Mistequay International (Pvt) Ltd

Mistequay International (Pvt) Ltd

Mistequay International is a private limited company incorporated in Pakistan in 2005.

The project was envisioned and initiated under the patronage of leadership team at
Mistequay Group Ltd, a precision machining company based in Michigan USA.
Mistequay has obtained 1144 AISI ISO Standards in Aloay Steel.

Currently it has 100 employees and only one branch in Pakistan. The company came to
Pakistan because it offers similar advantages as India and China in terms of availability
of technically apt human resources and cost structure. Our experience in ramping up
operations has validated our perception that Pakistan is suitable for engineering and
technology based industrial projects.

The business in Pakistan is run by MR. Sohaib Akbar CEO of the company. Company
makes different parts of different machines mostly made from aluminum. These parts are
used in different industrial machines, aircrafts, and vehicles. So far there is no competitor
for the company in this business.

To produce the parts the company needs raw material from its supplier but unfortunately
there is only one company in Pakistan who provide such material but sometimes it is
difficult for supplier to fulfill the order due to shortage of material. It is also difficult for
the company to import material from Europe or America due to minimum order quantity
and economy of scale. Now only option is to import material from India but the
relationships with Indians are strained and reliability of supply chain is not certain.
As custom costs were increasing that leads the company to low profit and high cost. The
custom department has very rigid staff with inflexible attitude.

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Issue
Mistequay received an order to make a part of a machine from French Company. The
French company did not mention the machine which needs that piece, they sent a sample
with the order. Mr Sohaib, owner of the company, accepted the order without having the
knowledge of the machine. Mr. Sohaib consulted with a company in Karachi, Sindh
Traders, for the raw material to be used. They replied that they have the requested
material. Mr. Sohaib placed his order and purchased the material from them and his
company started working on that particular piece. He promised the French company to
deliver the piece in 15 days. So the French company gave them the time of 15 days.

After placing the order Mistequay received raw material from Sindh Traders in five days.
Mr. Bilal Khan production manager in Mistequay received the material and without
checking the quality of the material sent it for further proceeding. After three days they
completed the piece and ran some tests on that to check its durability. All tests proved
that the piece was a failure.
Mr. Bilal checked the whole process where they made the mistake but he was got
surprised that there was nothing wrong with their process then why the piece is not
working as it suppose to. Then he ran some tests on the raw material and he found that
the raw material was defected and they approved it without checking.

Mr. Bilal wrote a letter and fax it to Sindh Traders that the material they sent us was
defected and due to it Mistequay has suffered a loss of 1.5 million rupees. Sindh Traders
simply refused to accept that the material was defected. Haroon Ahmad the owner of
Sindh Traders replied that if the raw material was defected then why did not they told
them when they received the material and now when you have converted it into a
machine’s part, you are saying that the raw material was defected. He also said now there
is nothing he can do for you.

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Meanwhile Mr. Sohaib communicated with the French company about the piece, they
replied that the piece is the wheel axle of a plane. Mr. Bilal was surprised and said if it
was a part of a plane then why did not you mention it earlier. They said if they did not
mention it then they must forget it.

Mr. Bilal told Mr. Sohaib about the issue, Mr. Sohaib got worried and contacted Mr.
Haroon again and told him to solve the issue. Mr. Haroon replied the same again saying
he can do nothing about it. During all this process 15 days passed away, the French
company sent a message to Mistequay and ask about their order, Mr. Soahib replied that
due to some complication they have not completed the order and ask for more time but
the French company said they do not have that much time and cancel their order.

Mr. Sohaib got very angry at Sindh Traders and told them that they have suffered a loss
of 1.5 million rupees due to their defected raw material, so you have to bear it and if you
refuse to pay then he will sue Sindh Traders for that. After threatening Sindh Traders Mr.
Haroon replied do not do anything like that and suggest that we should discuss this issue
in a meeting. After having a meeting of 3 hours Sindh Traders agree to pay 1 million
rupees to cover their loss.

Following are the products and customers of Miatequay International (Pvt) Ltd.

Products
Aerospace Hydraulics Industry
Machine Tool Industry
Automotive Industry
Agri and Heavy Equipment Industry
Textile Equipment Industry
Pharmaceutical Industry
Injection/Blow Molding Industry

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Customers
Caterpillar
GM
Parker Hannifin
Eaton Corporation
Electromech Technologies
Triumph
Universal Microbore

All the customers are well known around the globe. But a mistake cost them loss of a
customer.

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Annexure

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Mistequay International (Pvt) Ltd

Annexure

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