Professional Documents
Culture Documents
On
SAPPHIRE GROUP
Submitted to
Mr. Nayyer Butt
At
Comsats Institute Of
Information Technology.
Executive Summary 4
Textile Industry 6
Introduction 7
Company Profile 10
Business Operation 11
SWOT Analysis 13
PEST Analysis 14
Industry Analysis 15
Market Strategy 17
Competitive Analysis 19
BCG Matrix 23
Conclusion 29
Recommendations 30
Sapphire group is engaged in the business of yarn which is known as their main strength and they are
also engaged in Fabric, Dairies Products, Solar Equipments and Power Generation etc. The system, the
style of working & the commitment of the employees in Sapphire is really exemplary. Sapphire has
always tried for success & that is why it is known to be one of the leading organizations in Pakistan.
The basic purpose of this report is to describe my first experience in Sapphire Group of Company 7 A-K
Main Boulevard Gulberg 2 Lahore, where I have joined as an internee in their Marketing department for
the duration of 6 weeks. Well 6 weeks is a very small time period and it is very difficult to learn all
marketing operations in this time in such a huge and expanding multi-national corporation like Sapphire
Group but still I have learned much from the Sapphire Group which includes handling small
transactions, to keep the customer in touch and much more. I have discussed about my learning in the
whole internship that is all about the Textile Terminologies and process of the productions. I have made
it possible to write each and every thing that I have learnt there. I have all my practical efforts in the
form of this manuscript that’s the asset for my future career.
Mission Statement
Company Values
Pride
Relationship
Integrity
Diversity
Environment
Background:
Sapphires Introduction
Introduction of Company:
Sapphire Textile Mills Limited (the Company) was incorporated in Pakistan on March 11, 1969 as a
public limited under the Companies Act, 1913 (Now the Companies Ordinance, 1984). The shares of the
Company are listed on Karachi Stock Exchange. The registered office of the Company is situated at 212,
Cotton Exchange Building, I.I. Chundrigar Road, Karachi and its mills are located at Kotri, Nooriabad,
Chunian, Feroze Watwan, Bhai Pheru and Bhopattain Lahore. The Company is principally engaged in
manufacturing and sale of yarn, fabric, home textile products and energy sales.
Company annual turnover is about 220 million U.S. Dollars, and has employed 12000 employees in
different manufacturing units. We have 11 spinning units, 2 woven fabric units, 1 knitted fabric unit 1
dyeing unit each of woven fabric, knitted fabric, yarn, fiber dyeing, 1 stitching unit and 1 home textile
unit.
Sapphire Textile Mills Limited is a Pakistan-based company. The Company is engaged in manufacturing
and sale of yarn, fabric, home textile products and energy sales. Its subsidiaries include Sapphire Wind
Power Company Limited and Sapphire Renewable Solutions (Private) Limited, which is engaged in
assembling, manufacturing and sales of alternative energy and lighting products.
One of the largest manufacturers and exporters of textile products in Pakistan, Sapphire technology
comes from Europe, Japan and USA. Capitalizing on the region’s principal crop, cotton, we source this
locally, and augment our offerings by providing imported fiber from the world’s best crops. We work
with specialized fibers bringing in the newest innovations from major fiber and chemical producers, and
our manufacturing from yarn to finished fabric is performed in our facilities in Pakistan. Synergies are
Cotton:
The most important component that determines the final quality of finished yarn is Cotton fibres.
Technically sound cotton sourcing divisions procure highest standard quality cotton from the
best cotton crop areas. American Pima, Australian, & other imported cotton is sourced
internationally.
Man-made fibres are procured from world-renowned manufacturers.
Actively involved in training of cotton growers and ginners.
Each spinning plant is specialized to manufacture specific yarn count.
. Dyed Yarn:
Specializes in versatile dyeing techniques including VAT, Reactive and Disperse. Can offer
bleached yarns of desired absorbency.
These machines are equipped with state of the art electronic control systems capable of
processing 10,000 kg yarn per day
Other Products:
Product range consists of a variety of ring spun, compact spun, open end, dyed and bleached
yarns in various counts.
Along with basic cotton and PC yarns we also offer specialized yarns for niche market including
MVS, Coolmax, Fortrel, Tencel, Modal, mélange, slub yarns and core spun Lycra yarns.
Moving with times and are inline with latest technology including compact spinning. Key
product quality parameters stand amongst the top 5% of the world-class yarn manufacturing
companies.
Sapphire Group is also engaging in solar products because of shortage of electricity in our
country it will be very beneficial for the long term business.
Organization also starts importing Australian cows to start a business of dairies products because
this market is also increasing day by day.
Other companys business are small investments on different projects.
Following are other business which Sapphire Group is also engagaed like:
The Company was incorporated as a public limited on December 27, 2006. The main object of the
company is power generation through wind mills and sale of power. The company has not yet set up any
project. The registered office of the company is located at 212, Cotton Exchange Building, Karachi.
The Company was incorporated as a private limited on June 05, 2008. The company is principally
engaged in assembling, manufacturing and sale of alternative energy products. The registered office of
the company is located at 7 A/K, Main Boulevard, Gulberg II, Lahore.
The Company was incorporated as a unlisted public limited on April 21, 2010. The company is
principally engaged to carry on the business of holding company and for that purpose to invest in,
acquire, subscribe for, hold shares, underwrite bonds, stock, securities, debentures, debenture stock
issued or guaranteed by any company constituted and carrying on business in Pakistan or elsewhere and
other business as per Memorandum of Association. The registered office of the company is located at
212, Cotton Exchange Building, Karachi.
Sapphire Lahore:
Sapphire (Lahore) Limited was incorporated in 1975 as a public limited company in Pakistan under the
Companies Ordinance. Its registered office is situated at Main Gulberg, Lahore. Sapphire group of
industries started its business with 43000 spindles at Khariawala Sheikhupura Road.
The Company is engaged in business of spinning, weaving, dyeing, stitching, power generating, solar
products, dairies, buying, selling and otherwise dealing in yarn, fabric and Sapphire was the leader in
producing country’s finest Yarn and also it also dealing in made-ups made from raw cotton, synthetic
fiber and cloth and also generates electricity for internal use.
They deals in domestic and foreign deals from the same office but different peoples are hired to handle
international and local customers independently.
In the end I can say that it is perfect organization in our country which is providing benefits to our
country in many ways and generating employment for the new comers and our government should made
policies which should be helpful for organization like Sapphire.
CUSTOMERS REGION
GAP USA
PVH USA
OLD NAVY USA
RIVER ISLAND USA
OXFORD USA
AMERICAN EAGLE USA
FEDERATED USA
LEE USA/EUROPE
ZARA EUROPE
MANGO EUROPE
Competitors:
There is very tough competition in the textile industry of Pakistan. Following are the
salient competitors of the company:
• Nishat Textiles
• Artistic Denim Group
• Kohinoor Textiles.
Labor Market:
Supplier:
The main suppliers of Cotton products are from sindh and other cities as well. The international
suppliers of Sapphire are from U.S.A, Russia, Australia and Turkey.
The highest rank in this unit is Chairman under him Executive Director comes. General
Manager has three managers below him who are Mill Manager, Technical Manager and
Finishing Manager. Each Manager has three Assistant Manager and one Junior Assistant
Manager with each assistant manager. And then comes the turn of Functional employees,
there is one Machine Technologist under junior assistant manager and the last but not the
least, every machine technologist has three Assistant Machine Technologist.
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Well the purpose of SWOT analysis of the company is to determine the Strengths, Weaknesses,
Opportunities and Threats before I go further I should explain that Strengths and Weaknesses are within
the organization and Opportunities and Threats are those characteristics which were faced by the
Sapphire Group from outside the organization. As an internee I have spent a small time in the
organization but following is the SWOT analysis which I have made on Sapphire Company during my
stay in the organization.
Strengths:
I have noticed that Sapphire Group has many Strengths which are within the organization and helps the
company in generating huge turnover every year like 217 million U.S Dollars, the main strength which I
have noticed during my stay in the company is that the working environment of sapphire group is very
friendly and cooperative like every senior is always ready to help their juniors, the other main strength
of the organization is there is yarn which is most finest in the whole country and no one can compete
them up till now. Sapphire is a big group but as we know that every big corporation needs loan in order
to make purchases and other expenses, I have noticed that banks loan are available to the company every
time they need so they don’t have to face finanacial crises. Company have large number of loyal
Weakness:
• Most of sales are export so that’s why we are dependent on external market
• Currency fluctuation
• No advertisement at all
• No Profit Sharing of different units.
• Decisions are made independently in some units.
• Centralized decision making
Every organization also have some weaknesses in them when I asked my head Deputy Marketing
Manager about their weaknesses he answered that I don’t think that we got any weakness because we
are the best one in the market, but some how there are some problems in the company like they don’t
have a dress code in the organization which gives a very bad impression on a new customer who
recently interacted with the company. They don’t advertise themselves because they believe that don’t
have to advertise themselves because they are not making consumer goods and are dealing direct with
the domestic consumer but as we know that small industry in our company is also growing day by day
and in order to catch these customers they should advertise themselves. Some units except head office
centralizes decision making is going on which is not providing the company with benefits.
Opportunities:
Threats:
Threats which are facing by Saaphire group are almost same which are facing by our domestic industry
like continuos political instability in out country, as every new government comes they introduced new
policies for the industry which disturbs the whole setup of the firms like Sapphire Group. As law and
order situation is not good in some parts of country so transporting products is sometime difficult from
rural areas because of law and order situation in the country is not good at all. The main threat is new
competitors are entering the market as the world is becoming globalized economy different countries are
entering Asian markets, so when the competition increases we know the profit decreases so it is another
threat for the company.
Marketing strategy
The past year has been tough for the textile industry as competition is increasing steadily and margin of
profit is becoming smaller day-by-day. Our competitors from Asia have come up in a big way with
lower prices resulting from lower overhead, cheaper and better raw materials and machinery.
Countries like China, Indonesia, India and Bangladesh played an active role in the fabric market.
Improvement in quality and production capability was the main area of concentration.
Market for Yarns was diversified to increase the customer base and reduce dependency on the Far East.
In this effort business with Malaysia, Korea, Taiwan, UK and South America was initiated in case of
Yarns.
Sapphire has established its name in new markets be creating specialized fabrics, designs and also by
providing our customers with efficient service and excellent quality.
Leaving behind the traditional way of doing business and in our journey towards excellent it has
consistently expanded its buyer base and explored the different markets around the world.
On top Sapphire has developed more direct and closer relationship with its end customers. Oceanic has
been our most lucrative and mature marker. In business terms it is our “cash cow” market.
Middle East market is composed of South Africa and the new emerging markets like the UAE, Egypt,
Saudi Arabia etc. Sapphire has dedicated new staff with fresh energy for the emerging market. Sapphire
has increasing its profitability by working efficiently, procuring better raw material and most
importantly kept a very close association with its customers.
It visits its business partners frequently and provides them with the best service possible. All of the
above mentioned points led to strengthened relationship with its business partners making it very
difficult for its competition to penetrate into its market share. Sapphire has provided its staff with better
working environment and facilities, which enhances its efficiency and output.
At sapphire, it is prospering due to its professional commitment towards excellence and giving the best
results at all times and against all odds. Its marketing and production team co-ordinates all the time and
its focus remains on maintaining its position as the market leader in the textile sector of Pakistan.
Marketing Agents
As an internee I have noticed that Sapphire Group mostly deals with the raw material for the cotton
industries and they don’t have to advertise themselves that’s why they have adopted a method of hiring
different and experienced market agents who keep in touch with the companys customers like Azgard 9,
Competitive Strategy
As for as Sapphire Group is concerned its own name is its competitive advantage. Being an old group it
has its own name in the field of Textile.
Furthermore, its financial assets are also an edge for the group. As being late in paying any party makes
future problems which result in delivery of any product to be late and resulting in bad image of the
company.
The company adopted the pull and push strategy and the performance and the quality of the products are
better that is competitive edge for company.
Sapphire Group has been working for 3 to 4 decades and it has passed introductory and growth stage
and now it lies in maturity stage because they don’t need to advertise themselves. Customers are
satisfied with their products.
Maturity Stages
Sapphires SBU’s:
• Yarn
• Fabric
Stars:
Yarn and Fabric lies in the category of stars because it has a strong market share and a high business
growth rate as well. Demand of yarn is very high in the market and even they don’t have to advertise
themselves because they have large number of order from outside the Pakistan and same thing is
happened with the fabric products.
Cash Cows:
Dairies lie in this category because it has low business growth rate and the rate of market share is very
high. They import cows from Australia and New Zealand to provide the best dairy products. This
happens because they concentrate more in yarn products but slowly they are intending towards dairies.
Question marks:
Fancy yarn lies in question mark category because it has high growth rate and low market share this
happens because sapphire is investing a large sum of money in fancy yarn but the demand of the fancy
yarn is not increasing as its quantity is increasing
Dogs:
Learning as internee
Well as an internee I can say that I have learnt much from Sapphire group of Company basically I have
much interacted with marketing group but I have learned that out student life is quite different from a
working in a huge corporate sector like Sapphire which have dealings across the seas, I can say that the
basic concept that I have learned is that how to keep and retain your loyal employees to firm and as an
internee I have noticed we should make good relations with other staff members. As my keem interest is
to join marketing group in my future that’s why I have joined marketing department at Sapphire
Company under two Marketing managers who had gave me enough knowledge which an internee is
supposed to get during his internship.
learned from my seniors Mr. Shuaib (Asst. Marketing Manager)and Mr. Nadeem (Deputy Marketing
Manager) is that we should have faith and believe in ourselves that we are the best whoever we are and
wherever we are working when we go out in market to sell our product to customers. This made me
clear that a successful marketer should be very confident during his whole career.
The other things that I have learned from the organization is that
effectiveness and efficiency is always required in every organization in order to become a successful
employee and we should always should keep update with the new technology and new methods of
working. Well as an internee I have been assigned with some duties, tasks and I also faces new
experiences and problems which I am going to mention below.
It was a tremendous experience that I have availed with devotion and commitment. I have an interest in
textile industry that’s because Textile is the back bone of the economy of the country. But one thing I
want to share its not easy that looks it has a great toughness and complications in its process but the
overall it was nice and great.
• I discussed about the marketing practices going on in the international Textile market. I.e. to
target your customer after knowing needs with product solution of the customer need.
• I also performed some task in the spinning department like how to calculate the no of frames for
a specific order and how many days are require for a specific order.
• I learnt about the marketing procedure and required of the documents and dealing with
customers. All the record is saved.
• We know every business is done through transaction and in oder to recover these funds and than
pile up the files is also my duty.
• Advertisement is not done at Sapphire but they have hired agents which went to markets and take
orders from the domestic customers, my senior manager has sent me 4 times in my whole
internship period with these agents in the market so, I can observe the behavior of different
customers.
• I have been also assigned duty of two weeks to make deal with small customers from outside the
country in telephones and internet marketing etc.\
• During my internship I learnt about the value that customer is the only who come first. The
fulfillment of the demand of customer is our basic motive.
• I learnt about the HR policies that how many types of hiring Nishat textile limited is using.
And what are the procedures of the Nishat about HR matters.
• I learnt that in the textile sector the cutting and stitching based on two rules
• (Length) (Length)
• (width) (Length)
The first thing which I have accomplished by doing internship in Sapphire Group is that it is my
dream to work in a corporate sector which have foreign and domestic dealing as much because it
gives me enough knowledge of my interest field that a small firm cannot give me in such a short
time of six weeks.
I have learned different methods to market your products without using advertisement methods
and two times I have registered an order of 40 pound bag of yarn from different customers and I
have learnt the nature of customers are different from one another and we should deal them
according to their needs.
I have gain a very broad experience of marketing and selling products in different regions from
all over the world that every country even some states of a same country have different demands
from each other according to their cultures and habits etc. and in order to meet these demands we
should be always ready and must update our employees according to the current situation of
market.
The main thing which Sapphires Group has blessed me with that time is very important and we
should take much care that we should not waste our time because it is very precious.
As an internee we have learned that how we should update our customers about the quality of
our products and maintain good relationship with our customers in order to retain them for a long
time of period, as the organization has sets their employees mind that we are nothing without our
customers.
The very important thing which I have accomplished at the organization is keep update with your
competitor’s performance and the methods they are using so, we can compete them in every
aspect of our business.
First of all I can say that I have acquired a good marketing while doing my
internship at Sapphire Group of Companies.
Being an internee I have gained knowledge if you want to be a good marketer than
you should be confident on yourself that
As an internee we have not given much difficult tasks to handle because we are new in the market and
does know much about he market and simply I can say that 6 weeks is very short time to face such
challenges and I can say that the environment at the company is very cooperative and friendly that
everyone does not hesitate to ask about the problems he is facing so, there is very short chance of facing
problems while working at sapphire but still we Humans are not always thankful and there are some
problems which I have faced during my stay at the organization
All tasks are easy and planned according to the experience of internee but one day my manager
is on leave and the other manager have assigned me to pile up the files of 150 sales and balance
all the account and I can say that it is a very difficult task assigned to me because I don’t have
knowledge on this and also have fear that if the balance is not equal than there will be very big
problem but with the help of one senior staff member I have finished my job.
The main problem is that the company staff members are so much busy that they don’t want and
also don’t have much time to share their knowledge with the internees and it is very difficult to
lean things from them because the Sapphire group is very huge organization who have dealing in
and outside Pakistan.
The other problem which I have noticed is that there is not equal employee opportunity at
Sapphire Group for the females as I have learned that there is only one female member in
These are very littler problems and challenges which were faced by me during my internship duration
but these hurdles and problems has made me learned that if we want to work in a
corporate sector we should be ready to face these type of challenges because these thing made us strong
nough to grow in our field.
Well in my opinion I have not learnt much from this intership because it is very short time to understand
our business environment because it is a very vast knowledge, the basic experiences which I have gained
from this internship is that we should prepare hard for the future because the
business market is changing with days and in order to become a part of this changing business world we
should be very competitive in our fields. As I am specializing in Marketing and Sapphire Group is a
I can say that after doing the internship we have came to know the real purpose of our study because we
have learned that why are we studying and what will be its implications in my future.Working in a
multinational national organization like Sapphire Group Of Companies is a good experience for me.
Bibliography
• The main source of data gathered from the Sapphires official website i.e.:
www.sapphire.com.pk
Most of the data is collected directly from Mr. Shuaib Raza (Asst. Marketing Manager) & Mr. Nadeem
(Deputty Marketing Manager).
• All the relevant information available in the HR office, like organizational hierarchies
strength reports.
• http://www.quickmba.com/marketing/product/lifecycle/