Feroze Khalid Khan (F08/BBA/034)

Submitted to Mr. Nayyer Butt At Comsats Institute Of
Information Technology.
Internship Report On Sapphire Group Page 1


Topic Executive Summary Textile Industry Introduction Mission and Vision Company Profile Business Operation SWOT Analysis PEST Analysis Industry Analysis Market Strategy Competitive Analysis Porter Five Forces Company Life Cycle BCG Matrix Competitive Advantage and Bench Marking Problems and Solutions
Internship Report On Sapphire Group

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Learning as internee Conclusion Recommendations 28 29 30 Internship Report On Sapphire Group Page 3 .

Sapphire has always tried for success & that is why it is known to be one of the leading organizations in Pakistan. where I have joined as an internee in their Marketing department for the duration of 6 weeks. Dairies Products.Executive Summary Sapphire group is engaged in the business of yarn which is known as their main strength and they are also engaged in Fabric. 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. Internship Report On Sapphire Group Page 4 . I have discussed about my learning in the whole internship that is all about the Textile Terminologies and process of the productions. Solar Equipments and Power Generation etc. 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. the style of working & the commitment of the employees in Sapphire is really exemplary. 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. to keep the customer in touch and much more. The system.

Company Values Pride Relationship Integrity Diversity Environment Internship Report On Sapphire Group Page 5 .Mission Statement Sapphire Group Of Pakistan The basic mission statement of Sapphire Group Of Company is to maintain the leading position in their business in order to remain one of the successful business entity in whole country than they focuses on maintaining their good business and ethics and wants to contribute in the development of the community in which they live and work.

yarn. Nooriabad. The Company is principally engaged in manufacturing and sale of yarn. manufacturing and sales of alternative energy and lighting products. Karachi and its mills are located at Kotri. 1 stitching unit and 1 home textile unit. Feroze Watwan. and has employed 12000 employees in different manufacturing units. We have 11 spinning units. One of the largest manufacturers and exporters of textile products in Pakistan. The registered office of the Company is situated at 212. 1969 as a public limited under the Companies Act. Sapphires Introduction Introduction of Company: Sapphire Textile Mills Limited (the Company) was incorporated in Pakistan on March 11. Its subsidiaries include Sapphire Wind Power Company Limited and Sapphire Renewable Solutions (Private) Limited. home textile products and energy sales. fabric. 1 knitted fabric unit 1 dyeing unit each of woven fabric. Dollars. The shares of the Company are listed on Karachi Stock Exchange. Chunian. Japan and USA.Background: As I have not learned not much about the history of the company but I have learned that the basic concept of name Sapphire Group came from East Bengal by this family who than settled in Chiniot and started a first spinning plant in Pakistan in 1969 and than with time it became the one of the largest yarn producing companies in Pakistan.I. Cotton Exchange Building. Internship Report On Sapphire Group Page 6 . The Company is engaged in manufacturing and sale of yarn. home textile products and energy sales. Sapphire technology comes from Europe. 1913 (Now the Companies Ordinance. as they say that they build this large business empire of 22 units from a one single unit. 2 woven fabric units. fiber dyeing. knitted fabric. fabric. Capitalizing on the region’s principal crop. Chundrigar Road. Company annual turnover is about 220 million U. I. 1984). Bhai Pheru and Bhopattain Lahore.S. which is engaged in assembling. Sapphire Textile Mills Limited is a Pakistan-based company.

Our products are marketed to the industry's biggest names in Asia. These machines are equipped with state of the art electronic control systems capable of processing 10.cotton. & other imported cotton is sourced internationally. and augment our offerings by providing imported fiber from the world’s best crops. Synergies are formed with offshore garment manufacturing companies. Each spinning plant is specialized to manufacture specific yarn count.000 employees Annual turnover US $ 435 Million Some of the basic products of Sapphire Group Of Company Cotton:  The most important component that determines the final quality of finished yarn is Cotton fibres. We work with specialized fibers bringing in the newest innovations from major fiber and chemical producers. Technically sound cotton sourcing divisions procure highest standard quality cotton from the best cotton crop areas.    Man-made fibres are procured from world-renowned manufacturers. Europe. Dyed Yarn:   Specializes in versatile dyeing techniques including VAT. Actively involved in training of cotton growers and ginners. and North America. Australia. Can offer bleached yarns of desired absorbency. we source this locally. American Pima. Australian.000 kg yarn per day Internship Report On Sapphire Group Page 7 . Reactive and Disperse. . Over 14. and our manufacturing from yarn to finished fabric is performed in our facilities in Pakistan.

mélange. Other companys business are small investments on different projects.000 kg/month. Following are other business which Sapphire Group is also engagaed like: Internship Report On Sapphire Group Page 8 . Organization also starts importing Australian cows to start a business of dairies products because this market is also increasing day by day. The production is divided into 11 spinning plants. New Business Ventures:    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. Dyed Yarns 150. Other Products:  Product range consists of a variety of ring spun. Fibre bleaching capacity of 3500 Kg per day for surgical cotton.  Moving with times and are inline with latest technology including compact spinning. dyed and bleached yarns in various counts. slub yarns and core spun Lycra yarns.  Along with basic cotton and PC yarns we also offer specialized yarns for niche market including MVS. Coolmax.    Production capacity is 5 million kg of yarn per month. Key product quality parameters stand amongst the top 5% of the world-class yarn manufacturing companies. compact spun. open end. Tencel. Fortrel. Modal.

The company has not yet set up any project. Main Boulevard. 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 company is principally engaged in assembling. debentures. acquire. Cotton Exchange Building.(the subsidiary company) The Company was incorporated as a public limited on December 27.(the subsidiary company) The Company was incorporated as a private limited on June 05. Its registered office is situated at Main Gulberg. Sapphire Lahore: Sapphire (Lahore) Limited was incorporated in 1975 as a public limited company in Pakistan under the Companies Ordinance. hold shares. The company is principally engaged to carry on the business of holding company and for that purpose to invest in. 2010. 2008. manufacturing and sale of alternative energy products. Karachi. stock. Gulberg II. subscribe for. securities. The registered office of the company is located at 7 A/K. The main object of the company is power generation through wind mills and sale of power. Sapphire Holding Limited . Karachi. 2006. Lahore. Cotton Exchange Building. underwrite bonds. Lahore. Internship Report On Sapphire Group Page 9 . Sapphire Renewable Solutions (Private) Limited . The registered office of the company is located at 212. The registered office of the company is located at 212.(the subsidiary company) The Company was incorporated as a unlisted public limited on April 21.Sapphire Wind Power Company Limited .

fabric and Sapphire was the CUSTOMERS REGION leader in producing country’s finest Yarn and also it also dealing in made-ups made from raw cotton. They have hundreds of employees in their Lahore setup. stitching. dyeing. power generating. Finance. weaving. buying. They deals in domestic and foreign deals from the same office but different peoples are hired to handle international and local customers independently. HRM. The Company is engaged in business of spinning. Internship Report On Sapphire Group Page 10 . R& D and Accounts. dairies. selling and otherwise dealing in yarn.Sapphire group of industries started its business with 43000 spindles at Khariawala Sheikhupura Road. there are different deparments working together in this office like Marketing. 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. solar products. The main impressing system is that their all departments are connected with one another through networking software which costs more than 1 million dollars but saves precious time of the employees and helps them in communicating with each other and with the management. synthetic fiber and cloth and also generates electricity for internal use.


S. Supplier: We deal with different suppliers inside and outside the Pakistan The main suppliers of Cotton products are from sindh and other cities as well. Russia. The international suppliers of Sapphire are from U.A. Hierarchy of Sapphire Group Of Companies: Internship Report On Sapphire Group Page 12 . Australia and Turkey. Employees are entertain with Bonuses and incentives on the behalf of their performances. Following are the salient competitors of the company: • • • Nishat Textiles Artistic Denim Group Kohinoor Textiles. The company treats its employees equally. Labor Market: • • • • Its labor market belongs to Lahore and its outskirts.There is very tough competition in the textile industry of Pakistan. The company hires both experienced and inexperienced people but experienced are preferred in order to meet the competitive demands..

1 2 3 • Top Management • Middle Management • Lower Management Internship Report On Sapphire Group Page 13 . And then comes the turn of Functional employees.The highest rank in this unit is Chairman under him Executive Director comes. General Manager has three managers below him who are Mill Manager. Each Manager has three Assistant Manager and one Junior Assistant Manager with each assistant manager. every machine technologist has three Assistant Machine Technologist. Technical Manager and Finishing Manager. there is one Machine Technologist under junior assistant manager and the last but not the least.

Hierarchy Of Sapphire Group Of Companies: Chairman Mr. Nadeem Deputy Manager Asst. Muhammad Yamin General Manager General Manager Deputy Managers Mr. Amer Abdullah Director Mr. Abdullah Chief Executive Mr. Muhammad Younis Director Mr. Shuaib Raza Asst. Nadeem Abdullah Director Mr. Faraz Line Managers Internship Report On Sapphire Group Page 14 . Managers Mr. Yousaf Abdullah Director Mr. Managers Line Managers Mr.

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. Strengths: • • • • • • • • • Differentiation on few products. I have noticed that banks loan are available to the company every time they need so they don’t have to Internship Report On Sapphire Group Page 15 . Weaknesses. 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. 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. Employee intention Financially Strong position Availability Of Loan is very easy Fastest Communication within the organiztion High quality product Latest mechanized machinery from Germany & Japan Highly motivated workforce to compete in corporate culture Bestest Yarn producing company in whole country 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. Sapphire is a big group but as we know that every big corporation needs loan in order to make purchases and other expenses. 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.SWOT ANALYSIS Well the purpose of SWOT analysis of the company is to determine the Strengths.

Company have large number of loyal customers which are doing business with the company for more than ten to twenty years and in the end I can say that there is no organization which can achieve its goal without a motivated workforce and Sapphires workforce is the most loyal and highly motivated workforce. 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. Decisions are made independently in some units. Opportunities: • • • • New product development Strong Entrepreneurship Innovative idea High investments were made for the replacement of the machinery. 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.face finanacial crises. 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. 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. Some units except head office centralizes decision making is going on which is not providing the company with benefits. Page 16 Internship Report On Sapphire Group .

Changed of Government policies 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 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. New entrance of competitors in the market. as every new government comes they introduced new policies for the industry which disturbs the whole setup of the firms like Sapphire Group.• • Organization can captured new market segments around the world Organization reduce the cost by proper utilization of resources Sapphire Group has too many opportunities in the current scenario like they should research for new products and develop them for local consumer which can be beneficial for them. Threats: • • • • • Political Instability in the country Economic Instability Law and Order is not favourable for the company. Marketing strategy Internship Report On Sapphire Group Page 17 .

replacing old machines with new ones upgrading the existing set-up. Improvement in quality and production capability was the main area of concentration. Long Term Relationship With Customers Internship Report On Sapphire Group Page 18 . On its purchase side as I have worked for a whole week in Yarn Procurement department of the Group. 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. Taiwan. Their fiber is very famous not only nationally but internationally as well. Update With Modern Technology Sapphire has constantly updated the machinery. 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. Market for Yarns was diversified to increase the customer base and reduce dependency on the Far East. In this effort business with Malaysia. which is a small branch of marketing department.Sapphire is a group starting from 1967 which means that it is an old Textile industry in Pakistan. Countries like China. I found their business to be such a vast that they ordered their raw material on telephones. Sapphire has established its name in new markets be creating specialized fabrics. they made contracts with the new companies and those companies having already contracts had no need to made. cheaper and better raw materials and machinery. designs and also by providing our customers with efficient service and excellent quality. leading to better efficiencies and quality products. Indonesia. UK and South America was initiated in case of Yarns. India and Bangladesh played an active role in the fabric market. Our competitors from Asia have come up in a big way with lower prices resulting from lower overhead. Korea.

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. Oceanic has been our most lucrative and mature marker. which will give us recognition as a bedding supplier. Saudi Arabia etc. Sapphire has increasing its profitability by working efficiently. Keep In Touch With Business Partners It visits its business partners frequently and provides them with the best service possible. procuring better raw material and most importantly kept a very close association with its customers. Egypt. Middle East market is composed of South Africa and the new emerging markets like the UAE. Sapphire has dedicated new staff with fresh energy for the emerging market. In business terms it is our “cash cow” market. 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. On top Sapphire has developed more direct and closer relationship with its end customers.The opportunities are limitless. we have to review and analyze them very thoroughly to associate with the right people in the long run. Sapphire has provided its staff with better working environment and facilities. At sapphire. it is prospering due to its professional commitment towards excellence and giving the best results at all times and against all odds. 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 Internship Report On Sapphire Group Page 19 . In shorter term we are building a small amount of quota. which enhances its efficiency and output.

Company life Cycle 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. Being an old group it has its own name in the field of Textile. its financial assets are also an edge for the group.method of hiring different and experienced market agents who keep in touch with the companys customers like Azgard 9. Crescent. Furthermore. Internship Report On Sapphire Group Page 20 . Competitive Strategy As for as Sapphire Group is concerned its own name is its competitive advantage. Customers are satisfied with their products. They go to these firms and update them than get their orders directly from them and submit these order at the Head office. Nishat Linen etc. 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. 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.

Maturity Stages BCG Matrix Sapphires SBU’s: Internship Report On Sapphire Group Page 21 .

This happens because they concentrate more in yarn products but slowly they are intending towards dairies. 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. 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. 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 Internship Report On Sapphire Group Page 22 .• • • • • Yarn Fabric Dairies Power Generation Energy Solution 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.

in short we can say that these products failed to make market in Pakistan. 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. 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 Internship Report On Sapphire Group Page 23 .Dogs: Sapphire has introduced solar products in the market and it lies in the Dog category because it has low market and growth rate is also low/ it happens because these products are highly expensive and everyone cannot afford these products. So. 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. Shuaib (Asst. 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. I have learned that it is a very difficult to market and than sale of your product in a globalized economy of this century and the one main thing that I have learned from my seniors Mr. Marketing Manager)and Mr. This made me clear that a successful marketer should be very confident during his whole career. 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.

DUTIES at Sapphire Group: It was a tremendous experience that I have availed with devotion and commitment. • I discussed about the marketing practices going on in the international Textile market. And what are the procedures of the Nishat about HR matters. my senior manager has sent me 4 times in my whole internship period with these agents in the market so. • 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. • I learnt about the HR policies that how many types of hiring Nishat textile using.\ • During my internship I learnt about the value that customer is the only who come first. 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 can observe the behavior of different customers. The fulfillment of the demand of customer is our basic motive. • 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. Well as an internee I have been assigned with some duties. • I learnt about the marketing procedure and required of the documents and dealing with customers. I have an interest in textile industry that’s because Textile is the back bone of the economy of the country. • Advertisement is not done at Sapphire but they have hired agents which went to markets and take orders from the domestic customers.methods of working. tasks and I also faces new experiences and problems which I am going to mention below.e. • 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. All the record is saved. I. limited is • I learnt that in the textile sector the cutting and stitching based on two rules Page 24 Internship Report On Sapphire Group . to target your customer after knowing needs with product solution of the customer need.

 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. as the organization has sets their employees mind that we are nothing without our customers. and in order to meet these demands we should be always ready and must update our employees according to the current situation of market.• • (Length) (Length) (width) (Length) Accomplishments  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. Internship Report On Sapphire Group Page 25 .  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.  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.

New Knowledge Acquired :  First of all I can say that I have acquired a good marketing while doing my internship at Sapphire Group of Companies. 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. 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.  Being an internee I have gained knowledge if you want to be a good marketer than you should be confident on yourself that Challenges and Problems Faced: 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. Internship Report On Sapphire Group Page 26 . we can compete them in every aspect of our business.

 The main challenge which internee faced at sapphire is dress code problem as there is no proper dress code in the company and we have habit of dress code which also creates problems for us. 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 is that company should advertise themselves as they are one of the leading manufacturer of yarn. cotton etc in the country but still they believe that they have to advertise themselves because they are not dealing with domestic customer. 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.  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 Marketing field among hundreds of people and it is a discrimination. I think that females should get equal chance to share work in our community this problem occurred because the owner of Sapphire Sheikh Abdullah believes that male staff member cannot perform well in the presence of opposite sex.  The agents which are hired for the outside market are not much cooperative specially for the internees and they don’t share much of their information with me and anyone like me who is doing internship because in my opinion they believe that it is not important for internees. How Experience Impact my Career: Internship Report On Sapphire Group Page 27 .

Working in a multinational national organization like Sapphire Group Of Companies is a good experience for me. Internship Report On Sapphire Group Page 28 . Bibliography • The main source of data gathered from the Sapphires official website i. Nadeem (Deputty Marketing Manager).com.sapphire. like organizational hierarchies strength reports. Marketing Manager) & Most of the data is collected directly from Mr. 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. As I am specializing in Marketing and Sapphire Group is a place where I have different operations regarding to basic principles to specialized marketing principles because Sapphire have different marketing operations in the country as well outside the country with such big corporations like River Island.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. Shuaib Raza (Asst. • All the relevant information available in the HR office.: www. 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. Levis etc so they add much knowledge in marketing experiences which I don’t have before joing the company.

com/marketing/product/lifecycle/ Internship Report On Sapphire Group Page 29 .quickmba.• http://www.

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