8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
1/36
Fan Industry of Pakistan
Presented By;
Yousuf Hatim (SP08-BB-0137)Murtaza Asgher Ali (SP08-BB-0083)
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
2/36
Agenda
Introduction
Historical Background
Figurative overview
Variety Of Products
Division Of Units
Raw materials
Manufacturing Process
Major Companies
Average Prices Exports
Pakistans Share in worldExports
Regulatory Body &institutions
Linkages
Importance of fans
Increasing demand
Manufacturers viewpoint
Governments roles
SWOT analysis
Problems Recommendations
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
3/36
What are Fans?
A fan is a device used to agitate or move air or gas;it can be categorized into four distinct types:
Centrifugal
Propeller
Axial Flow Mixed Flow
Domestic Fan
The fans that consume less than 125 watts of energy.
Industrial Fan
The fan that consume over 125 watts of energy.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
4/36
Introduction
The fan industry is mainly clustered in thefour major cities namely, Gujrat, Gujranwala,Lahore and Karachi.
The industry belongs to the light engineeringindustry category, and is one of the industries
that existed at the time of independence.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
5/36
Introduction
Around 40% of the total sales are five largefirms in Gujrat and two in Gujranwala.
Fan industry is producing about seven 7million fans per annum. Out of the totalproduction, approximately 30% fans consist
of pedestals, 7 % brackets and the remaining63% are ceiling fans.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
6/36
Historical Background
Electric Fan was invented in 1886 by Schulyer Wheeler.
Before partition in 1944, fan manufacturing was started by M/sS.A Fans in Gujrat.
In 1950s, it was declared as cottage industry and its more than50% units still fall in this category.
In 1992-93, only 200,000 fans were exported to Iraq and Yemen.
In 1999, 3 million fans were produced from which 50,000 wereexported.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
7/36
Figurative Overview
2000-01 2005-06
Installed capacity 5-6 million fan / year 7 million fan / year
Capacity utilization 50% 80%
Total production 2.5-3 million fan/year 5.6 million fan / year
Direct Employment25000 people
30,000 people
Indirect Employment 40,000 people
Annual Revenue Rs. 2.25-2.7 billion Rs. 5.25 billion
Exports US $3.89 million US $16.66 million
Imports - US $160,000
GDP Contribution Rs. 1.5 billion -
Capital investment - Rs. 5 billion
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
8/36
Variety Of Products
The industry is producinga variety of products indifferent sizes and designs, these are:
Ceiling
Pedestal Table
Table-cum-pedestal fans
Circumatic fans
Wall bracket
Exhaust fans
Propellers
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
9/36
Ceiling Fan
Bracket Fan
Industrial Fans
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
10/36
Louvre Fans
Exhaust Fans
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
11/36
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
12/36
Division Of UnitsSmall Scale Units
Units 450
Project Cost Rs. 0.5-1.0 Mn
Employment 20-25
Production 2,000-10,000
Revenue Generated Rs. 2.0-5.0 Mn
Medium Scale Units
Units 50
Project Cost Rs. 10-20 Mn
Employment 60-80
Production 20,000-60,000
Revenue Generated Rs. 150-250 Mn
Large Scale Manufacturing
Units 8
Project Cost Rs. 250-350 Mn
Employment 200-300
Production 60,000-250,000
Revenue Generated Rs. 150-250 Mn
Vendors
Units 1000
Project Cost Rs. 0.45-1 million
Employment 5-20
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
13/36
RawMaterials Used In Production
Some of the rawmaterials used in the
manufacturingof a fan are:
Electric steel sheets
Aluminium
Copper wire
Ball bearing
Steel rod PVC
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
14/36
ManufacturingProcessBody Plate ofAluminum
Tooling &Turning
Drilling
Rotor Stator
Tooling &Grinding
Winding
Axle Fitting
Fitting of RotorStator in Body
& Nakka
Painting
Checking
AluminumBlades
Store
Painting
Pressing ByDies
Fitting ofBlade Carrier
Packing &Checking
Fitting &Assembling
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
15/36
Major Electric Fan Companies
BRAND NAME COMPANY
PAK FAN M/S Wahid Industries Limited, G.T. Road, Gujarat
G.F.C. FAN M /s General Fan Company(Pvt) Ltd, G.T. Road, Gujarat
YUNUS FAN M/s Younas Metal Works , G.T.Road, Gujarat
ROYAL FAN M/s Rafiq Engineering Industries (Pvt) Ltd, , G.T. Road,Gujarat
METRO FAN M/s Hi Tech Industries (Pvt) Ltd, , G.T. Road, Gujarat
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
16/36
Average Price (Rs)
2003 2007 2009Millat Fans Rs. 1625 Rs. 1850 Rs. 1900
Pak Fans Rs. 1470 Rs. 1750 Rs. 2050
Royal Fans Rs. 1563 Rs. 1650 Rs. 1850
Younas Fans Rs. 1512 Rs. 1600 Rs. 1825
Parwaz Fans Rs. 1391 Rs. 1600 Rs. 1850
G.F.C Fans Rs. 1282 Rs. 1600 Rs. 1850
Average Price Rs. 1474 Rs. 1675 Rs. 1890
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
17/36
Exports
0
510
15
20
25
3035
40
45
50
Exports (US$ million)
2003-04
2004-05
2005-06
Year Exports (US$ Million)
2003-2004 11.8
2004-2005 14.2
2005-2006 16.66
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
18/36
Pakistans Share In TheWorlds Exports
EXPORT OF INDUSTRIAL FANSCountry Shares
Pakistan 0.02%
France 2%
Netherlands 3%
Sweden 3%
Korea 1%
Canada 5%
Uk 4%
Italy 9%
Usa 14%
Japan 19%
Germany 33%
Taiwan 7%
EXPORT OF DOMESTIC FANS
Country Shares
Pakistan 0.1%
Singapore 1%
Uk 1%
Taiwan 20%
China 44%
Thailand 6%
Germany 5%
Usa 3%
Italy 2%
Spain 2%
Japan 2%
Other 13%
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
19/36
Regulatory Body &
Institutions
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
20/36
PEFMA
Pakistan Electric Fans Manufacturers Association. PEFMA was incorporated under the companies ordinance 1984
on 12th December, 1989.
The area of operation covers the whole of Pakistan includingAzad Jammu & Kashmir.
There are about 148 registered members
PEFMA was providing the following facilities to its members.
Quality Awareness seminars
Information provision regarding the international trade fairs
Arrangement of trade delegations through TDAP
Settlement of disputes among members
Meeting platform to conduct meetings with several stakeholders
Organize courses regarding technical education with FDI
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
21/36
Fan Development Institute (FDI)
FDI was established in Gujrat in 2001 by thejoint efforts of Trade Development Authorityof Pakistan (TDAP) and the Ministry of
Science & Technology (MOST).
The institute possesses the role of Training
Centre for the fan industry and also fulfils thelaboratory testing requirements of theindustry.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
22/36
Gujrat Fan Cluster
In collaboration with Ministry ofScience &
Technology (MOST) and Pakistan Electric Fan
Manufacturers Association (PEFMA).
In
November 2001
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
23/36
Others
OtherInstitutions are;
Chamber of Commerce & Industry, Gujrat (GtCCI) Banks /Financial Institutions
Small and Medium Enterprise DevelopmentAuthority (SMEDA) Trade Development Authority of Pakistan (TDAP) Technical Educational and Vocational Training
Authority (TEVTA)
Punjab Small Industries Corporation (PSIC) Pakistan Council for Scientific & Industrial Research
(PCSIR) Pakistan Standard Institution (PSI)
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
24/36
Linkages
Backward Linkages
Steel industry
Wire manufacturing
Ball Bearing
Paint industry
Plastic industry
Transportation
Labor
Forward Linkages
Machine manufacturing
Construction industry
Air conditions
Exports
Banks & financialinstitutions
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
25/36
Importance of Fans
Made life comfortable Avoid mosquitoes Improvement in hygiene Enhance the energy I
mprovement in educational environment Used in cars for cooling Ventilation Cheaper product Consumes low energy
More use in rural areas; (60% are used in rural areas) Air condition is expensive Used in different industries
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
26/36
IncreasingDemand
Due to increase in population
Migration of people towards big cities
Increase in exports
Local demand for quality product isincreasing
Climate of Pakistan
People are becoming quality conscious Per capita income is increasing
Electricity projects in rural areas
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
27/36
Manufacturers Viewpoint
Fan manufacturers have enhanced the prices offans by 20 per cent due to a 100 percent increasein raw material prices.
Manufacturers could not afford to continue the policyof lifetime guarantee in the wake of continuous hikein input prices.
The exporters of fans and allied goods could not
survive if they do not have sufficient stocks ofimported raw materials as well as finished goods soas to fulfill the demand of the domestic as well asinternational buyers.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
28/36
Governments Role
To avoid the mis-declaration, accommodate theinputs of industry and to facilitate the capital goodsindustry around 96 new tariff lines have beencreated.
The duties on imports have been cut down to 0%,5%, and 10% from 5-25 percent.
Provides every opportunity to the businessmen toparticipate in various international fairs and helpsthem to move forward
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
29/36
SWOTAnalysis
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
30/36
Strengths
Presence of large manufacturers;
Fan product: durability & performance;
Availability of raw material; Presence of specialized vendor industry;
Local machinery manufacturers;
Presence of Fan DevelopmentI
nstitute.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
31/36
Weaknesses
Lack of proper marketing techniques; Low marketing budget; Old technology; High wastages; Monopoly of raw material providers; Non-standardization of parts; Exploitation by the distributors & retailers; Labor not trained from any technical training institute;
Less technical assistance available; Low working capital; Load shedding of Electricity & Natural Gas during the
peak manufacturing season.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
32/36
Opportunities Threats
New and unexploredinternational markets;
Unutilized productioncapacity;
Product/materialdiversification.
Quality standards andcertifications;
Competitions withinternational manufacturers
like China & other countries;
Fan products more lightweight, less priced,attractive;
Dependency onI
mportedraw material.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
33/36
Problems The competitive products in the international market
were light weight, plastic bodied, attractive and lowpriced.
The immediate concern of small manufacturers was theproblem associated with the Distribution channel,
especially in the domestic market.
The labor is not trained from any technical institute, andthe seasonality effect had also reduced the productivityand efficiency of labor.
Most of the small & medium manufacturers were usingold technologies in their production facilities, which wasa major reason for increased costs and lowerproductivity.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
34/36
Problems (cont..)
Role of PEFMA as a representative body of Gujrat fanmanufacturers had been largely diminished over thepassage of time. The association was hardly meeting itsexpenditures because of having no other source ofincome.
Late dissemination of information and palming only theselected few were the usual dissatisfaction remarksabout GCCI.
The need of a specialized industrial estate washighlighted during the interactions. The entrepreneurseven exhibited keen intentions to invest for the purpose.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
35/36
Recommendations
Provision of Fan market information (Local & International).
Exposure visits of potential markets.
Participation in Trade fairs/exhibitions.
Advertisement at network level (Local).
Seminars on Quality standards..
Awareness workshops on training.
Strengthening of the role of FDI: meeting platform; introduction ofcustomized training courses.
Seminar on increase in productivity level through technology up-gradation synergies.
Meetings with stakeholders to solve financial problems linked with
procurement of more expensive technologies. Domestic market exploration on Industrial fans usage.
Information provision regarding the World trade on various types offans with different materials.
8/8/2019 Presentation - Fan Industry of Pakistan - A Critical Analysis
36/36
THANKYOU