SWOT ANALYSIS

INTRODUCTION
• Inaugurated in 1959
• Founded by Haji Bashir Ahmed & Haji
Abdul Gaffur
• Deals in
 Textile
 Chemical
 Energy
 Health
 Education sectors
SITARA AN EXCLUSIVE BRAND

Market leader
Pakistan’s primary exporter
 SITARA GROUP OF
COMPANIES
COMMERCIAL PROJECT
• Sitara Textiles Industries Ltd.
• Sitara Chemicals Industries Ltd,
• Sitara Energy Ltd,
• Sitara Fabrics
• Sitara Chemical(Spinning Units 1&2)
• Sitara Peroxide Ltd.
WELFARE PROJECTS
• Aziz Fatimah Trust Hospital
• Ghafoor Bashir Children Hospital
• Aziz Fatimah Girls modal Collage      
 MEMBERSHIP
• All Pakistan Textile Mills Association
• Pakistan Cotton Fashion Apparel Manufacturers
& Exporters Association
• All Pakistan Bed sheets & Upholstery
Manufacturers Association
• Karachi Cotton Association
• Chamber of Commerce & Industry, Faisalabad
• All Pakistan Textile Processing Mills Association
CERTIFICATION
• ISO 9001-2000
• ISO 14000

BUYERS
USA, Canada, Australia, New
Zealand, Europe, South Africa,
Scandinavia and South America.
 BANKERS
• Allied Bank of Pakistan
• Faysal Bank Limited
• Bank Al-Falah Limited
• The Bank of Punjab
• Meezan Bank
• Al-Baraka Islamic Bank B.S.C(E.C)
• Soneri Bank Limited
 PROCESSING
• Spinning
• Weaving
• Printing
• Design studio
• Stitching
• Quality control
 DRESS MATERIAL
WOMEN'SRANGE
• Sitara Sapna Lawn
• Sitara Supreme Lawn
• Mughal-e-Azam Summer Collection
• Sitara Supreme Linen
• Sapna Linen
• Mughal-e-Azam Winter Collection
• Sapna Cambric( White & dyed)
MEN'S RANGE
• Sitara Mughal-e-Azam Latha
• Sitara Universal Latha
• Sitara Swiss Gold Latha
• Sitara Sapna Latha,
• Sapna Cambric
• KT2000
• Sitara Popline
 HOME TEXTILE
• Bed Linen
• Tablelinen
• Kitchen Coordinates
• Curtains/ Valances
• Fabrics
OUR VISIT TO SITARA
OVERVIEW OF THE
PROCESSES
 SWOT ANALYSIS
A SWOT analysis is a data
gathering tool to help analyze where an
organization is fundamentally healthy /
unhealthy.
 SWOT ANALYSIS
SW PART
• Company culture & image
• Organizational structure & Key staff
• Position on the experience curve
• Operational efficiency & capacity
• Brand awareness
• Market share
• Financial resources
OT PART
• Customers & Competitors
• Market trends
• Social changes
• New technology
• Economic environment
• Political and regulatory environment
 STRENGTHS
1. BRAND DIVERSITY
variety of different seasonal
branded fabrics, extensive range
of sensational colors, seasonal
collections
2. HIGH QUALITY CONTROL

highest standards in quality by using

the latest technology,thorough
quality checks are conducted
3. INSTALLATION OF LATEST MACHINERY

• looms comprising of auto, shuttle less air

jet looms.
• Printing Machines capable of printing 16
colors
• latest CAD/CAM designing hardware and
software
•  Latest automatic and manual sewing
machines.
4. EXPERIENCED HUMAN RESOURCE

5. OPERATIONAL EXPERTISE

Spinning
started the spinning unit in 1988, 35,984 Spindles.

Weaving
big portfolio of looms comprising of auto, shuttle less
air jet, facility of weaving all kinds of fabrics width
36-153 inches.
 Printing
Printing Machines is capable of
printing 16 colors on fabric up to a width
of 3200mm

 Designing

This department is equipped with

latest CAD/CAM designing hardware and
software.

Stitching
To accommodate the demand of its
state of the art made-ups, produces 3
million made-up sets per year
 WEAKNESSES
1-Labor Turnover
Labor turnover is the major
weakness hold by Sitara Textile. However
a larger number of highly skilled
workforces are working there but the
turnover ratio is very high.
2-BOARD OF DIRECTORS
Sitara textile has seven
Board of Directors but only three
members are actively taking part in
decision making and management.
Consequently it is becoming the
weakness for organization and increase
the possibility of nepotism and favoritism
inside organization.
3-MANAGEMENT
Sitara Textile is however the
market leadrer in textile sector is but still
it’s facing the crucial problems regarding
their environment. They have
decentralized system in the organization
which affects the relationship between
management and employees.
 OPPORTUNITIES
• ALTERNATIVE FUEL OPTION
Gas can be used as fuel to run the
steam boiler. Cost would be reduced from Rs.17
to Rs.8 to process one kg of fabric
 QUOTAS AND IMPORT TERIFFS
 Quatas are being phased out
 Teriffs reduced to minimum limits
 ADVANCE TECHNOLOGY:
Installation of power looms
RAW MATERIAL MECHANICS
• Cotton Rich Country
• Availabilty of raw material in Faisalabad
FINANCIAL SECTOR
CHEAP LABOR
RELATED DIVERSIFICATION
 THREATS
• Increases in domestic
competition

• Increases in foreign
competition
 THREATS

• Few barriers to entry

• Price wars with competitors

• Taxation is introduced on your
product or service
• A new competitor enter in your
home market
• Competitors increase activities
in foreign market

• Competitors have superior

access to channels of
distribution
• The Industrialization of the
district may affect ecology and
environment of the district:
FEASIBILITY REPORT FOR
 EXECUTIVE SUMMARY

• Textile industry is the largest sector of

Pakistan economy. It plays a major role in
strengthening the economy and also
contributing a lion share in earning of much
needed foreign exchange for the national
exchequer.
• From the year 2005, there will be no quota
restrictions for textile products exporting
countries like Pakistan.
• High quality processing of fabric is vital for the
production of value added items. Dyed fabric
is the basic raw material for manufacturing of
value added products like readymade
garments, bed sheets, curtains, towels,
canvas, etc.
 EXECUTIVE SUMMARY
• Due to capital intensive nature of dyeing and
finishing units, the number of yarn and fabric
processing units established in Pakistan are not
sufficient to cater to the growing demand of dyed
fabric. Presently, there are 600 processing units
working in the country. 5% of these units are part
of integrated mills, while the rest of the units are
independent commercial processing units.
Majority of these units have old machinery
producing low quality and high production cost
due to old technology. The new entrants in the
processing industry would have competitive edge
over their rivals by having low production cost by
using advanced machinery and latest technology.
• The total project cost for setting up a knitted
fabric processing unit has been estimated at
Rs.50 million. It includes land, building, plant and
machinery, furniture & fixtures, office equipment,
vehicles, preliminary expenses and working
 EXECUTIVE SUMMARY
• The project shall be financed through
equity contribution by the investor to
the extent of 50% and the remaining
50% by a long term bank loan. The re-
payment of loan shall be in 5 years
commencing six months after the
disbursement. The markup on loan shall
be 16% per annum.
• Based on the projected financial
statements, the returns on the project
are satisfactory. Financial analysis of
the project is as follows:
• Project cost= Rs.50 million
 BUSINESS CONCEPT

VENTUR DEFINE

NAME OF THE COMPANY Smart Fabrication Inc.

DATE OF ESTABLISHMENT Aug 2006

STATUS OF THE COMPANY Company

HEAD OFFICES Sargodha Road,

Faisalabad Pakistan
 BUSINESS CONCEPT
PURPOSE OF THE FABRIC DYEING &
FINISHING UNIT

• earning of foreign exchange for country

• cooperation among companies of the textiles

 VISION

Binding us to commitment

Achieve worldwide, preferred supplier status

in each product by:
Supplying superior quality products, services
and value to our customers. Practicing TQM
throughout the company. TQM is founded
upon continuous process improvement and
total employee improvement regardless of
race color, religion, sex, age or national
origin. Being recognized as a leader by our
customers, employees, suppliers and
community in our contributions to society
and the environment.
 MISSION

Binding us to commitment

To be the preferred supplier of dyed fabric

and related products by providing world-
class quality products and services to our
customers. The mission is to enhance the
competitiveness of the Pakistani Textile
Industry, from dying, through fabricated
products and retail, by implementing supply
chain management to develop collaborative
business improvement programs which link
the resources of government and industry.
 AIMS & OBJECTIVES

• Customer Focus
• Management Leadership
• Associate Involvement
• Team Empowerment
• Continuous Process Improvement
• Supplier Relations
• Environmental Responsibility
• Safety & Health Responsibility
MARKET CHARACTERISTICS

Textile sector-future direction

•Textile is the largest sector and
backbone of Pakistan economy
•contributes more than 60% to the total
export earnings
•accounts for 46% of the total
manufacturing
• 8.5% of total GDP and provides
employment to 38% of the manufacturing
labor force of the country
 FABRIC PROCESSING
• 600 processing units presently
working in Pakistan
• 394 units are woven fabric
processing units
• 206 units can be further
subdivided into knit fabric and yarn
processing units
 PRODUCTS
PRODUCT CONCEPT
 
We produce bleached and dyed fabric in a
variety of seasonal quality and attractive
color, serving as a key element in the
manufacturing of value added products

SERVICEMARK
 PRODUCT FEATURES
• high quality of 100% cotton and blended
fabric
• Available in colors as per customer
requirement
• Serves as a basic material for textile
made-ups
• Key element for increasing exports of
garments and textile made- ups
• Product mix ranges from light to heavy,
narrow to wider width, plain, textured
fabric
• Available at negotiable prices
 PRODUCT MIX FOR FABRIC
DYEING
 
Fabric Bleached 40%
 
Fabric Dyed 60%
 

Breakup of Dyed  
 

Light color 25%

Medium color 20%
Dark color 30%
Extra dark color 25%
 

STAGING
 MARKET RESEARCH AND
• Primary Research
ANALYSIS
Industry Visit
Across the Taxtile Value Chain
Brain Storming Session
Questionnaire
• Secondary Research
Journals on Textiles
Local Publications
TARGET MARKET
Printing And Finishing Industry
End Customers
 POTENTIAL CUSTOMERS
• LOCAL LEVEL
Population of Faisalabad is 2,386,000
Growth rate is 3.1
512 weaving units in Faisalabad
POTENTIAL CUSTOMERS INCLUDE
Allied Hospital, Polly Clinic
Nishat Textile Mill, Faisalabad
Masood Textile Mill, Faisalabad
Ahmad Textile Mills, Faisalabad
• INTERNATIONAL LEVEL
Exports are 8.3 billion annually
More than 25% exports comprises of
blended fabrics
 MARKETS
• UNBLEACHED FABRIC
40% fabric export from pakistan without
procssing
15% share of global unbleached fabric
• BLEACHED FABRIC
15% exprot from Pakistan
• DYED FABRIC
Exports of dyed fabric are US $ 364 million
Exports markets includes
U.S.A, Germany, Hongkong, UK
Srilanka, Bangladesh, Turkey
• INDUSTRY GROWTH
124 units are large fabric unit, 425 are
small weaving units
The production of the independent weaving
units increased to 1.87 billion sq.m, registering an
increase of 160% over a period of ten years.
 COMPETITORS
Islam Textile Mill, Sitara textile Mill, Crescent Mill
COMPETITIVE EDGE OF THESE MILLS
• They use skilled and technical staff.
• Their reprocessing cost of fabric is controlled to limit the
repetition of dyeing process.
• Continuous efforts made for marketing and up-gradation
of the technology.
• Use of quality dyes and chemicals for quality results and
satisfaction of the customers.
How Can We Compete Them
• Upgrade technology, render the control of dyes and
chemical more appropriate.
• Improve colour-adjusting technology.
• Improve systems for preliminary inspection of
materials (fabrics).
• Change dyeing machinery and dyeing methods
(dyeing at conditions of low tension).
 PRICING SYSTEM
Product Mix For Fabric Dying Kg Sale Rate/Kg
(Rs)

Fabric Bleached 1,280 40

51,200
Fabric Dyed 1,920
207,840
Breakup of Dyed
Light Color 480 90
43,200
Medium Color 384 100
38,400
Dark Color 576 115
66,240
Extra Dark Color 480 125
60,00

Bulk Purchase
 MARKET PLAN

1. METHODS OF DISTRIBUTION
 Wholesale
 Franchises
 Consultants/ Intermerdiaries

2. PROMTION
 National Newspapers
 Seminars
 Brochures
 Sampling
3. WARRANTIES
After sale services and
warranties if

 The fabric is shrinked after washing it

 The color of fabric became fade
 The quality of fabric or cloth is not up to the
standard
 MANUFACTURING PLAN
PROCESS FLOW
2. Inspection Of Grey Fabric
3. Lot Making/ Shearing
4. Singe And Desize
5. Scouring
6. Bleaching
7. Dyeing
8. Hydro Extractor
9. Vertical Dryer
10. Tumbling
11. Calendaring
12. Quality Control
13. Packing
 PROCESSING CAPACITY
This project has the
capacity of processing 1,200 kg. Fabric
and normally it will take 9 hours to
complete one batch of fabric dyeing. As
there are 24 hours in a day, therefore
this unit will be completing 2.67 batches
of 3,200 kg fabric processing in one day.
• LOCATION
In Faisalabad on Sargodha road
outside the vicinity of metropolitan area
near main sewerage

• LAND
An amount of Rs.2900,000 approximately has
been allocated for the acquisition of eight (8) Kanals
land in Faisalabad on Sargodha road.
 BUILDING

• Production hall =
3,937,500
• Store rooms =
1,496,250
• Boiler room =
315,000
• Admin Department =
1,125,000
• Toilet/washroom =
135,000
• Drive ways and pavements =
 PLANT & MACHINERY
• (3) Scouring, Bleaching and Dyeing
Machines(Imported) Capacity of 400 kg=
20,847,600
• (2) Hydro Extractors (Local)=
400,000
• (3) Tumblers (Local)=
750,000
• (1) Calendaring Machine (Imported)=
1,800,000
• (1) Inspection Machine (Local)=
100,000
• (1) Razing Machine (Imported)=
900,000
• Lifting Crane (Local)=
250,000
• Boiler - 3 Tons Steam =
3,000,000
• Air Compressor Pressure 5-7 Bars=
1,020,000
• FUEL
Steam boiler will run on gas
because there would be tremendous
saving in cost by running the boiler on
gas.
• WEAVING TECHNOLOGY
shuttle-less weaving.
 FACILITIES
• FURNITURE AND FIXTURE
Include tables, chairs, sofas,
fans & lights, carpet, curtains and fire
extinguishers. Furniture and fixtures of
Rs.393,000 would be purchased.
• OFFICE EQUIPMENT
Includes computers, air
conditioners, telephone and fax etc. An
amount of Rs.517,800 is provided for
office equipment.
• VEHICLES
Five vehicles are estimated for this
project. Three vans will be used for the
transport of production and admin. Staff,
whereas other two vehicles have been
reserved for the use of marketing and
admin department
 HUMAN RESOURCE
REQUIREMENTS
• PRODUCTION STAFF
• ADMINISTRATIVE STAFF
• INSURANCE
 On yearly basis
 Group insurance of Rs200,000
CERTIFICATION
After the installation of the
steam boiler, a certificate is be obtained
from the Chief Inspector Boiler Punjab
who will visit the place of the boiler and
inspect the condition of the boiler
• RAW MATERIAL
 Grey
 Dyes and chemicals
• SUPPLIERS
 FONG’s National Engineering Co.
Ltd
 Noorani Industries(Pvt) Ltd
 A. M. C. Trading Company(Dealers
of textile dyes, textile auxiliaries
etc)
 GeminiEnterprises
 ENTREPRENEURIAL
TEAM
• Chartered Accountant in Bank for
three years.
• marketing manager for five years
in a fabric-manufacturing mill.
• HR manager in fabric dyeing mill
for seven years
• quality control Manager in Leather
mill.
• Managing Director of a Textile Mill
for the past six years
 
 FINANCIAL
DOCUMENTATION
AN OVERVIEW
 BREAK EVEN POINT

NO. OF UNIT PRODUCED PER MONTH = 3200

NO. OF UNIT PRODUCED IN A YEAR = 1152000
INCOME STATEMENT
BALANCE SHEET