Topic: GUL AHMED

ILMA UNIVERSITY

Presented to: Sir Muhammad Faizan Khan

Presented by:
Noor-ul-ain parveez
Javeria khan
Rabica khan
Filza khalique
 Bashir Ali Mohammad is a business leader
in Pakistan who is chairman and chief executive
of the Gul Ahmed Group
EXCUTIVE SUMMARY

The textile industry is one of the most important sectors of Pakistan. It

contributes significantly to the country’s GDP, exports as well as employment. It
is, in fact, the backbone of the Pakistani economy. The textile industry of
Pakistan has a total established spinning capacity of 1550 million kgs of yarn,
weaving capacity of 4368 million square meters of fabric and finishing capacity of
4000 million square meters. The industry has a production capacity of 670 million
units of garments, 400 million units of knitwear and 53 million kgs of towels.
According to recent figures, the Pakistan textile industry contributes more than
60% to the country total exports, which amounts to around 5.2 billion US dollars.
The Pakistan textile industry is currently facing several challenges. According to
experts, there is a need for the industry to improve the quality of its products.
There is also the need for greater value addition in its products. The growth in
the textile exports of Pakistan is gradually declining. Textile exports in Pakistan
grew from 8.92 billion USD in 2004-05 to 10.11 billion USD in 2005-06,
reflecting a growth rate of 18%. As against this, in the current year, export
growth has been only 5%. This is growing to be an issue of concern for the
Pakistani government. . Pakistan is World's fourth largest cotton producer and
the third largest consumer of the same. Cotton based textiles contribute over 60%
to the total exports, accounts for 46% of the total manufacturing and provide
employment to 38% manufacturing labor force. The Ministry of textile Industries
(MINTEX) is currently in the process of implementing and finalizing various
initiatives for the growth of the industry. The story of textiles in the subcontinent
is the story of Gul Ahmed. The group began trading in textiles in the early
1900’s. With all its know-how and experience, the group decided to enter the field
of manufacturing and Gul Ahmed Textile Mills Ltd. was incorporated as a private
limited company, in the year 1953. In 1972 it was subsequently listed on the
Karachi Stock Exchange. Since then the company has been making rapid progress
and is one of the best composite textile houses in the world. Fateh Textile Mills
Limited engages in manufacturing, bleaching, dyeing, printing, buying, selling,
and dealing in textile, yarn, cloth, and fabric products made from raw cotton and
polyester fibers in Pakistan. Fateh Textile Mills Limited now ranks as one of the
largest textile manufacturing and exporting Unit in Pakistan. The Company is
marketing its products throughout the world specially in Europe, United States
of America and Far-east. The Crescent Textile Mills Limited engages in
manufacturing textile mill products. The company involves in spinning, combing,
weaving, dyeing, bleaching, printing, stitching, buying, selling, and dealing in
yarn, cloth, and other goods and fabrics made from raw cotton and synthetic
fibers in Pakistan. It also operates a cold storage facility for farmers. The
company was founded in 1950 and is based in Lahore, Pakistan. Liquidity ratios is
a financial metrics that is used to determine a company's ability to pay off its
short-terms debts obligations. Generally, the higher the value of the ratio, the
larger the margin of safety that the company possesses to cover short-term debts.
Efficiency ratios are typically used to analyze how well a company uses its assets
and liabilities internally. Efficiency Ratios can calculate the turnover of
receivables, the repayment of liabilities, the quantity and usage of equity and the
general use of inventory and machinery. Profitability ratios are financial metrics
that are used to assess a business's ability to generate earnings as compared to its
expenses and other relevant costs incurred during a specific period of time. For
most of these ratios, having a higher value relative to a competitor's ratio or the
same ratio from a previous period is indicative that the company is doing well.
Leverage ratio are used to calculate the financial leverage of a company to get an
idea of the company's methods of financing or to measure its ability to meet
financial obligations. There are several different ratios, but the main factors
looked at include debt, equity, assets and interest expense. The equity ratio is a
financial ratio indicating the relative proportion of equity used to finance a
company's assets.
ACKNOWLEDGEMENT
We proudly present our report which is based on Organization Structure. For this

report we are extremely thankful to the talented people that worked and helped us

in sorting out our report We are very thankful to our maam and many other skillful

personalities and worker whose co-operation was very beneficial & studious for us.
TABLE OF CONTENT
 Introduction
 History
 Company Overview
 Strategy Formulation
 Vision
 Mission
 Values
 Literature Review
 Discription of product and services of company
 External factor evalution matrix
 Competitive profile matrix
 Internal factor evalution matrix
 SWOT matrix
 Financial performance
 Blue ocean strategy
 Pattern of shareholder
 Organizational culture
 Organizational design
 Organization structure
  Conclusion
 Recommendation

INTRODUCTION

The Gul Ahmed Group is a Pakistani company that includes Gul Ahmed Textile
Mills, Gul Ahmed Energy and Habib Metropolitan Bank. More recently, a chain
of retail outlets has been operating under the name "Ideas by Gul Ahmed". The
group's other concerns go by the name of Swisstex Chemicals (Private) Limited,
which is a large chemical distribution company that has the sole rights for
supplying Ciba Specialty Chemicals in Pakistan. The group has invested in
outsourcing information technology with Arwen Technologies. The Gul Ahmed
Group began trading in textiles in the early 20th century. In 1953, the group
decided to enter the field of manufacturing under the name Gul Ahmed Textile
Mills Limited, and was incorporated as a privately limited company. In 1970, it
was listed on the Karachi Stock Exchange. Since then, the company has made
rapid progress and, in 2017, has a market capitalization of Rupees 12.7 billion
(0.12 billion U.S. dollars) and one of the leading composite textile houses in
Pakistan.
HISTORY

The group began trading in textiles in the early 1900’s. With all its know-how
and experience, the group decided to enter the field of manufacturing and Gul
Ahmed Textile Mills Ltd. was incorporated as a private limited company, in the
year 1953. In 1972 it was subsequently listed on the Karachi Stock Exchange.
Since then the company has been making rapid progress and is one of the best
composite textile houses in the world. The mill is presently a composite unit with
an installed capacity of 103,000 spindles, 220 wide width air jet looms, 90
Sulzer’s, 297 conventional looms and a state of the art processing and finishing
unit.
COMPANY OVERVIEW

The story of textiles in the subcontinent is the story of Gul Ahmed. The group
began trading in textiles in the early 1900s. The group entered in the field of
manufacturing with the establishment of today’s iconic name of Gul Ahmed
Textile Mills Ltd in the year 1953. Since its listing on the Karachi Stock
Exchange in 1970, the company has been making rapid progress and enjoying a
leading position in the world of textiles. With an installed capacity of more than
130,000 spindles, 300 state-of-the-art weaving machines and most modern yarn
dyeing, processing & stitching units, Gul Ahmed is a composite unit – making
everything from cotton yarn to finished products. Gul Ahmed has its own captive
power plant comprising of gas engines, gas & steam turbines, and backup diesel
engines. Believing in playing its role in protecting the environment, Gul Ahmed
has also set up a waste water treatment plant to treat 100% of its effluent,
bringing it to NEQS levels. Gul Ahmed is playing a vital role not only as a textile
giant, but has its strong presence in the retail business as well. The opening of its
flagship store – Ideas by Gul Ahmed– marked the group’s entry into the retail
business. Starting from Karachi, Gul Ahmed now has an extensive chain of more
than 40 retail stores across the country, offering a diverse range of products from
home accessories to fashion clothing. More than 50 years since its inception, the
name Gul Ahmed is still globally synonymous its quality, innovation & reliability.
Subsidiary Companies Gul Ahmed International Limited. (FZC)-UAE – (Wholly
owned subsidiary of Gul Ahmed Textile Mills Limited) GTM Europe Limited –
UK– (Wholly owned subsidiary of Gul Ahmed International Limited. (FZC)-
UAE) GTM USA Corp. -USA – (Wholly owned subsidiary of GTM Europe
Limited – UK) Sky Home Corp.- USA – (Wholly owned subsidiary of GTM
Europe Limited – UK) Association / Trade body All Pakistan Textile Mills
Association Karachi Chamber of Commerce & Industry The Karachi Cotton
Association Pakistan Business Council Employers’ Federation of Pakistan Textile
Exporters Association All Pakistan Textile Processing Mills Association
Pakistan Bed wear Exporters Association Pakistan Hosiery Manufacturers &
Exporters Association Karachi Centre for Dispute Resolution International
Textile Manufacturers Federation Fellowship Fund for Pakistan Company
Registration Number New registration number: CUIN 000586 Company
National Tax Number: 0698283-2 Registered Office Address: Plot No.82, Main
National Highway, Landhi, Karachi-75120.
STRATEGY FORMALATION
Vision

Setting trends globally in the textile industry. Delivering the best

products and services to our customers.

Mission

To deliver value to our stakeholders through innovative technology,

teamwork and by fulfilling our social and environmental
responsibilities.

Value

In achieving its vision and fulfilling its mission, the Company shall
operate on the following core values: Integrity, Passion, Creativity, and
Teamwork.
 LITERATURE REVIEW

Description of products and services of the

company

The products and services of Gul Ahmed Textile Mills can be divided into two
broad categories according to their markets .Gul Ahmed’s local Market . Gul
Ahmed’s export Market The products in Gul Ahmed’s local market category are
: Lawn , Pret line (women category) ,Men’s stitched wear , Men’s unstitched ,
Home textile , Foot wear , Perfumes , Accessories The products in Gul Ahmed’s
export market category are : Lawn , Pret line (women category) , Men’s stitched
wear , Men’s unstitched , Home textile What make Gul Ahmed stay? First ETP
(Effluent Treatment Plant) in textile sector , First yarn mercerizing facility ,
Metal free safety packing zones in all sewing units , First textile mill to register
carbon credits , First rotary machine in Pakistan , First to install caustic recovery
unit in Pakistan’s textile sector , First compact spinner in Pakistan , Using
CAD/CAM machines to apply latest design techniques , Largest embroidery
facility dedicated to home textiles . An extensive chain of retail outlets all over
Pakistan
EXTERNAL FACTOR EVALUTION MATRIX
COMPETITIVE PROFILE MATRIX
INTERNAL FACTOR EVALUTION
SWOT MATRIX
STRENGTHS
1. Highest Market share
2. Creative designers
3. Fully vertically integrated from fiber to fashion
4. Latest technology engaged
5.99.99% design quality assurance
6. Strong brand image
7. An extensive chain of retail outlets all over Pakistan
8. Financial Strength

WEAKNESSES
1. Demand for Lawn is so high that sometime it exceed their production capacity
2. Online shop is not fully functional (does not contain all products of Gul Ahmed)
3. Most of designs are out of stock
4. Sometime designs are there in the magazine but are launched late.
5. Perfumes and footwear are not profitable

OPPORTUNITIES
1. Growing Demand
2. Internet and online shopping
3. Global Trade
4. Fashion Weeks in major cities
5. Dubai shopping festival and other expos

THREATS
1. Big players in export markets
2. Small share of export market 3. Foreign exchange risk
4. Volatile law and order situation
5. Other established brands in accessories, perfume foot wear.
FINANCIAL PERFOMANCE
BLUE OCEAN STRATEGY

Blue Ocean Strategy on which Gul Ahmed is working are:

 A dedicated Gul Ahmed Fashion magazine to

promote their new collection twice a year

 First one to launch online shop in Pakistan

www.gulahmedshop.com , currently no other
player in the industry has online shop.
PATTERN OF SHAREHOLDER
Organizational Culture
Structure
Organizational Structure may define in different ways;
 They define the levels of management in organizations.
 Organization structures define relationships between jobs.
 They define the centers of decisions in any organization.
 They help to achieve organizational goals by grouping jobs, defining
relationship between positions as well as who takes the responsibility in
organnzation.
 They define the levels of management in organizations.
 Organization structures define relationships between jobs.
 They define the centers of decisions in any organization.
 They help to achieve organizational goals by grouping jobs, defining
relationship between positions as well as who takes the responsibility in
organnzation.
Organizational Design:
Organizational Design may define in different ways;
 More specifically, Organization Design is a formal, guided process for
integrating the people, information and technology of an organization. It is used
to match the form of the organization as closely as possible to the purpose(s) the
organization seeks to achieve.
 "Organization design" can be defined narrowly, as the process of reshaping
organization structure and roles, or it can more effectively be defined as the
alignment of structure, process, rewards, metrics and talent with the strategy of
the business.
 The design of an organization is much more than the boxes on an organization
chart and the lines that connect them. It's the systems, structures, and processes
by which work gets done, and it has immense potential to influence
organizational behavior and drive results.

ORGANIZATION STRUCTURE
How do people behave with each other ?

In Gul Ahmed textile all the employees work in friendly environment for
control any problem who make and create faults in work . So the all
Employees of Gulahmed work like a family members or friends.
CONCLUSION
Gul Ahmed has launched its online shop www.gulahmedshop.com for online
shopping but the problem is not all of their products are currently available one
internet.
Mostly it happens on the first day of launch of their new collection, which is done
twice a year (one in winter and other in summer), the customers (mostly ladies)
rush into ideas and Gul Ahmed shop and start purchasing whole lot of a design
and as a result that design get short in the market. And customers who come
become frustrated when they can’t find a print.
Gul Ahmed is facing serious supply chain issue in this area, they can’t meet the
demand. One thing that can be done in this is the use of online shop to make sure
availability of all their hot designs for a sustainable period of time. This will be a
one good strategy to retain their customers.
Gul Ahmed can also use nontraditional communication channels like facebook
and twitter to interact with their customers and to get feedback. This online
medium is one very effective way of analyzing consumer choices. Google analytics
and facebook page analyzer can provide very useful information about user
preferences. For instance it can tell you which are the most favorite design liked
by the audience, based
on that information Gul Ahmed can start producing more of that particular
design and meet that customer demand.
RECOMMENDATION