ANALYSIS OF PAKISTAN TEXTILE

INDUSTRY
GROUP MEMBERS:
KATIMA RIZVI (60858)
HUSSAIN MUKHTAR (59472)
HAMZA IFTEKHAR ( )
INTRODUCTION TO TEXTILE
INDUSTRY
ORIGIN OF TEXTILE:
-Textile is a term that comes from “textilis” which is a
Latin word, that means “woven fabric”.

-A cloth, especially one manufactured by weaving or

knitting a fabric.
 GENERAL OVERVIEW OF THE INDUSTRY

TOTAL COMPANIES 56
REVENUE $4.4 bn (listed in PSX)

CONTRIBUTION TO 8.5% of total GDP EMPLOYEMENT 36% of total work

GDP force

PAKISTAN EXPORT 57% of total PRODUCTION OF 584 Million Meters

REVENUE DENIM FABRICS
 TOP PLAYERS IN PAKISTAN
BRANDS OF TEXTILE COMPOSITE OUTSTANDING SHARES

Ahmed Hassan Textile Mills Limited 14,408,260

Artistic Denim Mills Limited 84,000,000
Azgard Nine Limited 449,349,439
Crescent Textile Mills Limited 80,000,000
Feroze 1888 Mills Limited 376,800,968
Gul Ahmed Textile Mills Limited 356,495,525
Ishaq Textile Mills Limited 9,660,000
Kohinoor Textile Mills Limited 30,302,580
Mian Textile Industries Limited 22,105,200
Nishat Mills Limited 351,599,848
Paramount Spinning Mills Limited 17,352,330
Sapphire Textile Mills Limited 20,083,140
Zahidjee Textile Mills Limited 191,421,102
 THREE MAIN PLAYERS OF SECTOR

• The three main players of textile industry is:

- Artistic Denim Mills Ltd.
- Azgard Nine Ltd.
- The Crescent Textile Mills Ltd.
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INTRODUCTION TO MAIN PLAYERS OF

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SECTOR
 ARTISTIC DENIM MILLS

Artistic Denim Mills

COMPANY NAME COMPANY TYPE Public
Limited

Plot No. 5-9, 23-26,

Sector-16, Korangi http://www.admdenim.
ADDRESS WEBSITE com/
Industrial Area 74900
Karachi, Pakistan.

NUMBER OF ESTIMATED YEARLY

100-150 $ 32.5 million
EMPLOYEES REVENUE

TOTAL EXPORTS
$ 58,215,81000 TOTAL IMPORTS N/A
(manufacturing)
 BOARD OF DIRECTORS OF ADM

Faisal Ahmed Chief Executive

Muhammad Iqbal Ahmed Chairman
Maliha Faisal Director
Muhammad Yousuf Ahmed Director
Muhammad Ali Ahmed Director
Muhammad Iqbal-ur-Rahim Director
Zafar-ul-Mukhtar Ahmed Khan Director
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BUSINESS UNITS OF ADM

Spinning:
• Yam is the nucleus for success of any denim brand.
• The unit is quipped with 18,000 spindels producing 1.6 million kg yarns per month.
Dyeing:
• ADM is equipped with 24 ropes dyeing (2 machines) with a capacity of
• 140,000 meters in one run.
Weaving:
• Weaving is done by interlacement of warp and weft threads, where warp yarns are
indigo dyed. In this system warp thread is in the form of sheet.
 AZGARD NINE LTD

COMPANY NAME Azgard 9 Limited COMPANY TYPE Public

Ismail Aiwan-e-Science,
Off: Shahrah-e-Roomi,
ADDRESS WEBSITE www.azgard9.com
Lahore - 54600,
Pakistan.

NUMBER OF ESTIMATED YEARLY

5,189 $14.80bn
EMPLOYEES REVENUE

TOTAL EXPORTS
$ 39.24M SALES (2017) $12,802,374,277
(manufacturing)
(Year Ending Jan 2018).
 BOARD OF DIRECTORS OF AZGARD9

NAME DESIGNATION

Mr. Zahid Mahmood Chairman and Director

Ms. Maliha Sarda Azam Director

Mr. Usman Rasheed Director

Mr. Munir Alam Director

Mr. Nasir Ali Khan Bhatti Director

Mr. Abid Hussain Director

Mr. Ahmed Hummayun Shiekh CEO

 BUSINESS UNITS OF AZGARD NINE

SPINNING:

• the department of spinning division started its production in 1995.

• its produce 400 bags per day.

 BUSINESS UNITS OF AZGARD NINE

DENIM FABRIC:

• The department of denim division started its production in 1995.

• They are yearly produce 14.4 million meters of fabric.

 BUSINESS UNITS OF AZGARD NINE
GARMENT DIVISION:
• The department of garment division started
its production in 1996.

• They are fulfilling the initial minimum

order quantity 7000 pieces.

• Now the total production of the garment

division is per day 12000 pieces.
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CRESENT BAHUMAN MILLS

Crescent Bahuman Public
COMPANY NAME COMPANY TYPE
Limited

45-A Off Zafar Ali Road, https://www.crescentba

ADDRESS WEBSITE
Gulberg-V, Lahore human.com/

NUMBER OF ESTIMATED YEARLY

5170 $2,510,000
EMPLOYEES REVENUE

TOTAL EXPORTS TOTAL MARKET $1,003,177.5

$ 66,415,280
(manufacturing) INVESTMENT
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GOVERNANCE

Mr. Nasir Shafi Chief Executive

Mr. Usman Shafi Director

Mr. Shams Rafi Director

Mr. Shoaib Shafi Director

Mr. Muhammad Rafi Director

Mr. Jahanzeb Shafi Director

 BUSINESS UNITS OF CRESCENT MILLS

SPINNING: The spinning division has 100,272 spindles, while there are 112 air
jet looms in weaving. In addition, CRTM has the capacity to produce 28.8 million
meters of bleached/dyed/printed cloth.

WEAVING: the weaving division was the laggard with utilization at 83 percent.

HOME TEXTILE: the home textiles division can make finished products of
18 million meters. Crestex's capacity utilization was highest in its home textiles segment
at 95.5 percent.
FINANCIAL RATIO ANALYSIS
EARNING PER SHARE
7

0
2016 2017 2018
-1

-2

-3
CTML ADML ANL
FINANCIAL RATIO ANALYSIS
TOTAL EXPORTS

6552843 6641528

6592970

CTML ADML ANL

 FINANCIAL RATIO ANALYSIS

GROSS PROFIT MARGIN NET PROFT MARGIN

8

3 4
2018 9.61
9.72 2

9.61 0
2017 10.71 2016 2017 2018
8.94 -2

9.72 -4
2016 10.89
12.67 -6

0 5 10 15 -8
ANL ADML CTML CTML ADML ANL
IMPACT OF CPEC ON TEXTILE INDUSTRY
• Advantage for Pakistan:
• CPEC has opened windows of great opportunities for Pakistan and will greatly help in overcoming
poverty, unemployment, inequities of smaller provinces and help Pakistan in becoming the next Asian
tiger.

• CPEC to benefit Pakistan's textile sector:

• Minister for Commerce Engr. Khurram Dastgir said that CPEC would take success, economic strength,
elimination of unemployment and poverty also increasing country’s exports.

• He said that country’s economy had been supported and problems were being solved due to the right
steps taken in the right direction by the obligatory.
IMPACT OF FISCAL POLICY ON TEXTILE INDUSTRY

• Pakistan’s textile industry is the eighth largest manufacturer in

Asia, contributing 8.5 percent to the country’s GDP, while
employing about 45 percent of the total labor force – 38
percent of it being manufacturing workers.

• Readymade garments exports fetched $2.6 billion during the

last fiscal year, up 11.22 percent year-over-year.
 IMPACT OF MONETARY POLICY ON TEXTILE INDUSTRY

• According to the Pakistan Bureau of Statistics, the exports of readymade garments

registered 13 percent year-on-year growth in July-May 2017-18.

• Total exports of the textile industry grew by 9.82 percent in the last eleven months.

• According to data released by the central bank, the gap was $1.9 billion in May.

• It projected the current account deficit for the financial year 2017-18 to be 4.2
percent of GDP and reserve coverage of external debt repayments was sufficient for
now.
 SWOT ANALYSIS OF INDUSTRY
STRENGTHS WEAKNESSES OPPORTUNITIE THREATS
S
 More dependence
 Pakistan textile city  New competitors
 Raw material on cotton

 Collaboration with  Phasing out of

 Labor productivity
 Labor foreign countries quota system

 Producing high
 Rich heritage  Poor infrastructure  Fashion life cycle
value products

 Supply chain and  Reducing the cost

 Domestic market
system orientation of business
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SWOT-I
MATRIX
SO ST
(MAXI-MAXI STRATEGY) (MAXI-MINI STRATEGY)
(S1,O4) (S3,T3)
(S4,T2)

WO WT
(MAXI-MINI STRATEGY) (MINI-MINI STRATEGY)
(W3,O1) (W3,T1)
(W1,O3)
POTER’S FIVE FORCES MODEL OF PAKISTAN
TEXTILE INDUSTRY
PESTLE ANALYSIS OF TEXTILE INDUSTRY OF
PAKISTAN
TECHNOL ENVIORME
POLITICAL ECONOMIC SOCIAL LEGAL
OGICAL NTAL
FACTORS FACTORS FACTORS FACTORS
FACTORS FACTORS

Research and
Interest rate Population Pakistan’s
Labor law development Air pollution
growth rate economy
activity

Environment Cultural Technological Labor work Water

Inflation rate
al law aspects change and GDP pollution
Trade Earth
restrictions pollution
Political
Stability
Thank you!