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Internship Report on ChenOne


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PARTICULARS Executive summary Brief information about company Vision Mission Statements Company profile Product range Production facilities Management Information System Total quality management Awards & Merits Marketing Strategy Future out look SWOT analysis My responsibilities and duties List of key buyers Departments of Chenab Department and out put Process flow of processing Bifurcation of export turn over Organizational chart Financial highlights

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Chenab Limited is one of the leading manufacturers and exporters of value added textile goods. It started its business during 1975. Chenab is manufacturing a number of products relating to home textile and garments and exports them all over the world. Chenab has the facilities of ginning, spinning, weaving, processing, stitching, wadding and embroidery. It has own gas based power generation generators and meets it entire electricity requirement. The company implemented an ERP system with LAN/WAN connectivity apart from other MIS systems. As regard total quality management Chenab has certifications of ISO 9001, ISO 14001, SA 8000 & Warp, C-TPAT and OHSAS 18001. The company has for the 9the time won the "Best Export Performance Trophy Award" for 2003-2004 for the Federation of Pakistan Chambers of Commerce. Chenab has been expanding its export sales through a net work of franchise outlets, selling agents, direct marketing and strategic alliances.

Chenab strength is lying in its vertically integration and having diversified customer based and geographical distribution. However, the central decision making and partially dependency on cotton are the main weaknesses. Elimination of privileges to regional competitors will allow the company to get the higher prices of their products. On the other side levy of duties and increase in manufacturing cost can squeeze its margins.


Chief Executive Officer Mian Muhammad Latif
Directors Mian Muhammad Javaid Iqbal Mr. Muhammad Naeem Mr. Muhammad Faisal Latif Mr. Muhammad Farhan Latif Mr. Muhammad Rizwan Latif Mr. Muhammad Zeeshan Latif Mst. Shahnaz Latif Mst. Tehmina Yasmin

Bankers/Financial Institutions Ltd. Pak Libya Holding Company (Pvt.) Ltd. Saudi Pak Commercial Bank Limited. Saudi Pak Agricultural & Investment Allied Bank Limited. Askari Commercial Bank Limited. AlBaraka Islamic Bank, B.S.C. (E.C). Bank Alfalah Limited. Citibank, N.A. Faysal Bank Limited. First Punjab Modaraba. Habib Bank Limited. Habib Bank AG Zurich. KASB Bank Limited. National Bank of Pakistan. Pak Oman Investment Company Ltd. Pak Kuwait Investment Company (Pvt.)

Company (Pvt.) Ltd. United Bank Limited. Union Bank Limited.

Registered Office Nishatabad, Faisalabad.

Tel: 041-8754472-8 Fax: 041-8752400, 8752700

Website Address

Works Spinning Unit - Toba Tek Singh. Weaving Unit - Kharianwala, District,

Sheikhupura. Weaving Unit Shahkot, District,

Sheikhupura. Weaving Unit - Gatti, Faisalabad. Weaving Unit Khurrianwala,

Faisalabad. Processing Unit & Stitching Units -Nishatabad,



To be a competitive and customer focussed organization with continuing commitment to excellence and standards.


To be the business house of first choice for customers.

To be a change leader.

To produce innovative, relevant and cost effective products.

Setting and maintaining high standards.

To earn profits by achieving optimum level of production by using state of

the art technologies.

To provide ideal working conditions to employees and to take care in their

career planning and reward them according to their skill and responsibility.

To meet social and cultural obligations towards the society being a

patriotic and conscientious corporate citizen.


Chenab is regarded as one of the leading manufacturers and exporters of quality home textiles products and apparels worldwide. Operational since 1975, Chenab is a vertically integrated unit, equipped with the latest and sophisticated machinery. Housing one of the largest textile processing facilities in the country, Chenab can meet varied requirements of its customers in any part of the world with in-house facilities of growing highest grade cotton, ginning and spinning it into high quality yarn, weaving it into quality fabrics in 100% cotton and various mixed blends and stitching and export of top quality made ups & apparels. Its existing paid up capital is Rs.1950 million comprising Rs.1150 million for ordinary shares and Rs.800 million against preference shares. The both of these shares are listed on the Karachi Stock Exchange. Its annual turn over at present is more than 7 billion. Chenab today is capable of processing and converting into made ups and
garments more than 85 million meters of fabric per annum. The manufacturing facilities held by the company are as under:-

Production Facility Spinning Weaving Weaving Bleaching Dyeing Printing Finishing Polyester Wadding Fabric Coating Stitching Quilting Embroidery Gas base power generation

No of Machines 19,200 Spindles 270 Auto Looms 240 Air Jet Looms 3 3 4 22 1 Plant 1 1584 14 6 14 Generators

Capacity (Per Day) 36,000 lbs 18,000 mtrs 80,000 mtrs 225,000 mtrs 90,000 mtrs 160,000 mtrs 250,000 mtrs 18,000 kgs 15,000 mtrs 210,000 mtrs 25,000 mtrs 4000 mtrs 15.6 M.W

Chenab is part of the Chenab Group ("Group"), which began its business in 1975 under the name of "Chenab Textiles Industries" Faisalabad as a fabrics processing unit. The Sponsors belong to a well respected family hailing from Toba Tek Singh, who have been engaged in the growing & ginning business since the inception of Pakistan.
The Group Sponsors and directors have assumed senior management responsibilities, maintaining a hands-on approach along with strategy and policy formulation. They are ably supported by a team of experienced professionals in the field of export marketing, designing, finance and accounts and production control. The Group has a team of 165 professional employees, which include Chartered Accountants, MBAs, B.Scs, Textile Engineers, Cost Accountants, etc.

The sponsors recognize the significance of a good workforce and have conscientiously worked towards creating a wide base of middle management and motivated and skilled labor force.

The professional team has implemented effective policies and procedures for streamlining and monitoring the operations of the group companies.

The following is the workforce detail of the Company: Particulars No of Employees Managerial Supervisor Labor Total 165 2510 9567 12242

RODUCT RANGE Chenab offers a wide range of coordinated concepts in bed linen, bedspreads, curtains, table linen and kitchen accessories. In addition it also produces formal
and casual garments for men, women and children that feature exclusive fabrics and designs in line with global trends. The following are the products being manufactured by the Chenab.
Fabrics Sheeting Flat Sheet Quilt Cover Bed Skirt Bed Spread Fitted Sheet Valance Sheet Comforter Neck Roll Cushion Pillow Cover Table Cover Napkin Place Mat Tea Cozi Bread Cover Tissue Box Cover Curtains Shirts Tie Backs Dressing Gowns Trousers Bath Robe Shorts Tunic Skirts Jackets Qamiz Jumper House Coats Medical Overall
Flat Sheet With Pillow Quilt Cover And Pillow Cover Sheet Set Comforter With Bed Sheet And Pillow Cover Shalwar Qamiz (Ladies And Gents) Romper

Production Facilities: The Company's production facilities have been sourced from the world's renowned textile machinery manufacturers of Germany, Japan, Italy, Switzerland, Austria and the UK and are of diversified make. The following is a brief description of the production facilities: Ginning Unit
Chenab has associated modern ginning facilities with a capacity of ginning 200 bales of cotton per day.

Spinning Unit Chenab's spinning unit comprises of 19,200 spindles of Japanese & European origin along with requisite back process machinery capable of producing 100% cotton yarn in counts of 10, 16, 20, 22, 24, 30, and 40. All these counts are spun in carded as well as combed versions. Weaving Units The air jet weaving looms project includes the latest sizing, warping, and sectional warping machines capable of producing the finest quality of plain and design fabric. The project also has auto looms. Processing Unit The Company's processing units are made up of fabric printing, dyeing and finishing units, capable of processing over 250,000 meters fabric per day. Printing & Dyeing Facility The printing & dyeing facility comprises of 4 of the latest 72" to 124" width and 12 to 24 colors rotary printing machines. Chenab houses a comprehensive dyeing facility where all sorts of reactive, pigments, disperse/reactive, VAT, disperse/VAT dyeing are carried out while maintaining the highest quality standards. The dyeing facility comprises of 110" to 126" width Thermosole and
Pad Steam dyeing machines. It also has special finishing facilities including Ramish Calendering, Chintz Finishing, Glazed Finishing, Raising, Emerising, Mercerizing and Sanforising, etc. The Company uses the best branded dyes as per specifications in technical consultation with reputed companies like Swiss Specialty, Clariant, DyStar and BASF. The latest Color Kitchen equipment and Design Studio with a Wax Jet Exposing machine have also been installed at the project. Laser Engraving, Digital Printing, Fabric Coating, and additional fabric washing facilities are also in place. Made Up Stitching Unit This unit is capable of stitching all sorts of Textile Made Ups equivalent to 165,000 meters of fabrics per day with advanced facilities including:

Fourteen computerized quilting machines, with automatic filling of

polyester into quilted articles. It is also capable of handling unlimited design options catering to single line, cording, and twin line-emboss patterns. The facility is capable of creating countless patterns both for dimension and profile;

Six advanced computerized embroidery machines that are capable

of handling any design up to 9 colors in one go. The large 1x6m frame allows the creation of design on a large scale;

Complete polyester wadding plant; Advanced panel cutters; Computerized Eton stitching system; Complete switch track system; and

Garment Stitching Unit This unit is also capable of stitching all sorts of casual/fashion garments equivalent to 45,000 meters of fabrics daily equipped with advanced and computerized mechanical systems such as:

Gerber technology with computer aided manufacturing; Equipment for accurately cutting articles; Advanced panel fabric cutters; Switch Track stitching system;








mechanism; and Computerized embroidery machines. In-house Power Generation

Chenab has set up a 15.6 MW natural gas-based power generation facility, with heat exchanger and waste heat steam boilers for its processing, weaving and spinning operations through which it has made major saving in power costs. With the installation of theses gas based generators Chenab is able to meet all of its electricity requirements.

The necessary infrastructure and equipment for a Water Treatment plant and Reverse Osmosis process have also been added. Following is a summary of the key facilities, their location, capacity, and origin.

Management Information System

A strong management information system in any organization enables the management to make effective and timely decisions. For this purpose Chenab has taken every step to make is MIS most modern and sophisticated.

The Company has implemented an ERP system with LAN/WAN connectivity. VPN connectivity options and wireless internet access at speeds of upto 1.3MBPS have also been established. Plans for customer relationship management, e-commerce, online order tracking system and video conferencing will further cement the executive decision support system and speedup customer response time.
Networking of computer in each department makes the MIS speedier, efficient and cheaper. The use of computers at each level enables the company to create a paper less environment. Hand scanning machines are installed at entry gates. Entry and exit of employees is monitor through this system. The payroll system is also linked with this system. A team of highly qualified I.T professionals is working with Chenab and a number of soft wares and packages have been developed by them for automation of the systems.

Total Quality Management Chenab has business dealings with reputed business houses around the world and manages products and brands in foreign markets with a variety of different consumption patterns and cultural backgrounds as well as different technical requirements and legal provisions. For this reason, quality at each and every step of production is the first and foremost concern at Chenab.
A state of the art testing lab equipped with the latest precision testing instruments assures that specific customer standards are met. Chenab's highly qualified and experienced technicians are able to cope with ever-increasing quality standards and changing customer requirements. Their work starts from the receipt of raw materials up to the time the final finished products have passed through inspection/testing at all stages. The Company has also proven its commitment to quality by achieving the following certifications: ISO 9001: This certification is based on process approach to production, systems approach to management, customer focus and continuous improvement in operations and strategies ISO 14001: Chenab's management acquired ISO-14001 as a response to the changing face of environmental legislation that is causing serious problems for many industries, with the textile industry being no exception. Ecology is a new parameter that today increasingly appears in the catalogue of requirements. For confidence in textiles, the need has arisen for such a seal of approval or label for products that in their manufacture, use and disposal have only a minimal impact on the environment. The latest imported treatment plant has already been installed, which along with a newly built gas fired power plant in place of a furnace oil plant will help ensure pollution-free production.

SA 8000 & WRAP: Chenab obtained SA8000 and later WRAP (Worldwide Responsible Apparel Production) certifications. Their salient features are no child labor, no forced labor, no discrimination by race, color or gender, equal opportunity employer, good working environment, custom compliance, remuneration and fringe benefits as per local laws, electronic attendance, hand-scanning, a maximum of a 56 hour working week, proper health and safety, drug interdiction etc.
C-TPAT: Customs Trade Partnership Against Terrorism (C-TPAT) is another milestone that has been achieved in order to build customer confidence. It includes strict security
measures at various stages of production, packing and transportation. Examples include scanning containers for weapons, explosives at packing and loading stages etc

OHSAS 18001: Chenab Limited is the first Pakistani textile organization to achieve this international standard depicting management's commitment towards occupational health and safety requirements by ensuring a risk and accident free atmosphere.

Awards and Merits: Chenab's customer oriented and market driven approach is evident from the fact that the Company has for the 9th time won the "Best Export Performance Trophy Award" for 2003-2004 from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), for the highest export of value added cotton fabrics. The management of the Company is committed to excelling in the manufacturing of high quality products. Marketing strategy Creativity and innovation in fashion and design is seen as a major asset for the future control of markets. With in-house marketing specialists' and designers' team, the Company customizes designs and packaging according to regional and customer specifications. Chenab has been expanding its export sales through a network of franchise outlets and selling agents, direct marketing and strategic alliances. The ChenOne Stores The "ChenOne" brand, symbolizes the fast changing face of the global clothing and textile trade with a focus on the ultimate customer a global consumer characterized by awareness and a desire to follow the latest fashion trends. Chenab's visualization of ChenOne stores, a complete family fashion store, was to cater to such consumers in Pakistan and in international markets and to position Pakistan as a fashion producing country. In a short span of seven years, ChenOne, with its outlets in twelve cities of Pakistan (Karachi, Lahore, Rahim Yar Khan, Faisalabad, Rawalpindi, Islamabad, Peshawar, Abbotababd, Multan, Sialkot and Gujrat) has already acquired the position of Pakistan's leading fashion brand.
The success of the ChenOne concept has encouraged rapid expansion leading to the opening of six stores in the Middle East in Dubai, Abu Dhabi, Sharjah, Ajman, Makkah, and Bahrain. The company has already made plans to further expand locally to Sialkot and internationally to Jeddah and Riyadh. In the future, the company also plans to target Kuwait, Oman and Qatar for ChenOne outlets. Sales through Franchised Outlets The Company's franchised "ChenOne" outlets have been a great success. Chenab Limited through its various group companies and associates has set up these outlets in Pakistan, the UAE, Saudi Arabia and Bahrain. This initiative has been very encouraging and ChenOne outlets continue to operate as the marketing arm of the Company. Plans are currently being made to expand the number of franchised outlets in Pakistan and in other regional markets. The Company is also planning to set up "store-in-stores" outlets in major departmental stores in the EU, USA and other countries. The most important milestones covered under these initiatives are the training of manpower, implementation of sophisticated floor and supply chain management systems and customer services. Direct Marketing Management has also taken another initiative by making direct sales to leading chain stores operating in the UAE and other Gulf countries through a Sharjah-based sister concern named CGI. CGI has also established strategic market alliances in the following markets:

Australia, the EU, and the USA.

The company plans to create similar strategic alliances in the Central Asian and African markets for the marketing of its own brand (ChenOne) and other leading global brands. These initiatives have proven quite successful and direct contacts have been established with leading chain stores operating in these markets. It is expected that franchised and direct sales volumes would increase substantially in future, not only in Pakistan but in overseas markets as well.

Future OUTLOOK It seems possible that the future changes in the textile and clothing sectors will bring more risks and challenges than new opportunities. Comprehensive preparation is a must to manage these risks and take action to secure existing or additional markets. At Chenab, the management has developed a strategic approach to tackle the WTO challenges. At the macro level, the Company has worked to develop a partnership between private and public sector players that is critical to developing effective responses. This is based on the top management philosophy that while the government needs to set up an enabling environment, the business sector needs to develop the supply response to market requirements. Together, they need to develop a monitoring system for trade in textiles and clothing that is attuned to the changing economy.




One of the largest vertically integrated units of the country leading to low cost operations Experienced and competent management following a carefully strategized business plan Focus on brand development and retail network Diversified customer base and geographical distribution Continuous BMR and expansion

Centralized decision making. Partially dependent on yarn and cotton procurement
Substantial goodwill in the market

THREATS: OPPORTUNITIES: Lack of quality cotton availability and high cost of procurement. Non-Tariff barriers Levy of anti dumping duty by buyer's countries. Increased marketing costs

Free trade regime will allow the company to sell its products on high margin after imposition of compliance on regional competitor Elimination of privileges to regional competitors in coming years


During my stay in Chenab, consisting of more than sixteen years, I have worked in its various departments such as spinning, weaving, sales tax, income tax, imports, accounts and finance from time to time. However, currently I am working in finance & accounts department titled as "Manager Corporate & Banking Affairs". Under this portfolio my main responsibilities and duties are as under:


Preparation of monthly financial statements and presentation to the management of the


Preparation of financial projections of the company regarding BMR and expansion


Preparation of budgeted cash flow of the company on weekly basis and its monitoring

Arrangement of finance required by the company to meet its working capital requirement

form banks and other financial institutions.

Arrangement of funds required for expansion and new projects of the company from banks

and other feasible sources.

Negotiate with banks regarding their rate of mark up, fees, charges expenses and other

terms and conditions.

Completion of all legal formalities as required by the financial institutes in connection with

grant of loans like execution of agreements, filing of charge documents with SECP, marking of lien of banks in revenue record in respect of properties mortgaged with them.

Renewal of financial limits from the banks on annual basis and seek modifications if


Arrange the meetings between high ups of the financial institutions and management of the

company on various financial issues.


Preparation and circulation to shareholders, Securities and Exchange Commission of

Pakistan and Stock Exchanges, of quarterly, half yearly and annual financial statements of the company in accordance with the provisions of the Companies Ordinance, 1984.

Supervise the maintenance of record regarding transfer of shares and issuance of

dividends warrants to the share holders.

Correspondence with share holders, Stock Exchanges, Securities & Exchange

Commission of Pakistan and Central Depository Company.

Fulfillments of all secretarial requirements including requirements of code of Corporate

Governance, filing of statutory forms and information.

To conduct and coordinate sales tax audit and statutory audit of the financial statements of

the company


Bedeck UK C.G.I. Limited, UAE Chenab USA, USA Fedrated Product Development, USA Grouppo Coin S.P.A, Italy Ikea Asia Pacific Pte. Ltd., Malaysia Ikea Distribution France SNC, France
Ikea Hanim Poland SA, Poland Ikea L.U.S GMBH, Germany Ikea Sevenska AB, Sweden Ikea Wels Lager, Austria Ikea Whole Sales, Canada Ikea Whole Sales, Belgium Ikea Whole Sales, UK Ikea Whole Sales INC., USA Interfab (Pty) Limited, Australia Kwantum B.V., Holland Lawrence Home Fashion, Canada Linen Things, USA Home Centre, UAE Primark, Ireland

Departments of Chenab Limited

Department & output