Internship Report

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.

The Holy Prophet Muhammad (S.A.W.) The greater Social

reformer and guide in every sphere of life. My affectionate
Most respected
parents Hajime
who taught Bashir Ahmad
the first Sahib
word of theand supported
speak
me morally
Chairman of STILandwhose
financially throughout
benevolent my studies.
attitude
Thanks to My friends (Shiza,Saira,Mazhar and other class
and fair administration of the organization has
mates)
always the source of inspiration for the entire

staff of the organization.

 List of Contents

No. Contents Page No

1 Acknowledgment 2

2 Dedication 3

3 Textile Industry Uses 5

4 Textile Value Chain 6

4 Decent textiles 7

5 Mission Statement 9

6 Weaving Strategy 11

7 Dyeing and Stitching 12

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.

Decent Textiles was established in 1986 at Faisalabad and is one of the

oldest companies of Pakistan with vast years experience in textile
manufacturing. It was initially set up as a weaving project with 25,000
spindles and 600 looms. However, after decades of aggressive
expansion and modernization Decent Textiles has dimished it and
vertically integrated home textiles company with state of the art
capabilities for stitching. The company has a diverse customer base with
sales in export markets. The main international markets include Asia,
Europe, USA and Australia.
Mission Statement:
At Decent we aim to serve the needs of our customers. At the same time
we hope we are creating an environment where talented and exceptional
people want to work. We are committed to providing our employees with
opportunities for personal and professional growth that they can find
nowhere else. We are dedicated to operating our facilities with the
utmost respect for the communities and environment in which we live
and work.

Corporate mission:

• Put the customer first always.

• Be flexible to the customer’s needs.
• Adhere to the highest quality standards.
• Think innovatively but make informed business decisions.
• Delivery Results
Decent Weaving
Strategies:

Decent weaving strategies are given

below.

Decent Textiles diminished the weaving

sector as it continues to use outsourcing
by hiring qualified purchase managers
dealing with direct or indirect contact
with the leading fabric manufacturer to
purchase according to the need of
customer by efficiently using the
company capital.

Decent Dying Strategies:

Decent Textiles processed its textile goods from the well equipped
processing mills like Arshad Corporation Limited, Kamran Textiles, Noor
Fatima Textiles and others.

Decent Stitching Unit:

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:

Decent Textiles has been divided into following major departments.

• Marketing Department
• Shipping Department
• P.P.C Department
• Finance Department
• Purchase Department

Decent Textiles Marketing Department:

Marketing Department of Decent Textiles mainly consists of export

zone, Marketing Department control by qualified persons with vast
experience of international marketing. Department is control by one
head which is the director of export department Miss Tanzeela Javed
under supervision of Arshad Gulzar Chief Executive of the company
International or Export Zone:

In international zone sales personnel attract and contact the foreign

customers to sell their textile products. Two personnel focus on
European countries & African countries. While on other hand, two
personnel focus on USA and Asian Countries.

Payment methods:

In export zone, different payment methods are used which are given
below

L/C (30 days, 60 days, 90 days, 120 days, 150 days)

CNF
C&F
CIF
B/L

Trust system
Competition:

At international level there are number of suppliers from around the

globe who are exporting the fabrics to other countries with a high
quality and at low price. If we look at Asian countries then there names
are mentioned below.

• Bangladesh

• China

• Vietnam

• Pakistan

• India
• Iran

These countries are providing the fabric to European countries as well as

USA and African countries. Bangladesh is the only country who is
providing best quality of the fabric and selling it highest sale pricer. On
other hand, Pakistan is producing poor quality and selling their fabrics in
USA which is the lowest price. The main reason of the poor quality is the
lack of investment whether they are foreigners or local. Investors are
not interested to invest their capital since Pakistan is facing great
difficulties in both government sectors and private sectors.

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:

Decent Textiles outsourcing by latest enhanced and well equipped

processing houses which have the latest technology in the textile
industry.

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:

The target customers of Decent Textiles in Europe are

• Hotels and hospitals use and home
textiles

• For garments they are focusing on chef wears.

Where as in international market:

• USA

• European
countries
Distribution
Channels:

Decent Textiles is using

only two channels for its
distribution
internationally.

Two methods are

mentioned below.

Decent Agent Buyer

Decent Buyer
Industrial
Analysis:
PEST Analysis:

Political Factor:

Uneven political conditions, deteriorating law and order situation and

instability in gas and electricity prices are adversely affecting the textile
sector, while government has hardly taken any step to give some relief or
incentives to the mill owners.

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

According to the sources, if prices continue to increase at current rate,

the textile industry would find it difficult to survive as the recent
increase has already proven deadly and many mills have started to
shutdown in the wake huge price increase.

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.

The industrialists rejected the imposition of 10 percent withholding tax

on electricity bills, small and medium industries, and power looms, while
they demanded withdrawals of 10 percent withholding tax immediately
for the survival of the industrial sector of Pakistan.

Then again, the government is failed to decrease the every day

increasing trade deficit. Textile sector of Pakistan contributes huge
amount in the economy of the country serious measures are needed for
its revival.

Economical Factor:

Economical factors are also disturbing the all industries of Pakistan as

well as the textile industry.

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.

The main problem with the textile industry is shortage of electricity,

gasoline and petroleum, due to which Textile industry is bearing too
much cost that why they have to increase their prices to earn profit or for
break-even. There are some companies which have their own electricity
plants but they have to spend a lot of money to run them.
Other problems which are facing by the textile industry of Pakistan are

Non-availability of skilled labors.

• Labors cost is increasing rapidly

• Loosing quality of its products in both markets domestically and

internationally

• Poor monitory and Fiscal policies of the

Govt. of Pakistan
Uneducated people

• Investors are pulling out their capital

from the market quickly

• Foreign Investments are not coming

towards Textile industry

These are the factors which are disturbing the textile industry strongly
economically.

Sociological Factors:

Textile industry affecting the society and environment in number of

ways, some of them are mentioned below.

• ¾ Polluting the air by pushing out ruins of chemicals. Different

gases in air react with these ruins which become dangerous for
human beings.

• ¾ No proper system to throw out the useless materials and

chemicals.

• 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:

Bargaining power of Buyer:

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.

Bargaining power of Suppliers:

Bargaining power of suppliers is increasing of textile industry day by day. The

Govt. of Pakistan is playing very important role in this activity. As we all know
that inflation rate is running upwards like a rocket and utility costs are also
increasing day by day. Couple of days ago, Govt. increased the prices of Gas
by 31% and all textile mills of Faisalabad strike against this huge increments.
Now the cost of petroleum has also been increased due to which affecting the
manufacturing costs of the companies.

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.

Threats of new Entrants:

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

• Adequate financial resources

• Specialized in printing
• Have a diversified units of industries
• Good market image
• Competent management and
workers
• Have ability to compete with
competitors
• In home facility of production
• Loyal customers
• Loss sustaining capacity

WEAKNESSES

• Uncertain chances of promotion

• Salary package less attractive
• Centralized decision making
• Lack of a proper human resource
system, hence employees are not
motivated to develop their creative
and innovative abilities.
 • Due to high turn over the
organization is not enjoying the
economy of scale.

OPPORTUNITIES

• Large scale productions because of

new market coverage and increasing
demands
• Introduction of new variety in
garments
• Extension of fashion-designing &
stitching departments

THREATS

• GST and WTO pose biggest threats

• Instability of prices due to currency
devaluation
• Entrance of new and quality
conscious competitors.
• Low price offered by the competitors
• Strong promotional activities by the
competitors to convince buyers .
 • New quality, environmental and
social accountability standards
overhead are increasing rapidly.
•

•
3

Major Threats for the Industry:

Rising in cost of Energy and workforce:

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.

Rising in freight charges:

As the prices of petroleum is increasing rapidly, domestically and
internationally which are affecting the company’s cost of freights. Due to
increments in manufacturing cost & freights, the profit ratio has been
decreased because customers are demanding the better quality
products of textile in low cost. That’s the reason that Pakistan’s textile
price is the lowest price in world at export level which is $0.91.

Political Instability:

The decades-old Pakistan based international textile buying houses have

shifted to India, Bangladesh and Middle Eastern countries due to
uncertain political situation. Just like Judiciary Issues of Pakistan,
President Pervaiz Musharaf issues, blames of European countries and
specially America of Terrorism against Pakistan and other major issue of
Benazir Bhutto murder and elections of Feb 18 2008. It’s true that
elections were being held calmly and

clearly, after elections new government changed the already existing

policies which impact all the sectors of Pakistan including Textile. The
prices of utilities and petroleum were increased by govt. rapidly which
was pushed down by force before the elections.

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 decades-old Pakistan based international textile buying houses have

shifted to India, Bangladesh and Middle Eastern countries due to
uncertain political situation. The traditional buying houses of Pakistani
products have told Pakistani producers / manufacturers to come to their
new countries of residence along with their products/samples if they
wanted to get supply orders. Since the removal of quota regime,
Pakistan's textile sector has been facing intense competition from
neighboring countries on export front.

.
The major competitors of Pakistan Textile Industry are given below with
their selling prices in US states.

Country Prices ($)

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.

Same thing is happening with Pakistan textile industry in the other

countries of the world as well as for the company.

Research & Developments:

State Bank of Pakistan (SBP) has informed the Economic Coordination

Committee (ECC) of the Cabinet that the textile industry was grossly
misusing the research and development (R&D) fund, and the
government should review its policy of injecting billions of rupees for
protecting this inefficient sector of the economy. Previously, the textile
industry was enjoying refund and rebate facility on exports, however,
this policy was discontinued in

2006-07 on reports that a number of inefficient textile units were

getting huge fake refunds,misusing the facility. Now ECC took SBP
Governor's views very seriously and asked the Ministry of Finance (MOF)
to come up with some other strategy to help the textile industry to
become more result-oriented to compete with other players in the world
market.

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 economy is one of the growing economies in the world and

attracting foreign investments from many sides of the world. But this
growth is increasing gradually.

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.

Textile industry is contributing to Pakistan’s GDP near about 8.65% and

in total exports, it is contributing near about 62%. The overall worldwide
share in exports of textile products is near about 14% which is
decreasing slowly but surely.
Right now Pakistan textile industry is facing a lot of problems which are
directly related to government. The major problems are mentioned
below.

• Musharaf’s impeachment

• New government rules and regulations

• Increments in costs of raw materials

• Increasing cost of Gas and Petroleum

• Decrement in foreign investment

• 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