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Tuesday, December 27, 2011

HILAL –VISSION Exports




Over view of the industry

Ready-made GarmentS

The RMG (Ready-Made Garment) industry of Pakistan has expanded dramatically over the last few Decades. The RMGI of Pakistan established in 1970 since than it is working hard to make a prominent share in Pakistan's economy. In 1999-2011 the exports of Pakistani RMGI were US $ 8.5% of the total exports.
Export of readymade garments from Pakistan decreased form 42 million dozens worth US $ 1.59 billion in 2007-08 to only 27 million dozens worth US $ 1.27 billion in 2009-10, thus showing decline of 20% in term of value.
Pakistan is an agriculture based country. Export of textile to different countries is the backbone of its economy. Cotton and cotton blended fabrics, yarn and fiber's export is the biggest genre of Pakistan. On the contrary to textile's foreign and indigenous market is only holding a very limited market locally as well as internationally. Local demand of readymade garments during the past five years increased manifold due to increase in GNP, urbanization and population. Growing tailoring charges have induced the people to purchase readymade garments in larger quantities in the coming years.
Pakistan’s textile exports have continued to grow in the first nine months of the current fiscal year 2010-2011.  According to the Federal Bureau of Statistics (FBS) and the Trade Development Authority of Pakistan TDAP, textile exports grew by 30.38% from July 2010 to March 2011.  While some of this increase can be attributed to the rise in the price of cotton and other inputs, Pakistan’s exports have increased significantly in terms of quantity as well.  This reflects on the increased demand for Pakistani textile goods in Europe and the US, where buyers are not only willing to pay higher prices for Pakistani textiles but also buying more of them.  This is a very good sign for Pakistani textile industry. 
Textile exports had a share of 55% in the country’s total exports of $17.79 billion during July-March 2010-2011.  This share used to be more than 66% in the past.  This reflects on the increased exports of other sectors such as agro food besides textiles. The State Bank of Pakistan’s report predicts that the current trend of textile exports would help the country to have record exports in current fiscal year. The major segments which contributed to the textile exports growth include cotton yarn, cotton cloth, knitwear, bed wear and readymade garments.
Despite the gloomy outlook for the industry this turnaround is indeed welcome news.  All textile categories have shown increase in exports except tents and canvas. High value added sectors of ready made garments and knitwear both reflected high growth in terms of quantity as well as value.  Readymade garments exports grew by 28%
Problems faced by the Readymade Garments Industry
With all opportunities and strengths at the back still Pakistan's ready-made garment industry is failed to develop a niche in local and foreign market. What are those problems garment industry is facing today.

i- Inappropriate Governmental policies:
One of the very important problems faced by not only garment industry but all other industries as well is: lack of conductive industrial policies, absence of foreign direct investment, insufficient export processing zones and no trade fairs inside and outside the country. These initiatives can become the main cause of export-led industrialization in Pakistan. Government should provide the advantage of duty-free raw material imports usable in the manufacturing of export products to encourage and accelerate such industrialization. Another concern is the proper and on-time implementation of policies and strategies. Rules and regulations that exist only on paper are meaningless if they are not duly and properly implemented. Bureaucratic complexities, corruption, political instability and lack of good governance are some areas which the Government needs to address in order to ensure the proper implementation of its strategies and policies. Infrastructure development is another area where the support of the Government is undeniable in a developing country such as Pakistan.
ii- Technological factors:
Rapid changes and development in technology has increased competition. To address to this fast pace of technology garment industry needs to learn and adopt new and innovative approaches. Pakistan is still far from it. The machinery that is being used for different operations is usually outdated and obsolete. Government should provide funds and loans to the owners of garment industries so that they can install new machinery which can perform tasks in easier and faster manner.
iii- Economic factors:
In the last two decades economic depression has been seen worldwide. Due to increased war on terrorism countries are forced to put lots of budget on the defense than on other sectors. A sudden downfall in the purchasing power of the general consumers has also been seen. Textile is the first main ingredient of Pakistan's economy. Internal political problems and instability is another cause of economic downfall. Poverty level, FDI (Foreign Direct Investment), and export are on fast decline. Many garment industries have been closed today due to all these factors.

Iv- Power Failure:
Power failure is one of the biggest problem garment industry is facing. Long duration electricity load shedding without any schedule; instable prices of electricity, per unit price of electricity raise after every few month; shortage of gas supplies in winter; increase rates of petroleum products; lack of CNG; as well as water shortage are some of the prominent causes of garment industry downfall in the lat two or three years.
Garment and textile industry of Pakistan suffered great losses in November, December and January this year. Though large industries have developed their own power plants (running on gas) but these are few. As a result of loss suffered by the garment industry they reduce the wages of employees.
v- Frequent Price Fluctuations:
Create a serious problem for the industry, particularly for those who manufacture garments on orders. After announcing the budget in June every year government keep on raising the rates of raw materials, processing materials, auxiliary products and other products used in the processing. The industry owners can not make their own budget because it keeps on changing with price fluctuations.
vi- Lack of infrastructure:
Physical and organizational structure of Pakistan's garment industry is as worse as other systems. Infrastructure cannot be enhanced in a day it is a result of years of hard work but today most of the infrastructure is getting destroyed by the crisis of terrorism etc.
vii- Purchasing Power:
Consumer's purchasing power has declined in the lat few years. With frequent price fluctuations garment industry is forced to increase the price of their products which consumers are not willing to purchase. Even in foreign market Pakistan is facing severe competition with India, china and Bangladesh; these countries are offering high quality products at low prices because their economy is much more stable than Pakistan.
viii- Facts & Figures Regarding Production:
Although garment industry made a rapid growth till few years back but no organized data is available that can show the expansion or reduction in the growth of this sector. Firstly, most of the garment industries are not working on large scale; they are small industries working at their homes or in small rural places which are not even registered. Secondly, government has not made any statistics of their growth. Thirdly, many industries close each year and new ones develop but there is no stability except for few bigger names.

ix- Research and Development:
In educational sector there is no trend towards researches. Lack of research-oriented attitude also leads to lack of improvement in the industry. New and innovative products are introduced by the garment industry of other countries but Pakistan is legging behind in this context.
With these problems the quality of the product has been deteriorated. Consumers on the other hand today are more aware of the product quality and they do not waste their money on poor quality products. To complete the process of production, industries try to cut down their investment on product promotion, publicity and advertising; they are firing many employees to reduce the budget, this has in turn increased poverty rates.
Pakistan has lots of potential and the raw material for the garment industry–the fabric- is also of superior quality but the environment to develop and progress is not compatible.
HILAL-VISSION

INTRODUCTION


HILAL –VISSION is the Manufacturer and Exporter of Men's, Ladies and Children's knitted & woven garments. They started exports in 2003 and since then, they have expanded their  business to countries in USA & Europe, these being our major markets. By producing high quality products, making timely shipments and delivering efficient services, we have established a reputation of being committed to customer’s satisfaction. Although our presence is global, our emphasis is on giving special attention to each client taking care to accurately determine individual requirements. Our products and services are customized to meet the needs of each client.
They have experienced in delivery an appropriately balance mix product which successfully meets the customer’s requirement. They believe and committed to provide quality products by meeting our customer requirement through continual improvement at every stage of manufacturing process. They  concur to create and maintain healthy working environment in which individuals working as a team accomplishes individual and company objectives to achieve this policy the following objectives are formulated like, No appointment of underage OR child labor for in any position
                    


  Total production 10,000 dozens per month
  An annual turnover which exceeds us  50 million.
  Annual production  approximately 120,000 dozens (20,000 is the capacity)


 

MACHINERY



KNITTING MACHINES: - 10 machines include wider width of jersey and Interlock with elasthene attachments.

DYEING MACHINES: - Exhaust Dyeing & Compactor

STITCHING MACHINES: 65
        1-    25 Lock Stitch,
        2-    15 Flat Locks,
        3-    13 Over Lock,
        4-    10 Elastic,
        5-    1 Safety Machine,
        6-    1 Double Needle,
        


COMPETITORS WITH IN COUNTRY:

Competitors that had been highlighted by HILAL VISION were.

PAK-APPREL
CROWN TEXTILE
DEEWAN INTERPERISES
AL MUNAAF TEXTILE

THREATS IN INTERNATIONAL MARKETS:

There are some more threats which whole ready made garments industry of Pakistan is facing are from.

INDIA, BANGLADESH ,CHINA :

Bangladesh, China and India is providing more cheap labor. Not only this but  They also had been provided with a facility that if the local importers in UK and USA are importing from BANGLADESH, INDIA and CHINA then they do not have to pay the duty on the other hand if they are importing from Pakistan then they have to pay the duty of 18%.

QUOTA SYSTEM

Previously there was a quota system that countries were being assigned a quota that from these approximately 25% of imports will be done. But now Pakistan is not being appointed any quota.

OTHER ISSUES:

Other issues which had been faced by the Hilal Vision is that the electricity supply. Less supply of  electricity is not allowing them to use their full capacity of the production. Currently they are using their half of full capacity.



PRODUCT, PRICE PROMOTION, PLACEMENT
PRODUCT
T-Shirts, Henley, Tops, Pajamas, Pajama Suits, Pullovers, Crew Necks, Shorts, Polo shirt, JEANS


PRICE
1,000-5,000                  HIGH PRICE
5,000-50,000                   LOW
50,000-10, 0000            VERY LOW

 

Placement


  H.v supplies directly to retailers of USA and Europe
  Time is money
  Denim old
Permotion
No such activities like bilbords only taking part in exibitons article writing

 

 

 

CERTIFICATION



CERTIFICATION FOR ISO IN-PROCESS


SWOT
STRENGTHS

LOW PRICE
HIGH QUALITY PRODUCTS
TIMELY UP DATE
LESS INVENTORY COST

WEAKNESS
NEED MORE FIANCIALS
LATEST TECHNOLOGY
PROMOTIONAL ACCTIVITY
APPLIED FOR ISO CERTIFICATION
HIGH LEAD TIME




OPORTUNITY

TARGET LOCAL MARKET
CAN INCREASE ITS PRODUCTION
MALAYSIA,JAPAN,MIDLE EAST
USE OF FREE TRADE ZONE
THREATS

POWER FAILURE
GOVT POLICES
TAX RATES
QUOTA SYSTEM
HIGH COMPITATIVE

PORTER FIVE FORCES ANALYSIS

BARGAINING POWER OF CUSTOMERS
         History and relationship with customer is important
         Bargaining power is high
         H.V has a cost advantage when it comes to raw material



BARGAINING POWER OF SUPPLIERS
         BARGANING power of supplier is low
         Packaging suppliers
         Cotton/ yarn suppliers
         Priting materials

THREAT OF NEW ENTRANTS
         Cost of doing business is not  high but the power failer and other crises which acts as entry barriers.Govt policies also play an important role here in Pakistan but internationally it is high.

THREAT OF SUBSTITUTE PRODUCTS
         Bedding consumes more cotton than apparel which cannot be replaced by synthetics
         But in mix cloth there are subsitudes.

         COMPETITIVE RIVALRY WITHIN THE INDUSTRY
The new rivals are going because of problem facing by this industry  in Pakistan but internationally they are coming.





RECOMMENDTIONS


ž Promotional activities should be there.
ž  Local market should be target
ž  Other areas can also be Targeted
ž  Free trade areas could be use if they target the Middle East.
ž  R&D should be there.








YUNUS TEXTILE MILLS EXPORTS


A REPORT ON                                               
YUNUS TEXTILE MILLS




Course
EXPORT MARKETING




 





















TABLE OF CONTENTS




















INDUSTRY OVERVIEW

The textile sector enjoys a pivotal position in the exports of Pakistan. In Asia, Pakistan is the 8thlargest exporter of textile products. The contribution of this industry to the total GDP is 8.5% i.e. 46%. It provides employment to about 15 million people, 30% of the country with work force of about 49million. The annual volume of total world textile trade is US$18 trillion which is growing at 2.5 percent. Out of it, Pakistan’s share is less than one per cent. The development of the Manufacturing Sector has been given the highest priority since Pakistan’s founding with major stress on Agro-Based Industries. For Pakistan which was one of the leading producers of cotton in the world, the development of a Textile Industry making full use of its abundant resources of cotton has been a priority area towards industrialization. In Asia, Pakistan is the 8th largest exporter of textile products. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile products. 3% of US imports regarding clothing and other form of textiles is covered by Pakistan.  Major home linen exporting countries include: China, India, Pakistan and Turkey. During FY10, total textile exports accounted for 9.5% of the GDP.
The industry consists of large-scale organized sector and a highly fragmented cottage / small-scale sector. The various sectors that are a part of the textile value chain are: Spinning, most of the spinning industry operates in an organized manner with in-house weaving, dyeing and finishing facilities. Weaving comprises of small and medium sized entities. The processing sector, comprising dyeing, printing and finishing sub-sectors, only a part of this sector is operating in an organized state, able to process large quantities while the rest of the units operate as small and medium sized units. The printing segment dominates the overall processing industry followed by textile dyeing and fabric bleaching. The garments manufacturing segment generates the highest employment within the textile value chain. Over 75% of the units comprise small sized units. The knitwear industry mostly consists of factories operating as integrated units
(Knitting + processing+ making up facilities). The clothing sectors both woven and knits are mainly clustering in Karachi– Lahore and Faisalabad.

Due to the sector's high share in exports (~52%), it has strong bargaining power with the government, which has resulted in favorable domestic policy formulations. Moreover, efforts to achieve preferential access to EU market materialized, but the legislation has been challenged by
Competing EU countries. Rising cotton prices have pushed raw material costs substantially high, making it difficult for small players in the industry to survive.

Pakistan is the world’s 4th largest producer and 3rd largest consumer of cotton (~12mln
bales/yr), with the third largest spinning capacity in Asia after China and India, and contributes 5% to the global spinning capacity. The Textile and Clothing Industry has been the main driver of the economy for the last 50 years in terms of foreign currency earnings and jobs creation.



Export of Textile and Clothing (Us $ millions)

GROUP PROFILE

GROUP PROFILE

Established in 1962 as a fabric trading business house, Yunus Brothers soon become one of the largest conglomerates in Pakistan. Yunus Brothers Group, with investment in Textiles, Cement, Construction, Real Estate, Energy, and Commodity trading business has an annual turnover which exceeds US $ 750 million.
Yunus Brothers Group is one of the largest export houses of Pakistan that has grown up remarkably over the last 50 years. The YB Group is engaged in diversified textile manufacturing activities consisting of Spinning, Weaving, Processing, Finishing and Stitching. The Group also owns one of the largest cement manufacturing plant and the second largest yarn manufacturing capacity in the Country. Besides manufacturing, the Group is also engaged in International Trading of various commodities.

OTHER BUSINESS:

Yunus brothers group consists of a number of industrial establishments other then ytml which include:
·         Lucky textile mills
·         Fazal textile mills limited
·         Gadoon textile mills limited
·         Lucky energy (private) limited
·         Lucky cement limited

COMPANY PROFILE

YUNUS TEXTILE MILLS

Yunus Textile Mills Limited (YTM) is a vertically integrated textile mill located in Karachi, Pakistan. The company, with annual production capacity of 100 Million meters, is the largest exporter of Home Textile products from Pakistan. In addition to manufacturing, YTM also provides its customers design and distribution services with offices based in USA, France, Spain, United Kingdom and Canada.
At present YTM supplies directly to majority of leading retailers of USA and Europe and is producing products for various private and retail brands.
Following the footsteps of its parent company, Yunus Textile Mills Limited started its operations in 1998 and within a short span of time became Pakistan’s largest exporter of Home Textile products. In this short time frame, the company has transformed itself from a supplier of basic bedding products to a world renowned supplier of Home Textile Products to top tier retailers and brands across United States and Europe.
The latest addition to the fleet of Yunus owned companies is Yunus Textile Mills Spinning plant at Karachi, Pakistan, with a total initial investment of US $ 15 million.










4P's
PRODUCT, PRICE PROMOTION, PLACEMENT









GLOBAL PRESENCE

FOREIGN SUBSIDIARIES , OFFICES AND SHOW ROOMS IN:

  NEWYORK
  CANADA
  FRANCE
  SPAIN

SALES, MARKETING AND DISTRIBUTION OPERATIONS:

  Royale Linens, Inc – USA
  Royale Linens – France
  Yunus Textile Limited - Canada
  Enevaditta – Spain
US accounts for 65% of total sales followed by Europe, Canada and Australia are (relatively small markets).










EXPORT PRODUCTS

         Curtain And Draperies
         Bed And Comforters
         Cushions And Pillows
         Kids Zone
         Duvet Cover Sets
         Sheet Sets.

EXPORT MARKETS

US MARKET

The market is more thread count oriented. The most popular and volume driven products is bed in a bag. It consists of 8 components which include:
  comforter (76" x 86")  
  flat sheet (81" x 96")
  fitted sheet (54" x 75" x 12")
  2 pillowcases (20" x 30")
  2 shams (20" x 26")
  Bed skirt (75" x 54" + 14")
  18" x 18" square pillow
  12" x 18" decorative pillow
These components are mostly printed but can be plain dyed also. Other products include:
  Independent Sheet Sets ( Flat Sheets+Pillow Cases)
  Embellished Cushions
  Duvet Sets(Duvet Cover +Shams)
  Curtains ( Lined ,Unlined, Eyelets, Tab Tops.etc)

REASONS FOR CONSUMER PREFERENCE FOR “BED IN A BAG”

  It is a complete solution
  It is convenient and easy to use
  US Consumers don’t want to wash bedding
  US Consumers believe in quick replacement rather than maintaining
   Cheap and easy solution
  US consumer is less hygiene conscious
  Market is less stringent about aesthetics

MAIN CUSTOMERS IN US

US market accounts for almost 60% share in business of Yunus Textile Mills. Their major customers are retailers. Following are some major customers of YTM in US market:
  Wal-Mart
  JC Penny   
  Macy’s
  Sears
  Kmart
  Kohl’s
  Target

EUROPEAN MARKET (FRANCE AND SPAIN)

In European market the volume driven product is duvet sets. It consists of duvet cover and shams which are mostly printed. Plain open line sheets are also popular in these markets which are mostly dyed. Apart from that separately packed bedding components are also preferred in this market.

NATURE OF CONSUMER:

  More stringent toward aesthetics
  More hygiene and lifestyle conscious

MAJOR BRANDS IN EUROPE

Europe has Approx.40% Share in Business Value of YTM. Following are major UK retailers who are customers of YTM.
  IKEA
   ASDA
  Carrefour
  Casino
  Conforama
   EI Corte
  Eroski
  Coop Italia

OTHER ASPECTS OF PRODUCT AND SERVICES

·         AFTER SALES SERVICES:

After sales services includes trouble shooting and negotiation for markdown on remaining stock.

·         PACKAGING

Packaging is usually a clear PVC bag or some times more environment friendly options are used. Elaborate packaging is done for gift or fancy items.

·         LABEL

The label inside the clear bag has a visual of all components inside to give customer and idea of the design and color coordination of components and final look.
Language for care instruction varies from retailer to retailer, depending on the  target market
  For US : English and Spanish
  For Canada: English and French
  Europe: varies from country to country
  Big retailers insert  3-4 labels to cater wider audiences

EXPORT PRODUCT DESIGN

YTM has in house design studio and facilities for clients who want to avail it. Some clients provide their concept boards and designs are created keeping that concept story in mind. The design team presents these designs and gets them approved for further processing. Approx 40% of clients avail in house design facility while the remaining 60% provides designs of its own or give spec packs for working. Availing of in-house design facility is more favorable for YTM because it Binds the customer, adds value, and Saves costs to both sides.
Big retailers stick to one vendor for one design or product because the extended learning curve effect with production allows suppliers to reduce their costs and share these savings with customers. It includes following:
         Lower total costs
         Higher quality
         Reduced time to market
         Reduced risk of supply disruptions
Big retailers like IKEA train QA teams of the vendor (YTM) so as to cut cost of quality and inspection. These teams then act like eyes and ears for the customer while working in the local facility of the vendor.


 NEW PRODUCT DEVELOPMENT

Tools used for new product development are market intelligence i.e. gathering of data regarding customer preferences via sources like sales and marketing team and any other information which is publically available (fashion, color, design, style forecasts).YTM has a (Dedicated Product Development team looking after all the aspects of latest trends in styling, confectioning and packaging requirements.
Market insights are gathered on consumer behavior and product preferences by visiting stores. This helps in generating ideas regarding product possibilities .based on these insights and observations in-house product solutions are developed.



EXPORT PROMOTION

OFFICIAL WEBSITE

YTM maintains its official website to handle customer queries

TRADE FAIRS

YTM promotes itself via following events:
  HEIMTEXTIL(FRANKFURT, GERMANY)
  INTERTEXTIL  SHANGHAI (CHINA)
  US MARKET WEEK: “HOME TEXTILES TODAY”,   PROMOTES YTM ON 5TH AVENUE.
Trade fairs help in getting familiar with prospect customers and vice versa. Huge efforts and travelling costs are involved.
TDAP: promotional efforts are there but not as big or effective when compared internationally.

PERSONAL SELLING IS “MOST EFFECTIVE”


CERTIFICATIONS

Certifications also play an important role in successful ordering and attracting customers .certifications communicate an assurances of quality and standard of service level offered.YTM has following certifications:

·         ISO 9000:2008

  UKAS: quality management

·         OEKOTEX 100

  TESTEX,ZURIC: tested for harmful substances

·         SA 8000:2008

  SGS

·         GSV (C-TPAT)

  GLOBAL  SECURITY  VERIFICATION

·         GOTS ( GLOBAL ORGANIC TEXTILE STANDARDS)

  IMO VERIFICATION

GREEN  INITIATIVES

International customers give great importance and value to the fact the processes carried out by an organization are environment friendly and it performs CSR activities for the betterment of society in which they are carrying out their business. Green initiatives carried out by YTM are appreciated and attracts international buyers who wants to work with green organizations. Following are some environment friendly activities carried out by YTM:

CSR ACTIVITIES

Yunus Brothers Group operates the following charitable foundations and entities:
  Aziz Tabba Foundation
  Tabba Heart Institute
  Aziz Tabba Kidney Centre
  Welfare Programs For Employees
  Partnered With, “The Citizen’s Foundation”, to provide free of cost education to under privileged children

IMPORTANCE OF CERTIFICATIONS AND GREEN INITIATIVES:

Certifications play an important role in promotion and attracting a prospect customer. Some retailers’ pre qualify vendors on the basis of certifications and green activities carried out by them. For example:
  WITHOUT OEKOTEX  YOU CANT SELL IN GERMANY
  EFFULUENT TREATMENT PLANT  IS NECESSARY TO WORK WITH  IKEA
Customer specific compliances are to be fulfilled to get qualified. Retailers rate their prospect vendors on basis of their green activities and certifications. YTM is category 2 supplier for NEXT CO.UK
Employee welfare programs and CSR activities are considered important factor internationally

EXPORT PRICING

v  COMPETITIVE PRICING
v  PREMIUM PRICING FOR SPECIALIZED OR CUSTOMIZED PRODUCTS
v  UNDER PRICING TO DEFEND THE COMPETETION.


























SWOT OF YUNUS TEXTILE MILLS








SWOT OF YUNUS TEXTILE MILLS

STRENGTHS

  Modern Infrastructure
  4 decades of experience in Home Textiles
  Technical and Production capability to handle Volume Business
  In- house water treatment and power generation
  Financial Strength to hold Raw Material Inventory and Safety Stock
  Constant Expansion and investment in new technology
  Design and Product Development Support
  Dedicated Planning Department
  Advantages to Customers
  On Time Shipments         
  Shorter Lead Time
  Warehousing and Inventory Management

WEAKNESS

·         Less diversity in product
·         Lack of branding activities
·         Depend majorly on US market for business.

OPPURTUNITIES

  Develop a local brand
  Develop an international brand
  Explore New markets

THREATS

  Cost of doing business
  Un friendly government policies regarding textile sector
  Lack of lobbying by government
  Bad country perception
  Traveling adversaries

PORTER FIVE FORCES ANALYSIS

COMPETITIVE RIVALRY WITHIN THE INDUSTRY

Competition exists between local manufacturers for getting orders from international buyers.
         GulAhmed
         AlAbid

BARGAINING POWER OF CUSTOMERS

History and relationship with customer is important. Bargaining power is high for standard product and low for specialized product.YTM has a cost advantage when it comes to raw material.

BARGAINING POWER OF SUPPLIERS

YTM relies on chemical dealers and packaging suppliers .chemicals are mostly imported but are also bought locally. Bargaining power os suppliers is low since YTM is a huge customer and does bulk ordering.shipping lines and freight forwarders give quantity discounts to YTM.
Some of YTM’s suppliers are:
         Clariant
         BASF
         Packaging suppliers
         Cotton/ yarn suppliers
         Local suppliers for caustic soda and binders

THREAT OF NEW ENTRANTS

Cost of doing business is high which acts as entry barriers. Government policies also play an important role here.

THREAT OF SUBSTITUTE PRODUCTS

Bedding consumes more cotton than apparel which cannot be replaced by synthetics so threat of substitution by synthetics is less.

COMPETITIVE ADVANTAGE OF YTM

·         COST EFFECTIVENESS

  Increased Automation
  Improving operational efficiency through better information systems
  Reducing production lead times to minimize inventory cost

·         CUSTOMER SERVICE

  Global network to provide design and trend services locally
  Reduce production lead times for timely response to customer needs
  Dedicated Replenishment Analysis teams to provide inventory management solutions and supply chain information to customer

·         ENVIRONMENT

  Efficient use and conservation of energy
  Effluent Treatment Plant
  Reducing packaging and/or finding alternative packaging solutions
  Solid waste management systems









RECOMMENDATIONS

The government is considering curative measures on the recommendations of stakeholders to address the problems and issues faced by the textile industry of the country for enhancing its production and exports. For the purpose of this, the Textile Ministry has consulted all textile sector associations and the chambers of commerce and industry. The ministry received recommendations for zero rating on import of textile machinery, zero rating exports, tariff reduction, incessant energy supply to textile units. Issues relating to the market access and quality products with timely delivery and single digit mark up and special power tariff for the textile industry has also been recommended. It has been suggested that textile policy might include the issue like duty free market access to European Union and United States as Pakistan is the largest importer of USA long staple cotton to the tune of $400 million to $500 million every year. In addition, the economic observes believe that the textile sector was passing through a difficult phase due to energy shortage in the country and needed curative measures for promotion.
Some other Specific Recommendations are given as under:
• Remedy though Foreign Direct Investment (FDI)
• Image Building of Pakistan to Attract Foreign Direct Investment (FDI)
• Focus on Value Addition
• Technology Up-gradation & Capacity Building
• Human Resources Development
• Reducing the cost of doing Business in Pakistan
• Need for Improving Textile Production
• Improvement in productivity
• Awareness of International Quality Standards
• Introducing concept of on-the- job-training
• Introducing efficient management techniques
• Subsidy removal should be taken a back
• Interest rate should be low down in order to survive this industry
• Electricity & gas tariff
• Removal of Energy Crisis
• Exploration of new Export Markets





REFERENCES:

·         Official website of yunus textile mills: www.yunustextils.com
·         March 2011, Sector study, textile sector-FY11, available at: www.packra.com
·         May 2010,Research Journal of International Studies - Issue 14 ,available at : www.eurojournals.com/rjis_14_04.pdf
·         Yasin Ahmed,Textile Industry Of Pakistan, available at:www.horizonpak.com./db/reports/research.pdf

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