RESHAM TEXTILE INDUSTRIES LIMITED

PREPARED BY:-

MUHAMMAD IRFAN AKBAR RIZVI

0336-2526-222

MIAR15823@GMAIL.COM

WWW.FB.COM/IRFAN.AKBAR.KHICHI

UNIIVERSITY OF SOUTH ASIA, LAHORE

CONTENTS:

COMPANY PROFILE

PERFORMANCE

QUALITY ASSURANCE

MISSION

PRODUCTS

SWOT ANALYSIS

PEST ANALYSIS

COMPANY ANALYSIS

CONCLUSION

AWARDS AND HONORS

 

COMPANY PROFILE:Resham Textile is one of the famous industries in Pakistan. They are in the business of spinning (processing of converting fibers into yarn). The Company was set up and incorporated in Pakistan in June 06, 1990 as a Public Limited Company and in 1992 it was listed at Karachi and Lahore stock exchange. Present paid up capital of the Company is Pak Rs. 360,000,000/-. Resham Textile is a public listed textile manufacturing company with a market capitalization of PKR 1,808 Million. The recently price of its share is Rs. 29.40 and presently the total capital of company is Rs. 36 billion. Listed on both KSE and LSE, the spinning company is principally engaged in the manufacturing of cotton yarn and has a capacity of supplying 18 million Kg’s of spun yarn at full production on annual basis. The CEO of company is Ch. Muhammad Khurshid. The Company has expanded its production capacity by 122.50% from 17,280 to 38,448 spindles in 2005 – 2006.

FACTORY PREMISES:The mills are located on 1.5 km Habibabad in the Kasur district, Punjab. The total covered area, which is of approximately 327,387 square feet, Comprises of the factory itself, Guest houses, Labor colonies, Warehouses and a Masjid. 1,000 employees are currently working at the mills and an annual production capacity of Approximately 13 Billions Kg of yarn is currently being achieved.

HEAD OFFICE:Resham Textile Industries Ltd.314 Upper Mall Road, Lahore, Pakistan.

 

THE SATELLITE PICTURE OF RESHAM TEXTILE INDUSTRIES LIMITED

   PERFORMANCE:Within a short span of time, the Company has developed and grown well and has a modern spinning facility of 39 Thousand spindles with annual production of 13 billions Kgs of yarn

during Financial Year 2008.

SALES:The impressive performance of the Company in the areas of sales is tabulated below:

AWARDS AND HONORS:

The Company obtained ISO-9001:2000 certification in August 1998 and has received awards for outstanding export performance in 1999, 2000 and 2001 from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

POWER GENERATION CAPACITY:Since May 2008, the Company has its own power generation facility through gas based generators manufactured by Jenbacher (model JGS 420). Captive power ensures an uninterrupted power supply, necessary for the smooth operation of production facilities and consistency in yarn quality. It further reduces reliance on the electricity grid, saving on higher power costs and frequent interruptions.

OUR BANKERS:Performance of the Company over the years has been recognized by leading banks of the Country which are supporting the Company with long term and short term financial assistance. These include the following:

Serial No

Bank Name

1 National Bank Of Pakistan

2 Bank Alfalah Limited

3 NIB Bank Limited

4 Faysal Bank Limited

ENVIRONMENT AND SAFETY:At Resham Textile Industries Limited every single individual employed at the factory is provided accommodation, food, healthcare and recreational facilities in a protected and healthy environment. Separate living premises are available for families and for single labor personnel. The factory also hosts a school at factory premises which is run and managed by qualified teachers. Free education is provided for children of families residing at the mill. There is a Masjid at the mill, as well as two separate cafeterias. In addition modern fire safety equipment at the factor a medical dispensary has recently been set up which is run and managed by an M.B.B.S. qualified doctor. Fire and emergency exits at the company are clearly marked. We train our employees with fire-fighting on a bi-annual basis.

QUALITY ASSURANCE:Always striving for higher standards in Quality and Customer Satisfaction

At Resham Textile Industries Limited strict quality measurement and controls are emphasized right from the purchase of our raw material to the finished product.

How we make sure quality standards are maintained:• We procure fine quality cotton from the international

market, as well as from leading ginning stations across the country. Procured cotton is run through various tests before use in production.

• Our product success relies on a mind-set of high-quality orientation

vis-à-vis operational efficiency, and we ensure this through inter-

departmental controls at every stage of production.

• We house a state-of-the-art lab facility in order to comply with

international quality standards.

• We employee the best technical experts in the field of textile

engineering who are experienced in using a wide range of textile lab

equipment.

MISSION:

Their management main objective is to manufacturing finest quality products and to ensure company growth and to welfare their employees.

PRODUCTS:

They are producing and following products:

• Carded and combed yarn• Slum yarn under the brand name of Lajwab and

resham fiber.• They also marketing cotton waste in local market

and also planning for export.

SWOT ANALYSIS OF RESHAM TEXTILE

We can analyze the position of textile industry by the following SWOT analysis:

• Raw Material:In Pakistan there is excess availability of raw material. Pakistan is the 4th largest cotton producer. Presence of cotton is excess in Pakistan which make textile sector moving towards progress.

• Labour:Labour is the backbone of industries in Pakistan. And in Pakistan we have cheap and abundant labor for the work. And 39% of labor force is working in the textile sector.

 

STRENGTH:

• Rich Heritage:In Pakistan due to cultural diversity we have designers which came across from different cultures and they give new and attractive designs for the textile products.

• Domestic Market:

In the recent years most of the population is shifted towards the urban areas and hence demand of textile products have been increased.

WEAKNESSES:• Research and Development:Modern countries have new technologies and R&D department. So they carry out research on cotton and enhance the quality of cotton and products. In Pakistan our textile sector lacks this department to carry research on cotton to produce different types of cotton and to color them. This also lowers the productivity of textile products we don’t have new technologies to improve the quality of products. • Labour Productivity: In Pakistan although we have abundant supply of labor but their productivity is low. Labour of other countries take less time in making the textile products and our labor take more time to finish the products. This is because our firms did not give them proper training to work with new technological machines which can make labor efficient in doing their work.

• Poor Infrastructure:Main resource is infrastructure such as water, electricity, gas. But in Pakistan we have shortage of electricity, low supply of gas. So our textile firms can not carry out their workings properly and in Pakistan government has increased the prices of the inputs which also increased the production cost.

• Poor Quality Standards:In Pakistan our textile firms makes low quality products. Our firms imports second hand machinery from China, which do not give good quality output.

• Unstable Political Situation:In Pakistan there is political instability as the policies were changed very rapidly. There is terrorism and social unrest which destroys the economy. The textile firms were unable to fulfill the agreements due to lack of government’s will.

OPPORTUNITIES:

• Pakistan Textile City:Pakistan textile city is developed in Port Qasim. The purpose of this city is to provide well established infrastructure to textile sector. So they can easily carry out their activities and increase the productivity.

• Collaboration with Foreign Companies:

This will help textile firms to learn a lot from them in terms of supply chain to adopt new technology and to increase the quality of products. And it will also help to learn new ways of doing work.

Our textile firms can reduce the cost of business by getting cheap labor and raw material from china and India which are cheap as compare to Pakistan. Now a days as inflation is increasing the cost of production will increase and to control it our textile firms have to get labor from china.

• Reducing the Cost of Business:

• Image Building of Pakistan to Attract Visitors:

In Pakistan we should take safety measures so that visitors and investors should come to Pakistan, so they can invest here. Safe business environment should be provided to the investors. This will increase the textile production and economy of Pakistan.

THREATS:• New Competitors:

Currently Pakistan is facing many new competitors in textile sector which are Bangladesh, Vietnam. We have to compete with them by changing our old strategies and implementing new ways of working in order to provide better textile products as compare to them. 

• Phasing out of Quota System:

As the quota system has been removed most of the market share is taken by China and India because our textile sector has high production cost and low productivity and high price of products.

• Fashion Life Cycle:

This hits the textile sector very badly. Now a day’s fashion is changing day by day. Consumers want new products rather than old textile products (designs) .The buyer do not wait of firm for long time to finish his order because there is uncertainty about the product in market whether customers will buy it or not because fashion is changing. This results in low demand of textile products from domestic firms because the buyer prefers to get products at high price instantly rather than to wait weeks for getting the product.

PEST ANALYSIS OF RESHAM TEXTILE• Political:

First of all we will discuss the political aspect in regarding to analyze The Resham Textile. As we seen that now a days there is a stability in the politics. It means that textile sector is working smoothly so that’s why our company is also carrying out its functions in proper way, there is no interference of the government in the textile sector.

• Economic:

Secondly as we see the economic condition of Pakistan is very poor and from the last several years the economy of Pakistan is not stable, you cannot forecast that whether the business will run smooth or it will collapse. As we are facing shortage of electricity and high inflation which means rising in the prices of commodities the shortage of electricity causing many textile firms to shut down because as there is no electricity, the firms will not operate and this is also the drawback which Resham Textile is facing.

• Social:Thirdly the social factors, as Pakistan is a progressive country and our garments are one of the best in the world. Most of the foreign countries are giving orders to our textile firms and there is the major for Resham Textile to take many orders and also to compete with the textile firms in Pakistan.

• Technological:And lastly the technological aspect as we see that modern era is the era of IT and lots of countries are adopting modern ways to carry out their functions. They are using new machines in the textile firms which can help in improving their quality and increasing inventory quantity. But in Pakistan all the textile firms are still relying on the old ways. They are using old machines which not much customize to perform various tasks, so Resham Textile should focus to use machines and should introduce IT in their business to improve quality and to achieve better position in Pakistan.

COMPANY ANALYSIS (RESHAM TEXTILE)Economic Factors Affecting Resham Textile• Inflation:This can affect business in this way the production cost will increase because raw material prices will increase so there is a chance that their production will decrease so their supply will also be decrease and they will earn low profit.

• Employees:If the salary of employees remains same in high inflation condition there may be a chance that employees will stop working and start strike which will affect their production, so the employees will not work and products will not be made and will not be delivered to the market so they will face loss.

• Load Shedding:This will also affect Resham textile because when load shedding will occur the firm will not be able to make products (yarn) so they will face difficulty in completing the orders and supplying their products to the market so they will face loss. If they setup their own generators then production cost will be high because they will spend more money to run the machinery on generators.

• Restriction on Yarn:This is a major problem for Resham Textile because they are in the business of making yarn as the government has restricted the export of yarn and it can be export to some limited quantity they will not export their products by this they won’t generate profit and they will not be able to compete with the international market. They will not be able to market their products outside the country.

CONCLUSION:

The conclusion after studying the analysis of country and textile sector there are several positive and negative aspects related to textile sector but the Resham Textile should try to improve their operations and should implement new ways of working so they will try to make new products which will be better for them to maintain their reputation in the country. The Resham Textile should tries to remove their weaknesses and tries to get maximum benefits from opportunities they have.

Thank You

Any Question