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INTERNSHIP REPORT
ON
SITARA TEXTILE INDUSTRIES (Pvt.) LIMITED
FAISALABAD
Submitted by,
Aamir iqbal anjum
MBA (MARKETING)
SESSION 2007 - 2009
Virtual University of Pakistan, Defence Road, Off Raiwind Road, Lahore.
DEDECATION
The Holy Prophet Muhammad (S.A.W.) The greater Social reformer and guide in every sphere of life. My affectionate parents who taught me the first word of speak and supported me morally and financially throughout my studies.
ACKNOWLEDGEMENTS
“In the name of Allah, the most merciful and beneficent”
All praise to Almighty Allah, the most Gracious and compassionate. Who created the universe and bestowed mankind with the knowledge and blessings of Allah be upon the Holy Prophet Muhammad (S.A.W.) who guided mankind with the Holy Quran and Sunnah, the everlasting source of guidance and knowledge for humanity.
I deem it an utmost pleasure to be able to express to heartiest gratitude and deep sense of devotion to my reverend and worthy supervisor Mr. Muhammad Awais for his skillful guidance, unfailing patience, inspiring attitude and invaluable suggestions to improve the script of this report.
A deep sense of appreciation is owed to Mr. Shahid Mahmood for his kind attitude and keen interest during my internship. I am also thankful to Mr. Waseem Ahmad who helps me during my internship in Marketing department. I am also thankful to all the executives of export department specially Mr. Muhammad Awais, Muhammad Yaseen who provide me a valuable guidance during my internship program.
I fervently extend my thanks and appreciation to my friends Khalid Sultan, Kashif Mahmood, Zaheer-ul-Din, Muzammil Ahmad, Muhammad Imran, and Abdul-Qayyum. I owed a debt of gratitude to my ever-affectionate brothers Mr. Muhammad Khuram and Mr. Ashfaq Ahmad for their fragrant love nominated to me.
Last but not least I offer my humble heartfelt gratitude and deepest affections to my great mother and respected father for being inspired for higher ideals of life, supported morally and financially throughout my studies, and always prayed for glorious success about my pursuits throughout all of my life.
AWAIS MAHMOOD BUTT
MBA (Marketing)
LIST OF CONTENTS
Sr. No. TITLE PAGE
1
2
3
4
5
6
7
8
9
INTRODUCTION
OBJECTIVE OF STUDYING THE ORG.
OVERVIEW OF THE ORGANIZATION
3.1 HISTORY
3.2 NATURE OF ORG.
3.3 BUSINESS VOLUM
3.4 PROFILE OF EMPLOYEES
3.5 PRODUCT LINE
ORGANAZATIONAL STRUCTURE
STRUCTURE OF MARKETING DEPTT.
FUNCTIONS OF MARKETING DEPTT.
6.1 MARKETING STRATEGY
6.2 PRICING STRATEGY
6.3 DISTRIBUTION STRATEGY
6.4 PROMOTIONAL STRATEGY
CRITICAL ANALYSIS
7.1 SUCCESS & FAILURE OF PRODUCTS
7.2 MAJOR COMPETITORS
6
7
8
8
10
10
10
11
12
13
14
28
28
29
29
30
32
32
10
7.3 FUTURE PROSPECTS OF THE ORG.
SWOT ANALYSIS
CONCLUSION & Recommendations
REFERENCES & SOURCES
33
34
36
40
INTRODUCTION
Sitara Textile Industries Pvt. Limited Faisalabad has the privilege to be the first member of the esteemed Sitara Group. Founded in 1972 by the most illustrious brothers, Haji Abdul Ghafoor (late) and Haji Bashir Ahmad, is now led by the young Anees Ahmad, a dynamic second generation leader of Pakistan textile industry.
Sitara Textile is one of the largest manufacturer and registered leading exporter of textile goods in Pakistan. It is exporting high quality products. Its products of brand name such as “Sapna” and “Mughal-e-Azam” are amongst leader in the market. Sitara Textile has designing, stitching, and printing departments. The bedding and fabric collection of Sitara Textile are exported to South America, USA, Canada, New Zealand and Europe.
Sitara Group by now is in textile cloth finishing and processing, textile spinning, color alkali industries and power plant. Haji Abdul Ghafoor (Late) and Haji Bashir Ahmed the present Chairman of the Group, the two creative and courageous men, latter joined by second generation, making a blend of experience and modern business knowledge, managed the business growth and development with assistance of highly qualified team of professionals. Faith in Almighty Allah and in their own abilities & commitment to the cause, untiring efforts and leadership qualities of the family, established the group, which now stands amongst Leading Industrial Groups of the Country, under the Chairmanship of Haji Bashir Ahmed.
UNITS
Sitara Chemical Industries Ltd
Sitara Chemical Industries (Textile Div-II)
Sitara Chemical Industries (Textile Div-I)
Sitara Textile Industries Ltd
Sitara Energy Ltd
Yasir Spinning Mills Ltd
OBJECTIVES OF STUDYING THE ORGANIZATION
Textile sector is a backbone of our country .Our major export is consisting of textile appliances. Following are the basic objectives of studying the Organization,
Sitara Textile is the One of the Leading Organization in the Textile Sector
Export Oriented Organization
ISO certified Company
Having a Qualified and Experienced Staff
Proper Utilization of Human Resources
Having a latest Machinery to Compete Globally
Friendly Environment
COMPANY QUALITY POLICY
“Quality is our future”
STIL is a Unique, Versatile industry and is dedicated to the continues improvements in producing different types of processed fabrics by providing Excellent services through motivated qualified and Dynamic team of people. We ensure that the products are produced according to the customer’s requirements and expectations.
STIL is renowned in Local and International markets due to its excellent services, Timely delivery of Quality finished products to their valued customers. STIL’s Philosophy of continues improvements relies on an intensive training programs / regular meetings, discussions which emphasis the employee’s direct involvement. Our aim is to respond to our customer’s ever-changing needs in the more Effective way.
OVERVIEW OF THE ORGANIZATION
BRIEF HISTORY OF ORGANIZATION
NATURE OF THE ORGANIZATION
BUSINESS VOLUME
PROFILE OF THE EMPLOYEES
PRODUCT LINES
BRIEF HISTORY OF ORGANIZATION
Sitara Textile Industries Pvt. Limited Faisalabad has the privilege to be the first member of the esteemed Sitara Group. Founded in 1972 by the most illustrious brothers, Haji Abdul Ghafoor (late) and Haji Bashir Ahmad, is now led by the young Anees Ahmad, a dynamic second generation leader of Pakistan textile industry.
Sitara Textile is one of the largest manufacturer and registered leading exporter of textile goods in Pakistan. It is exporting high quality products. Its products of brand name such as “Sapna” and “Mughal-e-Azam” are amongst leader in the market. Sitara Textile has designing, stitching, and printing departments. The bedding and fabric collection of Sitara Textile are exported to South America, USA, Canada, New Zealand and Europe.
Sitara textile is one of the largest manufacturers and government accredited exporters of textile in Pakistan. Specializing in home textiles, printed, dyed, bleached fabrics, an apparel and fashion garment, Sitara is exporting quality to virtually all parts of the world. With latest “State-of-the-art” machinery and equipment, it is a complete printing, dyeing, finishing and stitching plant. Three huge spinning mills, a high caliber weaving unit and a made-up / garment unit is working under one roof. The unit is capable of producing high quality with a capacity of 150 kilometers of finished cloth every day.
Sitara textiles industries private limited has proudly maintaining its leadership in 100 percent pure cotton products along with the man made fiber. The product range in pure cotton is available as sateen both in mono cotton and poly cotton, bed sheets, pillow, quilt covers, aprons, boxer shorts, and Bermuda shorts are available in most exotic and fascinating designs.
Counts aren’t all that counts! While counts reflect on the durability of the cloth, what reflect on the aesthetics of the end-user are the design, color combination and mood of the fabric print. That is why; Sitara never under estimates the importance of an enchanting design. Their design department is not only well equipped with latest computers and peripherals but also manned with a highly sensitive and sensible team of designers. These designs are based on unique but fascinating combination of age-old traditional motifs and futuristic surreal forms given their customers a wide range to choose from. Widening this choice further is their design library, one of the largest in Pakistan, offering an extensive range from timeless floral and geometric to intriguing contemporary designs and colors?
A sizeable percentage of Sitara textiles, daily textile production by the meter are converted in-house into a ready, saleable retail product. There “Cut & Sew” division enjoys the cutting edge in assembling and sewing of bed sheets and sets, quilt covers, bolster, valances, curtains, table linen, bed spreads, comforter covers, pillow cases, kitchen linen and ready made garments as per the specs defined by the customers.
From a fiber to a finished product, nothing gets spared from our ultra-sensitive, extra vigilant laboratory. Equipped with the most modern and precision equipment, products
are frequently subjected to tests against most relevant international standards at every stage of manufacture. Tests are conducted to control shrinkage (dimensional change), pilling resistance, and abrasion, color fastness and washing fastness etc.
Much of their wide success and popularity is attributed to there technically being ahead in there printing. There printing staff and design teams combine years of practical experience in printing with top-of-the-range Austrian J. Zimmer rotary printing machines producing 280 cm finished width up to 12 colors per design and maximum repeat of 91 cm. Flat bed printing facility comprised Reggiane machine with 320 cm working width and 320 cm repeat.
Thanks to their modern and sophisticated facility, processing to finishes like chintz, silicon, scotchgard, fire retardant down proof and raisin etc, is invariably a pleasure. With Sitara, there world wide clientele gets quick quality sampling on Austrian J. Zimmers latest rotary strike off machine facilitating production of strike offs up to 15 meter length.
NATURE OF BUSINESS
Sitara Textile is one of the leading organization which provide the a variety of Textile products consist of following items such as Bed sheets, Pillows, Quilt covers, Aprons Kitchen aprons, Boxer shorts, Bermuda shorts, Nighties, Bolster, Valances, Curtains, Table linen, Bed spread, Comforter covers, Ready made garments.
Sitara Textile is multinational export in nature. It is specialized to produce the above said items and distribute locally and internationally through their own distribution channels and Agents.Sitara’s export spread over the 3 main continentals such as America, Europe and Asia.
BUSINESS VOLUME
Sitara Textile deals with local and international Market. It contributes major share in Pakistan Economy and provide its products locally on economic rates. Sitara Textile ‘s business volume consist of US$25 million annually and local business consist of 10 to 15 crore. Sitar’s management is very efficient so they always looking new opportunities for development of their business and increases the economic activities in the country.
PROFILE OF EMPLOYEES
Sitara Textile Industries consist of 1453 employees in Office, Production and Stitching department. List are given below
OFFICE AND PRODUCTION STAFF
Office and Production section consist of 636 employees .In which 452 employees are Technical, 62 are Non Technical, and 122 is remaining staff which provide different services.
STITCHING UNIT
Sitar’s stitching Unit consist of 817 employees in which 403 are Technical, 356 are Non Technical and 58 employees are provide different services
PRODUCT LINES
Sitara Textile has a variety of products. Following are main products, which are mentioned below
Main products:
Bed sheets
Pillows
Quilt covers
Aprons
Kitchen aprons
Boxer shorts
Bermuda shorts
Nighties
Bolster
Valances
Curtains
Table linen
Bed spread
Comforter covers
Ready made garments
ORGANIZATIONAL STRUCTURE
CEO
MIAN ANEES AHMAD
GM
ADMIN
Mr. ZIA ULLAH ALVI
GM
PRODUCTION
Mr. SAEED KHAN
GM
FINANCE
Mr. M.RAZZAQ
GM
EXPORT
Mr. M AWAIS
MANAGER PERSONAL & ADMIN
COMMERCIAL
MANAGER
CHIEF
ACCOUNTANT
HIERARCHY LEVEL OF EXPORT MARKETING DEPARTMENT:
DIRECTOR EXPORT
MR. MUHAMMAD AWAIS
SENIOR EXPORT MANAGER
Zone 3
Mr. M. Imran
SENIOR EXPORT MANAGER
Zone 2
Mr. Ashfaq Ahmad
SENIOR EXPORT MANAGER
Zone 1
Mr. M. Yaseen Mehar
Deputy Export Manager
Mr. Muzzamil Ahmad
Deputy Export Manager
Mr. Abdul-Qayyum
Deputy Export Manager
Mr. Khalid Sultan
Deputy Export Manager
Mr. Zahee - u l -din
Deputy Export Manager
Mr. M. Kashif
Deputy Export Manager
Mr. Shahid Mahmood
Asst. Exports Manager
Mr. Waseem Ahmad
Zone 1: South America, Chile, Brazil
Zone 2: Australia, Canada, United States
Zone 3: South Africa, Europe
FUNCTIONS OF EXPORT MARKETING
Exports are the major portion of Sitar’s textile production. More than 90 % of Sitara textile’s products are exported to different countries of the world. The export department is handling the international market in a very appropriate and proper way. Sitara textile has been proudly maintaining its leadership in 100 percent pure cotton products along with the man made fiber. Sitara textile industries limited is value adding to the country’s silver fiber by vertical integration of the product line. The product range consists of the following, but is not limited by this list. It has the ability to be immediately tuning its infrastructure to meet any specialized requirements of the ever-demanding export markets of both east and west.
The product range in pure cotton is available as Sateen both in mono cotton and poly cotton, Bed sheets, Pillows, Quilt covers, Aprons, Kitchen aprons, Boxer shorts, Bermuda shorts, Curtains, Comforter Shells, Bed in a bag, Swag set, Festoon set, Place mates, Nighties, ready made garments, and are available in most exotic and fascinating designs. Sitara textile has pioneered in the following fabrics unrivalled by any other in the industry.
BUYER’S INQUIRY
The work of export department starts from Buyer’s inquiry. First the buyer inquires the STIL regarding his required specified products, which he wants. Inquiries received from customers by any one of the following sources,
Textile exhibitions
Personal visit to customers
Customer’s visits in STIL
Faxes, Telephone, Mail, E-Mail, etc.
In the buyer’s inquiry, the buyer specifies the required quality, design and quantity of fabric.
REPLY TO INQUIRIES
After receiving the inquiry from buyer, the Deputy export Manager ensures that all the inquiries for the products are processed efficiently in STIL. The Deputy Export Manager satisfies himself that the company has the capability of fulfilling the offer. Now the DEM (Deputy Export Manager) and EM (Export Manager) make analysis of inquiry to make decision to proceed it or not.
GREY PROCUREMENT SHEET
The Export Manager analysis the order confirmation sheet received from the customer and prepares Grey Procurement accordingly. The Deputy Export Manager, General Manager Export and Chief Executive sign the Grey Procurement sheet and also costing sheet. This Grey Procurement sheet is faxed to Grey Fabric Procurement Department.
Following is the format of Grey Procurement sheet,
GREY PROCUREMENT
Buyers order no : 970002
Supplier : STIL
Buyer : LENNOTTE
Construction : 76 x 56 / 35 x 35
Width : 93``
Price / meter : . 45 $
Weight of fabric : 95 gm / m2
Weave : Plane
Loom : Power
Quantity : 50000 Mts.
Delivery : As soon as possible
Piece length : 80 % 80 Mts. Up, 20 % 25 Mts. Up
Process : Printing
Mending : Mending should be done very
For Sitara textile
Export Manager
SALES CONTRACT
The export manager prepares the sales contract in accordance with the order confirmation sheet. The Deputy Manager Export signs this sales contract and it is faxed to the customer for his counter signature.
If customer wants some changes in the sales contracts then the Export Manager and the Deputy Export Manager make analysis of these changes as per requirement of the customer and make decision that whether these changes are workable for us or not. If these changes are workable for the STIL then new sales contract as per new amendments is faxed to the customer fort his counter signature.
BUYER’S PURCHASE ORDER
After signing the sales contract the buyer gives the order regarding the specified design, quality and quantity. The purchase order consists of date, purchase order no, terms, shipment date, prices, vendor name, reference no, description of products required and price of products. The purchase order is received from the importer, which is on their letterhead and signed, by the concerned authorities of that organization. The format of order is like this,
PURCHASE ORDER
PURCHASE ORDER
DATE P. O. No.
22 / 06 / 2001 970002
EXIMPO, INC. Export House / Manufacturer / Distributors / Agent
VENDOR
Sitara textile industries limited
6 KM Sargodaha Road,
Faisalabad.
PAKISTAN
TERMS Against L/C
SHIPMENT 01 / 07 / 2001
SHIP VIA Sea
PRICES C & F us c 5%
Our Ref. # Description Qty Rate $ Amount $
Style #
370537
370540
370555
370557
Design HORIZONS
Process Pigment Printed
Construction 100 x 80 / 40 x 40 Sheet sets
76 x 56 / 35 x 35 Accessories
Blending 52 / 48 Sheet sets p/c
65 x 35 Accessories p/c
Loom Shuttleless / Power loom
Bed in a Bag
Twin
King
Accessories
Euro shams
Table round
480
600
84
96
23.85
28.35
1.25
2.25
11484.00
17010.00
105.00
216.00
35815.00
STRIKE OFF PROGRAM
Most of the customers send there own designs in the form of Artwork and fabric sample in case of the printing of the design of the customers. The Deputy Export Manager and Export Manager discuss the design comprehensively with the manager Design department. Sitara has a rotary strike off machine from J-Zimmer Austria with 15 meters blanket for making strike off’s as per buyer’s requirements. Strike Off program is prepared by the Export Manager and it is distributed to all the concerned departments e.g., Designing, Engraving and Printing, etc.
The Deputy Manager Export and Manager Export do inspection of the Strike Off as per buyer’s instructions before its dispatch. If it is as per requirement of the customer then it is dispatched to the customer otherwise it is processed again to meet the demands of the customers.
OPENING OF LETTER OF CREDIT
If customer approve the strike off then we consider this for bulk production and if he need some changes in design and colors then the Export Manager pass this information to the Designing and Printing Department to meet the demand of customers.
Before the bulk production, the Deputy Export Manager asks the customer to open Letter of Credit as per terms and conditions of the Sales Contract. The Deputy Export Manager studies comprehensively all the clauses of L/C. if any amendment is required then this amendment is managed with the customer.
The Export Manager prepares the Production Schedule as per requirements of the customer and is signed by the Deputy Export Manager. The production schedule is distributed to all the concerned departments.
Following is the format of Letter of Credit and Production Schedule,
PRODUCTION SCHEDULE
Party : EXIMPO, INC.
Order no : 786 / 01
SGP no : STIL 5
Quality : 76 x 56 / 35 x 35 PC 70 / 30 Printed cloth 84`` finish from
87``, 63`` Grey width printed and calendard cloth.
Product : White, Dyed
Quality Standards:
Pilling rating : 4 Washing : 4
Rubbing fastness : Dry 4, Wet ¾ Bowing: 1% Crossing : 1%
ASSORTMENT:
COLOR QUALITY QUANTITY WIDTH
White 76x56 / 35x35 32000 Mtrs. 87``, 84``
White 76x56 / 35x35 11000 Mtrs. 63``, 60``
Dyed ivory color
76x76 / 30x30
100% Cotton11000 Mtrs. 93``, 83``
FINISHING : We will give you Standards
PAKING : Role on Tube
SHIPPING MARK:
Order no. Roll no. Hungry port Mtrs.
Sitara Textiles Gross Weight Made in Pak. Net Weight
Note: We will confirm you shipping mark.
Manager Export
CC to,
GM Processing Grey Department Design Department
Laboratory Department Printing Department Dyeing/Bleaching Department
Finishing Department Packing Department Accounts Department
QUALITY CONTROL
The Export Manager is responsible for quality of the work during processing. The Export Manager daily visits the production department and gives the proper guidance to the production department’s employees regarding the processing of Fabric. At each stage of processing samples are sent to the laboratory for inspection, and laboratory tests are very helpful for maintaining the quality.
The quest of quality in today’s technologically day in advancing era and STIL is enable to analyze in detail the procedures of checks and numerous tests to balance out through
the involved stages of processing specially to enhance and make quality a consistent feature at Sitara. Control Shrinkage, Pilling Resistance, Abrasion, Color Fastness, and Washing Fastness are few very carefully monitored.
Acquisition of the best possible quality control equipment ensures best quality products. Unit has a most modern and latest computerized equipment in its laboratory, for every test required for fabric, including shrinkage, rubbing fastness, light fastness and vowing of the fabric.
FINISHING
Finishing depends upon the buyer’s order, if the end product is made-up (in stitched form) then the Export Manager prepares Stitching Schedule as per requirement of the customer mentioning all the details of stitching and packing and send this schedule to the stitching department.
The Export manager does inspection of the made-ups goods at every stage of production of make-up, e.g. cutting, stitching, packing, etc. and before the shipment the Export Manager does the inspection of the consignment.
Manager Export maintains all the records of the correspondence of the customers in very organized way. He also maintains records for each shipment for future reference.
DISPATCHING
After completing the finishing of the cloth as per requirements of the buyer, then the cloth is packed as per the buyer requirements. And shipped to the port or as per mentions on the L/C.
EXPORT DOCUMENTATION DEPARTMENT
All the documentation required is maintained in this department. The Export Manager Banking supervises this department. This department prepares all the papers, which is necessary for banking negotiations. They prepare these documents and send them to there bank for collection of payments.
Following are the important documents, which are prepared in this department,
Bill of Exchange 2 Copies
Commercial Invoice 6 Copies
Packing List 3 Copies
2/3 Original Bill of Lading (As per L/C requirement) 2/3 Copies
Certificate of Origin
L/C Original 1 Copy
These above are the important documents. These will send if the buyer required.
Beneficiary’s Certificate 2 Copies
Quota Statement 2 Copies
Textile Declaration 2 Copies
Inspection Certificate 1 Copies
Weight Note
Visa form
Foreign Commission Certificate 2 Copies
Following are the formats of these documents,
THE MANAGER
HABIB BANK LIMITED Ref: STI-331/03
CORPORATE CENTRE Dated: 24/07/03
FAISALABAD.
Sub: Documents for US$ 35000 for negotiation against the Letter of Credit no.
DEAR SIR,
We are please to enclose herewith the following documents for negotiation under above mentioned Letter of Credit and credit the amount to our account no ******-** at the time of negotiation.
Bill of Exchange
Letter of Credit
Commercial Invoice
Beneficiary’s Statement
Packing List
3/3 original Bill of Lading
Certificate of Origin
Quota Statement
Textile Declaration
Copy of Purchase Order
Inspection Certificate
Weight Note
Form E Duplicate
Foreign Commission Certificate
Thanking you
Yours Truly
Export Manager
BILL OF EXCHANGE
No. STI-331/03
For US $: 35000 Dated: 20-07-2003
At ________________ sight of this second of exchange (First of the same tenor and date being unpaid) pay to HABIB BANK LIMITED corporate center Faisalabad, Pakistan. Or order the sum of US$ 35000 only. Value received and charge the same to amount of 1002 cartoons printed made-ups made of Poly Cotton 52/48 and 70/30 %.
Drawn under first union national bank charlotte, charlotte, NC US. Letter of Credit no ***-****. Dated 25/06/03.
To
First Union National Bank Charlotte,
Charlotte, NC US.
Export Manager
BENEFICIARY STATEMENT
PO # 9002763
LC # ***-****
We hereby certify that:
Each carton indicates PO number and style number.
Each lead carton contains a copy of P/L.
Evidence that one full set of original documents including non-negotiable B/L, original visas, certificate of quota charges, textile declaration and any other pertinent documents.
Along with two additional copies has been forwarded to expeditors INT, L of Washington 2550 Ellsmere Ave, Norfolk, VA 23513 VIA courier at tie of shipment.
SITARA TEXTILE INDUSTRIES LTD.
SIGNATURE
COMMERCIAL INVOICE
No: STI-229/03 Date: 29/05/03
Form E no: HBL ******* Date: 29/05/03
On Account and Risk of M/S : ALBARAKA Bank, 134 Commercial Road,
Durban 4001, South Africa.
Shipped per S.S: MSC Veronique VOY/38.
From Karachi Pakistan to: Durban Port, South Africa
Drawn under L/C no: ***-***** Date: 17/02/03
Payment Terms: Cash Against Documents
Mark & No DESCRIPTION UNIT PRICE AMOUNT
P.O.# 11408
DURBAN
ROLL NO.
1-228.
228 ROLLS.
35000 METERS
POLYESTER COTTON 60/40 PERCENT
PRINTED AND OPTICAL WHITE
CALENDERED FABRIC,
CONSTRUCTION: 76X56 / 35X35
WIDTH 98`` - 32, 183 MTRS. PRINTED
WIDTH 91`` -12, 152 MTRS. OPTICAL
WHITE.
COUNTRY OF ORIGIN PAKISTAN.
US $:
PER METER
C AND F
DURBAN.
TOTAL C&F
AMOUNT.
US $:
US $:
35000.00
C AND F
DURBUN
CERTIFIED THAT THE ABOVE GOODS ARE OF PAKISTAN ORIGIN
BILL OF LADING
ATTN: MR. MAQSOOD / EBRAHIM AGENCY, FSD. DATED: 29/05/2003
DUMMY B/L AGAINST INVOICE NO. STI-229/03
SHIPPER: SITARA TEXTILE INDUSTRIES LTD.,
6-KM SARGODHA ROAD, P.O.BOX 223, FAISALABAD, PAKISTAN
CONSIGNEE: TO THE ORDER OF MONOR HOUSE, MONOR PARK WORKS, 182 GARRISON STREET, BORDESLEY, BIRMINGHAM 89 4DN.
FORM ‘E’ NO. ABL-0026671 DATED: 29/05/03
NOTIFY PARTY: MONOR HOUSE, MONOR PARK WORKS, 182 GARRISON STREET, BORDESLEY, BIRMINGHAM 89 4DN.
VESSEL NAME: _____________? ON BOARD DATE
PORT OF DISCHARGE: BIRMINGHAM WHAREHOUSE, U.K.
MARKS & NOS. DESCRIPTION OF GOODS
MANOR HOUSE 228 CARTONS. GR.WT:
BIRMINGHAM PRINTED DUVET SETS, COMPLETE 6667.100
WAREHOUSE BED SETS AND CURTAINS PAIR MADE KGS
PO# 786/01/1111 FROM POLYCOTTON 70/30% CLOTH
CARTON NO. QUALITY: 76X56 / 35X35. NET WT:
1-228 1621 SINGLE DUVET SETS. 4667.900 KG
154 SINGLE COMPLETE BED SETS
121 CURTAIN PAIR 66X72``
AWSU-191333-3 1X20’FCL.
THC AND FREIGHT PREPAID
WEIGHT NOTE
Ref: STI-331/03
Dated: 29/05/03
Reference letter of credit no. 22 PK 04099/1542 dated 13/05/01
35,336 meters quality: 76x56 / 35x35 PC 70/30% weight per square meter. 92grms.
5,555 meters quality: 76x76 / 30x30 100% cotton weight per square meter: 120grms.
Total rolls: 228
Total meters: 40921
Total gross weight: 8540.400kgs.
Total net weight: 8132.400kgs.
For SITARA TEXTILE INDUSTRIES LIMITED
Export Manager
QUOTA CHARGE STATEMENT
SUBJECT: Shipment of 228 cartons 1850 Pcs/units/set of duvet sets and curtain pairs as per purchase order no 9003725 and Horizons designs as per purchase order no 9003726.
QUALITY: 100x80 / 40x40 PC 52/48 % and 76x56 / 35x35 PC 70/30 %.
I Export Manager manufacturer of goods covered by invoice no STI-333/03 (Purchase order number 9003725 and 9003726 dated 20/07/03) hereby state that the CFR value declared on the invoice included cost of quota and number separate quota payment will be paid.
Export Manager
INSPECTION CERTIFICATE
EXIMPO, INC.
Export House / Manufacturer / Distributor / Agent Date: 20/07/03
This is certify that 228 cartons are being shipped against invoice no STI-331/03 dated 20/07/03 are in accordance with purchase order no. 9003726 and 9003725.
The merchandise is 100% new and according to the specification required by M/S Domestication USA.
For EXIMPO, INC.
Design Manager
TEXTILE DECLARATION
STI-331/03
I Export Manager hereby declare that the articles listed below and covered by the entry to which this declaration relates are wholly the growth, product or manufacturer of a single foreign territory or country or insular possession of the united states as identified below. I
declare that the information set forth in this declaration is correct and true to the best of my information, knowledge and belief.
Marks of Identification Number
Description of Article and Quantity
Country of origin
As per Invoice No:
STI-331/03
Date 19/07/03
Style #9003725
Style #9003726
228 cartons
1850 pieces /unit /set of Comforter, Set bed in a bag
1000 twins
850 Comforter
L/C No: ***-****. Date: 25/06/03
PAKISTAN
MARKETING STRATEGY
The export department is handling the international market in a very proper and appropriate manner. The export department consists of competent and skilled team of professionals. Taking in to consideration that the 90 % of total production of Sitara textile is exported through out the world, the export department tries its best to generate valuable customers through out the world. Following is the procedure of export department,
PRICING STRATEGY
When the DEM confirms that the required design is easily prepared in STIL, then he replies to the buyer that we are in a position to make your order. Then the EM takes Grey fabric price from the Grey fabric procurement department. The EM calculates the prices then the DEM checks and signs the costing.
Most of the customers send there own designs in the form of Artwork and fabric samples in case of printing of the design of the customers. On the instructions of DEM the EM asks the sampling department and also coordinates for the sampling requirement and its dispatch if the customer for quality purpose requires it. If the price quotation is workable for the customer then he places order on terms and conditions.
Sometimes if prices are not workable for the customer he offers his target price. Then the DEM and EM recalculate this price and if it is workable for STIL then DEM proceed to ask the customer for order placing other wise do not proceed.
There are three pricing strategies are being used in STIL,
Competitive base price
Customer base price
Product base price
DISTRIBUTION MIX OF STIL
There are two ways of distribution adopted in STIL,
Direct channel
Indirect channel
Direct channel
STIL
CUSTOMERS
Indirect channel
STIL
AGENTS / MIDDLE MAN
CUSTOMERS
PROMOTIONAL STRATEGIES
STIL use following sources for communications,
Textile exhibitions
Personal visit to customers
Customer’s visits in STIL
Faxes, Telephone, Mail, e-mail, etc.
Print media
CRITICAL ANALYSIS
During internship, I was done critical analysis of Sitara Textile industries .In my point of view following factors is disturbed the functionality of any organization.
POLITICAL FACTORS
Laws, Govt. agencies, and pressure groups that influence and limit various organizations and individuals in a given society are included in political factors. Recent political changes will hopefully have a favorable effect on the economy during the next financial year. The sanctions, which were made by the Americans after the nuclear tests, have been removed. Now the exports of the country increased and expand to more foreign countries. In this way foreign exchange earnings increased. Govt. should have sound policies, which helpful in marketing the textile sector.
The Govt. must take care of textile sector and make good policies for the textile sector for exports and imports. The Govt. has favorable policies to encourage the exports of the country especially in textile sector.
ECONOMICAL FACTORS
The Sitar’s products are at the maturity stage and have positive image in local and international market. A present and future capacity of the products of Sitara textile is forecasted to be good because of the designs which are made, up to the standards of new generation. The economic environment consists of factors that effect consumer purchasing power and spending pattern. In most of the international market the consumption of Sitar’s products are considered best in quality. Changes in major economic variables such as income, cost of living, interest rates and savings and borrowing patterns have a large impact on the market place. So before entering to the international market, the Sitara textile must considered these things.
SOCIAL FACTORS
The cultural and social environment is made up of institutions and other forces that affect a society’s basic values, perceptions and preferences and behaviors. People grow up in a particular society that shapes their basic beliefs and values.
This is the policy of Sitara textile that the products for exports are designed according to the beliefs and values of the international consumers. The products are made according to the changing lifestyles and liking and disliking of the customers.
TECHNOLOGICAL FACTORS
STIL has good financial resources and they are in a position to install the latest machinery and introduce latest technology in their production department. They have a ability to designs new products after the introduction of new technologies in designing and production department. Introduction of new technologies creates new markets and opportunities for Sitara textiles. Companies that do not keep up with technological changes soon will find their products out dated and they will miss new product and market opportunities. Because of good financial resources Sitara textile introduce new technology in all its departments.
SUCCESS & FAILURE OF PRODUCTS
Sitara Textile is producing quality products throughout the world especially in local market. This is because of its quality of yarn and fabrics. Fabrics is based on quality yarn and yarn is based on the quality of cotton. Top Management is basically religious minded people so the public respects its products. STIL started this unit for its production since 1967 because of Faisalabad oldest unit the demand of its product is very high
The prices of its product is very high due to high quality spinning, weaving and finishing cost. That’s why most of its products are out of the range of the poor people. There is no fare price shop in the unit as well as in the open Market.
LIST OF MAJOR COMPETITORS
Chenab Textile Mills.
Nishat textile Mills
Crescent textile Mills
Masood Textile.
Shahzad Siddique Textile
Afroz Textile Mills
Amtex PVT Ltd.
Bissmillah Textiles
Kamal Textiles
FUTURE PROSPECTS OF THE ORGANIZATION
STIL is one of those well organized and established textile units which have ISO9001: 2000, ISO 14001:1996, OEKo-tex and working for the certification of SA800 and WRAPE that is why the turnover of the employees are very low. To meet WTO
requirements top management is planning to invest huge investment in modernizing the existing machinery set up and also extending buildings in this unit. This is the era of information technology the top management is already develop IT cell in unit and planning to develop E-Commerce. Future of this unit is very bright because top management main focus is deadly strict on quality management in production and as well as main focuses on time management.
SWOT ANALYSIS
STRENGTHS
Adequate financial resources
Specialized in printing
Have a diversified group of industries
Good market image
Competent management and workers
Have a ability to compete with competitors
In home facility of production
Loyal customer
Loss sustaining capacity
WEAKNESSES
Less chances of promotion
Centralized decision making
Salary package is not attractive
Less motivation
Not enjoy the economy of scale
OPPORTUNITIES
New market coverage
New quality introduction
Extension of stitching department
Latest machinery installation
Market trend analysis
THREATS
GST is a biggest threats
Prices increases due to currency devaluation
New entrance of quality conscious competitors
Low price offered by the competitors
Strong promotional activities to convince buyers by competitors
CONCLUSION & RECOMMENDATIONS
Sitara group of industries is one of the renowned industrial groups of the country. This group started its industrial activity with textile weaving sector in 1956, under leadership of two brothers. Sitara group by now is in textile cloth finishing and processing, textile spinning, chlor alkali industries and power plant.
Sitara textile is one of the largest manufacturer and registered leading exporter of textile goods in Pakistan, exporting quality products through out the world. Sitara has its own designing both manual and computerized, developing and screen-making department. Sitara has large number of designs and qualities of fabrics that comply with any requirements and cover all the styles, in the most extensible range of colors and printed on such varied fabrics as polycotton 50: 50 plain weave, 100 % cotton fabric plain weave, percale, sateen in bleached, dyed and printed form.
Apart from fabrics Sitara has its own stitching department having 120 machines for producing value added products i.e. bed sheet sets, quilt covers, comforter shells, pillow covers, curtains, table cloth and also ready made garments.
Equitation of the best possible quality control equipments ensures best quality products. STIL has a most modern and latest computerized equipments in its laboratory for every test required for fabric, including shrinkage, rubbing fastness, pilling, light fastness, bowing and washing of the fabric. In Sitara textile during my internship I noticed that STIL is one of the major exporter in cloth sector of Pakistan. They are very properly contributed their share in earning foreign exchange. According to my information STIL is earning more than 30 million US $ foreign exchange, and 90 % of the products have been exported while 10 % are sent to the major cities in Pakistan. And this 10 %, which is sent to local market, has a very good reputation in Pakistani market.
There is no doubt that STIL is one of the leading companies in textile export in Pakistan, but they achieve this position after many years of hard work and entering efforts. One thing that I want to discuss here is that the wordings of the STIL, s chief executive to all the managers and employees that, “ do work as that the whole company depends on you” and CEO gives proper attention to all employees of the STIL.
During my intern ship in concluded that the following factors contribute in the success and popularity of STIL. These factors are as follows.
The first thing which count in the success of every organization is the environment of the organization, during my internship one thing which inspires me is the friendly environment of STIL. The behavior of employees with each other and especially with juniors as well as with internees. The CEO of STIL daily visits the all department and personally knows about the work progress and difficulties during working of the employees. Here one concept arises that the employees feed proud when they meet with CEO and directly convey their problems to CEO.
In STIL there is a modern and sophisticated processing plant consisting of singeing, shearing, continues bleaching, dyeing, mercerizing and calendaring both normal and friction. Printing department is equipped with two rotary printing installations from J-Zimmer Austria, having all modern arrangements to handle cotton and polycotton fabrics. It can produce printed fabric up to 280 cm finished width in maximum of 8 colored designs.
The presence of centrally air-conditioned laboratory, all the machinery of laboratory is imported from foreign countries to ensure the quality of the product according to the standards set by the customers. The laboratory is playing its key role in all the departments in providing 100 % correct result in all fields of processing department. The entire production department cannot work properly with out the presence of laboratory. Definitely the laboratory is the backbone of Sitara textile.
An other factor that counts much in the success of STIL is the strict rules and regulations of the organization. The credit of this goes to the human resource department. The management and the employees have to abide by these rules and regulation in every circumstance. The shifting time, Lunchtime and the HR department very strictly observes closing time.
The most important factor is customer satisfaction. The satisfaction of customer is the priority of STIL’s management. The STIL producing good quality products and exported 90 % of there products. I noted during my internship that proper care is given to the export quality cloth during processing so that the customer must be satisfied with the quality, which he receives from STIL. The bleaching dyeing, printing, finishing even packing of export quality cloth is done taking in to consideration the requirements and demands of the foreign parties concerned.
One thing that is the positive point for inexperienced persons that STIL offers variety of training programs for the peoples coming from different institutions and fields. In the entire department the peoples from different institutions and fields get proper training for the betterment of there future.
The last but not the least important factor is the introduction of the computer technology in all the departments. The computer system has increased the efficiency and effectiveness of work by decreasing work time, load and labor. STIL is not only arranged computer system in their organization but they also managed special short term training programs for the employees so that they can use the computer system properly.
During my internship I noted that the Sitara group of industries is a big group. The Sitara spinning is providing very fine quality yarn where as Sitara chemicals are producing fine export quality chemicals and these things are necessary for the textile industry. Sitara textile gets the yarn and chemicals from these units and thus they have assured the continues supply of these and hence the shortage of yarn or unavailability of chemicals like problems have been totally terminate by Sitara textile and this is the apparent cause of their rapid success.
The other factor is the design studio of STIL. The designers of STIL are very skilled persons and they are expert in there fields. The design store is producing very good, innovative and unmatched designs, which really play important role in popularity and acceptance of Sitar’s products. AZIZ FATIMA TRUST HOSPITAL is one of the prominent health institutions in Faisalabad, which provides medical relief to the poor and needy. It is run by donations of Sitara Group of Industries. The Hospital is equipped with latest medical fixtures, equipment and instruments. It has almost all of the necessary departments such as Medical, Endoscopies, Haemodialysis, CCU, Neurology, Radiology, Pathology, Pediatrics, Gynecology, Urology, Eyes, and ENTand Orthopedic. It has highly qualified and experienced doctors, specialists and other pera medical and administrative staff. GHAFOOR BASHR CHILDREN AND MATERNITY HOSPITAL This hospital has two operation theaters, recovery room, labour room and an I.C.U. Hospital Pediatric, Pathology, Radiology and Anesthesia Departments situated in a very beautiful building equipped with all modern facilities.
AZIZ FATIMA GIRLS HIGH SCHOOL This school is situated in Gulshan-e-Eqbal to provide quality education at doorstep to the girls residing in this area. It has highly qualified and trained teachers. School has just started its first educational year.
Sitara textile industry also provides residential facility to their employees, for this purpose they have a Sitara colony, which is situated, at the rare site of the textile. The residential facility is available for both the employees and trainees living out side the city. The employees have to pay very small amount as fare where as this facility is free for the trainees.
REFERENCES & SOURCES
MR.MUHAMMAD AWAIS G.M.EXPORTS (MARKETING)
MR.NASRULLAH DY.MANAGER EXPORTS
CH.MUHAMMAD SALEEM PERSONNAL MANAGER
SOURCES
www.sitara textile.com
