STUDENT NAMES: KHADIJA KARIM

STUDENT ID: (1432-2019)

DEPARTMENT: FMS

COURSE TITLE: IT IN BUSSNIESS

CLASS: MBA 3.5

INSTRUCTOR: SIR TARIQ NAJAM

DATE OF SUBMISSION: 20 JULY 2022

PROJECT REPORT ON GUL AHMED TEXTILE
MILLS LTD

TABLE OF CONTENT:
1. Introduction
2. Mission and vision
3. SWOT analysis
4. Changing company behaviors due to social media
5. Competitor analysis
6. Business Environment
7. Impact on business shifting on virtual platform
8. Digital budget allocation
9. Conclusion
INTRODUCTION
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 51,840 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 with quality, innovation & reliability.

VISION
Enriching lives by inspiring change.

MISSION
To deliver value to our stakeholders through innovative technology, teamwork and by fulfilling
our social and environmental responsibilities.

VALUES
In achieving its vision and fulfilling its mission, the Company shall operate on the following core
values:

• Integrity
• Respect
• Passion
• Quality
• Teamwork
SWOT ANALYSIS:

STRENGTHS:

• Image and branding

• Pioneers in apparel fabric for both ladies and gents
• In-depth relationship with export customers
• Competent, vastly experienced and loyal staff and workers
• Global presence – wholly owned set-ups in UAE, Europe and USA to market the products
• Edge in technology – state-of-the-art plant and machinery
• In-house power generation
• Composite mill from cotton to made-ups
• Cordial relationship with the workforce
• Strong raw material base as Pakistan is the fourth largest producer of cotton

WEAKNESSES:

• Export dependent on limited customers

• Highly labor intensive industry
• Labor productivity is very low
• Leverage is somewhat higher than the desired level

OPPORTUNITIES:

• Growing retail market including expansion of women’s and men’s apparel

• Growth in exports as a result of GSP Plus status from European Union
• Less explored USA, Canada and Australian markets
• Expand web-based sales
• E-marketing

THREATS:

• Internal security situation and the looming war in the region

• Deteriorating economic conditions in the country compounded by increasing debt burden
and circular debt
• Irrational taxation policies
• Continuous increase in energy prices and gas shortage affecting production and its cost
• Worsening of the economic conditions in Europe and America
• Textile industry is comprised of a large and unorganized sector, and the large number of
competitors mostly in this sector especially in the ladies fashion fabric fray
• Key employees lured by competitors
• Shortage of raw material (cotton) due to natural disasters like heavy rain, floods, etc.
• Worldwide surplus production capacity resulting in price-cutting war between the
competitors

CHANGING COMPANY BEHAVIOURS DUE TO SOCIAL MEDIA

Social networking has transformed the process of marketing which involves making customers
interested in buying and consuming their product. Marketing techniques encompasses business
communication, sales techniques, and revenue development strategies and integrated
marketing (Kotler et. al, 2005). It has provided great prospects to marketing professionals to
shape brand awareness and effectively manage brand attitude. Nearly 93% of the marketing
professionals incorporate social media in their marketing strategy (Pick, 2013). It involves
maintaining a presence on social media platforms, creating and sharing advertorials and
content related to the brand and cultivating customer feedback on the brands posts throughout
the campaign
Over the decades social media has gained a crucial place in marketing mix of brands. Owing to
the visual appeal of fashion industry social media serves as a suitable advertising tool. Results of
social media marketing were related with the Gul Ahmed’s financial information regarding
equity and sales. Our results have shown raised sales, brand equity and stability in financial
assets as a result of employing correct business promotional strategies. A gradual increase in
brand equity can be seen in 2016 onwards owing to the influence of latest marketing
technologies. Similarly, brand regained strength in 2017 by showing an increase of 24% in sales.
Regular updates and attractive appearance on social media has brought out full potential by
gaining profitable results

Financial growth of Gul Ahmed was adversely affected in recent past due to little textile exports
and continuously raising inflation. “The company attributed the fall in cotton prices and strong
rupee as reasons for its profitability taking a big hit in FY15. However, things have been
relatively better for the company since then and revenues jumped by 24 percent in FY17 on a
year-on-year basis on the back of decent uptick in export sales which increased by 28 percent”
(Zuberi, 2018). A recent increase in local and export business has helped the brand in increasing
revenues by 14 percent in 2018. This rise in sales has assisted the firm to use its improved
production capacity which came about as a result of the company's harmonizing,
modernization and technology improvement process. The current trendy integrated media
marketing strategies have also played a very significant role (Zuberi, 2018). They deal in
unstitched fabric, ready to wear garments, and accessories, for both men and women. There
are almost seventy seven stores of Gul Ahmed in Pakistan, and few in UAE and UK as well.

COMPETITOR ANALYSIS
Gul Ahmed is an auditing firm that offers taxation, financial advisory and accountancy services
for corporate.
Gul Ahmed is a Private company. Gul Ahmed generates $251.9K in revenue per employee Gul
Ahmed's top competitor is Khaadi, led by Shamoon Sultan, who is their Founder. Gul Ahmed
has 238 followers on Owler.
Gul Ahmed's top 3 competitors are Khaadi, Sana Safinaz, and Motifz
KHAADI:
Khaadi is the top competitor of Gul Ahmed. Khaadi is a Private company that was founded in
Karachi, Sindh in 1998. Khaadi operates in the Fiber, Yarn, and Thread & Fabric industry. Khaadi
has 600 fewer employees vs. Gul Ahmed.

SANA SAFINAZ
Sana Safinaz is seen as one of Gul Ahmed's biggest rivals. Sana Safinaz was founded in Karachi,
Other} in 1989. Sana Safinaz is in the Online Retailers field. Compared to Gul Ahmed, Sana
Safinaz generates $312.4M less revenue

MOTIFZ
Motifz is perceived as one of Gul Ahmed's biggest rivals. Motifz was founded in 2004, and is
headquartered in Lahore, Punjab. Motifz competes in the Online Retailers field. Motifz
generates $317.4M less revenue vs. Gul Ahmed

BUSSINESS ENVIRONMENT
Gul Ahmed Textile Mills Limited, together with its subsidiaries, engages in the manufacture and
sale of textile products primarily in Pakistan. The company’s operations include spinning,
weaving, processing, and finishing various types of cotton and blended fabrics, bed linen, and
home furnishings, as well as manufacturing garments. Gul Ahmed Textile Mills Limited was
founded in 1953 and is based in Karachi, Pakistan.

Since its listing on the Karachi Stock Exchange in 1970, Gul Ahmed has been making rapid
progress and enjoying a leading position in the world of textiles. It has an installed capacity of
more than 51,840 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 with quality, innovation & reliability.
IMPACT ON BUSSINESS SHIFTING ON VIRTUAL PLATFORM
It’s been more than a year since the cascading effects of the COVID-19 pandemic quickly shut
down businesses and economies all over the world and spurred the massive shift to virtual
work, where new tools and ways of working became commonplace overnight. Even before the
pandemic, we were moving towards a tipping point where companies applied technology at
scale to create new business models. Now, the need for businesses to go further and faster has
accelerated their digital transformation journeys at warp speed. In fact, a recent IBM
study found that close to 60% of organizations have accelerated their digital transformation
due to the pandemic.
The textile mill with the local retail footprint was struggling to find ground, having a patchy year
in 2012, and stagnant growth between 2013 and 2017. Then, in 2020, the year of Covdi-19, it
experienced a drop in sales and its first loss in net income since 2012.
The financial results for the year 2021 all the more surprising. The companies’ sales jumped
60% to Rs53 billion to Rs86 billion, while the company’s loss of Rs479 million went straight to a
profit of Rs5 billion – the highest net income the company has ever recorded. Even Gul Ahmed
itself seems surprised. As its annual report notes, all of this change happened despite a record
year of, “unpredictable and strange movements in rupee versus dollar parity, continued
increase in raw material prices, increase in utility prices, challenges in logistic front, enhanced
supply chain cost, and a continuously growing inflation.” You know, just the usual problems
when it comes to doing business in Pakistan.
But actually that very bit – that the textile mill has switched its focus somewhat just from pure
exports to local retail in Pakistan – is what has helped Gul Ahmed, and paid off in the long run.

DIGITAL BUDGET ALLOCATION

Capturing a dominant share of a market is likely to mean enjoying the highest profits of any of
the companies serving that market. It can also mean winning the leadership, power, and glory
that go with such dominance.
But high market share can also mean headaches. Companies like Gul Ahmed possessing it are
tempting targets for actual and potential competitors, consumer organizations, and
government agencies. Their market shares have been their blessing and their curse—their curse
because they must make their decisions and manage their operations with much more cares
than do their competitors. These companies cannot aggressively seek larger shares because
further gains may break the dam and let the waters of antitrust action pour in. In some cases,
these companies may even have to give up some share in order to stem the tide .

BUDGET ALLOCATION OF GULAHMED:

Gul Ahmed has generated more than all of its competitors from online digital media marketing.
DAILY ADS POSTING: 1 Day AD= 2$*7 ADS =425*7= 2975rupees
MONTHLY ADS POSTING: 1 Day budget=2975=2975*30=89,250rupees
YEARLY ADS POSTING: 1 Day AD=425*2975=1,264,375rupees

Hence, Gul Ahmed scores is the highest budget allocation from digital marketing.

CONCLUSION
Gul Ahmed is one of the best leading industry in the sector of textile. It has to face many
challenges regarding textile by competitors and also government policies.