Internship Report on Chen One

www.vustudents.ning.com

Internship Report on ChenOnewww.vustudents.net

INDEX

S.NO

PARTICULARS

PAGE #

1 Executive summary 4

2 Brief information about company 5

3 Vision Mission Statements 6

4 Company profile 7

5 Product range 9

6 Production facilities 10

7 Management Information System 13

8 Total quality management 14

9 Awards & Merits 16

10 Marketing Strategy 17

11 Future out look 19

12 SWOT analysis 20

13 My responsibilities and duties 21

14 List of key buyers 23

15 Departments of Chenab 24

16 Department and out put 25

17 Process flow of processing 26

18 Bifurcation of export turn over 27

19 Organizational chart 28

20 Financial highlights 29

http://www.vustudents.ning.com/

http://www.vustudents.net/


EXECUTIVE SUMMARY

Chenab Limited is one of the leading manufacturers and exporters of value added textile goods. It

started its business during 1975. Chenab is manufacturing a number of products relating to home

textile and garments and exports them all over the world. Chenab has the facilities of ginning,

spinning, weaving, processing, stitching, wadding and embroidery. It has own gas based power

generation generators and meets it entire electricity requirement. The company implemented an

ERP system with LAN/WAN connectivity apart from other MIS systems. As regard total quality

management Chenab has certifications of ISO 9001, ISO 14001, SA 8000 & Warp, C-TPAT and

OHSAS 18001. The company has for the 9the time won the "Best Export Performance Trophy

Award" for 2003-2004 for the Federation of Pakistan Chambers of Commerce. Chenab has been

expanding its export sales through a net work of franchise outlets, selling agents, direct marketing

and strategic alliances.

Chenab strength is lying in its vertically integration and having diversified customer based and

geographical distribution. However, the central decision making and partially dependency on

cotton are the main weaknesses. Elimination of privileges to regional competitors will allow the

company to get the higher prices of their products. On the other side levy of duties and increase

in manufacturing cost can squeeze its margins.

BRIEF INFORMATION ABOUT COMPANY

Chief Executive Officer

Mian Muhammad Latif



Directors

Mian Muhammad Javaid Iqbal

Mr. Muhammad Naeem

Mr. Muhammad Faisal Latif

Mr. Muhammad Farhan Latif

Mr. Muhammad Rizwan Latif

Mr. Muhammad Zeeshan Latif

Mst. Shahnaz Latif

Mst. Tehmina Yasmin

Bankers/Financial Institutions

Allied Bank Limited.

Askari Commercial Bank Limited.

AlBaraka Islamic Bank, B.S.C. (E.C).

Bank Alfalah Limited.

Citibank, N.A.

Faysal Bank Limited.

First Punjab Modaraba.

Habib Bank Limited.

Habib Bank AG Zurich.

KASB Bank Limited.

National Bank of Pakistan.

Pak Oman Investment Company Ltd.

Pak Kuwait Investment Company (Pvt.) Ltd.

Pak Libya Holding Company (Pvt.) Ltd.

Saudi Pak Commercial Bank Limited.

Saudi Pak Agricultural & Investment Company

(Pvt.) Ltd.

United Bank Limited.

Union Bank Limited.



Registered Office

Nishatabad, Faisalabad.

Tel: 041-8754472-8

Fax: 041-8752400, 8752700

Website Address

www.chenabgroup.com

Works

Spinning Unit - Toba Tek Singh.

Weaving Unit - Kharianwala, District,

Sheikhupura.

Weaving Unit - Shahkot, District, Sheikhupura.

Weaving Unit - Gatti, Faisalabad.

Weaving Unit - Khurrianwala, Faisalabad.

Processing Unit

& Stitching Units -Nishatabad, Faisalabad

VISION

To be a competitive and customer focussed organization with continuing

commitment to excellence and standards.



MISSION STATEMENT

To be the business house of first choice for customers.

To be a change leader.

To produce innovative, relevant and cost effective products.

Setting and maintaining high standards.

To earn profits by achieving optimum level of production by using state of

the art technologies.

To provide ideal working conditions to employees and to take care in their

career planning and reward them according to their skill and responsibility.

To meet social and cultural obligations towards the society being a

patriotic and conscientious corporate citizen.



COMPANY PROFILE

Chenab is regarded as one of the leading manufacturers and exporters of quality home textiles

products and apparels worldwide. Operational since 1975, Chenab is a vertically integrated unit,

equipped with the latest and sophisticated machinery. Housing one of the largest textile

processing facilities in the country, Chenab can meet varied requirements of its customers in any

part of the world with in-house facilities of growing highest grade cotton, ginning and spinning it

into high quality yarn, weaving it into quality fabrics in 100% cotton and various mixed blends and

stitching and export of top quality made ups & apparels. Its existing paid up capital is Rs.1950

million comprising Rs.1150 million for ordinary shares and Rs.800 million against preference

shares. The both of these shares are listed on the Karachi Stock Exchange. Its annual turn over

at present is more than 7 billion. Chenab today is capable of processing and converting into made

ups and garments more than 85 million meters of fabric per annum. The manufacturing facilities

held by the company are as under:-

Production Facility No of Machines Capacity (Per Day)



Spinning 19,200 Spindles 36,000 lbs

Weaving 270 Auto Looms 18,000 mtrs

Weaving 240 Air Jet Looms 80,000 mtrs

Bleaching 3 225,000 mtrs

Dyeing 3 90,000 mtrs

Printing 4 160,000 mtrs

Finishing 22 250,000 mtrs

Polyester Wadding 1 Plant 18,000 kgs

Fabric Coating 1 15,000 mtrs

Stitching 1584 210,000 mtrs

Quilting 14 25,000 mtrs

Embroidery 6 4000 mtrs

Gas base power generation 14 Generators 15.6 M.W

Chenab is part of the Chenab Group ("Group"), which began its business in 1975 under the name

of "Chenab Textiles Industries" Faisalabad as a fabrics processing unit. The Sponsors belong to

a well respected family hailing from Toba Tek Singh, who have been engaged in the growing &

ginning business since the inception of Pakistan.

The Group Sponsors and directors have assumed senior management responsibilities,

maintaining a hands-on approach along with strategy and policy formulation. They are ably

supported by a team of experienced professionals in the field of export marketing, designing,

finance and accounts and production control. The Group has a team of 165 professional



employees, which include Chartered Accountants, MBAs, B.Scs, Textile Engineers, Cost

Accountants, etc.

The sponsors recognize the significance of a good workforce and have conscientiously worked

towards creating a wide base of middle management and motivated and skilled labor force.

The professional team has implemented effective policies and procedures for streamlining and

monitoring the operations of the group companies.

The following is the workforce detail of the Company:

Particulars No of Employees

Managerial 165

Supervisor 2510

Labor 9567

Total 12242

RODUCT RANGE

Chenab offers a wide range of coordinated concepts in bed linen, bedspreads,

curtains, table linen and kitchen accessories. In addition it also produces formal

and casual garments for men, women and children that feature exclusive fabrics

and designs in line with global trends. The following are the products being

manufactured by the Chenab.



Fabrics Sheeting

Flat Sheet

Quilt Cover

Bed Skirt

Bed Spread

Fitted Sheet

Valance Sheet

Comforter

Neck Roll

Cushion

Pillow Cover

Table Cover

Napkin

Place Mat

Tea Cozi

Bread Cover

Tissue Box Cover

Curtains

Shirts

Tie Backs

Dressing Gowns

Trousers

Bath Robe

Shorts

Tunic

Skirts

Jackets

Qamiz

Jumper

House Coats

Medical Overall

Flat Sheet With Pillow

Quilt Cover And Pillow Cover

Sheet Set



Comforter With Bed Sheet And Pillow Cover

Shalwar Qamiz (Ladies And Gents)

Romper

Production Facilities:

The Company's production facilities have been sourced from the world's

renowned textile machinery manufacturers of Germany, Japan, Italy,

Switzerland, Austria and the UK and are of diversified make.

The following is a brief description of the production facilities: -

Ginning Unit

Chenab has associated modern ginning facilities with a capacity of ginning 200 bales of cotton

per day.

Spinning Unit

Chenab's spinning unit comprises of 19,200 spindles of Japanese & European

origin along with requisite back process machinery capable of producing 100%

cotton yarn in counts of 10, 16, 20, 22, 24, 30, and 40. All these counts are spun

in carded as well as combed versions.

Weaving Units

The air jet weaving looms project includes the latest sizing, warping, and

sectional warping machines capable of producing the finest quality of plain and

design fabric. The project also has auto looms.

Processing Unit

The Company's processing units are made up of fabric printing, dyeing and

finishing units, capable of processing over 250,000 meters fabric per day.

Printing & Dyeing Facility

The printing & dyeing facility comprises of 4 of the latest 72" to 124" width and 12

to 24 colors rotary printing machines. Chenab houses a comprehensive dyeing

facility where all sorts of reactive, pigments, disperse/reactive, VAT,

disperse/VAT dyeing are carried out while maintaining the highest quality

standards. The dyeing facility comprises of 110" to 126" width Thermosole and

Pad Steam dyeing machines. It also has special finishing facilities including

Ramish Calendering, Chintz Finishing, Glazed Finishing, Raising, Emerising,

Mercerizing and Sanforising, etc.



The Company uses the best branded dyes as per specifications in technical

consultation with reputed companies like Swiss Specialty, Clariant, DyStar and

BASF. The latest Color Kitchen equipment and Design Studio with a Wax Jet

Exposing machine have also been installed at the project. Laser Engraving,

Digital Printing, Fabric Coating, and additional fabric washing facilities are also in

place.

Made Up Stitching Unit

This unit is capable of stitching all sorts of Textile Made Ups equivalent to

165,000 meters of fabrics per day with advanced facilities including: -

Fourteen computerized quilting machines, with automatic filling of

polyester into quilted articles. It is also capable of handling unlimited

design options catering to single line, cording, and twin line-emboss

patterns. The facility is capable of creating countless patterns both for

dimension and profile;

Six advanced computerized embroidery machines that are capable of

handling any design up to 9 colors in one go. The large 1x6m frame

allows the creation of design on a large scale;

Complete polyester wadding plant;

Advanced panel cutters;

Computerized Eton stitching system;

Complete switch track system; and

Garment Stitching Unit

This unit is also capable of stitching all sorts of casual/fashion garments

equivalent to 45,000 meters of fabrics daily equipped with advanced and

computerized mechanical systems such as: -

Gerber technology with computer aided manufacturing;

Equipment for accurately cutting articles;

Advanced panel fabric cutters;

Switch Track stitching system;

Advanced stitching machines with an automatic trimming mechanism;

and

Computerized embroidery machines.



In-house Power Generation

Chenab has set up a 15.6 MW natural gas-based power generation facility, with heat exchanger

and waste heat steam boilers for its processing, weaving and spinning operations through which

it has made major saving in power costs. With the installation of theses gas based generators

Chenab is able to meet all of its electricity requirements.

The necessary infrastructure and equipment for a Water Treatment plant and Reverse Osmosis

process have also been added. Following is a summary of the key facilities, their location,

capacity, and origin.

Management Information System

A strong management information system in any organization enables the management to make

effective and timely decisions. For this purpose Chenab has taken every step to make is MIS

most modern and sophisticated.

The Company has implemented an ERP system with LAN/WAN connectivity.

VPN connectivity options and wireless internet access at speeds of upto

1.3MBPS have also been established. Plans for customer relationship

management, e-commerce, online order tracking system and video conferencing

will further cement the executive decision support system and speedup customer

response time.

Networking of computer in each department makes the MIS speedier, efficient

and cheaper. The use of computers at each level enables the company to create

a paper less environment.



Hand scanning machines are installed at entry gates. Entry and exit of

employees is monitor through this system. The payroll system is also linked with

this system.

A team of highly qualified I.T professionals is working with Chenab and a number

of soft wares and packages have been developed by them for automation of the

systems.

Total Quality Management

Chenab has business dealings with reputed business houses around the world

and manages products and brands in foreign markets with a variety of different

consumption patterns and cultural backgrounds as well as different technical

requirements and legal provisions. For this reason, quality at each and every

step of production is the first and foremost concern at Chenab.

A state of the art testing lab equipped with the latest precision testing instruments

assures that specific customer standards are met. Chenab's highly qualified and

experienced technicians are able to cope with ever-increasing quality standards

and changing customer requirements. Their work starts from the receipt of raw



materials up to the time the final finished products have passed through

inspection/testing at all stages.

The Company has also proven its commitment to quality by achieving the

following certifications:

ISO 9001: This certification is based on process approach to production,

systems approach to management, customer focus and continuous

improvement in operations and strategies

ISO 14001: Chenab's management acquired ISO-14001 as a response to

the changing face of environmental legislation that is causing serious

problems for many industries, with the textile industry being no exception.

Ecology is a new parameter that today increasingly appears in the

catalogue of requirements. For confidence in textiles, the need has arisen

for such a seal of approval or label for products that in their manufacture,

use and disposal have only a minimal impact on the environment. The

latest imported treatment plant has already been installed, which along

with a newly built gas fired power plant in place of a furnace oil plant will

help ensure pollution-free production.

SA 8000 & WRAP: Chenab obtained SA8000 and later WRAP

(Worldwide Responsible Apparel Production) certifications. Their salient

features are no child labor, no forced labor, no discrimination by race,

color or gender, equal opportunity employer, good working environment,

custom compliance, remuneration and fringe benefits as per local laws,

electronic attendance, hand-scanning, a maximum of a 56 hour working

week, proper health and safety, drug interdiction etc.

C-TPAT: Customs – Trade Partnership Against Terrorism (C-TPAT) is another milestone

that has been achieved in order to build customer confidence. It includes strict security

measures at various stages of production, packing and transportation. Examples include

scanning containers for weapons, explosives at packing and loading stages etc

OHSAS 18001: Chenab Limited is the first Pakistani textile organization to

achieve this international standard depicting management's commitment



towards occupational health and safety requirements by ensuring a risk

and accident free atmosphere.

Awards and Merits:

Chenab's customer oriented and market driven approach is evident from the fact

that the Company has for the 9th time won the "Best Export Performance Trophy

Award" for 2003-2004 from the Federation of Pakistan Chambers of Commerce

and Industry (FPCCI), for the highest export of value added cotton fabrics. The

management of the Company is committed to excelling in the manufacturing of

high quality products.

Marketing strategy

Creativity and innovation in fashion and design is seen as a major asset for the

future control of markets. With in-house marketing specialists' and designers'

team, the Company customizes designs and packaging according to regional

and customer specifications. Chenab has been expanding its export sales

through a network of franchise outlets and selling agents, direct marketing and

strategic alliances.

The ChenOne Stores

The "ChenOne" brand, symbolizes the fast changing face of the global

clothing and textile trade with a focus on the ultimate customer – a global

consumer characterized by awareness and a desire to follow the latest

fashion trends. Chenab's visualization of ChenOne stores, a complete

family fashion store, was to cater to such consumers in Pakistan and in

international markets and to position Pakistan as a fashion producing

country. In a short span of seven years, ChenOne, with its outlets in twelve

cities of Pakistan (Karachi, Lahore, Rahim Yar Khan, Faisalabad,

Rawalpindi, Islamabad, Peshawar, Abbotababd, Multan, Sialkot and Gujrat)

has already acquired the position of Pakistan's leading fashion brand.

The success of the ChenOne concept has encouraged rapid expansion

leading to the opening of six stores in the Middle East in Dubai, Abu Dhabi,

Sharjah, Ajman, Makkah, and Bahrain. The company has already made

plans to further expand locally to Sialkot and internationally to Jeddah and



Riyadh. In the future, the company also plans to target Kuwait, Oman and

Qatar for ChenOne outlets.

Sales through Franchised Outlets

The Company's franchised "ChenOne" outlets have been a great success.

Chenab Limited through its various group companies and associates has

set up these outlets in Pakistan, the UAE, Saudi Arabia and Bahrain. This

initiative has been very encouraging and ChenOne outlets continue to

operate as the marketing arm of the Company. Plans are currently being

made to expand the number of franchised outlets in Pakistan and in other

regional markets. The Company is also planning to set up "store-in-stores"

outlets in major departmental stores in the EU, USA and other countries.

The most important milestones covered under these initiatives are the

training of manpower, implementation of sophisticated floor and supply

chain management systems and customer services.

Direct Marketing

Management has also taken another initiative by making direct sales to

leading chain stores operating in the UAE and other Gulf countries through

a Sharjah-based sister concern named CGI. CGI has also established

strategic market alliances in the following markets:

Australia,

the EU, and

the USA.

The company plans to create similar strategic alliances in the Central Asian and

African markets for the marketing of its own brand (ChenOne) and other leading

global brands.

These initiatives have proven quite successful and direct contacts have

been established with leading chain stores operating in these markets. It is

expected that franchised and direct sales volumes would increase

substantially in future, not only in Pakistan but in overseas markets as well.

Future OUTLOOK



It seems possible that the future changes in the textile and clothing sectors will

bring more risks and challenges than new opportunities. Comprehensive

preparation is a must to manage these risks and take action to secure existing or

additional markets.

At Chenab, the management has developed a strategic approach to tackle the

WTO challenges. At the macro level, the Company has worked to develop a

partnership between private and public sector players that is critical to developing

effective responses. This is based on the top management philosophy that while

the government needs to set up an enabling environment, the business sector

needs to develop the supply response to market requirements. Together, they

need to develop a monitoring system for trade in textiles and clothing that is

attuned to the changing economy.

SWOT ANALYSIS

STRENGTHS:

One of the largest vertically integrated units of the

country leading to low cost operations Experienced and competent management following a

carefully strategized business plan Focus on brand development and retail network Diversified customer base and geographical

distribution Continuous BMR and expansion Substantial goodwill in the market

WEAKNESSES:

Centralized decision

making. Partially dependent on

yarn and cotton procurement

OPPORTUNITIES:

THREATS:



Free trade regime will allow the company to sell its products on high margin after imposition of compliance on regional competitor

Elimination of privileges to regional competitors in coming years

Lack of quality cotton availability andhigh cost of procurement.

Non-Tariff barriers Levy of anti dumping

duty by buyer's countries. Increased marketing

costs

MY RESPONSIBILITIE AND DUTIES IN CHENAB

During my stay in Chenab, consisting of more than sixteen years, I have worked in its various

departments such as spinning, weaving, sales tax, income tax, imports, accounts and finance

from time to time. However, currently I am working in finance & accounts department titled as

"Manager Corporate & Banking Affairs". Under this portfolio my main responsibilities and duties

are as under:

FINANACIAL AFFAIRS

Preparation of monthly financial statements and presentation to the management of the

company.

Preparation of financial projections of the company regarding BMR and expansion

programmes.

Preparation of budgeted cash flow of the company on weekly basis and its monitoring

Arrangement of finance required by the company to meet its working capital requirement

form banks and other financial institutions.



Arrangement of funds required for expansion and new projects of the company from

banks and other feasible sources.

Negotiate with banks regarding their rate of mark up, fees, charges expenses and other

terms and conditions.

Completion of all legal formalities as required by the financial institutes in connection with

grant of loans like execution of agreements, filing of charge documents with SECP, marking of

lien of banks in revenue record in respect of properties mortgaged with them.

Renewal of financial limits from the banks on annual basis and seek modifications if

required.

Arrange the meetings between high ups of the financial institutions and management of

the company on various financial issues.

CORPORATE AFFAIRS

Preparation and circulation to shareholders, Securities and Exchange Commission of

Pakistan and Stock Exchanges, of quarterly, half yearly and annual financial statements of the

company in accordance with the provisions of the Companies Ordinance, 1984.

Supervise the maintenance of record regarding transfer of shares and issuance of

dividends warrants to the share holders.



Correspondence with share holders, Stock Exchanges, Securities & Exchange

Commission of Pakistan and Central Depository Company.

Fulfillments of all secretarial requirements including requirements of code of Corporate

Governance, filing of statutory forms and information.

To conduct and coordinate sales tax audit and statutory audit of the financial statements

of the company

LIST OF KEY BUYERS OF THE COMPANY

Bedeck UK

C.G.I. Limited, UAE

Chenab USA, USA

Fedrated Product Development, USA

Grouppo Coin S.P.A, Italy

Ikea Asia Pacific Pte. Ltd., Malaysia

Ikea Distribution France SNC, France

Ikea Hanim Poland SA, Poland

Ikea L.U.S GMBH, Germany

Ikea Sevenska AB, Sweden

Ikea Wels Lager, Austria



Ikea Whole Sales, Canada

Ikea Whole Sales, Belgium

Ikea Whole Sales, UK

Ikea Whole Sales INC., USA

Interfab (Pty) Limited, Australia

Kwantum B.V., Holland

Lawrence Home Fashion, Canada

Linen Things, USA

Home Centre, UAE

Primark, Ireland

Departments of Chenab Limited

Department & output

PROCESS FLOW OF PRCESSING UNIT



BIFFURCATION OF EXPORT TURN OVER -FY-2006


Date post:	26-Oct-2014
Category:	Documents
Upload:	usmansandhu306
View:	124 times
Download:	6 times

Internship Report on Chen One

Documents