Internship Report On Decent Textiles Marketing Division

Submitted by: Waqas Ahmed

Date: 05-09-09

Acknowledgement

I bow my head before almighty Allah with gratatitude. My indebt ness and salute to many individuals who have helped shape this report cannot adequately be conveyed in a few sentences. However, I must once again recall my indebt ness to lot of former fellows and contemporary colleagues who took the time and trouble during the last few days to speak to me about the ways this text could be further improved. It is most appropriate to mention the ingenuity of respected Senior, who provide me an opportunity to enhance the management skills from a well established organization It is my privilege and honors to my express my deep gratitude and in calculating thanks to the

DGM of Decent Textiles Faisalabad especially to Mr.Hassan Mahmood and Mr.Kamran Ahmed who provided me an opportunity to work in the environment where quality is every thing. I bow my special thanks t o Mr. Kashif Maqsood (Export Marketing Manager) who was very kind to me during my job training period.

The Holy Prophet Muhammad (S.A.W.) The greater Social reformer and guide in every sphere of life. My affectionate Most respected Hajime the first word of speak and supported parents who taught Bashir Ahmad Sahib the me of STIL whose benevolent attitude Chairman morally and financially throughout my studies. Thanks to My friends (Shiza,Saira,Mazhar and other class and fair administration of the organization has mates) always the source of inspiration for the entire staff of the organization.

List of Contents

No. 1 2 3 4 4 5 6 7 8 9 10 11 12 13 14 15

Contents

Page No 2 3 5 6 7 9 11 12 13 18 29 38 41 44 45 47

Acknowledgment Dedication Textile Industry Uses Textile Value Chain Decent textiles Mission Statement Weaving Strategy Dyeing and Stitching Marketing Dept Industrial Analysis Company Analysis Major Threats for the Textile Industry A Snapshot of Textile Industry Recommendations Conclusion References

strengthening composite materials such as fibre glass and industrial geotextiles. towels. stab protection. such as handkerchiefs. are commonly referred to as technical textiles. in nets. upholstered furnishings. uses and include flags. and in art.g. Miscellaneous kites. Textiles used for industrial purposes. geotextiles (reinforcement of embankments).Textile Uses: Textiles have an assortment of uses. and other flat surfaces. In the household. and smaller cloths are used in washing by "soaping up" the cloth and washing with it rather than using just soap. backpacks. balloons.g. Woven of threads coated with zinc oxide nanowires. laboratory fabric has . and bullet proof vests. against molten metals for welders. they are used in carpeting. the most common of which are for clothing and containers such as bags and baskets. window shades. transportation devices such as parachutes. In all these applications stringent performance requirements must be met. covering for tables. In the workplace. Technical textiles include textile structures for automotive applications. medical textiles (e. tents. and chosen for characteristics other than their appearance. beds. cleaning devices. they are used in industrial and scientific processes such as filtering. sails. agrotextiles (textiles for crop protection). protective clothing (e. against heat and radiation for fire fighter clothing. implants).

been shown capable of "self-powering nanosystems" using vibrations created by everyday actions like wind or body movement .

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Decent Textiles .

Faisalabad .

The main international markets include Asia.000 spindles and 600 looms. Europe.Decent Textiles History: The Decent Textiles was born in 1986 and is a reputable and leading manufacturer of textiles (home textiles and made-ups). . The company has a diverse customer base with sales in export markets. However. It was initially set up as a weaving project with 25.Decent Textiles registered company in Pakistan and are listed on PTEA (Pakistan Textiles Exporters Associations. USA and Australia. Decent Textiles was established in 1986 at Faisalabad and is one of the oldest companies of Pakistan with vast years experience in textile manufacturing. after decades of aggressive expansion and modernization Decent Textiles has dimished it and vertically integrated home textiles company with state of the art capabilities for stitching.

Delivery Results . We are dedicated to operating our facilities with the utmost respect for the communities and environment in which we live and work. We are committed to providing our employees with opportunities for personal and professional growth that they can find nowhere else. Be flexible to the customer’s needs.Mission Statement: At Decent we aim to serve the needs of our customers. Adhere to the highest quality standards. Corporate mission: • • • • • Put the customer first always. Think innovatively but make informed business decisions. At the same time we hope we are creating an environment where talented and exceptional people want to work.

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Decent Textiles diminished the weaving sector as it continues to use outsourcing by hiring qualified purchase managers dealing with direct or indirect contact with the leading fabric manufacturer to purchase according to the need of .Decent Strategies: Weaving Decent weaving strategies are given below.

Decent Stitching Unit: We have well furnished stitching centre fully carpeted more than 100 machine. We have facility to ship any made order with in committed set time. Decent Dying Strategies: Decent Textiles processed its textile goods from the well equipped processing mills like Arshad Corporation Limited. We want to enter in to business with your esteemed organization and request you to inform us present .customer by efficiently using the company capital. In view of all above mentioned. Kamran Textiles. Noor Fatima Textiles and others.

requirements with full specification to quote you our best workable prices and for dispatch of required samples. .

Department is control by one head which is the director of export department Miss Tanzeela Javed under supervision of Arshad Gulzar Chief Executive of the company .Decent Textiles Departments: Decent Textiles has been divided into following major departments. • • • • • Marketing Department Shipping Department P. Marketing Department control by qualified persons with vast experience of international marketing.C Department Finance Department Purchase Department Decent Textiles Marketing Department: Marketing Department of Decent Textiles mainly consists of export zone.P.

International or Export Zone: In international zone sales personnel attract and contact the foreign customers to sell their textile products. different payment methods are used which are given below L/C (30 days. 150 days) CNF C&F CIF B/L Trust system . While on other hand. 60 days. Two personnel focus on European countries & African countries. Payment methods: In export zone. two personnel focus on USA and Asian Countries. 90 days. 120 days.

The major competitors of Decent Textiles are .Competition: At international level there are number of suppliers from around the globe who are exporting the fabrics to other countries with a high quality and at low price. Pakistan is producing poor quality and selling their fabrics in USA which is the lowest price. Investors are not interested to invest their capital since Pakistan is facing great difficulties in both government sectors and private sectors. There are big giants of the local market of textile industry of Pakistan. On other hand. If we look at Asian countries then there names are mentioned below. The main reason of the poor quality is the lack of investment whether they are foreigners or local. Bangladesh is the only country who is providing best quality of the fabric and selling it highest sale pricer. In local market there are number of units which are competing with each other. • • • • • • Bangladesh China Vietnam Pakistan India Iran These countries are providing the fabric to European countries as well as USA and African countries.

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Target Market: The target customers of Decent Textiles in Europe are • Hotels and hospitals use and home textiles • For garments they are focusing on chef wears. .• • • • Noor Fatima Textiles Gia textiles Arshad corporation Niagra textiles Technology: Decent Textiles outsourcing by latest enhanced and well equipped processing houses which have the latest technology in the textile industry. Fairs are the only way of market the product to direct buyer. Marketing Financials: Since Decent Textiles does not too much pay attention on marketing and advertising of their textile products. that’s why there is little bit marketing financials are being happened.

Where as in international market: • • USA European countries .

Decent Agent Buyer Decent Buyer .Distribution Channels: Decent Textiles is using only two channels for its distribution internationally. Two methods are mentioned below.

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Industrial .

Analysis: .

textile and the other exporters also facing a lot of challenges due to increase in the production cost of the specific export goods. deteriorating law and order situation and instability in gas and electricity prices are adversely affecting the textile sector. the textile industry would find it difficult to survive as the recent increase has already proven deadly and many mills have started to shutdown in the wake huge price increase. Textile mill owners and exporter have strongly denounced the recent 31 percent increase in the gasoline prices and demanded from the government to withdraw the recent increase and take serious steps to help textile industry survive through difficult times According to the sources. On the other hand. It was also witnessed that due to prices increase in gas has not only adversely affected the productivity of the textile industry but has also caused sudden increase in the production cost and has badly affected the economy of the country.PEST Analysis: Political Factor: Uneven political conditions. while such hurdles badly affected the Pakistani exporters to . if prices continue to increase at current rate. while government has hardly taken any step to give some relief or incentives to the mill owners.

Exporters are demanding that government should give them facilities to cope with the existing challenges and not get involved in favoritism. The main political factors which are attracting the industries and as well as for the whole world are Musharaf’s Seat Arrested Judiciary Benazir Bhutto murdered .meet the challenges and compete in the local and international markets.

The industrialists rejected the imposition of 10 percent withholding tax on electricity bills. and rapidly growing interest rates of the banks is causing the shut down the power looms. added sources. Still no satisfied procedure has not been implemented by the Govt. In July 2008. As it is mentioned above that the govt.The murder of Benazir Bhutto was infuriated matter. just like in Karachi happened. also increased the prices petroleum by 10 rupees. no doubt that elections were being held neat and clean but the opposition did not accept the results and new government is still try to control the factors which are creating disturbance. small and medium industries. and power looms. of Pakistan increased the prices of Gasoline and petroleum. and it also crushing down the textile industry and exporters. which are the basic needs for the textile industries. The other issue was neat & clean elections of 2008. Number of people came out with a great anger and numbers of textile companies were burnt by them. the government is failed to decrease the every day . the textile companies in Faisalabad shutdown their companies against the 31% increments in prices of Gasoline. while they demanded withdrawals of 10 percent withholding tax immediately for the survival of the industrial sector of Pakistan. of Pakistan Tight monetary policy also creates a lot of hurdles for textile sector and exporters. Then again.

Economical Factor: Economical factors are also disturbing the all industries of Pakistan as well as the textile industry. The main problem with the textile industry is shortage of electricity. the suppliers try to get and save more profit from their investments.increasing trade deficit. due to which Textile industry is bearing too . As the prices have been increased. The last and current Government has been failed to control the economy. textile industry was getting number of incentives from the government just like R&D (Research & Developments) and subsidies on the utilities. gasoline and petroleum. From 1999 to 2008 the inflation rate has been increased by 100%. pulled back these types of incentives. Before 2008. Textile sector of Pakistan contributes huge amount in the economy of the country serious measures are needed for its revival. That’s why prices are decided and put with a high return in terms of profit. But some companies misused these opportunities and unfortunately Govt.

much cost that why they have to increase their prices to earn profit or for break-even. . There are some companies which have their own electricity plants but they have to spend a lot of money to run them.

• • • Govt. Uneducated people • • Investors are pulling out their capital Labors cost is increasing rapidly Loosing quality of its products in both markets domestically and internationally Poor monitory and Fiscal policies of the of Pakistan from the market quickly Foreign Investments are not coming towards Textile industry These are the factors which are disturbing the textile industry strongly economically. Different gases in air react with these ruins which become dangerous for human beings. • ¾ Polluting the air by pushing out ruins of chemicals.Other problems which are facing by the textile industry of Pakistan are Non-availability of skilled labors. . some of them are mentioned below. Most of the useless materials and acids are thrown into the fields which are react or disturb the agricultural products seriously. Sociological Factors: Textile industry affecting the society and environment in number of ways. • ¾ • ¾ No proper system to throw out the useless materials and chemicals.

That’s why the final product cost is also increasing that’s why people are buying low quality products and not spending too much to purchase. .• ¾ Since the cost of the production and labor cost are increasing day by day.

The bargaining power of buyers is increasing day by day. Technological Factor: The technology has been improved and updated in the textile industry of Pakistan and some of the companies in textile industry are acquiring these technologies. The competition at international level has been increased too much. If we look at a glance to USA . The buyers are demanding more and improved quality in very cheaper prices.¾ Textile companies are firing the labors and employees as well because of high production cost and salaries that’s why the unemployment rate is increasing day by day which is not good for the industry as well as for the country. By using new technology not only they improve their quality and efficiency but also improve their production as well as reducing the cost of production. PORTER Analysis: Bargaining power of Buyer: It has been seen from last 3 years that buyers are becoming anger and having problems to purchase the desired products from textile industry of Pakistan. There are several issues which are affecting the textile industry seriously and industry is bearing losses since 2005. whether customers are from foreign or are from local markets.

But other countries are getting more than these prices and in these countries.exports of textile industry from all over the world and especially from Asian countries then we can easily found that Pakistan is offering most less export prices to USA which is 0. Bangladesh is top .91 US dollars per meter.

Now the cost of petroleum has also been increased due to which affecting the manufacturing costs of the companies. high labor costs. Couple of days ago.Although Pakistan is offering the lowest prices but due to poor quality and present condition of the textile industry as well as of Pakistan present condition are the main reasons that Pakistan is loosing its customers. As we all know that inflation rate is running upwards like a rocket and utility costs are also increasing day by day. that company has to face number of competitors which are the big giants of that industry. opportunity cost etc. The costs of Yarns and chemicals which are used to dye the cloth and for sizing process have also been increased. The Govt. and major issue is that inflation is increasing day by day and instability of Pakistan Govt. increased the prices of Gas by 31% and all textile mills of Faisalabad strike against this huge increments. Threats of new Entrants: There is no threat of now entrance. Bargaining power of Suppliers: Bargaining power of suppliers is increasing of textile industry day by day. if they come to increase their prices then there is a major threat that customers can move to other companies weather it is foreign marker or local market. . Govt. On the other hand they have to purchase the latest technology. If some one wants to enter in this industry. of Pakistan is playing very important role in this activity. Textile companies are bearing too much manufacturing costs. Fuel prices.

Threat of Substitutes: There is no threat of substitute. Because Textile products and cloths are the basic necessity of the human life and customers cannot move to other products by leaving textile products. .

hence employees are not motivated to develop their creative and innovative abilities.SWOT ANALYSIS STRENGTHS • • • • • • • • • Adequate financial resources Specialized in printing Have a diversified units of industries Good market image Competent workers Have ability to compete with competitors In home facility of production Loyal customers Loss sustaining capacity management and WEAKNESSES • • • • Uncertain chances of promotion Salary package less attractive Centralized decision making Lack of a proper human resource system. .

OPPORTUNITIES • Large scale productions because of new market coverage and increasing demands • • Introduction garments Extension of fashion-designing & stitching departments THREATS • • • of new variety in GST and WTO pose biggest threats Instability of prices due to currency devaluation Entrance of new and quality conscious competitors. . • • Low price offered by the competitors Strong promotional activities by the competitors to convince buyers .• Due to high is turn not over the the organization enjoying economy of scale.

and higher wages of skilled workmen as compared to Pakistan's international competitors and general law and order situation of the country. • • 3 Major Threats for the Industry: Rising in cost of Energy and workforce: Rising input and energy costs coupled with higher financial charges have deteriorated overall sectors performance in the last couple of years. high cost of energy. environmental and accountability standards overhead are increasing rapidly. long hours of load shedding. modernization and renovation (BUR) of textile has been continuously declining since 2004-05 after a record of $928.• New social quality. On the other hand investment on balancing.6 million investment in a year. Rising in freight charges: . decrease in cotton production. The main reason for depression in this economic lifeline of the country is the rise in bang interest rate.

President Pervaiz Musharaf issues. Political Instability: The decades-old Pakistan based international textile buying houses have shifted to India. Bangladesh and Middle Eastern countries due to uncertain political situation. after elections new government changed the already existing policies which impact all the sectors of Pakistan including Textile. Due to increments in manufacturing cost & freights.91. The prices of utilities and petroleum were increased by govt. The new govt. the profit ratio has been decreased because customers are demanding the better quality products of textile in low cost. rapidly which was pushed down by force before the elections. has also banned to export the raw cotton to the world’s countries by saying that export of raw cotton has been banned due to the increments in the prices of raw cotton should not be more export infect it should be used domestically because textile companies and baring high raw material cost due to which sales prices at domestic and internationally level are increasing day by day. blames of European countries and specially America of Terrorism against Pakistan and other major issue of Benazir Bhutto murder and elections of Feb 18 2008.As the prices of petroleum is increasing rapidly. domestically and internationally which are affecting the company’s cost of freights. It’s true that elections were being held calmly and clearly. That’s the reason that Pakistan’s textile price is the lowest price in world at export level which is $0. Just like Judiciary Issues of Pakistan. Now the prices definitely come down at domestic level and production cost should be reduced. .

Bangladesh and Middle Eastern countries due to uncertain political situation.Internationally Competition: The decades-old Pakistan based international textile buying houses have shifted to India. Pakistan's textile sector has been facing intense competition from neighboring countries on export front. . . The traditional buying houses of Pakistani products have told Pakistani producers / manufacturers to come to their new countries of residence along with their products/samples if they wanted to get supply orders. Since the removal of quota regime.

Country Pakistan India China Bangladesh Vietnam Prices ($) 0. Same thing is happening with Pakistan textile industry in the other countries of the world as well as for the company.The major competitors of Pakistan Textile Industry are given below with their selling prices in US states. Research & Developments: State Bank of Pakistan (SBP) has informed the Economic Coordination Committee (ECC) of the Cabinet that the textile industry was grossly misusing the research and development (R&D) fund.91 1.5 2 3 Note: The above mentioned prices are in dollars and are per square meter. and the government should review its policy of injecting billions of rupees for .91 1.

Previously. however. As the Govt. is not supporting the textile industry for Research & Development to improve the industry. That’s why investors are not investing too much in this industry and industry is not able to acquire or purchase the new technologies to improve their productivity. efficiency. industry. a Islamic country was founded in south Asia with the name of Pakistan. or technology. the textile industry was enjoying refund and rebate facility on exports. government. environments. Now ECC took SBP Governor's views very seriously and asked the Ministry of Finance (MOF) to come up with some other strategy to help the textile industry to become more result-oriented to compete with other players in the world market. quality and saving the manufacturing costs.protecting this inefficient sector of the economy. Conclusion: In August of 1947. people. this policy was discontinued in 2006-07 on reports that a number of inefficient textile units were getting huge fake refunds. companies are also not much paying attention to the Research & Development. weather. Pakistan economy is one of the growing economies in the world and . handicrafts.misusing the facility. Pakistan has its own and unique history whether you talk about its culture.

it is contributing near about 62%. Pakistan industry is facing more than these all problems. Textile industry is contributing to Pakistan’s GDP near about 8. The overall worldwide share in exports of textile products is near about 14% which is decreasing slowly but surely.65% and in total exports. . But from year 2000 to up till now. But this growth is increasing gradually. Pakistan industry has been faced a lot of problems and different types of ups and downs in its history. Textile industry is one of these industries which is facing these problems.attracting foreign investments from many sides of the world.

. • • • • • • Musharaf’s impeachment New government rules and regulations Increments in costs of raw materials Increasing cost of Gas and Petroleum Decrement in foreign investment Political instability These are the major problems which are facing by the textile industry of Pakistan. The major problems are mentioned below.Right now Pakistan textile industry is facing a lot of problems which are directly related to government.

ptea.co.org.com/news/textilenews/pakistan/ www.bharattextile.uk .References: www.org/ www.saleemtex.pk/ www.com/ www.fibre2fashion.com/newsitems/2 003963 www.com/countrysearch/PKsuppliers/Textile_Fabric.wikipedia.com.pk/ www.com www.aptma.alibaba.gia.iptu.html www.

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