Sika Paint Industries Private Limited Commerce Essay


Sika Paint industries private limited is the manufacturer of the leading brand sparco and it is known by its trademark sparco in both domestic and international market. It was started in 1988 as a sole proprietorship but due to its fast growth it became a private company in 2004.

The presence of sparco paints is all around Pakistan. It has five regional offices and they are located in major cities of Pakistan like Lahore, Karachi, Peshawar, Rawalpindi and Gujarat. It is also exported to Afghanistan and it is available in major cities of Afghanistan. This export from Pakistan was started in 2005. The company is planning to increase its business in Middle East, Central Asia and African countries.

The company is moving towards success day by day because it is satisfying demands of the industry and it has made many loyal customers as they always struggle to maintain good quality. They also give advisory services to their customers in this way customers become more satisfied.

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The reason for their rapid growth is also that their staff is well trained and they focus on training and development of their employees. They do training need analysis, that which of their employees need training and they identify through it. They give compensation to their employees and they have compensation packages for their employees according to their performance.

Vision Statement

We seek to achieve distinction as the best paint company in the region with a worldwide reputation for the high quality products and services. The company aims to be respected as an ethical and sustainable company and acknowledged as the leading provider and manufacturer of innovative paint and color technology and round-the-clock customer support. We are committed to improving the lives of our customers by providing quality services, products and solutions that earn their trust and build lifetime relationships.

Mission Statement

We believe in best endeavors by adding value through technical competency, quality manufacturing, marketing and proactive management to ensure excellent services to our customers that facilitate prosperity and growth to our stakeholders and society in the local and international market through staff training, effective product research, innovation and customer service.


Their products are as follows:

Decorative Product

Under coat and Primers

Economy Dream Series

Industrial Products

Auto/NC Products

Wood Products











SHRM model


Sparco paints focus on selection of their employees they fully perform all the steps for selection. Firstly, the process of recruitment starts when the HR department identifies that what kind of employees are needed in future. They match available human resources to the job and select the suitable employee.


Performance appraisal is the evaluation of employee’s performance. Hiring best employees and by giving them training does not mean that they will work perfectly so there should be a check in order to evaluate the employees performance and it is called performance management. At Sparco, performance appraisal is of significant importance and it is done in order to take decisions regarding promotion, compensation, and training. It is done to access the following issues:

On the job performance

Training needs assessments


Succession planning

Compensation and benefits


The reward system is one of the most under-utilized and mishandled managerial tools for deriving organizational performance. Sparco paints, after identifying that which employee should be rewarded, they give the following rewards other then the basic salary.

Annual increments

Conveyance allowance

Earned leaves

House rent

Car loans

Hajj reward


They focus on developing high quality employees. This is done by building confidence in the employee and by giving them incentives in this way the rate of employee retention is increased and employees become more committed and loyal.

Market driven Strategy:


Sparco is focusing on producing differentiated products as they deliver customized products to their customers. They prefer good quality and give best to their customers. Master palette is expensive and superior brand of Sparco, the customers identify their selected colors and their desired demands are customized and manufactured.

PEST analysis


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Nowadays political situation of Pakistan is not adequate, every new government make their own new trade policies. Sparco paints is experiencing a problem due to the new trade policies it should be beneficial to exporters and investors as well.


The current economic situation of Pakistan effects the cost of production as the inflation rate is high and thus sparco face reduction in the profit margin.


The world is becoming social and the life style of the people is changing and their demands are growing. Sparco paints is focusing on fulfilling the demands of customers according to the changing life style and new demands.

Technological factors:

Technology plays an important role in the progress of any organization. Saprco is focusing on using latest technology. They have excellent computerized machines and they have imported latest technology machines from Japan, China and France.

SWOT Analysis


Sparco paints has the following strengths and it has gained competitive advantage due to these strengths:

Good quality

Strong Management

Well trained employees

Strong dealer network

Quality Control Standard Certification

Strong quality, sale and service

Free color advisory service


Besides the strengths of Sparco paints it also has some weaknesses which are as follows:

Financial Problems

Lack of advertisement

Less Utilization of capacity

Limited regional offices or outlets


Sparco has the opportunities to expand its business. Some of the opportunities are as follows:

Exploration of market in Pakistan

Increase in product range

Increase in production capacity


Sparco paints also face many threats. These threats are for present and future as well which are as follows:

Strong Competition

Rapid changes in the policies of government

Industry Analysis

Porter five forces model

Bargaining Power of Buyers

Bargaining power of buyers is high because there are many competitors present in the market. Some of the competitors like national paints offers low price as compared to sparco paints but quality is not good as compared to sparco paints. In this way some customers who are not quality conscious can prefer other paints available. So buyers have high bargaining power.

Bargaining Power of Suppliers

Bargaining power of suppliers is low because there are many suppliers of sparco paints. So, there if one supplier charge more price then they have the option for other suppliers. But in certain cases it is higher and in certain cases it is lower because different raw materials come from different types of suppliers.

Threat of New Entrants

Threat of new customers will be low as heavy investment is required to start such type of business and sparco paints has made its loyal customers because of good quality so there is no threat from any new entrant.

Threat of Substitutes

Threats from substitutes exist if there is choice of products with lesser prices of better performance parameter for the same idea. Sparco paints faces threat from national paints because it is available in the low price and it is a substitute.

Current Rivalry

This force describes the strength of competition between existing companies in an industry. There are many rivals in the industry which Sparco paints faces that is ICI paints, national paints and berger paints. Sparco paints is facing a huge market competition.

Training and development process:

Sparco paints has its own training and development department and their responsibility is to train the employees, for this they identify the training needs that which employee needs training and what type of training should be given to them.

Afterwards, they form plans for the training and collect material for training and they select the qualified instructor according to their requirement and then they start coordinating and administrating the training process.

Training need is discovered through the following analysis:

Identify organizational and production problem such as

Low Productivity

High Cost

Delayed Production

Analyze job & employees through

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Job Analysis

Employees Appraisal


Previous Problems

They Collect employees and managerial problems and their opinions conduct interviews, ask them to fill questionnaires. This is done in order to obtain views.

Future problems

They also identify that which problems can occur in future and they train their employees accordingly. They look for the following future problems:

Expansion of business

New products, new services

New design

New technology

Organizational changes

Training Resources:

At sparco, they use the following training resources to train their employees well.




Techniques for training:

They use different techniques to train their employees which are as follows:

Presentation methods

Lecture method

Audiovisual techniques

Team training

Technical training

The Recruitment Process:

Sparco professionally sophisticated environment helps greatly in attracting and retaining skillful and highly competent employees. The process of recruitment starts of firstly when the HR manager and his department fellows prepare human profiles to know and analyze which kind of employees are needed in future. The nature of their work is such that they categorize two types of staff with respect to the skill and knowledge required. The two categories being the management staff and the non-management staff.

Internal recruitment:

It is the most widely practiced recruitment policy at sparco. They give importance firstly and for mostly to their internal deserving and competent employees. Other than that there are a number of trainees here on contractual basis, It is when a post is vacant a trainee is tested for his skills and recruited in the post if skilled enough.

External recruitment:

When any job vacancy comes up the concerning department brings it to the notice of the HR Department, the department then verifies if from the profile data. Then if formally takes approval from CEO. Sparco in order to approach external market. The two methods of recruiting externally are:

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Personal references