interloop ltd (pd)

EXECUTIVE SUMMARY

Consistent with company’s goal of being the most respected manufacturing

company, and its corporate philosophy which emphasizes shared responsibility to the

communities where we live and work, Interloop strives to join its partners in addressing

community challenges through honest, constructive and meaningful dialogue.

In Pakistan, Interloop has been, and continues to be energetic in its support for

projects and initiatives that seek to develop the community. Be it through its

philanthropic arm ‘the interloop Foundation,’ or through timely transfer of expertise

particularly in areas related to the advancement of the international textile sector and

employee volunteerism, interloop remains committed to making a difference.

From 2001 to 2010, interloop developing industry-leading initiatives and delivered best-

in-class programs, products, and services to our partners and the communities they serve.

In 2008 the president of Pakistan gave the best exporter trophy award.

Company is targeting the USA and UK markets and they are producing the

variety of socks. The merchandising department plays a vital role in the company. They

work just like a bridge between the buyer and seller. They have an excellent HR

department which improve the intellectual, emotional and social capital of its employees.

They are fulfilling the corporate social responsibility by giving the aids to the

IDP’s of floods and earth quake. Their imports and exports departments control all the

shipment activities. Processing and finishing departments support them to convert the raw

material into finishing products. Just like the other companies Interloop LTD is also

facing the political, economical, social and technological problems. Interloop LTD has

many opportunities to be more successful in the future but some threats may also affect

them like political instability and electricity load shedding in Pakistan.

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Introduction of industrial sector

All Pakistan Textile Mills Association (APTMA) is the premier national trade

association of the textile spinning, weaving, and composite mills representing the

organized sector in Pakistan. APTMA emerges as the largest association of the country as

it represents 396 textile mills out of which 315 are spinning, 44 weaving and 37

composite units. These spinning mills have production facilities of texturing, mercerizing

and dyeing of yarns; weaving mills have sizeable number of air-jet looms, and the

composite mills have manufacturing facilities from spinning to finished textile products

under one roof. The total installed capacity of APTMA member mills accounts for

9,661,366 spindles, 61,608 rotors, 10,452 Shuttleless/Airjet Looms and 1897

conventional looms. The Association's members produce spun and open-end yarn, grey,

printed dyed fabrics and bed linen.

The role of APTMA

As per charter and by-laws, aims and objectives of the Association are;

1. To encourage friendly feeling and unanimity amongst Textile Mill owners on all

subjects connected with their common good.

2. To secure good relations between members of the Association.

3. To promote and protect the trade commerce and manufactures of Pakistan in general

and of the cotton trade in particular.

4. To consider questions connected with the trade commerce and manufactures of its

members.

5. To collect and circulate statistics & information classify relating to the trade,

commerce and manufactures of its members.

6. To take all steps which may be necessary for promoting, supporting or opposing

legislative and other measures affecting the trade, commerce or manufactures of its

members.

7. To make representation to local, Provincial and Central authorities on any matter

connected with the trade, commerce and manufactures of its members.

8. To arbitrate in the settlement of disputes arising out of transactions, piece goods, yarn

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and other manufactured goods between parties willing or agreeing to submit to arbitration

in accordance with the Arbitration Rules of the Association.

9. To advance and promote commercial and technical education connected with the trade

and Commerce of its members.

10. To undertake special inquiries and initiate or support any action for securing the

redress of legitimate grievances connected with the trade or commerce of its members.

11. To take any action which may be conducive to the extension of the trade and

commerce of its members or incidental to the attainment of this object?

12. To subscribe, to become a member of and cooperate with any other Association

whether incorporated or not whose objects are altogether or in part similar to those of the

Association and to procure from or communicate to any such Association such

information as may be likely to forward the objects of this Association

13. To establish or aid in the establishment of funds to benefit employees of the

Association or the depending of such persons and to subscribe, donate or guarantee

money for charitable or benevolent purposes at the discretion of the Association.

14. To regulate conditions of employment in the industry conducted or carried on by its

members.

15. And generally to do all that may be necessary in the interest of the realization of the

above objects of the Association directly or indirectly

The Organization

Principal Office is located at Karachi and Regional Offices are at Karachi, Lahore

and Peshawar. The Principal Office functions under the administrative control of the

Chairman and Central Executive Committee. It deals with the affairs connected with

textile trade and industry effecting members relating to Federal Government, whereas

matters concerning Provincial Governments are dealt by the Regional Offices under the

direction of Regional Chairmen.

The Chairman and Vice-Chairmen from Regional Offices are elected by the members

annually and are charged with implementing the policies and program directives decided

by the Central Executive Committees. The Chief Operating Officer and Secretaries are

responsible for carrying out day-to-day affairs and programs of the Association. The

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Central Executive Committee continuously reviews the policies and programs of the

Association and establishes priorities accordingly.

Statistical and Economic Information

The Association collects and compiles statistical and economic data on the textile

industry mostly from a number of government sources and publishes Chairman's Annual

Review to keep Association members and other sectors related to the industry fully

informed about production and marketing trends in Pakistan and world. In addition,

special reports are developed periodically on specific subjects at the request of the

various committees and government agencies.

The annual general meeting of the Association held each September is an

important component of APTMA's total program. Through this vehicle, industry

members come to know each other's issues/problems and have time to asses industry

trendsin an atmosphere part from day to day operations. APTMA's activities and specific

areas of interest are addressed through its Standing Committees, chaired by an industry

executive.

Membership

APTMA membership consists of partnerships and or individual proprietorships,

which operate machinery for spinning, dyeing, texturizing, twisting, or otherwise

processing of yarn, thread, or cordage, grey, printed and printed cloth and made ups for

sale.

The expenses of maintaining APTMA's professional staff and offices are met from the

annual subscriptions and services provided to members. APTMA Principal Offices is the

central administrative organization, but each member has its own offices and governing

board.

For information about Membership, Chief Operating Officer of APTMA, Principal

Office, can be contacted.

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INTERLOOP lies in the hosiery division that is why it is important to introduce PHMA

(Pakistan hosiery manufacture association). Hosiery is the sub-part of textile sector .

Pakistan Hosiery Manufacturers Association 

Pakistan Hosiery Manufacturers Association is the premier trade organization

representing the hosiery and knitwear industry accelerating and providing growth in all

sectors of the economy, generating immense employment and promoting national self

reliance.

Its history dates back to the year 1960 when Pakistan Hosiery Manufacturers

Association was established by a few dedicated industrialists and leading manufacturers

of hosiery and knitwear and registered with the ministry of commerce under section 26 of

the companies act 1913 on the 7th day of July 1960 and incorporated under the

companies act 1913 on the 31st day of august 1960 with the main object: "to promote,

develop, protect, stimulate and encourage the hosiery, knitwear and all made-ups, fabrics,

home textile products of cotton, wool, silk or man-made fibers and to raise the standard

of their production and enhance exports" among other aims & objects.

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Company profile

Interloop started out in 1992 with just 10 knitting machines, it has over 1400

machines and a workforce of 9500 now, and has transformed itself into SOUTH ASIA'S

largest sock manufacturer and exporter offering the highest quality socks at a level of

service unknown in our industry. It is located in Pakistan's Industrial hub Faisalabad; also

known as the "Manchester of Pakistan". Interloop is an integral part of this business

community, continuously striving to revolutionize business practices in this region.

Interloop is a complete vertical unit offering a wide range of price points and

needle counts and is on the cutting edge in terms of the latest technology for each

production process. They believe our success is due to a highly focused concentration on

quality and speedy turnaround; a combination which increases our customers' edge in a

highly competitive marketplace. In pursuance of our goal to achieve and maintain good

quality, Interloop has now set up a high-tech spinning unit that will ensure finest quality

yarn made from the best available natural cotton. This project will enhance the value of

money for their customers by offering rates that are even more competitive to our clients

Hard work and utmost commitment from its employees and management, strict

quality control measures, timely shipments and reliable service standards have been

paramount towards Interloop's phenomenal growth. It is one of the very few firms in

Pakistan with an impressive social responsibility portfolio, realizing that a commitment to

sustainability in all areas of commercial activity endorse the long-term interests of a

business.

Year Established : 1992

Total Area of Factory: 3,232,000 SQ FT

(300,000 SQ MTR)

Total Covered Area Hosiery Division - I: 495,600 SQ FT

( 46,059 SQ MTR)

Total Covered Area Hosiery Division - II: 634,530 SQ FT

(58,972 SQ MTR)

Total Covered Area Spinning Division: 325,000 SQ FT

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Capacity

Knitting per month 2.5 Million dozens

Dyeing per month 2.7 Million dozens

Packing per month 2.7 Million dozens

Minimum order qty 2,500 dozens( variable as per terms)

Minimum Lead time 45-60 days after approvalsShort lead time possible for repeats

Year 2003 2004 2005 2006 2007 2008 2009

Volume/Dozens 5,608,592 8,782,368 10,879,773 12,245,561 15,375,158 20,000,000 21,000,000

Growth 65% 57% 24% 13% 26% 30% 5%

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Certifications

Interloop complies with world's most demanding, quality and social standards.

WRAP

ISO 9001 REV 2000.

CTPAT.

OKEOTEX.100

SA-8000

ISO-14000

Not only the largest and finest quality sock manufacturer in South Asia,

INTERLOOP also has a huge and flexible production capacity that enables us to

offer a wide range of high quality socks in thousands of styles for all age groups.

INTERLOOP offers a wide range of socks in most needle categories, with

specialization in 108N, 120N, and 168N for Boys, Girls, Ladies and Men. Although

we feature cotton terry socks, we can offer products made with Coolmax, Cordura,

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merino wool, rayon, SORBTEK, Far Infra Red, polypropylene, acrylic, Tactel and

many other unique fibers.

Our broad variety includes a wide selection of sport and casual socks made from the

finest Pakistani cotton and many other natural and man-made yarns. All sport and casual

styles are featured including:

Walking

Running

Skiing

Tennis

Soccer

Hiking

They can provide our customers socks covering a broad spectrum including the finest

quality merino wool socks from special Australian wool to 3-D infants' socks using a

seamless toe closure

Vision statement

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"We will strive to be one of the leading players in the global hosiery business by

providing best value to our stakeholders through improving our processes to match best

international practices. We will diversify in to other fields."

Mission statement

To achieve our vision by having;

1 An organizational environment that our employees are our asset.

2 An environment that is cost effective and quality conscious.

3 Satisfying the stakeholders at national and international level.

4 "Quality" and "Time" conscious customer service by providing every type of

sock.

5 Sustained growth in earnings and profitability.

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SOCKS IDENTIFICATION

Many types of socks are produced in the Interloop. There are two ways to identify socks

o Fabric wise

o Style wise

Fabric Wise

o Plain / No Terry

o Rough Terry/ Normal Terry

o Sandwich Terry

Plain or No Terry

No loops are formed inside the socks. It is also called dress socks

Sandwich Terry

In this type of sock main yarn runs over platting yarn and under platting yarn

This becomes like

o Main yarn

o Platting yarn

o Main yarn

If we pick up yarn from outer side of socks, only main yarn will come out. Its outer

surface seems soft and good-looking. Two types of sinkers may by used during formation

of sandwich terry but it depends upon the terry types.

o Full Terry

o Half Terry

o Short Terry

o Long Terry

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Normal or Rough Terry:

In this sock, main yarn and platting yarn run side by side during the formation of Normal

or Rough terry. If we pick up yarn from outer side of socks, both main yarn and platting

yarns will come out. Its outer side seems rough and if we put it under ultra violet light, it

will glint or shine. The rough terry may also be half or full terry.

Style Wise Identification

Crew Socks

Quarter Socks

Dress Socks

Tube Socks

Low Cut Sock

No Show Socks

Football Socks

Ankle Socks

Arch Support Socks

Reverse Terry Socks

Miscellaneous Socks

Crew Socks

It is a complete socks and contains all parts of socks such as welt, long rib, ankle, heel

and foot etc. it is also called mid calf socks.

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Dress Socks

It is like crew socks but does not contain terry inside (loops).

The people normally dress in it. In this kind of socks, the portion below welt and above

heel is called leg.

Quarter Socks

It is also like crew socks but main difference is rib length. Its rib is short (up to quarter

length of crew) and rests of the parts are same like crew socks.

Tube Socks

Another style of sock is tube sock. This sock is like long tube. It does not contain any

type of heel and it is straight

like tube.

Ankle Sock

It is very common sock now a day particularly in ladies. The sock, which does not have

rib and wraps up to ankle of foot, is called ankle socks. The height of welt is from 2.5

cm-4 cm.

No Show Sock

The sock, which remains inside the shoes after wearing and is not visible out side, is

called no show. It is also more popular in ladies.

Football Sock

It contains long rib or leg portion normally over the calf, such kind of socks is called

football socks.

Arch Support Sock

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The elastic band, which is knitted in the socks normally at foot or ankle, is called ARCH

SUPPORT. The socks' having such elastic band is called Arch support socks.

Parts of socks

Welt

Rib

Ankle

Heel

Foot

Toe

Linking course

Clip

Tie down

Change over

Motif

Window

Stripe

Vale

Merchandising Department

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Merchandizing department is 1st department from where the business I started.

They work as a bridge between customer and organization.

They are responsible for all the communication like inquiry pricing order conformation

status about order delivery loading on vessel is done through this department.

Merchandising department is the back-bone of Interloop Limited. This department is the

family of highly educated and skilled persons, who have excellent communication and

working skills. They perform their duties from inquiry generation to the delivery of an

order.

Merchandising process is started from inquiry generation and by passing through

various processes, ends at the satisfaction of the end-user. Required qualities of a

merchandiser are good communication and negotiation skills, temperament and working

capability as a family member. Will to do work is the main requirement of the job.

They have two sections

1. American section (America, Canada, Australia

2. European section (England, France, Germany Italy Netherlands etc

Main customers of Interloop Ltd.

K MART

JCPENNEY

SEARS

PUMA

FILA

CALVIN KLEIN

GOLD TOE

WALMART

LEVI.S

REEBOOK

TARGET

DUNNES

There are certain responsibilities of the merchandiser

Marketing

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Communication with customer

Order confirmation

To get approval of sampling

Develop and approvals of accessories

Production supervision and follow-up

Trim card approval

Approval of proto samples

Order status our delay information forward to the customer

They connect the entire department with customer indirect

Merchandising Process:

Following are the Merchandising processes in Interloop Limited:

Inquiry Generation:

Business inquiry is generated by the customer, in which different certifications,

production and quality systems are discussed and after agreement between the customer

and the factory, product sampling detail sheet is delivered to the factory by the customer,

on the basis of these details product sample is produced.

Sampling:

Merchandiser puts the details of the product in Oracle based Production

management system; this form is called sampling request form. This form is delivered to

the sampling department through system generated mail. This detail covers the socks

type, fiber composition, fabric construction, color code and size of the socks.

Merchandiser receives the samples and checks it according to the customer’s given

specifications and sends it to the customer.

Purchase order:

After getting approval of the sample from the customer, he sends purchase order

sheet to the merchandiser, on the basis this purchase order and sampling data sheet from

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sampling department, merchandiser do the costing and negotiation with the customer is

done. After confirmation of price, capacity booking is done and delivery date is also

confirmed. Merchandiser gets the order through this purchase order, this purchase order

covers the price, quantity, colors and size of the socks.

Order Follow-up:

After the confirmation of the order, merchandiser enters the detail of the purchase

order in the order sheet form, this mail is delivered to the production planning department

and other departments, and price of the order is not mentioned in this system generated

mail.

Communication Process:

As production is in process communication with the customer is continued.

Sometimes we get information from the customer regarding any change in the packing

accessories and change in the production process. As merchandiser gets this information,

he delivers it to the concerned department and PPC.

Arrangement of Accessories:

All accessories to be used in the packing of socks .e.g. stripes, poly bag, UPC and

stickers, are arranged by the merchandiser, most of these accessories are imported, so

merchandiser is responsible to assure that these accessories should be available in time.

Keeping in view of the availability of these accessories delivery date is confirmed.

Delivery of the Order:

Merchandiser follows his order in production, to check quality and short fall.

Surprises are sudden, so he should keep in touch with the production about the current

status of the order. Surprises happen when delivery date is near, if any problem occurs

and it is knowledge of the merchandiser, he can communicate with the buyer timely on

the delivery date, if knowledge comes late, this can turn order to suffer. When order is

near to complete, merchandiser informs the export department to arrange container for it.

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After the delivery of the shipment to the buyer, merchandisers get L/C and

necessary documents and forward it to the export department.

Hierarchy of Merchandising department:

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Due to work load and number of customers, this department has two sections, first section deals with the USA based customers and the second-one deals with the European and Hong Kong based customers. Hierarchy is following:

Production Planning and Control (PPC) Department:

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Marketing Director/CEO

Marketing Manager USA

Marketing Manager Europe

Asst. Manager Merchandising

Sr. Officer Merchandising

Asst. Manager Merchandising

Asst. Officer Merchandising

Officer Merchandising

Asst. Manager Marketing

Sr. Officer Merchandising

Sr. Officer Marketing

Officer Merchandising

Officer Marketing

Asst. Officer Merchandising

Asst. Officer Marketing

Trainee Executive

Trainee Executive

Trainee Executive

PPC has a significant importance in Interloop Limited. Merchandiser has access

and link to the other department through PPC. Through mutual understanding and co-

ordination between merchandising and PPC order information is delivered to all

departments. Hence, PPC is a bridge between merchandiser and factory. Merchandiser

only gives the surface knowledge to PPC and PPC will explain each and everything to the

concerned department.

Responsibilities of PPC:

Main responsibilities of PPC are following:

Sampling of the product according to the customers specification.

Planning of the raw materials.

Planning of time and action plan.

Planning of accessories and cartons.

Deliver information of a purchase order to all the departments.

Ensure the on-time delivery of the order.

Trim card/ approved sample delivery to all departments.

Sub-Divisions of PPC:

In Interloop Limited PPC is divided into four sub-divisions, these are following:

1. Sampling

2. Planning

3. Work-order

4. Commercial

5. Designing

Sampling:

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Sampling is responsible for producing samples according to the buyer’s

specifications. Merchandiser sends sample request, through system generated mail,

sampling accept it or rejects it, after acceptance sampling sends detail to the merchandiser

about its availability, if they rejects it, then they also gives reasons of it. In absence of the

Research & Development Department, sampling department is doing the same job.

Sampling has 8 socks knitting machines in production hall, which is under observation of

a foreman.

Types of samples:

Presentation samples.

Sale-man’s sample.

Pre-production samples.

Shipment samples.

Presentation samples:

These samples are also called proto-type samples, these samples are made

according to buyer’s specifications. These are 4-16 in numbers according to buyers

demand in a single size.

Salesman’s sample:

These are shipped to the buyer after the approval of presentation samples. These

are made in all sizes, colors according to customer’s specification. These are 20-30

dozens in quantity. Customer pays the production of these samples, if order is not given.

Pre-production samples:

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These samples are made after getting purchase-order. Its quantity also varies

according to customer’s demand. These samples show that what will be the quality and

production of the product when it will be made in bulk quantity.

Shipment samples:

  These samples are sends to the buyer when a specific purchase order is being

shipped to the buyer. These samples show the picture of the bulk production.

Sampling department also gathers the information about its production/12 hrs,

dyeing recipe, sample reference number, in order to produce it when it is required.

Planning:

Merchandiser sends order sheet to the planning and work-order division. Planning

sub-division does planning e.g. quantity, production time, of the Purchase order (P/O)

and checks the availability of all the raw materials and then tells the merchandiser about

the arrival date of the raw material. If yarn is not available then it will ask commercial

sub-division to arrange it.

Work-order:

Work-order gets information from planning and compare this information with

the sample data sheet and further production planning is done and all the information is

sent to the other production departments e.g. knitting, toe closing, batch store, processing,

quality assurance, finishing, packing, export department. These sheets are named of the

concerned department like knitting plan, processing plan, toe closing plan, packing plan,

carton plan loading schedule.

Commercial:

Commercial department is responsible of arranging local accessories like cartons,

hangers, tag pins, imported yarns. Planning department tell them that the required yarn is

not available in yarn store, then commercial department confirms it from store and then

order it and give available date of the yarn.

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Designing department:

Designing department design the motif or a design to be knitted on the socks in-

house for local buyers and export customers also. It also make designs and knit it, so that

in future, if that type of design is already practiced  then there will be faced no difficulty

in re-producing that design. This department is working individually under supervision of

PPC department.

Co-ordination among Different Departments of Interloop Limited

23Customer

MerchandisingBoardingGreige Batch Store

ProcessingMain StoreProcessed Batch Store

Knitting

Production Planning and

ControlToe ClosingReversingTrimming Export Dept.Finished

Goods StorePackingQuality AssuranceHuman Resource AdministrationFinance/Accounts

Human Resource Department:

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In addition to being the leading Socks Manufacturing Organization in the

Country, Interloop is also a large scale employer. Presently, we have more than 8,000

people working for us. These people are supported by more than 400 executive officers

who are providing managerial input and guidance to them.

With such a large base of people, it is imperative to have a world class HR Function

which is able to harness the combined efforts of our people towards achieving excellence

in all aspect of our activities. The Human Resources department at Interloop is providing

precisely the support which the top team is looking for achieving this objective. Our HR

Team has the full capability to be an active business partner, a Change Agent, and an

employee advocate.

We have been able to recruit the best professionals who have taken the company to new

heights. Our HR philosophy is based on the belief that we can increase our overall

Human Capital by improving the following:

Intellectual Capital: Processes which will improve specialized knowledge, skills,

tacit knowledge, and imagination of our people.

Emotional Capital: Developing a culture which breeds self confidence,

ambition, and courage. Developing Leadership capabilities and encouraging team

based environment is an essential ingredient.

Social Capital: leveraging social contacts for business and personal gains,

strengthening networks of our people with outside world, trustworthiness, etc. are

the hallmark of this process.

We have a strong people development process which enables us to plan career paths for

our executives. It also helps us to identify areas of improvement for further training by

developing a gap analysis. The assessments are done continuously so that our people are

ready to face the ever increasing challenges of the corporate world.

As a part of our Values, we are constantly striving to transform Interloop into a more

"Caring & Sharing" Company. We believe that the success of a company comes through

its workers and have recently launched an initiative, known as "Project CARE" for this

purpose. This project is recognition of our people's performance & dedication towards

Interloop. Long Service Awards, supporting children education, integration of families

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through social activities, and guaranteed jobs for our long serving employees are some of

the salient features of this program.

Motivation in the Organization

Company provides incentive and different facilities to employees according to

their skill and education. Refresh resources are also providing them to improve their

skills to do work in the company according to the requirement. In this way employees can

work better for the Interloop

Our founder, Interloop, knew that our success as a company relied on our ability to

encourage innovative ideas and then support their development. At the Inter Loop, we not

only encourage the creative process, we manage it to produce the maximum return on our

investment.

Educate Inter Loop employees on the content of this Environmental Policy

Statement and encourage them to practice Environ mentality on the job and at home.

Help develop employee forums to identify new ways to advance Environ mentality and

recognize innovative and superior efforts

The company also motivate the employees by

Creating a friendly workplace environment

Promoting teamwork.

Organizational goal setting and planning;

Inter Loop Company followed Vertical policy making system. All the goals and

strategies are made by executives of the company. Their executive bodies are responsible

for that all. The lower management performs operational tasks so that they can achieve

the overall goal of the company. The planning is done from top to bottom in vertically

direction.

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Environment, Health & Safety

The Environment is top priorities for INTERLOOP in all its business activities.

INTERLOOP is strongly committed to protect the environment and the health and safety

of everybody who plays a part in its operations, lives not only in our premises but for

entire community in which we operate, or uses our products. We are committed to

provide everyone directly or indirectly involved in our business activities or under its

influence with accurate Health, Safety, and Environmental-related, educational literature,

and information to protect our stakeholders which are our reputed customers, our

STRENGTH-Employees and shareholders.

In order to protect the environment and to safeguard the Health and Safety of employees,

there are some line of actions which an Organization adopts and follows to uproot or

minimize the environmental and hazard safety aspects and its impacts.

Environment

Keeping in view the climatic changing scenarios of the World, Interloop

Management is very much concerned to put in their best for the conservation of

environment to make this globe a worth living place.Nijhuis Water Technology from

Netherlands was engaged to install Waste Water Treatment Plant for Interloop Limited.

First Effluent Treatment Plant of the Company was operational in 2005 with a capacity of

100 m3/hr. In 2007, with the increasing demands of business, another Waste Water

Treatment Plant with a capacity of 120 m3/hr was set up in cooperation with Joseph Igly

Italia, an Italy based company dealing in water technology. The effluents from these

Water Treatment Plants are being monitored by the Scientists from "National Institute for

Biotechnology & Genetic Engineering (NIBGE, www.nibge.org)".To make a

contribution in bringing "Green Revolution", plantation has been carried out on

experimental basis with NIBGE since 2007. This plantation is irrigated from treated

water. The Company intends to intensify this exercise on a larger scale as soon as the

desired results are obtained. A comprehensive plan was carved out in 2007 to meet the

legal requirements regarding air pollution. Emissions from all sources were calculated

throughout the facility in management with SGS Pakistan.All sorts of wastages are

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segregated from manufacturing processes into recyclables and non recyclables. Wood is

recycled within the facility. 17.8 Tones of Wood have been recycled in 2009.

HEALTH

Interloop Limited is exemplary as far as Health and Safety issues are concerned.

The Company has standardized itself in line with the National Laws of Pakistan and

requirements of our valuable customers/stakeholders.

A comprehensive Occupational Health and Safety Management System is in

compliance with recently revised Standard of OHSAS 18001:2007.Management has

intensively invested in Health and Safety related issues. All manufacturing areas are

equipped with Fire Alarm System compatible with British Standards.

Keeping in view the dual safety of employees and the environment, four Auto

Chemical Dispensing Systems with Italian Technology have been setup in place to

avoid human interaction with the chemicals and land contamination. Management

is keen to train the employees effectively and efficiently in their respective service

areas.

The initial focus was to impart training according to local laws and various

customers requirements, yet to the fact, the existing training programs are over and

above these necessities. We are also providing the awareness literature and session

on EHS. A team has been established to develop this important area. In addition to

being the leading Socks.

Manufacturing Organization in the Country, Interloop is also a large scale

employer. Presently, we have more than 9,500 workforce. These people are

supported by more than 630 Executive Officers, who are providing managerial

input and guidance to them. With such a large base of people, it is imperative to

have a world class HR Function which is able to harness the combined efforts of our

people towards achieving excellence in all aspect of our activities. The Human

Resources Department in Interloop is providing precisely the support, which the top

team is looking for achieving his objectives. Our HR Team has the full capability to

be an active business partner, a Change Agent, and an employee advocate. We have

been able to recruit the best professionals, who have taken the Company to the new

28

heights. Our HR philosophy is based on the belief that we can increase our overall

Human Capital by improving the following:

Intellectual Capital:

Processes which will improve specialized knowledge, skills, tacit knowledge, and

imagination of our people.

Emotional Capital:

Developing a culture which breeds self confidence, ambition, and courage.

Developing Leadership capabilities and encouraging team based environment is an

essential ingredient.

Social Capital:

Leveraging social contacts for business and personal gains, strengthening

networks of our people with outside world, trustworthiness etc. are the hallmark of this

process.

We have a strong people development process, which enable us to plan career

paths for our executives. It also helps us to identify areas of improvement for further

training by developing a gap analysis. The assessments are done continuously so that our

people are ready to face the ever increasing challenges of the Corporate World.

As a part of our Values, we are constantly striving to transform Interloop into a more

"Caring & Sharing" Company. We believe that the success of a company comes through

its workers and we have recently launched an initiative, known as "Project CARE" for

this purpose.

29

Corporate Social Responsibilities

Interloop has evolved at a pace faster than what anyone might have imagined a decade

ago and has shown continuous commitment to behave ethically; and contribute to

economic development while improving the quality of life of our workforce, their

families and the local community at large.

At Interloop we believe that profitability and growth, combined with development of our

employees and communities and protection of the environment endorse the long-term

interests of a business.

The citizens foundation schools (interloop campuses):

Interloop Limited has signed a Memorandum of Understanding (MoU) with The Citizens

Foundation (TCF) to construct four Secondary Schools (two for Boys and two for Girls)

and six to eight Primary Schools in five years, and even more in future as well out of own

funds including the cost of building, furniture, utilities and vehicles. Each built-a-school

project will also be taken up with provision of schools support for three years.

Interloop believes in playing an active role in social development by providing health,

education and sports facilities to the less privileged class of the Country. The aim of

construction of these schools is to promote quality and formal education for less

privileged children in an environment that encourages intellectual, moral and spiritual

growth. The preference for construction of schools will be given to the rural areas and

urban slums of District Faisalabad, characterized by extreme poverty where people

neither have the means nor access to quality education.

The Citizens Foundation (TCF) is engaged in various public welfare projects especially

in the field of provision of quality education, establishment and management of non-

profit educational institutions. TCF is a professionally managed, a non-profit organization

and one of the Pakistan’s leading organization in the field of formal education. TCF has

established over 660 school units nationwide with an enrolment of 92,000 students

including 46 school units in Faisalabad, Jhang and Chinoit where 10,000 students are

studying.

Interloop Limited will Insha Allah spend an amount of 170 Million Rupees for this

30

purpose in five years. This has also been made part of Interloop Corporate Objectives.

Interloop Limited has constructed four Secondary Schools in March 2010, two TCF

Secondary Schools (Interloop – Begum Sarwari Sadiq Campus) in Village 242 / RB

Nashua and two TCF Secondary Schools (Interloop – Dobotex Campus) in Village 229 /

RB Makuana i.e. separate Campuses for Boys and Girls.

Eight TCF Primary Schools (Interloop Campuses) will be constructed in next four years

(two schools every year). Land for four schools has been purchased. Construction of two

Primary Schools will be completed by end of March 2011 and classes will start in April

2011. Total cost of Primary Schools will be approximately 113 Million Rupees including

3.97 Million Rupees as three years school support expenses per school.

ASSISSTANCE FOR IDP’s OF SWAT / GOJRA:

The mass exodus of population from and surrounding areas of Swat was a human

tragedy of great dimension. Every citizen played its part contributing to well being of

IDPs (Internally Displaced Persons). Interloop Limited was second to none in

contributing its Corporate Responsibility. Interloop immediately dispatched food items

and distributed amongst IDPs of District Nowshera, as the people of these areas deserved

full support and needed to be treated with sympathy, love and kindness. Moreover,

arrangements for provisions of meal for IDPs of Gojra were made through Government

Administration Gojra during and after the disturbance period. Optimism and hope were

the galvanizing spirit to accomplish the Corporate Responsibility by Interloop Limited.

Earthquake Tent Village:

Interloop is proud to be a part of the biggest ever humanitarian aids for the largest

natural disaster that ever struck Pakistan in October 2005, killing over 80,000 people and

rendering millions homeless. Interloop was quick to show solidarity to its countrymen

struck by this great catastrophe and immediately chalked out a plan to set up a “Tent

Village” in Muzzaffarabad to ease the suffering of the victims.

Chattar Kalas Kohala, Muzzaffarabad was selected as the appropriate site because of its

proximity to water supply, easy road access and availability of electricity. Interloop has

been fortunate in this noble cause, as many local and international organizations stepped

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forward to help Interloop establish this facility which was designed to accommodate 1500

people.

Caritis, a French Organization collaborated with Interloop to install a state-of-the-

art clean water supply system. This facility also included pore flush toilets, showers and

laundry slabs which were constructed with the help of OXFAM. Food was provided with

the help of WFP. UNHCR donated bedding and health related arrangements were made

in collaboration with WHO and UNICEF. Interloop was also running a school with the

help of UNICEF. Keeping in view its overall plan and facilities, it was declared a "Model

Tent Village" by UNHCR.

Waste Water Treatment Plant:

Our Environmental Protection System ensures that all dyes and chemicals used in

the Production Process must not contain any harmful substance. All such elements are

safely stored and disposed off after use. The Waste Water Treatment Plant treats all toxic

chemicals and dyes before disposal.

Special Plants Production:

Interloop has embarked upon a Research Project with NIBGE (Nuclear Institute

of Bio-Technology and Genetic Engineering) helping to produce special plants to be

irrigated with treated water, which will absorb colours from the treatment canals. After

filtration by these plants, the water in these canals can be used for normal irrigation.

Fair Price Shop:

This project aims to reduce the cost of living for Company's employees by

providing certain articles of daily use at very cheap rates. All workers can purchase

necessities of life on a quota base determined by the Managing Committee. The shop

includes items like Cooking Oil, Sugar, Tea, Detergent, Wheat Flour and Company

Products etc.

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Employee Benefits:

The Company provides healthy and hygienic food to all employees at nominal

price. Free uniforms, Health Insurance and on-site Medical Care is provided to all

employees.

Day Care Center:

Interloop has had a solemn pledge to give a peace of mind to his every employee

at work. In this regard “Child Care Centre” has been setup in the Mills premises to

facilitate female employees. During the working hours, their children are being pampered

by the motherly, baby-sitters. Having firm conviction of Social Institution, Interloop

always encouraged the people to earn their bread & butter, beyond any social constraints.

Transport Facility A Leading Edge:

Interloop Limited provides pick and drop facility to all its employees, round the

year during all weather and in all shifts. Transport fleet consists of 55 all types of

vehicles. Transport ply and covers the entire routes and area of Faisalabad and

Jarranawala cities and all villages in route having turn round radius of 65 KM. Total

monthly outlay of the Company on transport is Rupees 7.5 Million. This is the leading

edge, distinction and satisfaction – the Interloop enjoys in accomplishment of Corporate

Social Responsibilities over others.

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Finance Department

All kinds of financial transactions are performed through finance department. In

the setup of INTERLOOP LIMITED, finance department is divided into three main

sections.

i) Finance/ Account

ii) Inventory

iii) Audit & Taxation

The procedure that is followed by this department is as under;

Finance/Account section deals with all financial transactions i.e. bank dealings,

payments including OEBI & social security returns etc.

Vouchers are prepared for each accounting transaction, compiled with required receipt

and presented to GM for signing (salary transfer is also included in this vouching).

Accounts statement, balance sheet, profit & lose and stocks reconciliation is also the

responsibility of this section.

Inventory payable is prepared for purchase orders through inventory section.

In auditing, all transactions are dually checked by audit staff.

Sales tax returns, income tax exemption (company returns) and etc are performed

through taxation section.

All related data is operated by a database and reports are generated through the system.

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Knitting Department.

Knitting is the first production department while manufacturing our product

(Socks). Knitting department houses hundreds of knitting machines located under

different halls. All the knitting halls have been designed in a way that adverse effects

regarding EHS have been minimized. While knitting, we can see short fibers of the

Cotton yarn present in the air which pollutes the air. In order to escape these short fibers

in the air, knitting hall has been designed in a way that a very strong SUCTION

EQUIPMENT accompanied by very effective HUMIDIFICATION SYSTEM has been

imported from ITALY and placed in all the knitting sheds. This has reduced the

floatation of short fibers in the air. Moreover, workers have been provided DUST

MASKS so that they may even escape from any floating short fiber in the air. Regarding

NOISE LEVEL

Processing .

Processing is the most sensitive department with respect to EHS while

manufacturing of the socks. Different types of auxiliaries/Dyestuff/acids etc. are being

used in the processing which includes quite TOXIC chemicals. There is always a huge

health risk involved while manual handling of chemicals/dyestuff/acids. All the

auxiliaries/acids are now being dispensed in the machines by latest AUTO DISPENSING

EQUIPMENT imported from ITALY. This auto-dispensing system transfers the

auxiliaries/acids etc. from the bulk storage tanks to Dosing tanks of the dyeing/bleaching

machines under close system through pipe line.

Spinning Mills

Cotton spinning - a 200 years old industry not only fuelled the 18th century

British Industrial Revolution but also became a pivot for Pakistan's extremely

competitive cotton industry. To achieve even better/matchless quality in our products and

to vertically integrate the business, Interloop, in 2005 successfully diversified itself to

another landmark, "INTERLOOP SPINNING".

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Entering and then distinguishing ourselves from other big players in a well-established

industry was an achievement itself.

This 20,400 spindles spinning unit will produce as much as 27.5 tons of yarn everyday

ranging from 6/1 to 40/1 in both combed and carded qualities. This US$ 22million

project is equipped with modern hi-tech European machinery ensuring a high-quality

yarn making process.

Cotton Contamination Extraction at Three Stages

Manual hand picking of contamination at cotton bale opening stage

Auto extraction of contamination by Rieter Vision Shield

Foreign fiber extraction by Uster Quantum FFD and white polypropylene

extraction by PP-Channel in the yarn winding stage (Auto Cone).

Interloop's knitting team comprises highly skilled and trained professionals including

qualified engineers. Interloop has also established a knitters training centre to provide

trained main power for its on going expansion programs. This work force is

continuously being trained through training courses in Italy and training on job by

Italian and local experts.Interloop's fleet of 1,400 plus knitting machines is being

continuously updated with latest state of the art equipment. Interloop has massive

knitting capacity spread over several specialized areas

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Product Faults

Main yarn tight

Platting yarn shade variations

Defective needle used

Errata main yarn used at heel and toe

Main yarn floating

Pattern yarn short

Main yarn short

Platting yarn over main yarn

Main yarn over pattern yarn

Platting yarn over pattern yarn

Missing tie down stitches

Floating elastic at welt

Floating pattern yarn

Dial jack problems

Stretched elastic

Jumping elastic

Change Over Problems

Double Loops

Hole

Mis-match pattern with Trim Card

Oil Stains

Sinker faults

Needle fault

Size Variation

Uneven Knitting

Wrong Main Yarn

Wrong Pattern Yarn

Wrong Plating Yarn

Quality Assurance Department

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In every high standard organization, quality assurance plays a main role to meet

the customer’s requirements, improving the sources and product standards. Sole purpose

of this department is to maintain the standard of quality, offering to its customers.

INTERLOOP has established, documented, implemented and maintained a

quality management system for this purpose. Each and every item whether coming in

factory for production uses and going out as sales is comprehensively checked and

approved by this department.

The procedure that is followed by this department is as under;

All kinds of yarns whether procured for sourcing/sampling or for production are

thoroughly checked for their colors, fastness, count, knitting behavior and etc.

All kinds of dyes & chemicals whether procured for sourcing/ sampling or for production

are thoroughly checked for their purity, physical and chemical properties.

All kinds of accessories for production are thoroughly checked for the standards as

requested or required in orders.

QA is completely equipped to carry any special test requested by the buyer for any

specific order/ product.

To have a firm grip on the standard required by customer, QA is completely &

physically involved in every stage of production and have its own staff in each

department where quality of different processes is checked and reported.

In each Knitting section, quality inspectors supervised by an Officer are performing

quality control meticulously for the socks immediately as they produced for the standards

i.e. yarn count, colors, leg size, foot size, rib size, welt size, shape/design etc.

Knitting faults are also checked by QA department e.g. extra pattern yarn, pattern yarn

shade variation, wrong yarn, flying yarn, yarn floats, yarn short/tight, main yarn on

pattern yarn, platting yarn problems, Oil stains/line, double loops, hole, elastic problem,

uneven knitting etc.

In toe closing sections, quality inspectors also ensure the quality standard keeping

in mind the knitting faults and stitching faults especially i.e. linking operation (over lock

linking or rosso linking or hand linking), linking yarn etc.

Processing section is also observed for quality control meticulously for socks over the

standards i.e. Shade, Dyeing evenness, softness, washing, rubbing, PH, pilling etc

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Pressing & packing section, being the end user, is keenly observed for quality

standards/control as required in orders i.e. knitting faults, linking faults, processing faults

(shade variation), accessories faults, packaging faults etc.

From the above QA inspection, it comes possible to maintain the quality standards.

However, if any faulty product is ignored by QA inspection, the final inspection is

performed in finished goods store and makes it possible at its level best to provide the

customer a quality standard product.

Processing

Processing:

Processing is the department where material is bleached/ dyed or washed.

Bleaching:

If cloth is to be finished white or is to be given surface ornamentation, all natural

color must be removed by bleaching. This is also necessary if discoloration or stains have

occurred during the previous process. Bleaching can be done at the yarn stage, as well as

in the constructed fabric. The kind of chemicals to be used depends upon the kind of

fiber.

In this process socks are treated with 3% solution of caustic soda at a 80 0C

temperature and then it is neutralized and washed. After this process hot wash is given to

the socks and the socks are treated with 2% solution of Hydrogen peroxide for a

calculated time. After this process we wash socks and then apply OBA (Optical

Brightening Agent) to gain a required shine and whiteness. This process is done in

normal piece dyeing machines. To avoid color mixing or getting shade we do bleaching

in separate machines.

Washing:

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Washing is done on that type of socks which are yarn dyed. This process is done

to remove knitting oil and stains from the socks. We use detergent for the washing

purpose. This process is also done in bleach machines.

Dyeing:

Dyeing is the process in which we treat the substrate (Socks) with a dye to give it

a specific color, tone and shade. For every type of fiber a different dyes are used. Each

type of dyeing has its own procedure and dyeing temperature. For cotton we use reactive

dyes (Vinyl Siphon in nature) and it is dyed at 60-65 0C, for polyester dyeing we use

disperse dyes and the dyeing temperature is 135 0C, for nylon and wool dyeing we use

acid dyes and it is dyed at 90 0C, and or dyeing of acrylic we use basic dyes and the

dyeing temperature is 60-70 0C.

Hydro:

Hydro is a term used for water, the function of this machine is to extract water

from socks. This process is done for 15 minutes.

Drying:

This process is done to dry socks to avoid color bleeding. Interloop Limited has

modern type of dryer. These dyes have gas burner installed on it and a blower, which

blows hot air into the drying chamber. Drying depends upon the temperature and time.

Mostly 250 0C temperature and 50 minutes are given to dry socks.

Interloop Limited has a modern processing unit with automatic machines.

Everything is being controlled and monitored on the computer. It has a modern liquid

chemicals dispensing unit, which pours liquid into the machine automatically according

to the recipe.

Dyeing Process:

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Processing has a well equipped lab in which dye recipe or bleach recipe is made

in the time of sampling stage. In bulk order, PPC send them Processing plan, in which

recipe is given. Each recipe has its own identification number. Processing gathers

information of the processing from greige batch store and get MTA. On the basis of MTA

Processing recipe is entered in the computer by giving identification number of the

specific machine. Liquid chemicals are pored automatically by dispensing unit. But the

solid chemicals are got from chemical store, and poured into the machine manually. After

achieving a required shade, dry batches are sent to the quality assurance lab, where after

testing and getting passed from lab it is sent to the processed batch store.

Finishing

Finishing process:

Finishing process include following processes:

Trimming

Reversing

Boarding

Packing

Trimming:

Trimming is the process in which protruding yarns are cut by trimming machine.

Rimming machine has trimming blade and air sucking motor, which sucks the trimmed

yarn into it.

Reversing:

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Reversing is the process in which we reverse the side of socks. Socks is made in

inner-side when it comes out of the knitting machine, dyeing and Rosso is also done on

inner side, the next processes require upper side, so we reverse this side and bring front

side up. This process is done manually.

Boarding

Boarding is the term used for the pressing or steam pressing of the socks. In this

process we put socks on the board of that size and we do Board steam pressing or simple

Board pressing by iron heat. In Interloop Limited two types of boarding is done.

Steam Pressing

Board pressing

Steam pressing is done on the GHIBLI machine. In this process we put socks on the

board of foot like structure and steam is given to the socks, in this way wrinkles are

removed and wales become straight and socks actually gets the shape of the foot, beside

this, specs can also be changed by pulling the socks, this pulling will result in increase of

the length . This process is time taking and expensive, so we do this process on fine

gauge socks.

Board pressing is done on cheap quality socks; we put socks on the board and put these

boards in the pressing machine where heat is given from both sides.

Packing:

Packing gets the loading schedule and on the basis of loading schedule packing is

done. We have a single (general shift) in packing. Packing staff get the pressed socks

from boarding and packing is done in a flow. On person would be folding socks, next

person would be putting socks into the hangers, next one would be packing socks in poly

bag or band, next person would be pasting stickers and the last one would packing all the

socks in the carton and sealing it.

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Packed socks are stacked in packing area and after every two hours loader of Finished

Goods Store would pick them and stack them in stacking area.

Stores

Interloop has following stores:

Main Store

Grey Batch Store

Finished Batch Store

Finished Goods Store

Carton Store

Chemicals Store

Main Store:

Main Store has following sections:

Yarn

Spare parts

General

Accessories

Yarn store has different types of yarns and counts. Spare parts include all types of

machinery spare parts. General store contain general items like stationary, milk, tea,

computers, monitors, fillers etc. Accessories include poly-bags, stickers, tag pins, UPC

stickers etc.

Interloop has no purchase department so every department generates a Purchase

Order (P/O) and gets sign from the concerned Director and submit its copies to all the

concerned departments.

When goods arrive at gate Inward Gate Pass (IGP) is made and store staff checks the

quality and quantity of goods and Delivery Chelan/Invoice and makes a Store Receiving

Statement (SRS). Main Store gives Invoice/Bill with P/O to finance dept and finance

will pay the bill to the concerned company/person. Every dept. raises its demand and

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store maintains it. Repeat and regular items stock is maintained. Goods are issued on the

rule of first IN and first OUT. Yarn is issued two times a day. After every three months

stock taking is done, annual stock taking is done in July. Main Store also manages the

Fair Price Shop.

Anything going outside the factory two types of pass is generated, returnable gate

pass and non-returnable gate pass. If anything of the concerned dept is going outside for

any purpose and it will come back again to the factory, then that dept. inform the store by

mail.

Greige Batch Store:

After toe-closing batch of socks are stored in greige batch store and from here

batch are issued to the processing for dyeing/bleaching or processing purpose. Greige

batch store gives MTA and processing plan to the Processing. Greige batch store has a

capacity of storing 1-1.5 lac dozens.

Finished Batch Store:

After process of processing batch are shifted to the finished batch store, from here

on the basis of loading schedule and time and action plan, batches are issued for reversing

or trimming. Finished batch store has a capacity of storing 1-1.5 lac dozens.

Finished goods stores:

After completing of packing process cartons are shifted to the finished goods

store. After every two hours loaders of finished goods store shift cartons through the lift

and stack them in stacking area. Finished goods store has a capacity of stacking 50-60

thousand dozens of socks.

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When a purchase order is completed merchandiser asks export dept. to arrange a

container. By following loading date finished goods store loaders load the container and

packing list is send to the export dept.

Carton Stores:

Carton of all sizes and quality are stored here, any dept. requiring carton fills a

requisition form and a system generated mail is delivered to the main store. Concerned

dept. sends page of requisition to the store and store issues the Material Issuance (Store

Copy), concerned dept. brings that copy and will get cartons.

Chemical stores:

All types of chemicals used in the process of processing, waste water plant and

Reverse Osmosis Plan are stored here. Concerned dept. raises a requisition report and

system generated mail is delivered to the store by the Oracle Software and store issues

the Material Issuance (Store Copy) and that dept. would get required chemicals from the

store.

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Imports and Exports Department

Import and Export department is responsible for the vessel booking, forwarding,

custom clearance, vessel sailing, shipping of all the goods being imported or exported.

Other responsibilities are to maintain and deliver the packing list, custom clearance

documents, Bill of Lading, and Letter of Credit etc. All this process is done Import &

Export (I & E) with the co-ordination of Merchandising and PPC.

Shipment Terms:

Following are the shipment terms:

Exit Factory (Ex. Factory)

Free on Board (FOB)

Cost & Freight (CNF)

Cost, Insurance & Freight (CIF)

Landed Duty Paid (LDP)

Custom Stations of Interloop:

Faisalabad Dry Port

Lahore Dry Port

Faisalabad Airport

Lahore Airport

Karachi Airport

Islamabad Airport

Karachi Seaport (Bin Qasim & KPT)

Payments Terms:

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Following are the payment terms:

Letter of Credit (L/C).

Cash Against Documents (CAD).

Telex Transfer (TT).

Performa Invoice is the Agreement between the exporter and importer. Importer

sends the L/C to the exporter and also sends Performa Invoice to Open the L/C, when

order is placed in the factory. Exporter will send the L/C to its Bank. Exporter Bank will

write the letter to the importers Bank to send him. Importers Bank will send L/C

exporters Bank by bank software (SWIFT). Bank will read the terms and conditions and

confirm the amendments from the exporter. If L/C is OK then production will be started

in the factory.

When purchase order is ready to complete merchandiser will ask export dept. to

book a vessel for his order. Vessel will be loaded by the goods and this vessel will be

shifted to the Dry Port for custom Clearance if vessel is being shipped to the consignee at

the right time, if order is late then goods are shifted to Karachi and custom clearance is

done there.

A Government Certificated Agency is contacted for custom clearance. After

custom clearance, vessel is sailed on the ship, and all this transfer is done by the dry-port

(if we are using dry-port), otherwise port dept. will be responsible of vessel sailing. For

shipping of the goods, a shipping firm is hired, who will book the vessel on the ship and

will give us the bill of ladder.

Invoice, Packing List and Bill of Lading are sent to the Buyer for opening of L/C.

After clearance from the importer and Importer’s Bank, payment is transferred to the

exporters Bank.

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SWOT Analysis

Strength Machines

Worker facilities and benefits

Product specialization (socks)

Research and development

department

More integrate units

Skilled operating staff

Valued customer profile

Information system

Weaknesses

Product line variety

Highly groomed professionals

Increased labor force per unit

Slow carrier path for personal

growth

De-motivation due to stick

control over management

Opportunities

Product line enhancement

Latest technologies for

production

More effective operational staff

utilization

Launching their own international

brands

New customer in different new

areas

More research and development

Reducing wastages and energy

Threats

Increased labor cost

Increased factory overheads

(fuel n energy cost)

Customer deviation towards

china Bangladesh

More investment comparatively

the orders attained

Compliances issue

High efficiencies required due

top increased raw material cost

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Strengths

Machines

Interloope has 2300 machines which run 24 hours that is why they are the

largest manufacturer in Asia and there is no competitor of interloop in Pakistan.

Information system

They have excellent information and communication system with their

employees, customers and stockholders.

Valued customer profile

Interloop just deal with the well known retailers which purchase in bulk from

them like Nike, Puma, Walmart and Levis

Skilled operating staff

They recruit every year fresh and experienced executives and give them the

proper training. That is why they have good operating staff

More integrate units

They have such a setup that most of the departments work like a single unit

that is why they have healthy and competitive environment.

Research and development department

R&D department of any organization have the vital role in the progress of that

organization. They have qualified researcher and analyst which overcome all the

problems which are faced by Interloop.

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Product specialization (socks)

They just produce socks that is why the are specialized in their product and world

largest retailers like Nike and Jecy penny are their customers.

Worker facilities and benefits

They facilitate the workers and employees in such a way that they give them

bonuses and every worker is benefited if he/she give the best suggestion regarding

their work activities to their supervisor.

PEST Analysis

Political factors

The political situation of Pakistan is not satisfactory and unstable. Rapid change in the

Govt. and the change of the policies of the previous govt. by the new govt. abruptly effect

the Pakistan’s political situation. Due to these entire factors the foreign investor hesitates

to invest in Pakistan.

Govt. should device such policies that are beneficial for the local exporter as well as for

the investors.

Economical factors

The economic condition of Pakistan is not suitable for investment. Market growth rate is

very low and new investors hesitate to invest. Increasing inflation rate due to heavy loan

make the business environment strict. Actually increase in inflation rate leads to high cost

of production so our country products sell out at a high price but with low margin.

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Social factors

The change in the lifestyle of the people affects the growing demand of the INTERLOOP

products. The change in the lifestyle and needs in different demographics also affect the

demand of the customers.

Due to all these changes, company is performing excellent for the excellence of

organization as well as for the customer.

Technological Factors

Technological advancement in all the sectors of the country has changed the

entire socio-economic environment. Especially hosiery division has incorporated

technological development and advancement in their organization.

Applications of class room in the organization.

Being a student of BBA (Hons) I find that INTERLOOP is the most appropriate

organization for me to learn and doing the work.

I have done my semester before internship program and in these semesters I

learnt a lot which is applicable in this sector and have a scope in textile sector. I studied

accounting, mathematics, statistics, finance and marketing etc in my study program.

There is a lot of applicability of finance and marketing in the textile sector.

Company uses the statistical techniques to compare the performance of different

group of employees which I studied in my stats course.

Company hires the executives by using the method of different recruitments

which I studied in the HR course. Company use all those financial statements which I

learned in my account books.

Interloop takes the vehicles on leasing and purchasing which I studied in my

finance course. All the processes of bank required debit, credit and all terms of

accounting like pledge, mortgage, bond, securities etc. if I did not learn all this then I

had to face difficulties but my classroom study help me very much to understand the

operations of company.

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Suggestions and recommendations

I would like to give the following suggestions to Interloop.

They should extend their product line. So that they capture the maximum market.

at international level.

They should consult highly experienced professionals.

They should decrease the labor force per unit.

They should provide efficient carrier path for personal growth.

Some rules and regulations are very strict and that is why at some level employees

are de-motivated. They should decentralize that stages and should empower the

employees.

I felt a gap between the talent of executives and their performance. So there is

need of effective utilization of operational activities.

They should launch their international brands in this way their sales will go high.

They should also give the benefits to the Pakistani nation by giving them the

better quality products.

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If I am the manager of INTERLOOP LTD

If I am the manager of INTERLOOP LTD I will try my level best to cover the

past mistakes such as the weaknesses of the organization.

I will agree to promote the job rotation and other activities which are helpful in

making the employees of the organization the best employees in the organization

Some type of blender did by the employees of the organization that is not good

for the image of the organization I shall save such employees from the deterioration the

image of organization.

I will arrange a system to understand and share the problems of my employees

because a happy and tension free employee is the asset of an organization.

I will create the opportunities of jobs for most deserving people.

I will raise voice to make decisions at local level by keeping in view the local

traditions and credentials.

I shall maintain such a system that will help employees and customers to maintain

self respect of each other.

There is no proper feedback from employees of the organization to their customer

I will improve this feedback immediately.

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Location of company

Office Address

Al sadiq plaza,p-157,railway road Faisalabad Pakistan

Factory Address

1km khurrianwala, jarraanwala road khurrianwala ,Faisalabad

Telephone +92414360400

Fax +92414360100

Email [email protected]

Internet http:www.interloop.com-pk

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References

Waheed Iqbal Senior Manager (Imports-Exports) 03018661252

Mirza Saeed Latif Asst. Manager (Merchandizing) 03028669947

Asim Raza Officer (Merchandizing) 03028669968

Internet http:www.interloop.com-pk

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Annexure

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