracts from
all the separate chambers are stored. For ensuring the quality of the distillate the in process
QRI screening is carried out.

14.5 Syrup Cooking

The distillate and sugar are mixed in this section for manufacturing the JAM E SHIREEN.
Mixture of distillate and sugar is cooked at 100 c for three hours to obtain the desired syrup;
the precautionary measures are taken that includes regular monitoring, and regulating the
temperature of each chamber. Two large size chambers having capacity of 1400 liter are used
in this regard.

14.6 Filtration Unit

The next step includes the filtration of any insoluble particle that may arise in the process to
obtain the syrup. To achieve this Filtration, unit is used to carry out the filtration process.
The syrup is passed through various filter sections to minute the amount of the particles with
accuracy.

14.7 Cooling Plant

The cooling plant is to lower the temperature of the syrup after it has passed through various
filter sections. The temperature drops and reaches to a low of 45 C from 100 C.

14.8 Flavoring
This part of the process includes the most important value that can be added to the final
product as the syrup moves from the cooling chamber to flavoring Conveyor. Natural flavor
is used that includes Rose marry color (red) extracts and synthetics of herbs. And finally the
JAM E SHIRIN is produced.

21

14.9 Finished Product Testing

The finished product is than tested in QRI department to ensure the quality product only will
be allowed to be filled and packed.QRI runs almost 265 quality tests to ensure the quality
and ingredients validity. All the department are integrated from raw material to finished
goods.

14.10 Bottling
After the successful tests JAM E SHIRIN is filled through automatic filling station. The
workers hand pick bottles and then conveyor makes the bottle ready for filling with the
capacity of 200 bottles per minute.

14.11 Labeling And Batch Coding

The filled bottles are passed on through automatic conveyor to the Labeling section where
Labeling and batch number is stamped on the bottles with the capacity 150 bottles per
minute and are passed on to auto Carton Packing section.

14.12Auto Carton Packing

Finally the bottles reach to automatic packaging section which includes the automatic carton
filling machine. This allows the time efficiency and packs 24 carton of 500 ml bottle per
minute. Cartons distributed through automated channel. For reaching the maximum capacity
of 40,000 cartons. From filling to packaging there is an automatic process

14.13 DISPATCHMENT:
The finished product is stored in the store and dispatched within a day as the store only has
maximum storage facility of two days. So most of the product is dispatched as soon as it is
packed through Qarshis own distribution channel.

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15. SPRINGLEY (NMW) PROCESS FLOW CHART

SPRINGLEY NATURAL
MINERAL WATER
SPRINGLEY
NATURAL
PROCESS
MINERAL WATER
FLOW CHART
PROCESS FLOW
CHART

FIGURE 13 - PROCESS CYCLE 2

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15.1 Water Source

First of all, the water is obtained from the deep water source approximately 400-500ft
beneath the surface of the earth. The company itself owned deep water source to cut the cost.

15.2 Booster Pump

Booster pump is used to extract the required amount of water to the next section i.e. Sand
filter.

15.3 Sand Filter (Media Filter)

First of all the water is passed through the sand filter that has the functionality of separating
the sand particles from the water. The particles are trapped from the water to sand filter.
Water is then passed on to the next filter.

15.4 Carbon Filter (Media Filter)

It includes the Carbon in assembly that prevents the flow of negatively charged cations and
positively charged anions are trapped in this filter section. In other words, all organic
material is removed from water.

15.5 Cartridge Filter

There are two Cartridge filters one with 5 micron capacity and one with one micron
capacity. Five micron filter separates the microorganisms and contaminations up to its limit
of 5 micron. One micron allows furthering filtering the water only below 1 micron
microorganisms can escape with low probability ratios.

15.6 UV Sterilization
Comes under the radiology section, here the water undergoes UV sterilization is done up to
257.3 nano meter. With subject to UV bacteria is killed and water is purified from bacterial
contaminations.

24

15.7 Cartridge Filter

The 0.25 micron filter is used here to further reduction of the remaining microbes in water
that skipped throughout the above filtration and sterilization processes.

15.8 Ozonation
The preservation of water is done through the inclusion of the tri atomic oxygen. The
oxygen is added to the water and it is known as the process of Ozonation.

15.9 Cartridge Filter

At this 1 micron filter is again used to check and eliminate any contamination in case some
quantity of bacteria or microbe may still be present in very small fractions in water.

15.10 Product Balance Tank

After passing the above cycle of filtration, Springley Stores the water into balance tank from
where the water is allowed to enter the filling section. Before that it remains in Product
balance tank.

15.11 Filling
Finally the water is filled into the bottles and is stored in the storage area and then
dispatched according to the demand. From filling to packaging there is an automatic process.

15.12 Production Capacity of Springly

Qarshi have a capacity of producing springly natural mineral water 130 bottles (1.5 liter) per
minute and 60 bottles (19 liter) per minutes.

25

16. SALES ANALYSIS

16.1 Qarshi Jam e Shirin Sales

(Cartons) 1 Carton = 12 Bottles

TABLE 1
FINANCIAL YEAR

PRODUCTION

SALE

% INCREASE

JULY 2011-12

2,293,088

2,278,755

3.85%

JULY 2012-13

2,604,292

2,586,965

14.29%

JULY2013-14

3,705,703

3,691,647

29.45%

JULY2014-15

3,780,000

3,774,296

2.24%

TABLE 2

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16.2 Springley Natural Water (SNW)

(19L BOTTLES)

TABLE 3
FINANCIAL YEAR

PRODUCTION

SALE

% INCREASE

JULY 2011-12

729,845

726,737

11.10%

JULY 2012-13

738,701

741,524

2.04%

JULY2013-14

819,387

814,992

9.89%

JULY2014-15

829,935

824,992

1.24%

TABLE 4

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17. CONCLUSION
After studying the manufacturing operations of the Qarshi industries, we concluded that the
Qarshi industries is the emerging face of quality products and preserves environment by
friendly environment policies. They will continue their working to keep the land green. The
industry uses the latest and up to date technology for the manufacturing of their products.
Qarshi produces the more than 250 products.
Qarshi follows the different national and international standards which help them constantly
benchmark their services and processes against globally recognized quality standards. They
will continual improvement and monitoring of their processes through regular reviews,
audits and customer feedback.

18. RECOMMENDATIONS
After visiting the qarshi industries hattar and after detail analysis of operations, we came up
with the following recommendations to improve processes:
There should be close control and monitoring system of workers.
Some of their processes are being done manually if these are converted to automatic
system output can be increased.
Qarshi should open more outlets in the country to reach the rural population.
Qarshi should make use of the softwares to record the data instead the manual frame
work.

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19. APPENDICES

Interview Questions
Q # 1: From where they purchase raw material?
Q # 2: Are they providing fixed salary or according to the skills of labor?
Q # 3: Are they providing Just in time inventory?
Q # 4: How many workers are in the company?
Q # 5: How they record their data?
Q # 6: Do they manage quality of products?
Q # 7: When company gets certified from ISO?
Q # 8: Operational processes are done manually or automatic?

29

Process Cycle

30

Process Cycle

31