18232244 Feasibility Plan

8/8/2019 18232244 Feasibility Plan

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SWOT ANALYSIS



INTRODUCTION

• Inaugurated in 1959• Founded by Haji Bashir Ahmed & Haji

Abdul Gaffur

• Deals in

Textile Chemical

Energy

Health

Education sectors



SITARA AN EXCLUSIVE BRAND

Market leaderPakistan’s primary exporter



SITARA GROUP OFCOMPANIES

COMMERCIAL PROJECT• Sitara Textiles Industries Ltd.

• Sitara Chemicals Industries Ltd,

• Sitara Energy Ltd,

• Sitara Fabrics• Sitara Chemical(Spinning Units 1&2)

• Sitara Peroxide Ltd.

WELFARE PROJECTS

• Aziz Fatimah Trust Hospital• Ghafoor Bashir Children Hospital

• Aziz Fatimah Girls modal Collage



MEMBERSHIP

• All Pakistan Textile Mills Association• Pakistan Cotton Fashion Apparel Manufacturers

& Exporters Association

• All Pakistan Bed sheets & UpholsteryManufacturers Association

• Karachi Cotton Association• Chamber of Commerce & Industry, Faisalabad

• All Pakistan Textile Processing Mills Association



CERTIFICATION

• ISO 9001-2000• ISO 14000

BUYERS

USA, Canada, Australia, NewZealand, Europe, South Africa,Scandinavia and South America.







BANKERS

• Allied Bank of Pakistan• Faysal Bank Limited

• Bank Al-Falah Limited

• The Bank of Punjab

• Meezan Bank • Al-Baraka Islamic Bank B.S.C(E.C)

• Soneri Bank Limited



PROCESSING

• Spinning• Weaving

• Printing

• Design studio

• Stitching

• Quality control



DRESS MATERIAL

WOMEN'SRANGE• Sitara Sapna Lawn• Sitara Supreme Lawn• Mughal-e-Azam Summer Collection• Sitara Supreme Linen• Sapna Linen• Mughal-e-Azam Winter Collection• Sapna Cambric( White & dyed)

MEN'S RANGE• Sitara Mughal-e-Azam Latha• Sitara Universal Latha

• Sitara Swiss Gold Latha• Sitara Sapna Latha,• Sapna Cambric• KT2000• Sitara Popline



HOME TEXTILE

• Bed Linen• Tablelinen

• Kitchen Coordinates

• Curtains/ Valances

• Fabrics



OUR VISIT TO SITARA























SWOT ANALYSIS

A SWOT analysis is a datagathering tool to help analyze where anorganization is fundamentally healthy /unhealthy.



SWOT ANALYSIS

SW PART• Company culture & image• Organizational structure & Key staff • Position on the experience curve• Operational efficiency & capacity• Brand awareness

• Market share• Financial resources

OT PART• Customers & Competitors• Market trends

• Social changes• New technology• Economic environment• Political and regulatory environment



STRENGTHS

1. BRAND DIVERSITY variety of different seasonal

branded fabrics, extensive range

of sensational colors, seasonal collections





3. INSTALLATION OF LATEST MACHINERY

• looms comprising of auto, shuttle less air

jet looms.• Printing Machines capable of printing 16

colors

• latest CAD/CAM designing hardware and

software• Latest automatic and manual sewing

machines.



4. EXPERIENCED HUMAN RESOURCE

5. OPERATIONAL EXPERTISE

Spinning started the spinning unit in 1988, 35,984 Spindles.

Weaving

big portfolio of looms comprising of auto, shuttle less

air jet, facility of weaving all kinds of fabrics width

36-153 inches.



Printing

Printing Machines is capable of printing 16 colors on fabric up to a widthof 3200mm

Designing

This department is equipped withlatest CAD/CAM designing hardware and

software.

Stitching

To accommodate the demand of its

state of the art made-ups, produces 3million made-u sets er ear



WEAKNESSES

1-Labor TurnoverLabor turnover is the major

weakness hold by Sitara Textile. Howevera larger number of highly skilled

workforces are working there but theturnover ratio is very high.



2-BOARD OF DIRECTORS

Sitara textile has sevenBoard of Directors but only threemembers are actively taking part indecision making and management.Consequently it is becoming the

weakness for organization and increasethe possibility of nepotism and favoritisminside organization.



3-MANAGEMENT

Sitara Textile is however themarket leadrer in textile sector is but stillit’s facing the crucial problems regardingtheir environment. They have

decentralized system in the organizationwhich affects the relationship betweenmanagement and employees.



OPPORTUNITIES

• ALTERNATIVE FUEL OPTION

Gas can be used as fuel to run the

steam boiler. Cost would be reduced from Rs.1to Rs.8 to process one kg of fabric

QUOTAS AND IMPORT TERIFFS Quatas are being phased out

Teriffs reduced to minimum limits

ADVANCE TECHNOLOGY:

Installation of power looms



RAW MATERIAL MECHANICS• Cotton Rich Country

• Availabilty of raw material in Faisalabad

FINANCIAL SECTOR

CHEAP LABOR

RELATED DIVERSIFICATION



THREATS

• Increases in domesticcompetition

• Increases in foreign

competition



THREATS

• Few barriers to entry

• Price wars with competitors



• Taxation is introduced on yourproduct or service

• A new competitor enter in your

home market



• Competitors increase activitiesin foreign market

• Competitors have superioraccess to channels of

distribution



• The Industrialization of thedistrict may affect ecology andenvironment of the district:



FEASIBILITY REPORT FOR



EXECUTIVE SUMMARY

• Textile industry is the largest sector of Pakistan economy. It plays a major role instrengthening the economy and alsocontributing a lion share in earning of muchneeded foreign exchange for the national

exchequer.• From the year 2005, there will be no quota

restrictions for textile products exportingcountries like Pakistan.

• High quality processing of fabric is vital for the

production of value added items. Dyed fabricis the basic raw material for manufacturing of value added products like readymadegarments, bed sheets, curtains, towels,canvas, etc.



EXECUTIVE SUMMARY • Due to capital intensive nature of dyeing and

finishing units, the number of yarn and fabricprocessing units established in Pakistan are notsufficient to cater to the growing demand of dyedfabric. Presently, there are 600 processing unitsworking in the country. 5% of these units are partof integrated mills, while the rest of the units are

independent commercial processing units.Majority of these units have old machineryproducing low quality and high production costdue to old technology. The new entrants in theprocessing industry would have competitive edge

over their rivals by having low production cost byusing advanced machinery and latest technology.• The total project cost for setting up a knitted

fabric processing unit has been estimated atRs.50 million. It includes land, building, plant andmachinery, furniture & fixtures, office equipment,vehicles, preliminary expenses and working



EXECUTIVE SUMMARY

• The project shall be financed throughequity contribution by the investor tothe extent of 50% and the remaining50% by a long term bank loan. The re-payment of loan shall be in 5 yearscommencing six months after thedisbursement. The markup on loan shallbe 16% per annum.

• Based on the projected financial

statements, the returns on the projectare satisfactory. Financial analysis of the project is as follows:

• Project cost= Rs.50 million



BUSINESS CONCEPT

VENTUR DEFINE

NAME OF THE COMPANY Smart Fabrication Inc.

DATE OF ESTABLISHMENT Aug 2006

STATUS OF THE COMPANY Company

HEAD OFFICES Sargodha Road,Faisalabad Pakistan



BUSINESS CONCEPT

PURPOSE OF THE FABRIC DYEING &FINISHING UNIT

• earning of foreign exchange for country

• cooperation among companies of the textiles



VISION

Binding us to commitment

Achieve worldwide, preferred supplier statusin each product by:

Supplying superior quality products, servicesand value to our customers. Practicing TQMthroughout the company. TQM is foundedupon continuous process improvement and

total employee improvement regardless of race color, religion, sex, age or nationalorigin. Being recognized as a leader by ourcustomers, employees, suppliers andcommunity in our contributions to society

and the environment.



MISSION

Binding us to commitment

To be the preferred supplier of dyed fabric

and related products by providing world-class quality products and services to ourcustomers. The mission is to enhance thecompetitiveness of the Pakistani TextileIndustry, from dying, through fabricatedproducts and retail, by implementing supplychain management to develop collaborativebusiness improvement programs which linkthe resources of government and industry.



AIMS & OBJECTIVES

• Customer Focus

• Management Leadership

•Associate Involvement• Team Empowerment

• Continuous Process Improvement

• Supplier Relations• Environmental Responsibility

• Safety & Health Responsibility



MARKET CHARACTERISTICS

Textile sector-future direction

• Textile is the largest sector andbackbone of Pakistan economy

•contributes more than 60% to the totalexport earnings

•accounts for 46% of the totalmanufacturing

• 8.5% of total GDP and providesemployment to 38% of the manufacturinglabor force of the country



FABRIC PROCESSING

• 600 processing units presentlyworking in Pakistan

• 394 units are woven fabric

processing units• 206 units can be further

subdivided into knit fabric and yarn

processing units



PRODUCT CONCEPT

We produce bleached and dyed fabric in avariety of seasonal quality and attractive

color, serving as a key element in themanufacturing of value added products

SERVICEMARK

PRODUCTS



PRODUCT FEATURES• high quality of 100% cotton and blended

fabric

• Available in colors as per customerrequirement

• Serves as a basic material for textilemade-ups

• Key element for increasing exports of garments and textile made- ups

• Product mix ranges from light to heavy,narrow to wider width, plain, texturedfabric

• Available at negotiable prices





MARKET RESEARCH ANDANALYSIS• Primary Research

Industry Visit

Across the Taxtile Value Chain

Brain Storming Session

Questionnaire• Secondary Research

Journals on Textiles

Local Publications

TARGET MARKETPrinting And Finishing Industry

End Customers



POTENTIAL CUSTOMERS• LOCAL LEVEL

Population of Faisalabad is 2,386,000Growth rate is 3.1

512 weaving units in Faisalabad

POTENTIAL CUSTOMERS INCLUDE

Allied Hospital, Polly ClinicNishat Textile Mill, Faisalabad

Masood Textile Mill, Faisalabad

Ahmad Textile Mills, Faisalabad

• INTERNATIONAL LEVELExports are 8.3 billion annually

More than 25% exports comprises of blended fabrics

S



MARKETS

• UNBLEACHED FABRIC

40% fabric export from pakistan without

procssing

15% share of global unbleached fabric

• BLEACHED FABRIC 15% exprot from Pakistan

• DYED FABRIC Exports of dyed fabric are US $ 364 million

Exports markets includes

U.S.A, Germany, Hongkong, UK

Srilanka, Bangladesh, Turkey



• INDUSTRY GROWTH

124 units are large fabric unit, 425 aresmall weaving units

The production of the independent weavingunits increased to 1.87 billion sq.m, registering anincrease of 160% over a period of ten years.



COMPETITORS Islam Textile Mill, Sitara textile Mill, Crescent Mill

COMPETITIVE EDGE OF THESE MILLS• They use skilled and technical staff.

• Their reprocessing cost of fabric is controlled to limit therepetition of dyeing process.

• Continuous efforts made for marketing and up-gradation

of the technology.• Use of quality dyes and chemicals for quality results and

satisfaction of the customers.

How Can We Compete Them• Upgrade technology, render the control of dyes and

chemical more appropriate.• Improve colour-adjusting technology.

• Improve systems for preliminary inspection of materials (fabrics).

• Change dyeing machinery and dyeing methods

(dyeing at conditions of low tension).

PRICING SYSTEM



PRICING SYSTEM

Product Mix For Fabric Dying Kg Sale Rate/Kg

(Rs)

Fabric Bleached 1,280 40

51,200

Fabric Dyed 1,920207,840

Breakup of Dyed

Light Color 480 9043,200

Medium Color 384 10038,400

Dark Color 576 11566,240

Extra Dark Color 480 12560,00

Bulk Purchase



MARKET PLAN

1. METHODS OF DISTRIBUTION Wholesale

Franchises

Consultants/ Intermerdiaries

2. PROMTION National Newspapers

Seminars

Brochures

Sampling



3. WARRANTIES After sale services and

warranties if

The fabric is shrinked after washing it

The color of fabric became fade The quality of fabric or cloth is not up to the

standard



MANUFACTURING PLAN

PROCESS FLOW2. Inspection Of Grey Fabric

3. Lot Making/ Shearing

4. Singe And Desize

5. Scouring6. Bleaching

7. Dyeing

8. Hydro Extractor

9. Vertical Dryer10. Tumbling

11. Calendaring

12. Quality Control

13. Packing

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PROCESSING CAPACITY

This project has thecapacity of processing 1,200 kg. Fabricand normally it will take 9 hours tocomplete one batch of fabric dyeing. Asthere are 24 hours in a day, thereforethis unit will be completing 2.67 batchesof 3,200 kg fabric processing in one day.



G



BUILDING

• Production hall =3,937,500

• Store rooms =

1,496,250• Boiler room =315,000

• Admin Department =

1,125,000

• Toilet/washroom =135,000

• Drive ways and pavements =

PLANT & MACHINERY



PLANT & MACHINERY

•(3) Scouring, Bleaching and DyeingMachines(Imported) Capacity of 400 kg=

20,847,600• (2) Hydro Extractors (Local)=

400,000• (3) Tumblers (Local)=

750,000• (1) Calendaring Machine (Imported)=

1,800,000• (1) Inspection Machine (Local)=

100,000• (1) Razing Machine (Imported)=

900,000• Lifting Crane (Local)=250,000

• Boiler - 3 Tons Steam =3,000,000

• Air Compressor Pressure 5-7 Bars=

1,020,000• =



• FUEL Steam boiler will run on gas

because there would be tremendoussaving in cost by running the boiler on

gas.

• WEAVING TECHNOLOGY

shuttle-less weaving.



HUMAN RESOURCE



HUMAN RESOURCEREQUIREMENTS

• PRODUCTION STAFF• ADMINISTRATIVE STAFF

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• INSURANCE On yearly basis

Group insurance of Rs200,000

CERTIFICATION After the installation of the

steam boiler, a certificate is be obtainedfrom the Chief Inspector Boiler Punjabwho will visit the place of the boiler andinspect the condition of the boiler



ENTREPRENEURIAL



ENTREPRENEURIALTEAM

• Chartered Accountant in Bank forthree years.

• marketing manager for five years

in a fabric-manufacturing mill.• HR manager in fabric dyeing millfor seven years

• quality control Manager in Leathermill.

• Managing Director of a Textile Millfor the past six years



FINANCIALDOCUMENTATION

AN OVERVIEW



AN OVERVIEW

BREAK EVEN POINT



BREAK EVEN POINT

NO. OF UNIT PRODUCED PER MONTH = 3200

NO. OF UNIT PRODUCED IN A YEAR = 1152000

INCOME STATEMENT



INCOME STATEMENT

BALANCE SHEET



BALANCE SHEET

18232244 Feasibility Plan

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