Submitted to: Mr. Shahbaz Islam Submitted by: Arsalan Narra Imroz Kiran Kanyalal (8893) Khurram Nabil



Pakistan’s textile industry experts feel that Pakistan has fairly large size textile industry and 60-70% of machines need replacement for the economic and quality production of products for a highly competitive market.2 billion US dollars.1 million bales in 1947 to ten million bales by 2000. Number of mills increased from 3 to 600 and spindles from about 177. The contribution of this industry to the total GDP is 8. The Pakistan textile industry contributes more than 60 percent to the country’s total exports that sum around 5. Pakistan is the 8th largest exporter of textile products.000 to 805 million similarly looms and finishing units increased but not in the same proportion. It employs 50% of industrial labor force and earns 65% foreign exchange of total exports. The industry contributes approximately 46 percent to the total output produced in the country. Cotton – bales increase from 1.TEXTILE industry in Pakistan Increase in the cotton production and expansion of textile industry has been impressive in Pakistan since 1947. it provides . Moreover. In Asia.5 percent.

Bed wear. for their exports. towards their customers as all standards and guidelines given by them are followed and executed to the core. the gold mercury international award and the Asian productivity organization's gold medal. the latest technology in compaction has also been installed . which amounts to a figure of 15 million. with its own garneting unit. received international applause by being presented with the international Asia award. With continued successes and expansions. from various local and international organizations. For this new generation of textile buyers. INTRODUCTION: Toweller was established as a private limited company in the year 1973. In addition to this. the company strived and successfully managed to obtain the international quality standard of ISO 9002. The company has a very satisfied and devoted customer base of not only those who have been with the company since its inception. but at the same time walked into other fields. This year the company achieved.e. professionals in their respective fields. the company has the honor of having received Pakistan’s most prestigious and coveted export performance awards and in addition to this they. initially having operations limited to manufacturing terry towels only. garments (both knitted & woven).employment to38 percent of the work force in the country. Besides these. In appreciation of its contributions towards the development of the country's exports. as a manufacturer of terry towels and made-ups. i. the company has won numerous awards and recognitions. The success story of Towellers must be attributed to the unfailing dedication of its people. home textiles and several other textile made-ups. The year 1979 brought a new phase in the life of towellers. the company entered an entirely new league in the year 1994 and became a public corporation. the company has already begun broadening its product base. but also those who have just entered into the industry. with the recent inclusion of a printing mill and a facility to produce quilts and comforters. not only the top most position in the country. To prove this to the world in 1998. services and performance standards. Their assets had exceeded certain limits and it became imperative that they show their worth to the people. for their high quality products.

Toweller’s VALUES  Quality Assurance: A well-knit supportive management team is constantly assisted by a group of trained and efficient employees to make the vision of the company come true. VISSION To be the world class organization into a modern and dynamic yarn. Mission Produce quality and fault free products for its valued customers by continuous improvements. has a lot more in store for the world. Employees are regularly updated and trained. as it comes. setting quality objectives by analyzing customers' feedback. Quality Control managers oversee complete operation of the Q. providing proper training and development programs. as the company believes in continuous improvement.C department to ensure top quality during and after production in each department. upgrading of resources.  Environmental Awareness Towellers Textile village is set up with the latest technology combining environmental concerns with production with the set up of the affluent treatment . when Towellers intends to include a spinning facility and much more. The order to give the products the best possible finish. cloth and processed cloth and finished product manufacturing company with highly professionals and fully equipped to play a meaningful role on sustain able basis in the economy of Pakistan.

 PRODUCTS Toweller limited has a wide variety of products. The products are very distinctly divided between institutional and retail.  TOWELS  Retail Towels  Institutional Towels  Specialty Towels  Bathrobes & Accessories  APPAREL  Woven  Baby Products  Socks  Knits  HOME FURNISHING  Bed Linen  Cushion Covers . At Towellers its all about being eco.plant and the reverse osmosis plant. hospital and linen rental.friendly in the way they produce and what they produce. In the institutional we cater to the health care. In retail we cater mostly to the importers and stores.

[Taiwan]  Roller Grill International [France]  Sax Logistica De Mexicosa De Cv [Mexico]  Textiles Kim S A [Guatemala]  Textiles Kim  PARTNERS  Allied Bank Ltd [United States]  Askari Bank Ltd [United States]  Billie Mulineaux Import Coordinator  Fortune Fashions Ltd [United States]  Textiles Unlimited Inc [United States]  Sobel Westex 2670 S [United States]  Phoenix Textile Inc [United States]  Bob Barker Co [United States]  Fuji Vegetable [United States] .a. Table & kitchen  Curtains  Blankets and Spread  Mattress Protectors  Competitors  Health Source Garment Coltd [Singapore]  Century Miracle [Egypt]  Eam Maliban Textilespvtltd [Sri Lanka]  Eastko Apparelinc.greatexportimport. [Guatemala]  Dongsue Logistica Sa [Guatemala] Source: http://www.

should apply sustainable policies for the beneficial of the exporters as well as the investors. & legal Forces The political situation of Pakistan is not satisfactory. govt.  Political.57 BILLION) 46% OF TOTAL MANUFACTURING 38% OF TOTAL LABOUR FORCE 8. Govt. Due to the rapid change in the Government every government sets its own new trade policies. It has direct effect on Textile sector. PEST and SWOT are two different perspectives but can contain common factors. TEXTILE INDUSTRY'S ECONOMIC CONTRIBUTION (2008-2009) Exports Manufacturing Employment GDP 54% OF TOTAL EXPORTS (US $ 9.greatexportimport. Following table is self explanatory in Economic contribution.  Economic forces The economic condition of Pakistan can also affect the foreign investors increasing inflation rate make the cost of production high and thus reduce the profit margin of the investor. M.s Royal Blue Inc [United States]  United Bank Ltd [United States] Source: http://www.5% OF TOTAL GDP .com/s-towellers_ltd/13930  PESt Analysis PEST analysis can be useful before SWOT analysis because PEST helps to identify SWOT factors.

Chemical.91 percent in February of 2011.50 percent in November of 2002. Inflation does not have direct effect on health of textile sector but high cost of raw material like Dyes. From 2003 until 2010. rising energy cost affected textile industry badly. but high interest rate can increase the cost of supplier which ultimately cause increase in the material cost. Government has imposed Additional surcharge of 15% on Tax that can slightly affect the profit of Towellers limited. the average inflation rate in Pakistan was 10. The inflation rate in Pakistan was last reported at 12. In Pakistan the interest rates decisions are taken by the State Bank of Pakistan. SBP  INFLATION.78 percent reaching an historical high of 20.  INTEREST RATES.41 percent in July of 2003.  TAX RATE Tax Rate may be changed in budget of Pakistan and its normal tax bracket 35%. From 1992 until 2010. As far as Towellers Limited concern it rising cost also increased. Towellers Limted has 0.Investment Market Capitalization (Listed Companies) US $ 7.021% of it net sales in year ending June 2010.0 BILLION 5.15 percent reaching an historical high of 25.00 percent. The official interest rate is the discount rate.0% OF TOTAL MARKET CAPITILIZATION Source: Pakistan Economic Survey. Interest is cost of business and it affects the highly leveraged firm which also has going concern problem.00 percent in October of 1996 and a record low of 7. The benchmark interest rate in Pakistan was last reported at 14.33 percent in August of 2008 and a record low of 1.  FOREIGN COUNTRIES ECONOMIC CONDITIONS . Pakistan's average interest rate was 12.

 RUPEE EXCHANGE RATE . double digit inflation and prolonged power cuts are posing serious threats to textile sector. In spite of this there is a increase in Towellers Export from Rs. Slower sales of textile products in US and European markets can effect the export of Towellers Limited There has been some recovery of economies from the recession however.00 Billion in 2009 and 2010 respectively.)  AVAILABILITY OF FUNDS / CREDITS Fund can be availed from banks and other financial institution and it has never been any problem in Pakistan in spite of recession in the world.32 Kgs. Due to recent flood 2010 badly affect the agriculture and the agriculture dependant business such as textile sector in particular will have to face extremely tough challenges including but not limited to raw material shortages causing prices of supplies to increase. 490 Million As on June 2010. COTTON prices in July 2008 it 3752 per mound (Per Maund of 37. higher cost of imported raw material. 4. When it comes to Towellers limited it has Reserve of RS.41 billion to Rs.Worldwide businesses were adversely affected by onset of global economic recession.  PRICE FLUCTUATION The high cost of production resulting from higher cotton prices. But it is given after tedious formality. increasing prices of imported inputs due to depreciation of Pakistani rupee. expected devaluation of Rupee and higher inflation. rising energy costs. These explain that the firm has sufficient funds at it disposal. 3. its effect is still far from over.

solid wastes. and the types of fibers and chemicals used. Most processes performed in textile mills produce atmospheric emissions. The nature of the waste generated depends on the type of textile facility. . Due to all these changes Towellers is performing excellent for the excellence organization as well as for the customer. and hazardous wastes. The change in the lifestyle and needs in different demographics also affect the demand of the customers. From 1988 until 2011 the USDPKR exchange averaged 53.  CSR Corporate social responsibility (CSR) is about understanding your business' impact on the wider world and considering how you can use this impact in a positive way. the processes and technologies being operated. Textile processing generates many waste streams.  Waste Management Environmental problems associated with the textile industry are typically those associated with water pollution caused by the discharge of untreated effluents. including waterbased effluent as well as air emissions.20 reaching an historical high of 86.60 in December of 1988. Devaluation of PKR is very obvious that it badly affects the Textile Industry and Towellers is also the victim of it.20 in September of 2010 and a record low of 18.The Pakistan Rupee exchange rate (USDPKR) appreciated 0.82 percent during the last 12 months.  Social and environmental forces The change in the lifestyle of the people affects the growing demand of the Towellers products.

 Biotechnology has impacted the textiles industry through the development of more efficient and more environmentally friendly manufacturing processes. It consist • Reduced raw materials and energy inputs • Eliminated toxic materials use • Reduced quantity and toxicity of emissions and waste (water) outputs. also have an impact on the environment. CSR represents care for social and environmental issues. . Customers. as well as through the design of improved textile materials. Especially in the textile sector there is a need of a lot of changes in technological development. suppliers and the local community is all affected by your business. less illness and accidents • Improved (company) image • Increased ability to attract and retain quality employees  Eco-Friendly Towellers products are Eco-label means that quality label which ensures that the product is manufactured through an environment friendly process  Technological forces  Technological advancement in all the sectors of the country has changed the entire socio-economic environment. Your products. and the way you make them.Your business doesn't exist in isolation your employees. • Better working conditions and increased workers motivation • Decreased overtime and decreased reworking • Improved health & safety.

It is also highlighted that the Pakistan textile industry faces tough competition from the Indian. legal. Srilankan and Chinese textile industries and local policies have resulted in Pakistani textiles facing a critical condition. Ups and down of these forces are important to the Textile industry. . economic..  Moreover the textile industry has obsolete equipment and machinery. This is all due to lack of technology. The inability to timely modernize the equipment and machinery has led to the decline of Pakistani textile competitiveness. govt. environmental and technological forces have the direct impact on not only Towellers Ltd but also on the whole industry. The lack of R&D in the cotton sector of Pakistan has resulted in low quality of cotton in comparison to rest of Asia.  CONCLUSION From the above PEST Analysis it is concluded that. Bangladeshi. Because of the subsequent low profitability in cotton crops. such as sugar cane. social. all the political. This is all due to lack of resources and technology. farmers are shifting to other cash crops.

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