INTERNSHIP REPORT ON SITARA TEXTILE INDUSTRIES (Pvt.

) LIMITED FAISALABAD Submitted by, Mubashar sharif MBA DEPARTMENT OF BUSINESS MANAGEMENT AND SCIENCE UNIVERSITY OF AGRICULTURE FAISALABAD

DEDECATION The Holy Prophet Muhammad (S.A.W.) The greater Social reformer and guide in every sphere of life. My affectionate parents who taught me the first word of speak and supported me morally and financially throughout my studies. ACKNOWLEDGEMENTS In the name of Allah, the most merciful and beneficent All praise to Almighty Allah, the most Gracious and compassionate. Who created the universe and bestowed mankind with the knowledge and blessings of Allah be upon the Holy Prophet Muhammad (S.A.W.) who guided mankind with the Holy Quran and Sunnah, the everlasting source of guidance and knowledge for humanity. I deem it an utmost pleasure to be able to express to heartiest gratitude and deep sense of devotion to my reverend and worthy supervisor Mr. Muhammad Awais for his skillful guidance, unfailing patience, inspiring attitude and invaluable suggestions to improve the script of this report. A deep sense of appreciation is owed to Mr. Shahid Mahmood for his kind attitude and keen interest during my internship. I am also thankful to Mr. Waseem Ahmad who helps me during my internship in Marketing department. I am also thankful to all the executives of export department specially Mr. Muhammad Awais, Muhammad Yaseen who provide me a valuable guidance during my internship program. I fervently extend my thanks and appreciation to my friends Khalid Sultan, Kashif Mahmood, Zaheer-ul-Din, Muzammil Ahmad, Muhammad Imran, and Abdul-Qayyum. I owed a debt of gratitude to my ever-affectionate brothers Mr. Muhammad Khuram and Mr. Ashfaq Ahmad for their fragrant love nominated to me. Last but not least I offer my humble heartfelt gratitude and deepest affections to my great mother and respected father for being inspired for higher ideals of life, supported morally and financially throughout my studies, and always prayed for glorious success about my pursuits throughout all of my life. MUBASHAR SHARIF MBA FINANCE

LIST OF CONTENTS Sr. No. TITLE INTRODUCTION 1 2 3 4 5 6 7 8 9 10 OBJECTIVE OF STUDYING THE ORG. OVERVIEW OF THE ORGANIZATION 3.1 HISTORY 3.2 NATURE OF ORG. 3.3 BUSINESS VOLUM 3.4 PROFILE OF EMPLOYEES 3.5 PRODUCT LINE ORGANAZATIONAL STRUCTURE STRUCTURE OF MARKETING DEPTT. FUNCTIONS OF MARKETING DEPTT. 6.1 MARKETING STRATEGY 6.2 PRICING STRATEGY 6.3 DISTRIBUTION STRATEGY 6.4 PROMOTIONAL STRATEGY CRITICAL ANALYSIS 7.1 SUCCESS & FAILURE OF PRODUCTS 7.2 MAJOR COMPETITORS 7.3 FUTURE PROSPECTS OF THE ORG. SWOT ANALYSIS CONCLUSION & Recommendations REFERENCES & SOURCES PAGE 6 7 8 8 10 10 10 11 12 13 14 28 28 29 29 30 32 32 33 34 36 40

INTRODUCTION Sitara Textile Industries Pvt. Limited Faisalabad has the privilege to be the first member of the esteemed Sitara Group. Founded in 1972 by the most illustrious brothers, Haji Abdul Ghafoor (late) and Haji Bashir Ahmad, is now led by the young Anees Ahmad, a dynamic second generation leader of Pakistan textile industry. Sitara Textile is one of the largest manufacturer and registered leading exporter of textile goods in Pakistan. It is exporting high quality products. Its products of brand name such as Sapna and Mughal-e-Azam are amongst leader in the market. Sitara Textile has designing, stitching, and printing departments. The bedding and fabric collection of Sitara Textile are exported to South America, USA, Canada, New Zealand and Europe. Sitara Group by now is in textile cloth finishing and processing, textile spinning, color alkali industries and power plant. Haji Abdul Ghafoor (Late) and Haji Bashir Ahmed the present Chairman of the Group, the two creative and courageous men, latter joined by second generation, making a blend of experience and modern business knowledge, managed the business growth and development with assistance of highly qualified team of professionals. Faith in Almighty Allah and in their own abilities & commitment to the cause, untiring efforts and leadership qualities of the family, established the group, which now stands amongst Leading Industrial Groups of the Country, under the Chairmanship of Haji Bashir Ahmed. UNITS Sitara Chemical Industries Ltd Sitara Chemical Industries (Textile Div-II) Sitara Chemical Industries (Textile Div-I) Sitara Textile Industries Ltd Sitara Energy Ltd Yasir Spinning Mills Ltd OBJECTIVES OF STUDYING THE ORGANIZATION Textile sector is a backbone of our country .Our major export is consisting of textile appliances. Following are the basic objectives of studying the Organization, Sitara Textile is the One of the Leading Organization in the Textile Sector Export Oriented Organization

 ISO certified Company Having a Qualified and Experienced Staff Proper Utilization of Human Resources Having a latest Machinery to Compete Globally Friendly Environment COMPANY QUALITY POLICY Quality is our future STIL is a Unique, Versatile industry and is dedicated to the continues improvements in producing different types of processed fabrics by providing Excellent services through motivated qualified and Dynamic team of people. We ensure that the products are produced according to the customers requirements and expectations. STIL is renowned in Local and International markets due to its excellent services, Timely delivery of Quality finished products to their valued customers. STILs Philosophy of continues improvements relies on an intensive training programs / regular meetings, discussions which emphasis the employees direct involvement. Our aim is to respond to our customers ever-changing needs in the more Effective way. OVERVIEW OF THE ORGANIZATION BRIEF HISTORY OF ORGANIZATION NATURE OF THE ORGANIZATION BUSINESS VOLUME PROFILE OF THE EMPLOYEES PRODUCT LINES BRIEF HISTORY OF ORGANIZATION Sitara Textile Industries Pvt. Limited Faisalabad has the privilege to be the first member of the esteemed Sitara Group. Founded in 1972 by the most illustrious brothers, Haji Abdul Ghafoor (late) and Haji Bashir Ahmad, is now led by the young Anees Ahmad, a dynamic second generation leader of Pakistan textile industry. Sitara Textile is one of the largest manufacturer and registered leading exporter of textile goods in Pakistan. It is exporting high quality products. Its products of brand name such

as Sapna and Mughal-e-Azam are amongst leader in the market. Sitara Textile has designing, stitching, and printing departments. The bedding and fabric collection of Sitara Textile are exported to South America, USA, Canada, New Zealand and Europe. Sitara textile is one of the largest manufacturers and government accredited exporters of textile in Pakistan. Specializing in home textiles, printed, dyed, bleached fabrics, an apparel and fashion garment, Sitara is exporting quality to virtually all parts of the world. With latest State-of-the-art machinery and equipment, it is a complete printing, dyeing, finishing and stitching plant. Three huge spinning mills, a high caliber weaving unit and a made-up / garment unit is working under one roof. The unit is capable of producing high quality with a capacity of 150 kilometers of finished cloth every day. Sitara textiles industries private limited has proudly maintaining its leadership in 100 percent pure cotton products along with the man made fiber. The product range in pure cotton is available as sateen both in mono cotton and poly cotton, bed sheets, pillow, quilt covers, aprons, boxer shorts, and Bermuda shorts are available in most exotic and fascinating designs. Counts arent all that counts! While counts reflect on the durability of the cloth, what reflect on the aesthetics of the end-user are the design, color combination and mood of the fabric print. That is why; Sitara never under estimates the importance of an enchanting design. Their design department is not only well equipped with latest computers and peripherals but also manned with a highly sensitive and sensible team of designers. These designs are based on unique but fascinating combination of age-old traditional motifs and futuristic surreal forms given their customers a wide range to choose from. Widening this choice further is their design library, one of the largest in Pakistan, offering an extensive range from timeless floral and geometric to intriguing contemporary designs and colors? A sizeable percentage of Sitara textiles, daily textile production by the meter are converted in-house into a ready, saleable retail product. There Cut & Sew division enjoys the cutting edge in assembling and sewing of bed sheets and sets, quilt covers, bolster, valances, curtains, table linen, bed spreads, comforter covers, pillow cases, kitchen linen and ready made garments as per the specs defined by the customers. From a fiber to a finished product, nothing gets spared from our ultra-sensitive, extra vigilant laboratory. Equipped with the most modern and precision equipment, products are frequently subjected to tests against most relevant international standards at every stage of manufacture. Tests are conducted to control shrinkage (dimensional change), pilling resistance, and abrasion, color fastness and washing fastness etc. Much of their wide success and popularity is attributed to there technically being ahead in there printing. There printing staff and design teams combine years of practical experience in printing with top-of-the-range Austrian J. Zimmer rotary printing machines producing 280 cm finished width up to 12 colors per design and maximum repeat of 91

cm. Flat bed printing facility comprised Reggiane machine with 320 cm working width and 320 cm repeat. Thanks to their modern and sophisticated facility, processing to finishes like chintz, silicon, scotchgard, fire retardant down proof and raisin etc, is invariably a pleasure. With Sitara, there world wide clientele gets quick quality sampling on Austrian J. Zimmers latest rotary strike off machine facilitating production of strike offs up to 15 meter length. NATURE OF BUSINESS Sitara Textile is one of the leading organization which provide the a variety of Textile products consist of following items such as Bed sheets, Pillows, Quilt covers, Aprons Kitchen aprons, Boxer shorts, Bermuda shorts, Nighties, Bolster, Valances, Curtains, Table linen, Bed spread, Comforter covers, Ready made garments. Sitara Textile is multinational export in nature. It is specialized to produce the above said items and distribute locally and internationally through their own distribution channels and Agents.Sitaras export spread over the 3 main continentals such as America, Europe and Asia. BUSINESS VOLUME Sitara Textile deals with local and international Market. It contributes major share in Pakistan Economy and provide its products locally on economic rates. Sitara Textile s business volume consist of US$25 million annually and local business consist of 10 to 15 crore. Sitars management is very efficient so they always looking new opportunities for development of their business and increases the economic activities in the country. PROFILE OF EMPLOYEES Sitara Textile Industries consist of 1453 employees in Office, Production and Stitching department. List are given below OFFICE AND PRODUCTION STAFF Office and Production section consist of 636 employees .In which 452 employees are Technical, 62 are Non Technical, and 122 is remaining staff which provide different services. STITCHING UNIT Sitars stitching Unit consist of 817 employees in which 403 are Technical, 356 are Non Technical and 58 employees are provide different services PRODUCT LINES

Sitara Textile has a variety of products. Following are main products, which are mentioned below Main products: Bed sheets Pillows Quilt covers Aprons Kitchen aprons Boxer shorts Bermuda shorts Nighties Bolster Valances Curtains Table linen Bed spread Comforter covers Ready made garments ORGANIZATIONAL STRUCTURE CEO MIAN ANEES AHMAD

 GM ADMIN Mr. ZIA ULLAH ALVI GM PRODUCTION Mr. SAEED KHAN GM FINANCE Mr. M.RAZZAQ GM EXPORT Mr. M AWAIS MANAGER PERSONAL & ADMIN COMMERCIAL MANAGER CHIEF

ACCOUNTANT HIERARCHY LEVEL OF EXPORT MARKETING DEPARTMENT: DIRECTOR EXPORT MR. MUHAMMAD AWAIS SENIOR EXPORT MANAGER Zone 3 Mr. M. Imran SENIOR EXPORT MANAGER Zone 2 Mr. Ashfaq Ahmad SENIOR EXPORT MANAGER

Zone 1 Mr. M. Yaseen Mehar Deputy Export Manager Mr. Muzzamil Ahmad Deputy Export Manager Mr. Abdul-Qayyum Deputy Export Manager Mr. Khalid Sultan Deputy Export Manager Mr. Zahee - u l -din Deputy Export Manager Mr. M. Kashif Deputy Export Manager Mr. Shahid Mahmood Asst. Exports Manager Mr. Waseem Ahmad

 Zone 1: South America, Chile, Brazil Zone 2: Australia, Canada, United States Zone 3: South Africa, Europe FUNCTIONS OF EXPORT MARKETING Exports are the major portion of Sitars textile production. More than 90 % of Sitara textiles products are exported to different countries of the world. The export department is handling the international market in a very appropriate and proper way. Sitara textile has been proudly maintaining its leadership in 100 percent pure cotton products along with the man made fiber. Sitara textile industries limited is value adding to the countrys silver fiber by vertical integration of the product line. The product range consists of the

following, but is not limited by this list. It has the ability to be immediately tuning its infrastructure to meet any specialized requirements of the ever-demanding export markets of both east and west. The product range in pure cotton is available as Sateen both in mono cotton and poly cotton, Bed sheets, Pillows, Quilt covers, Aprons, Kitchen aprons, Boxer shorts, Bermuda shorts, Curtains, Comforter Shells, Bed in a bag, Swag set, Festoon set, Place mates, Nighties, ready made garments, and are available in most exotic and fascinating designs. Sitara textile has pioneered in the following fabrics unrivalled by any other in the industry. BUYERS INQUIRY The work of export department starts from Buyers inquiry. First the buyer inquires the STIL regarding his required specified products, which he wants. Inquiries received from customers by any one of the following sources, Textile exhibitions Personal visit to customers Customers visits in STIL Faxes, Telephone, Mail, E-Mail, etc. In the buyers inquiry, the buyer specifies the required quality, design and quantity of fabric. REPLY TO INQUIRIES After receiving the inquiry from buyer, the Deputy export Manager ensures that all the inquiries for the products are processed efficiently in STIL. The Deputy Export Manager satisfies himself that the company has the capability of fulfilling the offer. Now the DEM (Deputy Export Manager) and EM (Export Manager) make analysis of inquiry to make decision to proceed it or not. GREY PROCUREMENT SHEET The Export Manager analysis the order confirmation sheet received from the customer and prepares Grey Procurement accordingly. The Deputy Export Manager, General Manager Export and Chief Executive sign the Grey Procurement sheet and also costing sheet. This Grey Procurement sheet is faxed to Grey Fabric Procurement Department. Following is the format of Grey Procurement sheet, GREY PROCUREMENT

Buyers order no : 970002 Supplier : STIL Buyer : LENNOTTE Construction : 76 x 56 / 35 x 35 Width : 93`` Price / meter : . 45 $ Weight of fabric : 95 gm / m2 Weave : Plane Loom : Power Quantity : 50000 Mts. Delivery : As soon as possible Piece length : 80 % 80 Mts. Up, 20 % 25 Mts. Up Process : Printing Mending : Mending should be done very For Sitara textile Export Manager SALES CONTRACT The export manager prepares the sales contract in accordance with the order confirmation sheet. The Deputy Manager Export signs this sales contract and it is faxed to the customer for his counter signature. If customer wants some changes in the sales contracts then the Export Manager and the Deputy Export Manager make analysis of these changes as per requirement of the customer and make decision that whether these changes are workable for us or not. If these changes are workable for the STIL then new sales contract as per new amendments is faxed to the customer fort his counter signature. BUYERS PURCHASE ORDER

After signing the sales contract the buyer gives the order regarding the specified design, quality and quantity. The purchase order consists of date, purchase order no, terms, shipment date, prices, vendor name, reference no, description of products required and price of products. The purchase order is received from the importer, which is on their letterhead and signed, by the concerned authorities of that organization. The format of order is like this, PURCHASE ORDER PURCHASE ORDER DATE P. O. No. 22 / 06 / 2001 970002 EXIMPO, INC. Export House / Manufacturer / Distributors / Agent VENDOR Sitara textile industries limited 6 KM Sargodaha Road, Faisalabad. PAKISTAN TERMS SHIPMENT SHIP VIA PRICES Our Ref. # Against L/C 01 / 07 / 2001 Sea C & F us c 5% Description Design HORIZONS Process Pigment Printed Construction 100 x 80 / 40 x 40 Sheet sets Qty Rate $ Amount $

76 x 56 / 35 x 35 Accessories Blending 52 / 48 Sheet sets p/c 65 x 35 Accessories p/c Loom Shuttleless / Power loom Style # Bed in a Bag 370537 Twin 370540 King 370555 Accessories 370557 Euro shams Table round STRIKE OFF PROGRAM Most of the customers send there own designs in the form of Artwork and fabric sample in case of the printing of the design of the customers. The Deputy Export Manager and Export Manager discuss the design comprehensively with the manager Design department. Sitara has a rotary strike off machine from J-Zimmer Austria with 15 meters blanket for making strike offs as per buyers requirements. Strike Off program is prepared by the Export Manager and it is distributed to all the concerned departments e.g., Designing, Engraving and Printing, etc. The Deputy Manager Export and Manager Export do inspection of the Strike Off as per buyers instructions before its dispatch. If it is as per requirement of the customer then it is dispatched to the customer otherwise it is processed again to meet the demands of the customers. OPENING OF LETTER OF CREDIT If customer approve the strike off then we consider this for bulk production and if he need some changes in design and colors then the Export Manager pass this information to the Designing and Printing Department to meet the demand of customers. 35815.00 96 2.25 216.00 84 1.25 105.00 600 28.35 17010.00 480 23.85 11484.00

Before the bulk production, the Deputy Export Manager asks the customer to open Letter of Credit as per terms and conditions of the Sales Contract. The Deputy Export Manager studies comprehensively all the clauses of L/C. if any amendment is required then this amendment is managed with the customer. The Export Manager prepares the Production Schedule as per requirements of the customer and is signed by the Deputy Export Manager. The production schedule is distributed to all the concerned departments. Following is the format of Letter of Credit and Production Schedule, PRODUCTION SCHEDULE Party : EXIMPO, INC. Order no : 786 / 01 SGP no : STIL 5 Quality : 76 x 56 / 35 x 35 PC 70 / 30 Printed cloth 84`` finish from 87``, 63`` Grey width printed and calendard cloth. Product : White, Dyed Quality Standards: Pilling rating : 4 Washing : 4 Rubbing fastness : Dry 4, Wet Bowing: 1% Crossing : 1% ASSORTMENT: COLOR White White Dyed ivory color 100% Cotton FINISHING : We will give you Standards QUALITY 76x56 / 35x35 76x56 / 35x35 76x76 / 30x30 11000 Mtrs. 93``, 83`` QUANTITY 32000 Mtrs. 11000 Mtrs. WIDTH 87``, 84`` 63``, 60``

PAKING : Role on Tube SHIPPING MARK: Order no. Roll no. Hungry port Mtrs. Sitara Textiles Gross Weight Made in Pak. Net Weight Note: We will confirm you shipping mark. Manager Export CC to, GM Processing Grey Department Design Department Laboratory Department Printing Department Dyeing/Bleaching Department Finishing Department Packing Department Accounts Department QUALITY CONTROL The Export Manager is responsible for quality of the work during processing. The Export Manager daily visits the production department and gives the proper guidance to the production departments employees regarding the processing of Fabric. At each stage of processing samples are sent to the laboratory for inspection, and laboratory tests are very helpful for maintaining the quality. The quest of quality in todays technologically day in advancing era and STIL is enable to analyze in detail the procedures of checks and numerous tests to balance out through the involved stages of processing specially to enhance and make quality a consistent feature at Sitara. Control Shrinkage, Pilling Resistance, Abrasion, Color Fastness, and Washing Fastness are few very carefully monitored. Acquisition of the best possible quality control equipment ensures best quality products. Unit has a most modern and latest computerized equipment in its laboratory, for every test required for fabric, including shrinkage, rubbing fastness, light fastness and vowing of the fabric. FINISHING Finishing depends upon the buyers order, if the end product is made-up (in stitched form) then the Export Manager prepares Stitching Schedule as per requirement of the customer mentioning all the details of stitching and packing and send this schedule to the stitching department.

The Export manager does inspection of the made-ups goods at every stage of production of make-up, e.g. cutting, stitching, packing, etc. and before the shipment the Export Manager does the inspection of the consignment. Manager Export maintains all the records of the correspondence of the customers in very organized way. He also maintains records for each shipment for future reference. DISPATCHING After completing the finishing of the cloth as per requirements of the buyer, then the cloth is packed as per the buyer requirements. And shipped to the port or as per mentions on the L/C. EXPORT DOCUMENTATION DEPARTMENT All the documentation required is maintained in this department. The Export Manager Banking supervises this department. This department prepares all the papers, which is necessary for banking negotiations. They prepare these documents and send them to there bank for collection of payments. Following are the important documents, which are prepared in this department, Bill of Exchange 2 Copies Commercial Invoice 6 Copies Packing List 3 Copies 2/3 Original Bill of Lading (As per L/C requirement) 2/3 Copies Certificate of Origin L/C Original 1 Copy These above are the important documents. These will send if the buyer required. Beneficiarys Certificate 2 Copies Quota Statement 2 Copies Textile Declaration 2 Copies Inspection Certificate 1 Copies Weight Note

Visa form Foreign Commission Certificate 2 Copies Following are the formats of these documents, THE MANAGER HABIB BANK LIMITED Ref: STI-331/03 CORPORATE CENTRE Dated: 24/07/03 FAISALABAD. Sub: Documents for US$ 35000 for negotiation against the Letter of Credit no. DEAR SIR, We are please to enclose herewith the following documents for negotiation under above mentioned Letter of Credit and credit the amount to our account no ******-** at the time of negotiation. Bill of Exchange Letter of Credit Commercial Invoice Beneficiarys Statement Packing List 3/3 original Bill of Lading Certificate of Origin Quota Statement Textile Declaration Copy of Purchase Order Inspection Certificate Weight Note

Form E Duplicate Foreign Commission Certificate Thanking you Yours Truly Export Manager BILL OF EXCHANGE No. STI-331/03 For US $: 35000 Dated: 20-07-2003 At ________________ sight of this second of exchange (First of the same tenor and date being unpaid) pay to HABIB BANK LIMITED corporate center Faisalabad, Pakistan. Or order the sum of US$ 35000 only. Value received and charge the same to amount of 1002 cartoons printed made-ups made of Poly Cotton 52/48 and 70/30 %. Drawn under first union national bank charlotte, charlotte, NC US. Letter of Credit no ***-****. Dated 25/06/03. To First Union National Bank Charlotte, Charlotte, NC US. Export Manager BENEFICIARY STATEMENT PO # 9002763 LC # ***-**** We hereby certify that: Each carton indicates PO number and style number. Each lead carton contains a copy of P/L.

Evidence that one full set of original documents including non-negotiable B/L, original visas, certificate of quota charges, textile declaration and any other pertinent documents. Along with two additional copies has been forwarded to expeditors INT, L of Washington 2550 Ellsmere Ave, Norfolk, VA 23513 VIA courier at tie of shipment. SITARA TEXTILE INDUSTRIES LTD. SIGNATURE COMMERCIAL INVOICE No: STI-229/03 Date: 29/05/03 Form E no: HBL ******* Date: 29/05/03 On Account and Risk of M/S : ALBARAKA Bank, 134 Commercial Road, Durban 4001, South Africa. Shipped per S.S: MSC Veronique VOY/38. From Karachi Pakistan to: Durban Port, South Africa Drawn under L/C no: ***-***** Date: 17/02/03 Payment Terms: Cash Against Documents Mark & No DESCRIPTION UNIT PRICE US $: PER METER C AND F DURBAN. AMOUNT US $:

P.O.# 11408 228 ROLLS. DURBAN ROLL NO. 1-228. 35000 METERS POLYESTER COTTON 60/40 PERCENT PRINTED AND OPTICAL WHITE CALENDERED FABRIC, CONSTRUCTION: 76X56 / 35X35 WIDTH 98`` - 32, 183 MTRS. PRINTED

 WIDTH 91`` -12, 152 MTRS. OPTICAL WHITE. TOTAL C&F COUNTRY OF ORIGIN PAKISTAN. AMOUNT. C AND F DURBUN CERTIFIED THAT THE ABOVE GOODS ARE OF PAKISTAN ORIGIN BILL OF LADING ATTN: MR. MAQSOOD / EBRAHIM AGENCY, FSD. DATED: 29/05/2003 DUMMY B/L AGAINST INVOICE NO. STI-229/03 SHIPPER: SITARA TEXTILE INDUSTRIES LTD., 6-KM SARGODHA ROAD, P.O.BOX 223, FAISALABAD, PAKISTAN CONSIGNEE: TO THE ORDER OF MONOR HOUSE, MONOR PARK WORKS, 182 GARRISON STREET, BORDESLEY, BIRMINGHAM 89 4DN. FORM E NO. ABL-0026671 DATED: 29/05/03 NOTIFY PARTY: MONOR HOUSE, MONOR PARK WORKS, 182 GARRISON STREET, BORDESLEY, BIRMINGHAM 89 4DN. VESSEL NAME: _____________? ON BOARD DATE PORT OF DISCHARGE: BIRMINGHAM WHAREHOUSE, U.K. MARKS & NOS. DESCRIPTION OF GOODS MANOR HOUSE 228 CARTONS. GR.WT: BIRMINGHAM PRINTED DUVET SETS, COMPLETE 6667.100 WAREHOUSE BED SETS AND CURTAINS PAIR MADE KGS 35000.00 US $:

PO# 786/01/1111 FROM POLYCOTTON 70/30% CLOTH CARTON NO. QUALITY: 76X56 / 35X35. NET WT: 1-228 1621 SINGLE DUVET SETS. 4667.900 KG 154 SINGLE COMPLETE BED SETS 121 CURTAIN PAIR 66X72`` AWSU-191333-3 1X20FCL. THC AND FREIGHT PREPAID WEIGHT NOTE Ref: STI-331/03 Dated: 29/05/03 Reference letter of credit no. 22 PK 04099/1542 dated 13/05/01 35,336 meters quality: 76x56 / 35x35 PC 70/30% weight per square meter. 92grms. 5,555 meters quality: 76x76 / 30x30 100% cotton weight per square meter: 120grms. Total rolls: 228 Total meters: 40921 Total gross weight: 8540.400kgs. Total net weight: 8132.400kgs. For SITARA TEXTILE INDUSTRIES LIMITED Export Manager QUOTA CHARGE STATEMENT SUBJECT: Shipment of 228 cartons 1850 Pcs/units/set of duvet sets and curtain pairs as per purchase order no 9003725 and Horizons designs as per purchase order no 9003726. QUALITY: 100x80 / 40x40 PC 52/48 % and 76x56 / 35x35 PC 70/30 %.

I Export Manager manufacturer of goods covered by invoice no STI-333/03 (Purchase order number 9003725 and 9003726 dated 20/07/03) hereby state that the CFR value declared on the invoice included cost of quota and number separate quota payment will be paid. Export Manager INSPECTION CERTIFICATE EXIMPO, INC. Export House / Manufacturer / Distributor / Agent Date: 20/07/03 This is certify that 228 cartons are being shipped against invoice no STI-331/03 dated 20/07/03 are in accordance with purchase order no. 9003726 and 9003725. The merchandise is 100% new and according to the specification required by M/S Domestication USA. For EXIMPO, INC. Design Manager TEXTILE DECLARATION STI-331/03 I Export Manager hereby declare that the articles listed below and covered by the entry to which this declaration relates are wholly the growth, product or manufacturer of a single foreign territory or country or insular possession of the united states as identified below. I declare that the information set forth in this declaration is correct and true to the best of my information, knowledge and belief. Marks of Identification Number As per Invoice No: STI-331/03 Date 19/07/03 Style #9003725 Style #9003726 Description of Article and Quantity 228 cartons 1850 pieces /unit /set of Comforter, Set bed in a bag 1000 twins 850 Comforter Country of origin PAKISTAN

L/C No: ***-****. Date: 25/06/03 MARKETING STRATEGY The export department is handling the international market in a very proper and appropriate manner. The export department consists of competent and skilled team of professionals. Taking in to consideration that the 90 % of total production of Sitara textile is exported through out the world, the export department tries its best to generate valuable customers through out the world. Following is the procedure of export department, PRICING STRATEGY When the DEM confirms that the required design is easily prepared in STIL, then he replies to the buyer that we are in a position to make your order. Then the EM takes Grey fabric price from the Grey fabric procurement department. The EM calculates the prices then the DEM checks and signs the costing. Most of the customers send there own designs in the form of Artwork and fabric samples in case of printing of the design of the customers. On the instructions of DEM the EM asks the sampling department and also coordinates for the sampling requirement and its dispatch if the customer for quality purpose requires it. If the price quotation is workable for the customer then he places order on terms and conditions. Sometimes if prices are not workable for the customer he offers his target price. Then the DEM and EM recalculate this price and if it is workable for STIL then DEM proceed to ask the customer for order placing other wise do not proceed. There are three pricing strategies are being used in STIL, Competitive base price Customer base price Product base price DISTRIBUTION MIX OF STIL There are two ways of distribution adopted in STIL,

Direct channel Indirect channel Direct channel STIL CUSTOMERS Indirect channel STIL AGENTS / MIDDLE MAN CUSTOMERS PROMOTIONAL STRATEGIES STIL use following sources for communications, Textile exhibitions Personal visit to customers Customers visits in STIL Faxes, Telephone, Mail, e-mail, etc. Print media CRITICAL ANALYSIS During internship, I was done critical analysis of Sitara Textile industries .In my point of view following factors is disturbed the functionality of any organization. POLITICAL FACTORS Laws, Govt. agencies, and pressure groups that influence and limit various organizations and individuals in a given society are included in political factors. Recent political changes will hopefully have a favorable effect on the economy during the next financial year. The sanctions, which were made by the Americans after the nuclear tests, have been removed. Now the exports of the country increased and expand to more foreign countries. In this way foreign exchange earnings increased. Govt. should have sound policies, which helpful in marketing the textile sector.

The Govt. must take care of textile sector and make good policies for the textile sector for exports and imports. The Govt. has favorable policies to encourage the exports of the country especially in textile sector. ECONOMICAL FACTORS The Sitars products are at the maturity stage and have positive image in local and international market. A present and future capacity of the products of Sitara textile is forecasted to be good because of the designs which are made, up to the standards of new generation. The economic environment consists of factors that effect consumer purchasing power and spending pattern. In most of the international market the consumption of Sitars products are considered best in quality. Changes in major economic variables such as income, cost of living, interest rates and savings and borrowing patterns have a large impact on the market place. So before entering to the international market, the Sitara textile must considered these things. SOCIAL FACTORS The cultural and social environment is made up of institutions and other forces that affect a societys basic values, perceptions and preferences and behaviors. People grow up in a particular society that shapes their basic beliefs and values. This is the policy of Sitara textile that the products for exports are designed according to the beliefs and values of the international consumers. The products are made according to the changing lifestyles and liking and disliking of the customers. TECHNOLOGICAL FACTORS STIL has good financial resources and they are in a position to install the latest machinery and introduce latest technology in their production department. They have a ability to designs new products after the introduction of new technologies in designing and production department. Introduction of new technologies creates new markets and opportunities for Sitara textiles. Companies that do not keep up with technological changes soon will find their products out dated and they will miss new product and market opportunities. Because of good financial resources Sitara textile introduce new technology in all its departments. SUCCESS & FAILURE OF PRODUCTS Sitara Textile is producing quality products throughout the world especially in local market. This is because of its quality of yarn and fabrics. Fabrics is based on quality yarn and yarn is based on the quality of cotton. Top Management is basically religious minded people so the public respects its products. STIL started this unit for its production since 1967 because of Faisalabad oldest unit the demand of its product is very high

The prices of its product is very high due to high quality spinning, weaving and finishing cost. Thats why most of its products are out of the range of the poor people. There is no fare price shop in the unit as well as in the open Market. LIST OF MAJOR COMPETITORS Chenab Textile Mills. Nishat textile Mills Crescent textile Mills Masood Textile. Shahzad Siddique Textile Afroz Textile Mills Amtex PVT Ltd. Bissmillah Textiles Kamal Textiles FUTURE PROSPECTS OF THE ORGANIZATION STIL is one of those well organized and established textile units which have ISO9001: 2000, ISO 14001:1996, OEKo-tex and working for the certification of SA800 and WRAPE that is why the turnover of the employees are very low. To meet WTO requirements top management is planning to invest huge investment in modernizing the existing machinery set up and also extending buildings in this unit. This is the era of information technology the top management is already develop IT cell in unit and planning to develop E-Commerce. Future of this unit is very bright because top management main focus is deadly strict on quality management in production and as well as main focuses on time management. SWOT ANALYSIS STRENGTHS Adequate financial resources Specialized in printing Have a diversified group of industries

 Good market image Competent management and workers Have a ability to compete with competitors In home facility of production Loyal customer Loss sustaining capacity WEAKNESSES Less chances of promotion Centralized decision making Salary package is not attractive Less motivation Not enjoy the economy of scale OPPORTUNITIES New market coverage New quality introduction Extension of stitching department Latest machinery installation Market trend analysis THREATS GST is a biggest threats Prices increases due to currency devaluation New entrance of quality conscious competitors

 Low price offered by the competitors Strong promotional activities to convince buyers by competitors CONCLUSION & RECOMMENDATIONS Sitara group of industries is one of the renowned industrial groups of the country. This group started its industrial activity with textile weaving sector in 1956, under leadership of two brothers. Sitara group by now is in textile cloth finishing and processing, textile spinning, chlor alkali industries and power plant. Sitara textile is one of the largest manufacturer and registered leading exporter of textile goods in Pakistan, exporting quality products through out the world. Sitara has its own designing both manual and computerized, developing and screen-making department. Sitara has large number of designs and qualities of fabrics that comply with any requirements and cover all the styles, in the most extensible range of colors and printed on such varied fabrics as polycotton 50: 50 plain weave, 100 % cotton fabric plain weave, percale, sateen in bleached, dyed and printed form. Apart from fabrics Sitara has its own stitching department having 120 machines for producing value added products i.e. bed sheet sets, quilt covers, comforter shells, pillow covers, curtains, table cloth and also ready made garments. Equitation of the best possible quality control equipments ensures best quality products. STIL has a most modern and latest computerized equipments in its laboratory for every test required for fabric, including shrinkage, rubbing fastness, pilling, light fastness, bowing and washing of the fabric. In Sitara textile during my internship I noticed that STIL is one of the major exporter in cloth sector of Pakistan. They are very properly contributed their share in earning foreign exchange. According to my information STIL is earning more than 30 million US $ foreign exchange, and 90 % of the products have been exported while 10 % are sent to the major cities in Pakistan. And this 10 %, which is sent to local market, has a very good reputation in Pakistani market. There is no doubt that STIL is one of the leading companies in textile export in Pakistan, but they achieve this position after many years of hard work and entering efforts. One thing that I want to discuss here is that the wordings of the STIL, s chief executive to all the managers and employees that, do work as that the whole company depends on you and CEO gives proper attention to all employees of the STIL. During my intern ship in concluded that the following factors contribute in the success and popularity of STIL. These factors are as follows. The first thing which count in the success of every organization is the environment of the organization, during my internship one thing which inspires me is the friendly environment of STIL. The behavior of employees with each other and especially with juniors as well as with internees. The CEO of STIL daily visits the all department and

personally knows about the work progress and difficulties during working of the employees. Here one concept arises that the employees feed proud when they meet with CEO and directly convey their problems to CEO. In STIL there is a modern and sophisticated processing plant consisting of singeing, shearing, continues bleaching, dyeing, mercerizing and calendaring both normal and friction. Printing department is equipped with two rotary printing installations from JZimmer Austria, having all modern arrangements to handle cotton and polycotton fabrics. It can produce printed fabric up to 280 cm finished width in maximum of 8 colored designs. The presence of centrally air-conditioned laboratory, all the machinery of laboratory is imported from foreign countries to ensure the quality of the product according to the standards set by the customers. The laboratory is playing its key role in all the departments in providing 100 % correct result in all fields of processing department. The entire production department cannot work properly with out the presence of laboratory. Definitely the laboratory is the backbone of Sitara textile. An other factor that counts much in the success of STIL is the strict rules and regulations of the organization. The credit of this goes to the human resource department. The management and the employees have to abide by these rules and regulation in every circumstance. The shifting time, Lunchtime and the HR department very strictly observes closing time. The most important factor is customer satisfaction. The satisfaction of customer is the priority of STILs management. The STIL producing good quality products and exported 90 % of there products. I noted during my internship that proper care is given to the export quality cloth during processing so that the customer must be satisfied with the quality, which he receives from STIL. The bleaching dyeing, printing, finishing even packing of export quality cloth is done taking in to consideration the requirements and demands of the foreign parties concerned. One thing that is the positive point for inexperienced persons that STIL offers variety of training programs for the peoples coming from different institutions and fields. In the entire department the peoples from different institutions and fields get proper training for the betterment of there future. The last but not the least important factor is the introduction of the computer technology in all the departments. The computer system has increased the efficiency and effectiveness of work by decreasing work time, load and labor. STIL is not only arranged computer system in their organization but they also managed special short term training programs for the employees so that they can use the computer system properly. During my internship I noted that the Sitara group of industries is a big group. The Sitara spinning is providing very fine quality yarn where as Sitara chemicals are producing fine export quality chemicals and these things are necessary for the textile industry. Sitara

textile gets the yarn and chemicals from these units and thus they have assured the continues supply of these and hence the shortage of yarn or unavailability of chemicals like problems have been totally terminate by Sitara textile and this is the apparent cause of their rapid success. The other factor is the design studio of STIL. The designers of STIL are very skilled persons and they are expert in there fields. The design store is producing very good, innovative and unmatched designs, which really play important role in popularity and acceptance of Sitars products. AZIZ FATIMA TRUST HOSPITAL is one of the prominent health institutions in Faisalabad, which provides medical relief to the poor and needy. It is run by donations of Sitara Group of Industries. The Hospital is equipped with latest medical fixtures, equipment and instruments. It has almost all of the necessary departments such as Medical, Endoscopies, Haemodialysis, CCU, Neurology, Radiology, Pathology, Pediatrics, Gynecology, Urology, Eyes, and ENTand Orthopedic. It has highly qualified and experienced doctors, specialists and other pera medical and administrative staff. GHAFOOR BASHR CHILDREN AND MATERNITY HOSPITAL This hospital has two operation theaters, recovery room, labour room and an I.C.U. Hospital Pediatric, Pathology, Radiology and Anesthesia Departments situated in a very beautiful building equipped with all modern facilities. AZIZ FATIMA GIRLS HIGH SCHOOL This school is situated in Gulshan-e-Eqbal to provide quality education at doorstep to the girls residing in this area. It has highly qualified and trained teachers. School has just started its first educational year. Sitara textile industry also provides residential facility to their employees, for this purpose they have a Sitara colony, which is situated, at the rare site of the textile. The residential facility is available for both the employees and trainees living out side the city. The employees have to pay very small amount as fare where as this facility is free for the trainees. REFERENCES & SOURCES MR.MUHAMMAD AWAIS G.M.EXPORTS (MARKETING) MR.NASRULLAH DY.MANAGER EXPORTS CH.MUHAMMAD SALEEM PERSONNAL MANAGER SOURCES www.sitara textile.com