On
Decent Textiles
Marketing Division
Submitted by:
Waqas Ahmed
Date:
05-09-09
Acknowledgement
I bow my head before almighty Allah with gratatitude. My indebt ness and
salute to many individuals who have helped shape this report cannot
adequately be conveyed in a few sentences. However, I must once again
recall my indebt ness to lot of former fellows and contemporary colleagues
who took the time and trouble during the last few days to speak to me about
the ways this text could be further improved. It is most appropriate to mention
the ingenuity of respected Senior, who provide me an opportunity to enhance
the management skills from a well established organization It is my privilege
and honors to my express my deep gratitude and in calculating thanks to the
DGM of Decent Textiles Faisalabad especially to Mr.Hassan Mahmood and
Mr.Kamran Ahmed who provided me an opportunity to work in the
environment where quality is every thing. I bow my special thanks t o Mr.
Kashif Maqsood (Export Marketing Manager) who was very kind to me
during my job training period.
1 Acknowledgment 2
2 Dedication 3
4 Decent textiles 7
5 Mission Statement 9
6 Weaving Strategy 11
8 Marketing Dept 13
9 Industrial Analysis 18
10 Company Analysis 29
11 38
Major Threats for the Textile Industry
12 41
A Snapshot of Textile Industry
13 Recommendations 44
14 Conclusion 45
15 References 47
Textile Uses:
Textiles have an assortment of uses, the most common of which are for
clothing and containers such as bags and baskets. In the household, they
are used in carpeting, upholstered furnishings, window shades, towels,
covering for tables, beds, and other flat surfaces, and in art. In the
workplace, they are used in industrial and scientific processes such as
filtering. Miscellaneous uses include flags, backpacks, tents, nets,
cleaning devices, such as handkerchiefs; transportation devices such as
balloons, kites, sails, and parachutes; strengthening in composite
materials such as fibre glass and industrial geotextiles, and smaller cloths
are used in washing by "soaping up" the cloth and washing with it rather
than using just soap.
Textiles used for industrial purposes, and chosen for characteristics other
than their appearance, are commonly referred to as technical textiles.
Technical textiles include textile structures for automotive applications,
medical textiles (e.g. implants), geotextiles (reinforcement of
embankments), agrotextiles (textiles for crop protection), protective
clothing (e.g. against heat and radiation for fire fighter clothing, against
molten metals for welders, stab protection, and bullet proof vests. In all
these applications stringent performance requirements must be met.
Woven of threads coated with zinc oxide nanowires, laboratory fabric has
been shown capable of "self-powering nanosystems" using vibrations
created by everyday actions like wind or body movement
Decent Textiles
Faisalabad
Decent Textiles History:
The Decent Textiles was born in 1986 and is a reputable and leading
manufacturer of textiles (home textiles and made-ups).Decent Textiles
registered company in Pakistan and are listed on PTEA (Pakistan Textiles
Exporters Associations.
Corporate mission:
Decent Textiles processed its textile goods from the well equipped
processing mills like Arshad Corporation Limited, Kamran Textiles, Noor
Fatima Textiles and others.
We have well furnished stitching centre fully carpeted more than 100
machine. We have facility to ship any made order with in committed set
time. In view of all above mentioned. We want to enter in to business
with your esteemed organization and request you to inform us present
requirements with full specification to quote you our best workable
prices and for dispatch of required samples.
Decent Textiles Departments:
• Marketing Department
• Shipping Department
• P.P.C Department
• Finance Department
• Purchase Department
Payment methods:
In export zone, different payment methods are used which are given
below
Trust system
Competition:
• Bangladesh
• China
• Vietnam
• Pakistan
• India
• Iran
In local market there are number of units which are competing with each
other. There are big giants of the local market of textile industry of
Pakistan. The major competitors of Decent Textiles are
• Noor Fatima Textiles
• Gia textiles
• Arshad corporation
• Niagra textiles
Technology:
Marketing Financials:
Since Decent Textiles does not too much pay attention on marketing
and advertising of their textile products, that’s why there is little bit
marketing financials are being happened. Fairs are the only way of
market the product to direct buyer.
Target Market:
• USA
• European
countries
Distribution
Channels:
Decent Buyer
Industrial
Analysis:
PEST Analysis:
Political Factor:
Textile mill owners and exporter have strongly denounced the recent 31
percent increase in the gasoline prices and demanded from the
government to withdraw the recent increase and take serious steps to
help textile industry survive through difficult times
It was also witnessed that due to prices increase in gas has not only
adversely affected the productivity of the textile industry but has also
caused sudden increase in the production cost and has badly affected
the economy of the country.
On the other hand, textile and the other exporters also facing a lot of
challenges due to increase in the production cost of the specific export
goods, while such hurdles badly affected the Pakistani exporters to
meet the challenges and compete in the local and international
markets. Exporters are demanding that government should give them
facilities to cope with the existing challenges and not get involved in
favoritism.
The main political factors which are attracting the industries and as well
as for the whole world are
Musharaf’s Seat
Arrested Judiciary
Benazir Bhutto murdered
The murder of Benazir Bhutto was infuriated matter. Number of people
came out with a great anger and numbers of textile companies were
burnt by them, just like in Karachi happened. The other issue was neat &
clean elections of 2008. no doubt that elections were being held neat and
clean but the opposition did not accept the results and new government
is still try to control the factors which are creating disturbance. As it is
mentioned above that the govt. of Pakistan increased the prices of
Gasoline and petroleum, which are the basic needs for the textile
industries. In July 2008, the textile companies in Faisalabad shutdown
their companies against the 31% increments in prices of Gasoline, also
increased the prices petroleum by 10 rupees. Still no satisfied procedure
has not been implemented by the Govt. of Pakistan
Tight monetary policy also creates a lot of hurdles for textile sector
and exporters, and rapidly growing interest rates of the banks is
causing the shut down the power looms, and it also crushing down the
textile industry and exporters, added sources.
Economical Factor:
From 1999 to 2008 the inflation rate has been increased by 100%. The
last and current Government has been failed to control the economy. As
the prices have been increased, the suppliers try to get and save more
profit from their investments. That’s why prices are decided and put
with a high return in terms of profit.
Before 2008, textile industry was getting number of incentives from the
government just like R&D (Research & Developments) and subsidies on
the utilities. But some companies misused these opportunities and
unfortunately Govt. pulled back these types of incentives.
These are the factors which are disturbing the textile industry strongly
economically.
Sociological Factors:
• ¾ Most of the useless materials and acids are thrown into the
fields which are react or disturb the agricultural products seriously.
• ¾ Since the cost of the production and labor cost are increasing
day by day. That’s why the final product cost is also increasing
that’s why people are buying low quality products and not
spending too much to purchase.
¾ Textile companies are firing the labors and employees as well
because of high production cost and salaries that’s why the
unemployment rate is increasing day by day which is not good for
the industry as well as for the country.
Technological Factor:
The technology has been improved and updated in the textile industry of
Pakistan and some of the companies in textile industry are acquiring
these technologies. By using new technology not only they improve their
quality and efficiency but also improve their production as well as
reducing the cost of production.
PORTER Analysis:
It has been seen from last 3 years that buyers are becoming anger and having
problems to purchase the desired products from textile industry of Pakistan.
There are several issues which are affecting the textile industry seriously and
industry is bearing losses since 2005.
The bargaining power of buyers is increasing day by day. The buyers are
demanding more and improved quality in very cheaper prices, whether
customers are from foreign or are from local markets. The competition at
international level has been increased too much. If we look at a glance to USA
exports of textile industry from all over the world and especially from Asian
countries then we can easily found that Pakistan is offering most less export
prices to USA which is 0.91 US dollars per meter. But other countries are
getting more than these prices and in these countries; Bangladesh is top
Although Pakistan is offering the lowest prices but due to poor quality and
present condition of the textile industry as well as of Pakistan present
condition are the main reasons that Pakistan is loosing its customers.
The costs of Yarns and chemicals which are used to dye the cloth and for
sizing process have also been increased. Textile companies are bearing too
much manufacturing costs, if they come to increase their prices then there is a
major threat that customers can move to other companies weather it is
foreign marker or local market.
There is no threat of now entrance. If some one wants to enter in this industry,
that company has to face number of competitors which are the big giants of
that industry. On the other hand they have to purchase the latest technology,
Fuel prices, high labor costs, opportunity cost etc. and major issue is that
inflation is increasing day by day and instability of Pakistan Govt.
Threat of Substitutes:
There is no threat of substitute. Because Textile products and cloths are the
basic necessity of the human life and customers cannot move to other
products by leaving textile products.
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
•
3
Rising input and energy costs coupled with higher financial charges have
deteriorated overall sectors performance in the last couple of years. On
the other hand investment on balancing, modernization and renovation
(BUR) of textile has been continuously declining since 2004-05 after a
record of $928.6 million investment in a year. The main reason for
depression in this economic lifeline of the country is the rise in bang
interest rate, decrease in cotton production, high cost of energy, long
hours of load shedding, and higher wages of skilled workmen as
compared to Pakistan's international competitors and general law and
order situation of the country.
Political Instability:
The new govt. has also banned to export the raw cotton to the world’s
countries by saying that export of raw cotton has been banned due to
the increments in the prices of raw cotton should not be more export
infect it should be used domestically because textile companies and
baring high raw material cost due to which sales prices at domestic and
internationally level are increasing day by day. Now the prices definitely
come down at domestic level and production cost should be reduced.
Internationally Competition:
.
The major competitors of Pakistan Textile Industry are given below with
their selling prices in US states.
Pakistan 0.91
India 1.91
China 1.5
Bangladesh 2
Vietnam 3
Note: The above mentioned prices are in dollars and are per square
meter.
As the Govt. is not supporting the textile industry for Research &
Development to improve the industry, companies are also not much
paying attention to the Research & Development. That’s why investors
are not investing too much in this industry and industry is not able to
acquire or purchase the new technologies to improve their productivity,
efficiency, quality and saving the manufacturing costs.
Conclusion:
In August of 1947, a Islamic country was founded in south Asia with the
name of Pakistan. Pakistan has its own and unique history whether you
talk about its culture, people, handicrafts, environments, government,
weather, industry, or technology.
Pakistan industry has been faced a lot of problems and different types of
ups and downs in its history. But from year 2000 to up till now, Pakistan
industry is facing more than these all problems. Textile industry is one of
these industries which is facing these problems.
• Musharaf’s impeachment
• Political instability
These are the major problems which are facing by the textile industry of
Pakistan.
References:
www.aptma.org.pk/
www.saleemtex.com/
www.ptea.org/
www.alibaba.com/countrysearch/PK-
suppliers/Textile_Fabric.html
www.fibre2fashion.com/news/textile-
news/pakistan/
www.wikipedia.com
www.bharattextile.com/newsitems/2
003963
www.gia.com.pk/ www.iptu.co.uk