In May 1964, Shezan International was formed as a private corporation, and was the first company in Pakistan to produce fruit juices. It was formed as Joint Venture between Amcor Corporation an American Company that specialised in fruit processing and fruit products and a Pakistan investment group led by Chaudhry Shahnawaz.
In 1965, test marketing of orange juice began. The company set up their fruit processing, bottling plant and head office in Lahore in 1967, the company expanded production into mango, grape, apple and plum juices. The year 1969 brought new addition of Lemon Barey juice.
In 1970, the company created a research and development laboratory to improve quality, and development of new fruit products. Also in 1970, with the introduction of mango, orange, and lemon squashes, the company ventured into fruit based food production.
Marmalade, tomato ketchup and various jams were added to the food line in 1971 and canned fruits and vegetables soon followed.
Even with a growing product line, Shezan found that mango juice was still their biggest seller. To keep pace with the fast growing market demand production capacity was tripled in 1978, and a further doubling in 1982 was carried out.
In the year 1982 the company established a new plant and office in Karachi. This new location also gave Shezan access to large farms with better quality of fruit and at lower prices than those in Lahore. Transportation costs were also saved as all Karachi sales could now be supported by the new factory. The Karachi office also allowed the company to establish an export capability within the company. The export potential of the product was being evaluated by Shezan as many Middle Eastern countries produced little fruit and even fewer fruit products.
The Karachi plant was expanded in 1987 to include production of mango, lemon, apple and guava juice as well as squashes, jams and syrups. This expansion brought the Karachi plant's share of total production to 40%. The expansion was necessary due to the rapid demand growth for Shezan products, especially squashes, jams and marmalade. The Lahore plant also expanded in 1987, once again doubling capacity.
Company also continued to grow through to 1989, as did profits despite increasing competition and rising input prices that could not be offset by increased selling prices.
JUICE & FRUIT PROCESSING INDUSTRY:
Fruit juices had become extremely popular nation-wide and even though the capacity had been rapidly expanding there was still shortage of supply in the industry. Between 1976 and 1986, the production capacity for fruit juices had grown faster than that for beverages as a whole at a rate of 22%. The share of fruit juices in total beverage production had increased from 9.7% to 20.3% during that same period.
Although there was not enough fruit juice production to fill demand, such was not the case with fruit supply and the raw material. According to company estimates only 30% of total fruit production in the country was processed into the various Shezan products. Due to lack of capacity and poor storage facilities, spoilage and wastage of the various fruit crops was occurring on a large scale throughout the country.
Another significant factor affecting the industry was the rise of costs of production, particularly the prices of fruits. Competition in the industry limited the transfer of higher costs to the consumers. With companies having to absorb the increase in costs, margins were squeezed and profitability suffered.
THE EXPANSION DECISION AT SHEZAN:
It was in 1987, that the impetus for expansion first arose. During peak periods, there were many truck lining up outside the factory to take their cargo of Shezan products. As there was not enough production to service all orders, many trucks were forced to wait or return with only a portion of the order. The Management decided to expand the production by increasing the capacity.
It was therefore decided to set up the new factory in Hattar, the newly declared Industrial Zone, Hattar, as area located in the North West Frontier Province (NWFP), between the two cities of Islamabad and Peshawar offered an alternative plan location. Companies setting up plants in Hattar by the end of June 1990 were to receive special tax incentives including a 5-8 years holiday on 35% income tax. There were no import duties on capital equipment used in the factory and they were to get a relief on their utility bills.
This plant was also at the most suitable location for export to Afghanistan and Central Asian states. The growth of sale was all due to high quality products prepared from fruits and vegetables - all processed through own resources.
"TWIST" and "ALL PURE" JUICES:
Shezan did not rest and continued research and development for improved quality products.
Shezan installed a new Tetra Pack Machine during the year 2003 with a facility of Drinking Juices without straw but with Pull Tab. New flavour of Pine Apple and Mix Juice Nectars.
Research & Development continued and during the year 2004. 1000 ml slim pack was introduced to cater the demand of families. "ALL PURE" Pack can be stored in refrigerator. Grapes Juice Nectar has been launched first time in Pakistan. This product has high rate of acceptability. Not only its packing is outstanding but all flavours taste is outstanding.
We are now proud to say that our New Packing and Products are of international standard and are approved by many foreign countries for export to them.
We still believe in quality products and wish to continue to provide the consumers products according to their taste and demand.
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