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Company Overview Kohenor
Company Overview Kohenor
Company Overview Kohenor
Kohinoor Textile Company Limited. Group members: Hussain Munawar Fahad Iftikhar Rameez Riaz Malik M. Waqas
Vision:
The Kohinoor Textile Mills Limited Stated Vision Is To Achieve And Then Remain As The Most Progressive And Profitable Company In Pakistan In Terms Of Industry Standards And Stakeholders Interest.
Mission:
The Company Shall Achieve Its Mission Through A Continuous Process Of Having Sourced, Developed, Implemented And Managed The Best Leading Edge Technology, Industry Best Practice, Human Resource And Innovative Products And Services And Sold These To Its Customers, Suppliers And Stakeholders.
Company overview:
The Company commenced operation in 1953 as a private limited company and became a public limited company in 1968. The initial capacity of its Rawalpindi unit comprised 25,000 spindles and 600 looms. Later, fabric processing facilities were added and spinning capacity was augmented. Additional production facilities were acquired on the Raiwind-Manga Road near Lahore in District Kasur and on the Gulyana Road near Gujar Khan, by way of merger. The Company's production facilities now comprise 151,902 ring spindles capable of spinning a wide range of counts using cotton and Man-made fibers. The weaving facilities at Raiwind comprise 204 looms capable of weaving wide range of greige fabrics. The processing facilities at the Rawalpindi unit are capable of dyeing and printing fabrics for the home textile market. The stitching facilities produce a diversified range of home textiles for the export market. Both the dyeing and stitching facilities are being augmented to take advantage of greater market access. Fully equipped laboratory facilities for quality control and process optimization have been up at all three sites. Kohinoor Textile Mills Limited continues to ensure that its current competitive position is maintained as well as supporting the ongoing improvement process in our endeavour to maintain world best practice manufacturing. The company has a diverse customer base with sales in both the local and export markets. The main international markets include Asia, Europe, USA and Australia.
(Rs millions)
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The company last 6 to 7 years trend shows that as company tangible assets increased, sale also increased, it means there was major changing in plants & equipment especially in 2009-11 to increase sale.
Objective:
1- Effective use of available resources and improved capacity utilization of the Company's production facilities; 2- Modernization of production facilities in order to ensure the most effective production; 3- Effective marketing and innovative concepts; 4- Implementation of effective technical and human resource solutions; 5- Strengthening independence in terms of secure supply of low-cost services and resources, including energy supply, transportation and logistics services; 6. Explore alternative energy resources; 7. Further improvements in corporate code governance through restructuring of assets and optimization of management processes
Board of Directors
Mr. Tariq Sayeed Saigol ( Chairman )
Mr. Taufique Sayeed Saigol ( C.E.O ) Mr. Sayeed Tariq Saigol Mr. Waleed Tariq Saigol Mr. Kamil Taufique Saigol Mr. Zamiruddin Azar Mr. Arif Ijaz Syed Mohsin Raza Naqvi
Owner History:
The Saigol Group is a group of companies owned by one of Pakistan's wealthiest families, the Saigols. The family and its companies are not based in Lahore, Pakistan. The Saigols originally hail from Chakwal. The group is managed by three Saigol brothers: Tariq, Nasim and Taufeeq. Also part of the family is sister Naz Saigol, now married to Mian Muhammad Mansha Yaha. Amin Saigol was the founder of the Saigol dynasty where he started a Calcutta shoe shop, the shop eventually led the Bihar Rubber Works in 1938. Amin had a son called Yusuf who is the father of this business Trio. In 1948, the Saigols migrated from Calcutta and initiated their business in Lyallpur (later named to as Faisalabad), the textile city of Pakistan, under the banner of Kohinoor Industries Limited. Tariq Saigol is the eldest brother, he is head of Kohinoor-Maple group, which owns the Kohinoor textile mills and Maple-Leaf Cement. He is known to be openly critical of the Pakistani governments lack of interest in the textile sector. Nasim Saigol heads PEL and Kohinoor industries. Rafiq is the youngest brother, he takes care of the groups other business interests. There is a village in Pakistan called [Saigolabad - 7 KM from Chakwal City], named after this influential business family. Mr. Tariq Sayeed Saigol (chairman): Mr. Tariq Sayeed Saigol is the Chairman of Kohinoor Maple Leaf Group (KMLG). He is a member of the reputed Saigol Family who pioneered in textile manufacturing after partition and later ventured into the financial sector, chemicals, synthetic fibres, sugar, edible oil refining, civil engineering, construction, cement and energy. Mr. Saigol was schooled at Aitchison College, Lahore and graduated from Government College, Lahore following which, he studied Law at University Law College, Lahore. He started his career in 1968 at Kohinoors Chemical Complex at Kala Shah Kaku. Upon trifurcation of the Group in 1976, he became Chief Executive of Kohinoor Textile Mills Limited, Rawalpindi. Since 1984, he has been Chairman of Kohinoor Maple Leaf Group which has interests in textiles, energy and cement manufacturing. He has been Chairman All Pakistan Textile Mills Association in 1992-94, President of Lahore Chamber of Commerce and Industry for 1995-97 and Chairman, All Pakistan Cement Manufacturers Association from 2003-2006.
Mr. Saigol has been a member of the Federal Export Promotion Board and Central Board of State Bank of Pakistan. He has also served on several Government Commissions and Committees on a number of subjects, including Export Promotion, reorganization of WAPDA and EPB, Right Sizing of State owned Corporations and Resource Mobilization. He is the author of Textile Vision 2005 which was adopted by the Government in 2000 and its critique prepared in 2006. He joined the Central Board of State Bank of Pakistan for a second term in 2007 and was a member of the Prime Ministers Economic Advisory Council established in 2008. He keen interest in the development of education in Pakistan. takes He has been a member of the Board of Governors of Lahore University of Management Sciences, Founding Chairman of the Board of Governors of Chandbagh School, Founder Trustee of Textile University of Pakistan, member of the Syndicate of University of Health Sciences and presently serves on the Board of Governors of Aitchison College and State Bank of Pakistan. He is conferred with Sitara-e-Isaar by President of Pakistan in 2006. He is a keen golfer and has represented Pakistan at Golf in Sri Lanka and Pakistan in 1967 .
Industry analysis:
Pakistans textile industry ranks amongst the top in the world. Pakistan is World's fourth largest cotton producer and the third largest consumer of the same. Cotton based textiles contribute over 60% to the total exports, accounts for 46% of the total manufacturing and provide employment to 38% manufacturing labor force. The availability of cheap labor and basic raw cotton as raw material for textile industry has played the principal role in the growth of the Cotton Textile Industry in Pakistan. Textile sector is the backbone of Pakistans economy and contributes significantly to the export sector. It contributes 8.5% to the GDP and employs 38% of the workforce in the manufacturing sector. Its share to the total exports is about 60%. It is ranked 12th in the global textile exports. Despite facing numerous challenges due to persistent power crisis, high cost of doing business, poor law and order situation and host of other issues, Pakistans textile exports managed to grow by 28% during the year 2010-11 as against the exports of last year. The non-mill or the power loom sector has registered a phenomenal growth over the last two decades. Periodical export related growth has also helped the power loom sector to establish itself. The number of looms in the non-mill sector cannot be ascertained precisely in the absence of any census. The number of operating looms keeps on fluctuating, consumption of yarn and production of cloth by this sector is still more difficult to calculate. According to Textile Commissioner Organization, it has been estimated that the number of power looms working on cotton/blended yarn vary from 175,000 to 250,000 in which shuttle less looms account for about 15%-20% of the total.
Production of cloth: Total production of cloth (Mill and Non-mill sector) increased from 8,524 million sq. meters in 2005-06 to 9,035 million sq. meters in 2010-11. The non-mill loom sector accounts more than 90% of the total fabric production. As a result the non-mill sector weaving capacity continues to occupy predominant position. The setting up of shuttleless machines in this sector has resulted in high growth in fabric production.
Import of machinery: At present Pakistan's textile sector has made considerable advances in production capacity and capability past few years. During the past five years remarkable progress of the power looms sector was made in the country. The setting up off shuttle-less machines has resulted in high growth in fabric production. Import of textile weaving machines increased from Rs 4.57 billion in 2009-10 to Rs 8.11 billion in 2010-11, thus an increase of 77%. Export of fabrics: The demand for textiles and clothing in the world is around $18 trillion, which is likely to be increased by 6.5% per annum. Pakistan has emerged as one of the major cotton textile product suppliers in the world market, with a share of world yarn trade of about 30% and cotton fabric about 8%, having total export of more than $14 billion which is 60% of the countrys total exports during 2010-11. The major importing countries of cotton fabrics were Turkey, Bangladesh, Italy, Germany, USA, China, Korea, Brazil, Indonesia, UK and Singapore. It is interesting to note that fabric exports increased in many countries, where Pakistan lost its yarn market. The country lost fabric markets in the US, Sri Lanka, Spain, Hong Kong, India and Vietnam. Major markets for Pakistan's fabric are Turkey, Italy, Bangladesh, USA, Sri Lanka, Germany and Belgium Pakistan has progressively built a strong denim industry over the years. At present top global denim fabric exporting country was China, followed by Hong Kong, Turkey, Italy, Pakistan, the USA, India, Japan, Spain and Brazil. Together, these countries accounted for as much as 83% of world denim fabric exports. In 2010-11, Bangladesh exported knitwear items worth US$1.12 billion and woven garments worth $3.50 billion to the US, which is questionable for Pakistan.
The current scenario posses challenges firstly to sustain its global positioning and secondly to increase its market share by both increase in volume as well as increase in unit values. The unit value can be increased only through marked improvement in quality, market tie-up, image building and change in business philosophy. This requires up gradation in resource development both in manufacturing and marketing. The focus should be on R & D, technical innovation, product development on one hand and brand & market development on other with the goal of moving up in the global textile value chain.
Opportunities: Threats: Better laid down factories on best Political instability and practices inconsistency in policy Potential of improving confidence in framework buyer by Rising cotton prices to push production costs for working directly & closely Improving product mix and a value added segment gradual move Increasing competitive pressures on towards more value added products product Demand for home furnishing from prices Pakistan is Natural calamities; disruptions in supply of raw growing in developed countries Womens wear has a huge potential material due to variable weather patterns Fashion life cycle Adverse changes in government policies
Conclusion:
Pakistan has dynamic, energetic and export oriented textile industry that has an serious impact on economy. Textile being largest industrial sector generates the countrys highest export earnings of about 64%; providing the bulk of employment (39%) to largely under utilized workforce, and contributes 8.5% to GDP. Textile industry is a good entrepreneurship opportunity in Pakistan, if government will take some positive steps to promote this industry. However the Kohinoor textile mills is concern, the company owners have to take some serious attention in the business because now there are big competitors in the market. If the company have to survive further in the market then they have to take some changing in the organization by utilizing new technology, cost efficiency, removing undue influence of labour unions, investing some interest free money in business to return bank loans and try to make good relation with current government.
Reference:
Kohinoor annual report 2011. Industrial information network (http://www.iin.com.pk). Wikipedia.