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1. Introduction
This project is about to the consultancy provided related to the problem existed in the
leather field Sialkot.
The leather field Sialkot is the well known leather industry in the country. The leather
field is exporting the gloves, jackets, purses and some other miscellaneous items. The
problem is the low growth rate of the organization with respect to the competitor
available in the market. There may be other factors like energy, taxes, availability of
raw material, skilled manpower and environment. But the main factors are the
training of the employees, working in the leather field Sialkot. This report explains
and suggests that how to train the employees and what level of training is required, in
this report there is also a SWOT and Situation analysis with respect to the market, the
environment, the competitor. The training needed to maintain the existing lines and
equipments like boilers and steam lines and tanning machinery installed in the
organization.

2. Objectives of Studying the Organization

The objectives of studying the leather field Sialkot, is to diagnose the problem that is
causing low growth rate of the organization, as the organization is doing the business,
locally and internationally. But the organization is not growing well as per previous
history of the company. The company is the pioneer in the leather field is Sialkot, but

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with the passage of time there are the threats from the competitors to snatch the
business at local and international level, Identify the weaknesses and opportunities of
Leather Field Sialkot.

Sometimes successful implementation requires not only new management concepts

and techniques but also different attitudes regarding management functions and
prerogatives or even changes in how the basic purpose of the organization is defined
and carried out. The term organizational effectiveness is used to imply the ability to
adapt future strategy and behavior to environmental change and to optimize the
contribution of the organization’s human resources.

Consultants who include this purpose in their practice contribute to top

management’s most important task—maintaining the organization’s future viability
in a changing world. This may seem too vast a goal for many engagements. But just
as a physician who tries to improve the functioning of one organ may contribute to
the health of the whole organism, the professional is concerned with the company as
a whole even when the immediate assignment is limited.

Many projects produce change in one aspect of an organization’s functioning that

does not last or that proves counterproductive because it doesn’t mesh with other
aspects of the system. If lower-level employees in one department assume new
responsibilities, friction may result in another department. Or a new marketing
strategy that makes great sense because of changes in the environment might
flounder because of its unforeseen impact on production and scheduling. Because
such repercussions are likely, clients should recognize that unless recommendations
take into account the entire picture, they may be impossible to implement or may
create future difficulties elsewhere in the company.

Promoting overall effectiveness is part of each step. While listening to a client’s

concerns about one department, the consultant should relate them to what’s
happening elsewhere. While working on current issues, he or she should also think
about future needs. When absorbing managers’ explanations of why progress is
difficult, the consultant should consider other possible barriers as well. In these

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 ways, the professional contributes to overall effectiveness by addressing immediate
issues with sensitivity to their larger contexts. And clients should not automatically
assume that consultants who raise broader questions are only trying to snare more
work for themselves. To look at how the client’s immediate concern fits into the
whole picture is, after all, the professional’s responsibility.

Important change in utilization of human resources seldom happens just because an

adviser recommends it. Professionals can have more influence through the methods
they demonstrate in conducting the consulting process itself. For example, if
consultants believe that parts of an organization need to communicate better, they
can consistently solicit others’ thoughts on what’s being discussed or suggest project
task forces of people from different levels or departments. When a manager
discovers that an adviser’s secret weapon in solving some problem was not
sophisticated analysis but simply (and skillfully) asking the people most closely
involved for their suggestions, the manager learns the value of better upward
communication. The best professionals encourage clients to improve organizational
effectiveness not by writing reports or recommending books on the subject but by
modeling methods of motivation that work well.

Consultants are not crusaders bent on reforming management styles and

assumptions. But a professional diagnosis should include assessment of overall
organizational effectiveness, and the consulting process should help lower whatever
barriers to improvement are discovered. Good advisers are practitioners, not
preachers, but their practices are consistent with their beliefs. When the consulting
process stimulates experiments with more effective ways of managing, it can make
its most valuable contribution to management practice.

3. Overview of the Organization

3.1. Brief history
Leather field private limited is the largest manufacturer and exporter of leather
garments from Pakistan since 1990. The stitching facility based in Sialkot is the

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largest and most modern stitching unit in Pakistan. It employs more than 3,000
workers and has a capacity of producing 2,500 to 3,000 garments per day; the
production quality control departments ensure world – class quality. The tanning
facility, also based in Sialkot, is also the largest in Pakistan and is producing 100,000
to 125,000 square feet leather per day

With just over a decade since its establishment, Leather Field (Pvt.) Limited stands
apart as the first choice for global sourcing in the highly competitive arena of
Leather Apparel manufacturing. Through sheer determination & hard work Leather
Field has attained a perfect combination of quality materials, superior craftsmanship,
and extremely affordable costs that gives leather apparel marketers a decisive edge
in product variety, pricing - and bottom-line profitability.

Under the dynamic leadership of our Chair-man & CEO, Mr. Ajmal Cheema,
Leather Field is today Pakistan’s leading leather apparel company. Our achievements
include the “Best Export Performance Trophy” awarded repeatedly by the
Government of Pakistan, since 1991 for being the largest exporter of finished leather
apparel to Europe & the United States.

Continuing our effort for providing “Only the Best Quality” to our customers,
Leather Field started its ISO-9002 certification effort in November 1999 and was
certified in July 2000 by ‘AOQC’ Moody International.

Leather Field’s excellence as a leading Leather Apparel manufacturer has been

repeatedly recognized by the Government of Pakistan through the successive
award of PAKISTAN’S BEST EXPORT PERFOMANCE TROPHY from 1990-
2010.

These awards not only reflect Leather Field’s commitment to its customers but
also the trust of our customers in the quality of our products.

Our company discourages Child Labor for any of its operations. On annual
inspections, the Labor department always endorses, “Child Labor Free
Company”. We profess and support the elimination of Child Labor from the

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 Manufacturing Industry in Sialkot. We actively participate in the Child Labor
Eradication programs that are carried out by different Governmental and Non-
governmental institutions like the Government of Pakistan, UNICEF, ILO, and
due to these collective efforts, Sialkot Primary Education Project being
undertaken by UNICEF.
We believe in our ability to serve our customer and therein lay our success.
Continuing our tradition of a world-class professionally managed business,
Leather Field’s U.S. operations are functional business setups with sales &
distribution teams, warehouses, showrooms, as well as in-house design &
marketing teams.

This highly skilled team of professionals is responsible for direct interaction with
our clients and providing effective & efficient customer service. By providing
facilities at the client’s–end, we ensure a smooth purchase & delivery cycle
without the hurdles of offshore communication & delays.

3.2. Type and Nature of Business of the organization

Leather Field is at the forefront of Leather Apparel manufacturing representing
Fashion and Motor-Bike Leather collections for both men and women.

Leather Field (Pvt.) Limited stands apart as the first choice for global sourcing in
the highly competitive arena of Leather Apparel manufacturing. Through sheer
determination & hard work Leather Field has attained a perfect combination of
quality materials, superior craftsmanship, and extremely affordable costs that
gives leather apparel marketers a decisive edge in product variety, pricing - and
bottom-line profitability.

Under the dynamic leadership of our Chair-man & CEO, Mr. Ajmal Cheema,
Leather Field is today Pakistan's leading leather Apparel Company. Our
achievements include the "Best Export Performance Trophy" awarded repeatedly
by the Government of Pakistan, since 1991 for being the largest exporter of
finished leather apparel to Europe & the United States.

Challenges Faced By The Industry

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Quality: Good quality leather is mostly exported and is not available for high
value-added Leather Garments & Leather Products. Leather garments in Pakistan
are made mostly from low grade & medium grade leather. Lack of proper training
and inadequacy of skills in slaughtering are among the most important factors
leading raw hides and skins towards lower grades or even to rejection.
Furthermore, inadequate knowledge of preservation techniques and lack of
sufficiently designed collection and storage facilities may cause problems that are
associated with the lowering of the quality and quantity of raw material. Hence,
the need for strengthening training facilities for manpower at all levels through
hiring of experts.
The quality of raw hides and skins generally depends upon the quality of
livestock. The hides and skins removed out of young and healthy cattle may be
taken as the best in its quality provided the conditions in which these are removed
and also their collection, preservation and storage is satisfactory.
In fact, there are many factors which affect the quality of leather at pre-
slaughtering, during slaughtering and post-slaughtering stages. It is estimated that
around 20-25 per cent of the hides and skins are affected by pre-slaughtering
damages, like skin-cuts, rashes, diseases, injuries etc.
Cost of production: Cost of production is also very high in Pakistan as compared
to our competitors like China and India. The cost of various inputs especially
utilities and the high taxes make our products uncompetitive in international
markets.
The issue of chrome: Chromium III salts is used extensively in the tanning
process. Approximately 90% of the leather manufactured is tanned using
chromium III. This is because chromium is the most efficient and versatile
tanning agent available and it is relatively cheap. It has been used in the leather
industry for almost 100 years and when it was introduced as an alternative to
vegetable tanning extracts from oak bark and similar sources, it heralded a new
era for the leather industry. It reduced the time taken within the tanning process
from months to days, and offered leathers with properties that were previously

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unattainable. The leather industry only uses chromium in its safest and most stable
form - chromium III. However, due to misconceptions about chromium and a
failure to recognize the distinctions between chromium III and chromium VI,
which is generally understood to be toxic, the tanning industry has often been
placed under unwarranted pressure by regulatory bodies with regard to both the
use and disposal of chromium and chromium-containing materials. Chromium VI
compounds are not used by the tanning industry.
Environmental Technology Program for Industry (ETPI) was initiated by the
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the
Government of Netherlands. ETPI aims to assist Pakistani industries and their
associations in identifying the most economical pollution prevention and
abatement technologies, and in implementing these solutions. 31 National
Environmental Quality Standards; Pakistan Environmental Protection Agency 32
Leather sector report, Environment Technology Program for Industry.
Maintenance of steam pipes, steam traps and insulation are causing wastage of
significant amount of energy in most leather processing units.
Environmental challenge: Leather tanneries in Pakistan produce all three
categories of waste: wastewater, solid waste and air emissions. However,
wastewater is by far the most important environmental challenge being faced by
Pakistan's tanneries.
Wastewater: Although the exact quantity varies widely between tanneries, a
normal requirement of around 50-60 liters of water per kilogram29 of hide is
suggested. The overall water discharge also demonstrates a high degree of
seasonal and daily fluctuation. For most part, the current practice is to discharge
this water into the local environment without any treatment.

Air Emissions: There are two sources of air pollution from tanneries in Pakistan.
The first relates to emissions from generators (diesel-based and operated only
during power breakdowns) and from boilers. Emissions were found to be well
below the NEQS level. Ammonia emission during processing and washing of
drums, though intermittent but important has adverse effects on workers health.

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Hydrogen sulphide emission during mixing of acid and alkaline wastewater in
drain is also a serious health hazardous. Segregated discharge of acidic and
alkaline effluent can help to avoid the hydrogen sulphide gas emission.
Solid Waste: Two types of solid wastes are generated from leather production
processes (i.e. tanned and untanned). Solid waste includes dusted curing salts, raw
trimmings, wet-blue trimmings, dry trimmings, wet-blue shavings, dry shavings,
buffing, and packaging material etc. On an average a tannery processing 1000
kilograms of raw material per day produces some 500 kilograms of solid waste
daily. The solid wastes do have secondary use in glue manufacturing and poultry
feed making etc. However, the use of chrome-containing solid waste for poultry
feed preparation can cause serious health problems for poultry consumers.
Issues Faced By the Industry:
The major impediment in the growth of the Leather industry is the unfavorable
image Pakistan has in the international arena.
 There are 4 factors that are significant for the development of any
industry, which are: Country Image, Logistics, Price and Quality.
 In Pakistan, minor attention is given to these four aspects which are
otherwise essentials for success.
 The law and order situation is making foreign investors reluctant to invest
Livestock Industry:
 In Pakistan, meat industry is seen as of prime importance, leather is just
seen as a by-product.
 This perspective needs to be changed for the sophistication of local
demand.
Effluent treatment plant & REACH agreement
 This plant has been made in Korangi with the collaboration of Dutch
government.
Fashion Industry:
 The fashion industry of Pakistan is not up to the standards.

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  There is lack of awareness among the masses regarding the latest trends in
fashion

 If the fashion industry flourishes and creates awareness about its products,
the leather industry will get a boost as more and more people will be
inclined to buy leather based products(such as belts and bags)

Banking and finance industry:

 The credit availability to the leather tanneries is an ongoing issue.

 The borrowing cost is high which deters further investment in the industry.
 The initiative taken by the government to reduce the Bank‘s spread from
3% to 2% (in 06-07) can help the industry grow.

Dyes and chemicals:

The local chemical and dye manufacturing companies are not supporting the
Leather industry. Other than a few Multinational Corporations none of the
companies meet the international standards. Local companies do not manufacture
chemicals required by leather industry. Tanners are forced to buy chemicals from
the Multinational corporations at high prices or import them.
Our local chemical and dyes Industry should address various health issues
associated with the chemicals they produce in order to abide by all the set
international regulations.
Training, research and educational institutes
Institutes are not working to their full capacity due to the lack of students, faculty
and proper academic curriculum.

The NILT (National Institute of Leather Technology) has taken initiatives to train
individuals in Leather and Leather products but they are not capable of attracting
people, which is reflected in the minute number of the present class at the
institute(currently 110)

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 Gaps in the qualities of local supplies:
This is reflected in the inefficiency of the local machinery and dyes
manufacturers.
Our local machinery and dye manufacturers are not competent enough, forcing
tannery owners to import all the machines and chemicals. 80% of the chemical
dyes used are imported.
Poor coordination among the cluster-players:
The clusters in Kasur, Sialkot and Karachi are the most important. Yet there isn‘t a
concerted effort taking place to turnaround things for the sector. There isn’t a
shortage of institutes but there is a need of unanimity of effort. There are good
five big institutions for the leather sector but there is lack of coordination.
Cumbersome regulatory procedures:
Export rebates of up to 23% were given up till 10 years ago, which has now been
reduced to a meager 0.8 to 1% for finished goods, 0.22% for apparels, 1.76% for
gloves and 2% for footwear. This reduces our ability to compete with countries
giving high export rebates. Over and above this, the Pakistan Leather Industry is
subject to high L/C Margin approximating to 35%.
Control on Smuggling & Diseases of Livestock:
Leather manufacturing sector in Pakistan can also suffer because of massive
smuggling of livestock to other countries, shortage of raw material and absence of
the organized dairy farming in the country. Steps should be taken to overcome
these problems
Disease Control:
Moreover, diseases in the livestock in Pakistan can prove hurdle in the
manufacturing and exports of finished products of leather. Concrete measures
need to be taken to overcome this threat to the livestock. As a result the live
animals are suffering from different diseases that damage the quality of the leather
and tarnish the image of products at international level.
3.3. Organization volume/size in different contexts
3.3.1. Regional Level Operations
3.3.2. National operations (If any)
In Pakistan the leather Field (Pvt.) Sialkot subcontracts some work to the other
tanneries for leather processing according to the demand. As the stitching unit
having the capacity to fulfill the customer`s demands, but the tanning units needs

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 some expansion to fulfill the requirements of the stitching unit.
3.3.3. International Operations (If any)
We believe in our ability to serve our customer and therein lay our success.
Continuing our tradition of a world-class professionally managed business,
Leather Field’s U.S. operations are functional business setups with sales &
distribution teams, warehouses, showrooms, as well as in-house design &
marketing teams.

This highly skilled team of professionals is responsible for direct interaction with
our clients and providing effective & efficient customer service. By providing
facilities at the client’s–end, we ensure a smooth purchase & delivery cycle
without the hurdles of offshore communication & delays.

3.4. SWOT Analysis

Here is the SWOT Analysis of Leather Field Sialkot.
Strengths:
 Easy availability of raw material

 Management skills learned through experience.

 Easy availability of labor.

 Presence of institutional support for technical, services, designing,

manpower and marketing.

 Export market in Europe, USA, and Far EAST.

 Leather Field Sialkot has a comparative advantage over competitors in

Leather Garments, Gloves, and Leather Goods for Consumer use (clothing
accessories) and Finished Leather items (Leather Hides, Skins, Parchment
whole skin dresses).

Weaknesses

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 • Insufficient level of modernization and technology up gradation.

• Low labor productivity.

• Lack of skilled labor.

• Environmental problems

Threats

• Competition from local and regional players.

• New regulations of environmental and social compliance.

• Competitors have a comparative advantage over Leather Field Sialkot in

Leather Footwear and Leather Goods for Consumer use (Leather trunks
and suitcases).
Opportunities
• Room for capacities utilization.

• Scope for bulk supply of finished leather to big Units.

• Product diversification and new markets.

• Leather Field Sialkot can diversify further in Leather Goods for industrial
use sector.

3.5. Business Plans

Following are improvements, renovations and up-gradations carried out at Leather
Field.
 New tanning drum installation.
 Roller coating machines for finish application.
 Installation of Effluent Treatment Plant.
 Sun light usage schemes.
 Generator for back up;

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  Separation of hazardous /non hazardous chemicals in separate store;
 Scrap areas are defined;
 Water purifier addition for drinking purpose;
 PPEs are provided to the labor;
 Safety system & fire extinguishers are up dated;
 Exit signs & emergency fire alarm are installed; and
 Assembly area is designated

4. Organizational structure
4.1. Main offices and Organizational Hierarchy.

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4.3. Departmental Structure:
There is a manager, two assistant mangers, two chief technicians and fourteen other
staff available to fulfill the departmental requirement of manpower. There is a
computer operator with each manager and assistant managers for official letters and

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 other documentations, while the remaining staff equally assists the chief technicians.

5. Product/Services
5.1. Product Portfolio Overview

5.2. Product Lines

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 The graded leathers are then sent to the Cutting Department where cutting is carried out
with the help of Card Board Patterns. The panels of each garment are then numbered in
order to ensure quality & eradicate mixing of different panels. There are twelve lines of
cutting the leathers according to different items

The Stitching Department receives the numbered panels, which are then stitched
through a highly efficient & specialized Chain-system. Optimum utilization of work
specialization is achieved by assigning the stitching of different parts to each link in the
chain. There are 24 lines of stitching in parallel for different items of leather

Stitched garments are received at the Finishing Department for which Leather Field has
assigned three floors of its factory. Finishing of garments is carried out through various
operations like buttoning, sewing, riveting, lining, ironing, trimming, polishing, &
touching

5.3. Production/Manufacturing Process

Types of Processes:
There are a number of processes whereby the skin of an animal can be formed into a
supple, strong material commonly called leather.
Vegetable-tanned leather is tanned using tannin (hence the name "tanning") and
other ingredients found in vegetable matter, tree bark, and other such sources. It is
supple and brown in color, with the exact shade depending on the mix of chemicals
and the color of the skin. Vegetable-tanned leather is not stable in water; it tends to
discolor, and if left to soak and then dry it will shrink and become less supple and
harder. In hot water, it will shrink drastically and partly gelatinize, becoming rigid
and eventually brittle. Boiled leather is an example where the leather has been
hardened by being immersed in hot water, or in boiled wax or similar substances.
Historically, it was occasionally used as armor after hardening, and it has also been
used for book binding. This is the only form of leather suitable for use in leather
carving or stamping.
Chrome-tanned leather, invented in 1858, is tanned using chromium sulfate and
other salts of chromium. It is more supple and pliable than vegetable-tanned leather,

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and does not discolor or lose shape as drastically in water as vegetable-tanned. Also
known as wet-blue for its color derived from the chromium. More esoteric colors are
possible using chrome tanning.
Aldehyde-tanned leather is tanned using glutaraldehyde or oxazolidine compounds.
This is the leather that most tanners refer to as wet-white leather due to its pale
cream or white color. It is the main type of leather used in chrome-free leather often
seen in infant's shoes and in automobiles that prefer chrome-free leather.
Formaldehyde tanning (being phased out due to its danger to workers and the
sensitivity of many people to formaldehyde) is another method of aldehyde tanning.
Brain-tanned leathers fall into this category and are exceptionally water absorbent.
Brain tanned leathers are made by a labor-intensive process which uses emulsified
oils often those of animal brains. They are known for their exceptional softness and
their ability to be washed. Chamois leather also falls into the category of aldehyde
tanning and like brain tanning produces a highly water absorbent leather. Chamois
leather is made by using oils (traditionally cod oil) that oxidise easily to produce the
aldehydes that tan the leather.
Synthetic-tanned leather is tanned using aromatic polymers such as the Novolac or
Neradol types. This leather is white in color and was invented when vegetable
tannins were in short supply, i.e. during the Second World War. Melamine and other
amino-functional resins fall into this category as well and they provide the filling
that modern leathers often require. Urea-formaldehyde resins were also used in this
tanning method until dissatisfaction about the formation of free formaldehyde was
realized.
Alum-tanned leather is tanned using aluminum salts mixed with a variety of
binders and protein sources, such as flour, egg yolk, etc. Purists argue that alum-
tanned leather is technically "tawed" and not tanned, as the resulting material will rot
in water. Very light shades of leather are possible using this process, but the resulting
material is not as supple as vegetable-tanned leather.
Rawhide is made by scraping the skin thin, soaking it in lime, and then stretching it
while it dries. Like alum-tanning, rawhide is not technically "leather", but is usually
lumped in with the other forms. Rawhide is stiffer and more brittle than other forms

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of leather, and is primarily found in uses such as drum heads where it does not need
to flex significantly; it is also cut up into cords for use in lacing or stitching, or for
making many varieties of dog chews.
Stages of Leather Formation:
Warehousing and sorting:
In the raw material area the skins are preserved in salt, stored in controlled cool
rooms and before processing, presorted for quality and weight.
Soaking:
The skin is soaked to remove dirt and salt.
De-Fleshing:
During this process tissue, flesh and fat remnants are removed by a roller mounted
knife.
Liming:
By adding lime and sulphur compound the hair is removed from the skin.
Bating, pickling, tanning:
During bating and pickling the skins are treated with acid and salt in preparation for
tanning. During tanning the skin fibers absorb the tanning agents. That's when the
skin becomes leather.
Samming:
During this process water is removed.
Splitting:
In order to achieve an even specified thickness the leather is reduced in substance.
The resulting split-leather can then be processed further as suede.
Skiving:
The grain leather is brought to an even thickness. Irregularities are removed from the
reverse side and the leather is separated into color-batches.
Sorting:
The leather is sorted into various quality grades.

Neutralizing, filling out, dyeing and greasing:

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The acid resulting from the tanning process is neutralized. Then the dyeing takes
place, where appropriate with anilin-dye-stuffs. The greasing procedure will finally
achieve the correct softness.
Drying:
Two methods are used to dry leather. The vacuum process during which moisture is
removed by suction and the hanging process, when leather is hung and taken through
ovens.
Staking:
Following drying the leather is mechanically staked in order to soften it. Further
processes take place in preparation for finishing.
Finishing:
Here the leather is given its final surface treatment and look. Through processes of
base coat, coloring, embossing, ironing the leather becomes, depending on the
demands of fashion, matt or shiny, two-tone or uni-coloured, smooth or grained. The
art of finishing lies in working in wafer-thin layers without disturbing the natural
look of the leather and its characteristics such as suppleness and breath ability.
Quality Control:
In between every process quality is controlled. Final control checks to ensure each
individual production is to specification and sortation into various trades.
Dispatch:
The leather is measured electronically, wrapped and dispatched. Our production
process starts with the receiving of leather from tannery.

The graded leathers are then sent to the Cutting Department where cutting is carried out
with the help of Card Board Patterns. The panels of each garment are then numbered in
order to ensure quality & eradicate mixing of different panels.

The Stitching Department receives the numbered panels, which are then stitched
through a highly efficient & specialized Chain-system. Optimum utilization of work
specialization is achieved by assigning the stitching of different parts to each link in the
chain.

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Stitched garments are received at the Finishing Department for which Leather Field has
assigned three floors of its factory. Finishing of garments is carried out through various
operations like buttoning, sewing, riveting, lining, ironing, trimming, polishing, &
touching.

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6. Identification of Problem
6.1. Appreciation of Macro-environment
6.2. Situation Analysis
The tanning industry in Pakistan uses machinery which are out dated and believed to
be imported from various countries in the 1970‘s and 1980‘s. Though, the country
took advantage of these second hand machines by bringing in a large amount of
foreign earnings, it failed to create a friendly environmental atmosphere in the
process. A large part of the country is subjected to air pollution due to the burning of
chemical residual during tanning process into the atmosphere. This pollution has a
dangerous effect on the health of the local population, mainly in the cities of
Karachi, Kasur and Sialkot. The leather industry has implemented many progressive
interventions and technologies in the past to deal with its numerous environmental
and energy challenges. The representative association of leather industry i.e.
Pakistan Tanners Association (PTA) has long been facilitating a number of initiatives
to address the environmental issues of the industry. This has resulted into a more
competitive, sustainable and progressive leather industry of Pakistan.
Due to lack of skilled manpower in sufficient quantity most of the work assigned to
the subcontractor. They try to fulfill the target with the available human resources in
the market. Although the quality control department is the leather field`s own
department, but some time they could not achieve the target due to frequent defects
found in the lot, While the competitors available in the market are fulfilling the lot of
demand of leather at local and international level.
Dyes and Chemicals:
90% of the dyes and chemicals used in the tanning of leather are imported mainly
from Germany, Spain and Italy.
10% dyes and chemicals are taken from MNCs which have got their set ups in
Pakistan. The big players of the Industry are Sandoz, Bayer, BASF and Clarient.
Labour Situation:
 The leather industry provides employment to 150,000 people of Gujranwala
Division.

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  Almost 70% of the labor is skilled (they have almost the required expertise to
operate the old machinery).
 Approximately 30% are the unskilled workers who are mostly the helpers
( mainly they help in unloading, loading and packaging)
 The bigger players in the Industry employ 15 to 20% graduates, engineers
and diploma holders while the smaller tanneries have 2 to 5% of graduates in
their workforce.
 Almost all the tanneries have the minimum age requirement of 18 years,
below which they do not employ the candidate.
 Basic training methodology prevalent is the “Ustaad-shaagird” method.
 They believe that the expertise that the workers have is sufficient enough to
meet the buyer preferences.

6.3. Identification of Problem

The problem of low growth of leather field Sialkot is that, there is no proper training
of the employee w. r. t. the changing the technology day by day as the role of the
latest technology is very much more as compared to the other factors for a business.
Basic training methodology prevalent is the “Ustaad-shaagird” method. Due to lack
of skilled manpower most of the work assigned to the subcontractor. They try to
fulfill the target with the available human resources in the market. Although the
quality control department is the leather field`s own department, but some time they
could not achieve the target due to frequent defects found in the lot, While the
competitors available in the market are fulfilling the lot of demand of leather at local
and international level because they are using state of the art machinery and skilled
manpower in their organizations..
The organization/company is using the old machinery along with some new
machines in the production lines. The maintenance of old machines takes much more
time as compared to the new ones and there is no proper skilled maintenance team
for the steam lines and the equipment, due to which some time the quality is being
compromised. The rejection also increased and the customer satisfaction is suffered.

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6.4. Problem Statement
There is a low growth rate of the Leather Field Sialkot as compared to its
competitors in Pakistan particularly in Sialkot.
To maintain the top position among the competitor the organization must have
proper and well managed training program. Lack of training of the employees is
causing big loss to the company.
There should be an implementable plan for shifting/replacement the old machines
with the latest technological equipments and machines.
6.5. Impact and Scope of Problem
Due to non availability of training culture and opportunities to enhance their
technical knowledge the employee`s efficiency is not up to the mark. Some time
whenever there is a problem in product line, the employee uses the conventional way
to solve the problem. They solve the problem after more time consumption. The
production stops for longer time which impact on cost of the product at large scale.
As a leading leather field firm, its success and reputation can only be as good as its
people’s capabilities. So it is natural for them to want to create an environment that
attracts and develops the best people in the country.
To achieve this, they should have training and development in place that:
Ensures advancement through leather field at a rate appropriate to each individual’s
capabilities as they develop
They should provide strong and accurate feedback on each individual’s successes
and areas for improvement to seek a balance between placing the primary
responsibility on the individual to develop and providing the personal and
infrastructure support required to help make it happen.
Formal Training:
Training programs for technical staff could fall into three categories. The emphasis
of these programs shifts as your tenure and role changes:
 Prerequisite programs for new technical staff members
 Core-change programs focused heavily on leadership development
 Programs focusing on specific consulting skills.
Development actions:

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Development should not just about completing courses. They could recommend a
variety of other methods to help employees make the most of their potential:
 Practical application of employee’s new skills and knowledge
 Rotation on assignments to keep trying new tasks.
 Taking on management responsibility during client work.
 Accepting additional responsibilities.
 Working on assignments for other practices or in another country.

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7. Critical Analysis of Problem
7.1. Theoretical Concepts Related To Problem

7.2. Analysis tools applicable/applied

7.3. Identification of Key Factor to Problem

The key factors to the problem are listed below.
 The unskilled manpower and there is no proper trainings for the employees at
different levels and departments of leather Field Sialkot.
 There is a lack of latest technology relevant to the leather Field.
 There is a Shortage of energy in the country and loss of energy due to lack of
proper cleaning and maintenance of the plant.
7.4. Conclusion of Analysis
Leather Field Sialkot has a comparative advantage over its competitors in Leather
Garments, Gloves and Finished Leather items. Easy availability of raw material and
cheap labor are the strengths. The competitors have the capability to assimilate new
technologies and handle large projects with continuous emphasis on product
development and design up gradation. On the other hand Leather Field Sialkot has
insufficient resources in terms of institutional support for technical, design, skilled
manpower and marketing services. Also the unskilled labor leads to inefficiency and
wastage, as there is no proper training center in an organization which could train the
employees according to the changing technologies in the field of Soaking, Fleshing,
Deliming, Bating, Pickling and Chrome Tanning, Toggle, Staking, Dry Milling,
Embossing, Coating, Polishing, Buffing and Spraying, Sammying, Splitting, Shaving,
Trimming, Re chroming, Neutralizing, Fat liquoring, Dyeing, Piling, Setting Out,
Vacuum Drying and Drying, cutting, stitching and sewing etc. The cost of various
inputs especially utilities and the high taxes make company`s products
uncompetitive in international markets. The absence of energy efficient technologies
and lack of proper maintenance of steam pipes, steam traps and insulation are also
causing wastage of significant amount of energy in leather processing units.

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8. Recommendations and Solutions
Research and Development:
Leather Field Sialkot should support the establishment of laboratories for leather and
leather products to engage in R&D. There should be a well equipped and managed
training institute specifically for the Leather Field employee`s trainings. That
training should be designed for daily working procedures for different department`s
need and the day by day changing technology and trends in the industry.
Introducing Brand Names
Pakistani Leather and Leather products have carved a respectable place in the world
market especially leather jackets are much in demand. They are sold under the
foreign renowned brand names. Made-in-Pakistan label and brands born in Pakistan
have yet to come. Steps need to be taken by the Leather Field Sialkot in this regard.
Focusing on Footwear Sector
Footwear, the largest segment of the leather industry around the world has been
surprisingly neglected in Pakistan. Foreign franchised companies have become
household names in Pakistan. This is despite the fact that the entire stuff and skill
they use belong to Pakistan. Leather Field Sialkot should seek partnership with
international brand producers by offering them attractive incentives in order to
promote Leather footwear industry.
Tackling Environmental and Labor Issues
Regarding environmental concerns of WTO, the industry has made little progress in
this regard. Combined effluent treatment plants need to be built so that hazardous
chemicals from the tanneries do not affect the environment. Moreover, the industry
needs to tackle all the labor issues to which the consumers in the importing countries
are sensitive to. It needs to be ensured that the leather industry in Pakistan adheres to
the working condition requirements that have been developed by international
bodies, particularly, the associations of leather industries in the importing countries
of the west. Under the WTO regime, member countries can impose penalties or

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 restrict imports from exporting countries whose industries do not observe
environmental/labor concerns or social compliance.

Other recommendations:
 Major trade shows, fairs and other promotional activities should be used to
build Pakistani brand names, and thus improving the position of ―Brand
Pakistan. E-marketing- the use of the internet in order to make people
more aware of leather industry in Pakistan some are already using such
techniques.
 Sustainable Leather Field Sialkot`s competitiveness requires greater
concentration on fashion and design. Efficient fashion will bring new design
and innovative designs in leather garments and hence leather of Leather Field
Sialkot will be promoted.
 The industry has some excellent clients in the US and Europe and building
on these with a marketing campaign, perhaps allied with warehousing
assistance, there is potential for Pakistan to compete for clients with countries
like Turkey who deal in a generally higher price bracket.
 Commercialization of livestock farming to make the standard of breeding
practices better.
 The people at the slaughter houses who skin the animal should be made more
aware of the use of those hides and skins and how a little cut on the skin can
make the whole skin useless
 More emphasis on the foot wear, as value additions brings more revenue.
 Differentiated products in terms of design. This will bring diversification in
leather portfolio; hence more products will cater vast range of customers.

9. Managerial Implication

10. Bibliography (References & Sources used)

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