Principles of Management

Final Project
Ibrahim Fibres Limited

By

Muhammad Mukarram

Bilal Hameed Mehr

Muhammad Hassaan Talib

Zubair Saahi

Muhammad Talha
INTRODUCTION
Ibrahim Group at a Glance:

Ibrahim Fibres Limited is an industrial company in Pakistan having diversified business activities
including Polyester Yarn production, Polyester Staple Fiber production, Financial Services and Energy.
The group started with a cloth trading business in the industrial city of Faisalabad. Late Haji Sheikh
Mohammad Ibrahim, founder of the Ibrahim Group, settled in Faisalabad after partition of India in 1947
and re-established his ancestral business of cloth trading by the name of “Ibrahim Agencies”. What is
known in business today as Ibrahim Group with diversified business interests from Spinning to PSF,
Financial Institutions to Banking and Energy, started off as a mere cloth trading agency just half a century
ago. It was middle of the fifties, when Sheikh Mukhtar Ahmed, present Chairman of the group, joined in
this family business. It was then, that he took initiative to integrate the business vertically upwards adding
up yarn trading as an additional line of business. Turning out to be a milestone in the future progress, it
did not take long before the group was widely reputed and respected in marketing of cotton and blended
yarns. Backed by this goodwill and experience in marketing, in 1980, manufacturing of own blended yarn
was initiated by establishment of Ibrahim Textile Mills Limited. With long term considerations and a
simple principle of “no compromise on quality “two more textile spinning companies; A.A. Textiles
Limited in 1982 and Zainab Textile Mills Limited in 1987 were established. A power generation
Company Ibrahim Energy Limited was incorporated in 1991 to improve the efficiency of the existing
manufacturing companies. All these manufacturing companies have now been merged into Ibrahim
Fibers’ Limited.
The Group diversified into the financial services by floating First Ibrahim Modaraba and also established
a leasing company; Ibrahim Leasing Limited. Subsequently First Ibrahim Modaraba was merged into
Ibrahim Leasing Ibrahim fiber limited Page. Upon declaration of the privatization policy by Government
of Pakistan, Ibrahim Group together with other leading groups participated in the bidding to acquire
controlling shares of Muslim Commercial Bank Limited. Under the scheme of reconstruction proposed by
State Bank of Pakistan, Consortium of Ibrahim Leasing Limited, Ibrahim Group and its sponsors acquired
more than 75% of the shareholding of Allied Bank of Pakistan Limited. Management and control of the
Bank was handed over to Ibrahim Group on August 19, 2004. At present Ibrahim Group is holding more
than 80% shareholding of this bank. One of the top five banks of Pakistan, Allied Bank has more than 742
branches across the country with 7,139 employees and financial assets of Pak Rupees 234 billion. The
Group plans to inject its own dynamism and energy in the bank to turn it into a premier financial
institution of the country. After the acquisition of the bank Ibrahim Leasing Limited has been merged into
Allied Bank limited. The strength of the group today stands manifold with entrepreneurial skills and
visionary leadership of Sheikh Mukhtar Ahmed added with fresh concepts and professional skills of
Mohammad Naeem Mukhtar who has done his MBA from the University of Wales, Cardiff, UK. and
Mohammad Waseem Mukhtar who has done his Bachelor in Computer Science and Masters in Total
Quality Management (TQM) from the University of Glamorgan, Wales, UK .

Vision
To be a Sustainable, growth oriented company and achieve scale to remain competitive, in the barrier free

global economy.
Mission
To build the company on the sound financial footing with better productivity, excellence in quality and
improved efficiency at lower operating costs by utilizing blend of state of the art technologies.

To accomplish excellent results through increased earnings this can benefit all the stakeholders.

To be a responsible employer and to take care of the employees in their career planning and reward them
according to their abilities and performance

To fulfill general obligations towards the society, being a good corporate citizen

Chairman's Message
Chairman communicates his message

“By carrying out business activities with customer centric focus and by attaining the confidence of our
shareholders, customers and society, Ibrahim Fibers aims to be a Company making a significant
contribution to the national economy. We will continue to strive for excellence in all spheres of our
activities and to manufacture high quality products through the use of advanced technology in our
business operations, be an attractive organization to work with and a reliable business partner.”

Mohammad Naeem Mukhtar

Chairman
Board of Directors:

CHAIRMAN

Sheikh Mukhtar Ahmad

He started his business career immediately after migrating from India at the time of Independence of
Pakistan in 1947 and contributed to the industrial and business growth of Pakistan through his
entrepreneurship skills and business acumen. He has over 56 years of experience in establishing and
successfully managing various industrial and financial companies. Under his auspices, Ibrahim Group has
emerged as a leading conglomerate of the country. He has completed Corporate Governance Leadership
Skills Program from Pakistan Institute of Corporate Governance and is a “Certified Director”. He joined
the Board of Allied Bank in 2005 and is also Chairman/ CEO of Ibrahim Agencies (Pvt) Limited,
Chairman of Ibrahim Fibres Limited and ABL Asset Management Company Limited.

CHIEF EXECUTIVE OFFICER

Mohammad Naeem Mukhtar

He has completed MBA from Cardiff Business School UK, Post Graduate diploma in Textiles from UK
and Chartered Textile Engineer (CText ATI) from The Textile Institute in Manchester UK. He has over
32 years of experience of finance and industrial manufacturing.
He is Chief Executive Officer/Director of M/s. Ibrahim Fibers Limited and M/s. Ibrahim Holdings (Pvt.)
Limited, Director on the boards of M/s. Ibrahim Agencies (Pvt.) Limited, ABL Asset Management
Company Limited, Karachi Education Initiative, Pakistan German Business Forum, Chairman of the
Board of Allied Bank since 2004 and Member Board of Governors of National Management Foundation,
the parent body of Lahore University of Management Sciences (LUMS), Representative of Pakistan
Business Council. He is also Industry Co-Chair Banking Sector of NUST Corporate Advisory Council
(CAC) and Senior Fellow of NUST Global Think Tank Network (GTTN).

DIRECTOR

Muhammad Waseem Mukhtar

He is MBA from the University of Chicago Booth School of Business, Illinois, USA. He also holds a
Master’s degree in Total Quality Management (TQM) from University of Glamorgan, Wales, UK, and
has 22 years of diversified experience of Finance, IT and Industry. His strategic guidance played a vital
role in technological up-gradation of the Bank. He has been on the Board of Directors of Allied Bank
Limited since 2004 and is a “Certified Director” from Pakistan Institute of Corporate Governance. He is
also Director on the Boards of M/s. Ibrahim Fibres Limited, Ibrahim Holdings (Pvt.) Limited, Ibrahim
Agencies (Pvt.) Limited, ABL Asset Management Company Limited.
DIRECTOR

Abdul Hameed Bhutta

He holds a Master’s Degree in Economics from the University of Punjab and also done LLB from S.M.
Law College from Karachi University. He has more than 35 years of experience in industrial
Administration and industrial Human Resources Management.

DIRECTOR

Saba Muhammd

DIRECTOR

Mohammad Naeem Asghar

DIRECTOR

Ikram Ul Haq Mian

IBRAHIM GROUP TIMELINES:

1968 — Ibrahim Agency (Pvt) Limited

The founder of Ibrahim Group, Sheikh Mohammad Ibrahim, migrated from India in 1947 settled in
Faisalabad after the partition of British India and started his ancestral business of cloth trading which his
family was doing in India. Ibrahim Agencies started its business immediately after partition of British
India in cloth trading in Faisalabad and during the 1960’s when yarn trading business reached its peak
and the group had a sales network in all the textile centers of the country and was selling yarn of all
kinds manufactured by leading textile mills of the country. Need was felt to formalize the sales network
and to bring it under one umbrella. On August 27, 1968, Sheikh Mohammad Ibrahim along with his sons,
Sheikh Mukhtar Ahmed and Sheikh Sardar Ahmed,laid the foundation of “Ibrahim Agency Pvt Limited”
that later became instrumental in establishing one of the largest textile businesses in the country. The
primary business of the Agency was to sell yarn while acting as import indenter.
1980 —Ibrahim Textile Mills Limited.

December 1980, first Textile Plant was established with an initial capacity of 12,500 spindles and
technology of Marzoli & Savio (Italy). The Mill was later named as Textile Plant-1 (TP-1). The primary
product produced in this plant was Polyester Viscose yarn.

1984 —AA Spinning Mills Limited.

With a success of first spinning mill, in May 1984, second spinning mill was built with a capacity of
40,608 spindles and technology from Howa, Japan. The Mill was later named as Textile Plant-2 (TP-
2).The main product produced in this plant was Polyester Viscose and Polyester Cotton yarns.

1989 —Zainab Textile Mills Limited.

Progressing with a rapid pace, in 1989, third spinning mill with an initial capacity of 39,168 spindles and
technology from Howa, Japan, was established. The Mill was later named as Textile Plant- 3 (TP-3) The
main products produced in this plant were Polyester Cotton and Chief Value of Cotton (CVC) yarns.

1993 — Power Generation 1

To get self-sufficiency in energy, Ibrahim Group installed its first Power Generation Plant in January 1994
with power generating capacity of 31.8 MW. The plant was comprised of 6 furnace oil generating sets,
each having a capacity to produce 5.3 MW, supplied by Niigata Engineering Company, Japan.

1996 — Polyester Plant 1

With the spirit of growth and having quality and cost control in its supply chain, the group decided to
opt for backward integration in 1996 and established its first Polyester Plant with a manufacturing
capacity of 200 tons. The state of the art machinery was installed by German company Zimmer.

1999 —Expansion of Ibrahim Textile Mills Limited.

To meet the increasing demand of yarn in the market, the operational capacity of Textile Plant 1 was
enhanced from 12,500 spindles to 58,080 spindles in year 1999 with technology of Marzoli (Italy) and
cone-winding of Savio (Italy).
2001 — Consolidation & Emergence of Ibrahim Fibres Limited.

To gain operational and financial synergies, Ibrahim textile Mills, AA Spinning Mills , Zainab Textile and
Ibrahim energy were merged into one company- Ibrahim Fibres Limited (IFL) in 2001 and was listed on
stock exchange the same year.

2002 — Polyester Plant 2

Realizing the surge in local PSF demand in 2002, company installed its second Polyester Plant with a
capacity of 400 tons. The total production capacity rose to 600 tons per day after this development. The
machinery was installed by Lurgi GmBH (Germany) formerly known as Zimmer.

2004 — Modernization of Textile Plant 2

To further boost the quality of products, the focal BMR of Textile Plant 2 was done in year 2004 and the
machinery was replaced with technology of Marzoli (Italy) and cone winding of Schlafhorst (Germany).

2004 — Acquisition of Allied Bank of Pakistan

Keeping in view a diversification strategy, Ibrahim Group took over the control of Allied Bank of Pakistan
in 2004 by injecting 14.2 billion equity representing 75.35 % of the enhanced share capital. The bank
was later named as Allied Bank Limited.

2007 — Modernization of Textile Plant 3

Keeping up with technological advancement in year 2007, the up gradation of Textile Plant 3 was done
and the machinery was upgraded to Zinser technology (Germany) with the link winding from Schlafhorst
(Germany).

2009— Power Generation 2

To keep pace with company’s increasing production capacity, the second Power Generation plant was
installed having a gas turbine of 15 MW from Turbo Mach, Switzerland. The company’s total Power
generation capacity rose to 73.3 MW.

2013 — Polyester Plant 3

In 2013, Ibrahim Fibres Limited established third Polyester Plant with the capacity of 600 tons per day
and emerged as the largest manufacturer of polyester staple fiber (PSF) in Pakistan with a total capacity
of 1200 tons per day. The machinery was installed by Air liquid formerly known as Lurgi GmBH.

2013 —Expansion in Power Generation Plant 1

To manage an increasing power requirement, company installed five new furnace oil generating sets,
each having a capacity to produce 5.3 MW, supplied by Niigata Engineering Company, Japan. These
Engines, with total power generation capacity of 26.5 MW, started operating in May 2013.

2016 — Upgradation of Polyester Plant 1

In order to ramp up the productivity and quality of the product, company upgraded the digital control
systems relating to polymer, spinning and fibre lines in year 2016. The machinery and related technology
was imported from Technip Zimmer (Germany) and Autefa solution (Germany).

2016 — BMR of Textile Plant 2

To optimize the yarn production of Textile Plant 2, the entire back process machinery constituting of
blow room machines, card machines, lap formers and combing machines were replaced with latest
machinery of Truetzchler (Germany) and Schlafhorst (Germany).

2017 — BMR of Textile Plant 1

Adhering to a commitment of delivering premium quality, complete spinning and winding of Textile
Plant 1 was replaced with latest machinery of Schlafhorst (Germany).

2017 — Coal Fired Power Plant (CFPP)

Coal Fired Power Plant has been completed and after successful test runs, became operative for
commercial production during March 2018. This is state of the art plant supplied by Christof Projects
GmbH, Austria and comprises of CFB boiler having steam production capacity of 80tons / hour and
power generation capacity of 20.4MW.

2019 — Textile Plant 4

IFL-TP4 Project consists of a yarn spinning plant having 100,320 spindles with annual capacity of 32,500
tons of blended yarn. Plant and machinery for this project is being provided by world’s leading suppliers
i.e. Truetzschler and Saurer Spinning Solutions, Germany and Luwa Air Engineering, Switzerland.

First phase of this project has been commenced commercial operations from 1 st Oct 2019.

Ibrahim Fiber Limited Businesses

POLYESTER:
Ibrahim Fibres Limited – Polyester Plant

Manufacturing operations are staggered in three production lines located within the same premises, at
38 K.M. Faisalabad – Sheikhupura Road, Faisalabad. It is spread over an area of more than 100 acres of
land with a capacity to produce 390,600 tons per annum of Polyester Staple Fibre (PSF).

Polyester Plants are based on engineering and technology supplied by Lurgi GMBH Germany (which is a
part of Air Liquide France) who are market leaders in polyester polymer capacities supplied worldwide
representing more than 50% share in the world market. These plants are equipped with Provox plus
Distributed Control System (DCS) using SRX process controllers providing a foundation for real time,
efficient and accurate control and also monitoring of the process of entire plant through Computer
Integrated Manufacturing (CIM). The Provox plus data provides access to historical process data for
monitoring and analyzing process conditions. Intelligent alarm techniques help enhanced operator
control capability to evaluate changing conditions and to respond quickly to any process changes.

Polyester plants are also equipped with bulk PTA container charging facility having a storage capacity of
600 containers of 20 feet ensuring dust free PTA charging to polycondensation resulting in low wastage
and improved quality of finished product.
Along with complete technology transfer, the plants have been supplied and installed as a turnkey
project by Lurgi GMBH. The designed capacities of the plants, consumption of raw materials, utilities and
quality of finished products are all guaranteed by the plant supplier.

TEXTILES:
Spun Yarn Division of Ibrahim Fibres Limited consists of three projects:
 Textile Plant 1
 Textile Plant 2
 Textile Plant 3
 Textile Plant 4
All these projects were operating as independent public limited companies and were listed on stock
exchanges in Pakistan till September 2000 before their merger into Ibrahim Fibres Limited.
These projects are equipped with Real Time Ring Monitoring System (RTRMS), Uster Ring Expert, Spin
Vision, Coner Pilot for online monitoring and analyzing to facilitate production and efficiency while
maintaining quality parameters. Moreover, auto-doffing system has been installed on the spinning and
winding machines to automate the manufacturing process.

POWER GENERATION:
Ibrahim Fibres Limited – Power Generation Plants
Power Generation Plants of Ibrahim Fibres Limited consist of two production plants; Power Generation
Plant – I, Power Generation Plant – II and Power Generation Plant – III. Total power generation capacity
of these plants is 73.3 MW. These Plants are for the sole objective of catering to the requirements of the
company’s industrial operations for uninterrupted and stable power supply.

FINANCIAL SERVICES:
Allied Bank
The consortium of Ibrahim Leasing Limited and Ibrahim Group assumed the control of the Allied bank in
August 2004 by injecting Rs 14.2 billion into the capital of Allied bank for acquiring 325 million additional
shares.
Allied Bank Limited was the first bank to be established in Pakistan. It started out in Lahore by the name
Australasia Bank before independence in 1942; was renamed Allied Bank of Pakistan Limited in 1974
and then Allied Bank Limited in 2005.
Today, with its existence of over 60 years, the Bank has built itself a foundation with a strong equity,
assets and deposit base. It offers universal banking services, while placing major emphasis on retail
banking. The Bank also has the largest network of over 1250 branches in Pakistan and offers various
technology-based products and services to its diverse clientele.

MANAGEMENT PHILOSOPHY
Value to Customer:
The market leaders are always and have always been those companies that provide the most perceived
value to their customers. This is the most important part of Quality Assurance that most people do not
take into consideration.
This particular aspect begins when our product, yarn or polyester, enters the premises of our customer.
Our technical staff personally visits the customer to ensure smooth running of our product.
It also ensures that the customer is well satisfied by the performance of our product. Therefore, the
Quality Journey does not end within the four walls of our mills. It goes beyond our physical boundaries
and expectations of our customers!

High Technological Orientation:

Usage of latest technology remains at the core of all the manufacturing processes. Global technological
developments are closely observed and applied to upgrade the plants to stay ahead in quality and cost
effectiveness.
Strict adherence to this philosophy is ensured at the time of setting up every new plant. Technological
edge at all times is ensured through collaborations with most advanced companies around the globe.

Professionalism and HR:

At Ibrahim Group, strength is derived from a firm belief in the potential of each individual associated
with the Company. Every department is managed by highly qualified team of professionals with vast
experience in their respective fields.
Professional development courses and training programs are frequently undertaken to groom every
member of the team. The standards prescribed by international institutions for the quality of management
systems, working conditions, hygiene and environment at the workplace are strictly adhered to.

Quality Standards:
Keeping up with the ever increasing awareness of quality and high Standards, the principle of continually
improving the products and production techniques is followed.
A well-trained quality control department is responsible for ensuring that the quality of all the products of
the Company meets the most stringent international standards. The people in this important activity are
supported by complete and modern chemical and textile laboratories.
A further step to strengthen the manufacturing efficiency, process and products was achieved when the
Company received ISO 9002 quality certification for its manufacturing process.

Community Care:
Ibrahim Fibres Limited is committed to constantly strive for higher standards in health, safety and
environment. The Company strictly follows the safety standards at all levels and training is provided
under the supervision of qualified manager and various sessions are being held to create safety awareness.
Environmental issues have raised concern all over the world due to the rapid industrialization and drastic
increase in population.
In this regard National Environmental Quality Standards as laid down by Pakistan Environmental
Protection Ordinance 1997 are being strictly followed. The horticulture department, under the supervision
of a qualified horticulturist, has been established and every year a plantation campaign is launched by the
Company at all its locations to provide healthy and clean environment to all personnel.
Arrangements have been made to provide pure mineralized water, high standard foods and medical
care for all the employees working at the plant sites. As part of the organizational culture of IFL, the
Company fulfils its social responsibilities, apart from monetary contributions to educational institutions
and hospitals the Directors of the Company are also directly participating in the management of
educational institutions and hospitals.

Motivation:
At Ibrahim group, they seem to follow Maslow’s hierarchy of needs as they claim for their standards to be
prescribed by international institutions which covers the basic needs allowing the management team there
to help fulfill workers esteem and self-actualization needs by helping employees develop to their full
potential by giving them freedom and responsibility. This also helps us identify that their managers
associate more to the perspective of McGregor’s theory Y as they believe employees are creative, seek
responsibility and can exercise self-direction.

Culture:
As for the organizational structure at Ibrahim group, it can be looked upon as a mix of a market culture
and adhocracy culture. To elaborate their main objective and focus if to get the job done and to achieve
noticeable results however, they try to achieve this by having their leaders be inspirational innovators
which allow for the employees to take risks and chances.

PERMISSIBLE BUSINESS ACTIVITIES

Status and Activities:

Ibrahim Fibres Limited (the Company) is incorporated in Pakistan as a public limited company under the
Companies Ordinance, 1984 (the Ordinance) and is listed on Pakistan Stock Exchange in Pakistan. The
principal business of the Company is manufacture and sale of polyester staple fibre and yarn. The
registered office of the Company is located at 1-Ahmed Block, New Garden Town, Lahore. The
manufacturing units are located at Faisalabad- Sheikhupura Road, in the Province of Punjab.
Pursuant to scheme of arrangement approved by the Honorable Lahore High Court, Lahore, assets,
liabilities and reserves of Textile plant 1, Textile plant 2, Textile plant 3 and Power Generation Plant were
merged with the assets, liabilities and reserves of the Company with effect from October 01,2000.
The Company has successfully implemented the balancing, modernization and expansion of Polyester
plant with additional production capacity of 520 tons per day. The commercial production of this plant
has been started in the month of April 2013.