Introduction:

Yunus Textile Mills Limited (YTM) is a group company of Yunus Brothers (YB). First textile
which is vertically integrated, located in Karachi, Pakistan. Company annual business turnover is
1.5 billion US dollar, and 100-Million-meter production. In addition to manufacturing, YTML
also provides its customers; customize design and distribution services with offices based in
USA, France, Spain, United Kingdom and Canada. Being responsible corporate citizens, the
management and employees at Yunus Textile Mills Limited commit themselves to the effective
implementation of an objective driven safety, health and environmental management system.

Background:

Yunus Brothers Group, found in 1962 as a fabric trading business house, quickly become one of
biggest corporations in Pakistan. Yunus Brothers Group, with investment in Textile, Cement,
constructions, Real Estate, Energy, and Commodity trading business has an annual turnover
which exceeds $750 US million. In 1998, Yunus Textile Mills Limited started its operations and
within a short span of time became Pakistan’s largest exporter of Home Textile products. They
transformed from basic product to largest home textile products supplier to top rank retailers and
brands across United States and Europe.

Vision:

To provide the most compelling value proposition to our customers in terms of quality service
and cost effectiveness as well as fulfilling our responsibilities as a responsible corporate citizen.

Mission:

To realize the vision, following are some of the initiatives taken by the company:

 Cost Effectiveness Solutions

 Quality Customer Service
 Sustainability Approach

Yunus Textile Mills – Procedure & Management

Yunus Textile Mills, the primary department on which whole company depended are Spinning,
Weaving, Processing, Stitching, Finishing and Utilities; secondary departments include Marketing,
Supply Chain, Compliance, Environment, Human Resource etc. Procedure summarizes up to their
main functions i.e. manufacturing department and other support department including marketing,
supply chain, accounts etc. The main management pillar department is Human Resource which has a
big impact overall internally and externally.

Symbol: The green color shows the commitment towards sustainability.

Organogram:

System, Environment, Compliance Team

Management Function:

1. Planning
They create a mapping plan before execution of any project. Department directors decide
yearly plans with top management and how to accomplish those plan, is responsibility of
departmental heads. They create a strategy that includes all the global trend and forecast the
result as well. For example in marketing department, when they have a new customer order
or taking a new customer, they first check the customer policies, legal documents before
signing a mutual contract and before giving them a deadline of shipment they first mapping
 out a plan for that particular customer order that how they will work. Mapping plan includes
Printing, Production, Testing and shipment details
2. Organizing

To execute a plan properly, manager or project head arrange material and team according to
plan. They are following participative leadership style, where middle management got
chance to share good ideas in front of top management, where the head organized team and
share the projects with their team and provide them opportunity to lead it. Every employee
knows what they have to do and how they have to get result.

3. Leading

Leading the team, motivate them, assigning right task to right people at right designation and
for right project is responsibility of department heads and HR. Either it is about labor who
have to work on machines or either a manager who have to lead projects.

4. Controlling

Execution of project is not the end, leaders or heads are responsible for controlling part as
well. They have to control work, meet the deadlines in an organized way and keep the project
on the right track. Leaders monitor the project, evaluate it and suggest improvement plan, or
share feedback with team to improve the current work pattern.

Principle of Management

Starting with the division of labor work, they are fulfilling it in terms of work, labor skill, wage
according to the law i.e. worker on machines get 16k (minimum) or above according to the new
law which is implemented in company recently. Rest work is distributed according to the labor
experience and efficiency. Company, where each employee is accountable and they have enough
authority to take daily basis small decision without top management involvement. This helps
them to learn more about their work and through this they show a good work performance.
Employees get appreciation and recognition of their good work via monetary or non-monetary
that summarizes the Initiative, Remuneration & Centralization point.
Ethical Behavior:

They have a documented code of conduct, policies, procedures and following a culture of doing
the right things in difficult time. They have a positive ethical corporate culture that improves the
moral among the workers in an organization, which could increase productivity and employee
retention. This buildup the trust amount business associates, customers and sub-suppliers.

Compliance:

We have met Mr. Farrukh - Manager Compliance; he shared few good practices of compliance.
They maintain the bridge between company and customer through fulfilling the best practices in
a company, follow the legal rules, and fairly follow social part as well. Execute the organization's
corporate compliance; every member of the organization is responsible to follow the laws, rules
and regulations. He shared that YTM is 99% fulfill the social concerns related to compliance,
they meet all the standards either national level or international level. They have international
certification that are applicable and necessary for textile company i.e. BSCI, SA8000, SMETA
etc. They perform 20+ audits per month, including internal or 3rd party audit. They are also
monitoring the discrimination, payroll, child labor, workers timings and wages properly and
ensured that they are fulfilling it at their best. They are leading social training as well including
H&S, Chemical Spill, Evacuation Drill, Fire Safety etc.

Policies:

They have different policies i.e. Quality, Environment, Process, Female Worker, Anti Bribery &
Anti Corruption, MIS etc. They amend any new changes either it is in quality, environment or
labor timings from international or national, because team verified and improved all things
through audit, mutual discussion or from national law.

Global Environment

Company is following geocentric attitude because they are leading export in home textile
product and they are focusing USA, Europe market. They have partnership between Walmart,
Ikea, Macys (Big stores), where these companies share their strategy, sustainability focuses and
plan with us to improve the product for their customer.
Economy and Competition

Company is following foreign trade policy and all the government policies that are apply within
a company to make sure they are contributing and manufacturing goods by fulfilling country
laws. Political changes factors have an impact on company, any new changes adjusted
accordingly within a company. In 2018, due to unstable government condition, foreign exchange
disturbed and dollar prices were raised, which created inflation within a country. Different
products prices are also high which are used for daily basis, impact on people that avoid things to
fulfill their basic need. Political factors disturb the country economy and this effect the company
working. In this critical condition, management is more focusing on efficiency and cost effective
ways throughout the process chain to minimize the cost. This strategy is giving a boost in
production and timely shipment.

Organizational Culture & Strategies

YTM culture is transformed from the last three years, with more collectivism approach for a
project. Few departments have low power distance i.e. sustainability, system etc where
employees and managers work in such a way that both are getting and learning from each other,
where as marketing, procurement have high power distance where department follow the
hierarchy and have accountable for the task that is assigned. That is because of the department
leader. They are more focused on quality of product and focus on long term plan. All these
things reflect in their planning, employee improvement, product engineering etc. Learning
organization where an employee learns from different strategies i.e. Lean development, GAMBA
walk, Obeya. These new transformation in culture improves employee, work efficiency, new
learning, new exposure. The first textile company who initiated this Lean Obeya, GAMBA walks
in textile sector in 2018.

Marketing Strategy & Activities:

Marketing is basically a unique technique used to make the public aware of your company and
what you offer them over competitors. They are more focused on what they shared on public
platform that are not against with their rules and regulation. They publish their yearly YTEX
magazine that includes yearly good practices, social activities and best achievement throughout
the year. They target external fairs and event and represent their company to grab more attention
of the public, investor and customer. Mostly is lead by Director Marketing (Top management
Team) and execute it through team.

HR Management

They have sub departments within an HR that are focusing on the improvement within an
organization. Departments include HR Operations, Recruitment, Talent Management, Corporate
Communication, Trainings.

Recruitment Strategy & Process:

In selection, they hire people from different background, culture and mold them into one Yunus
Culture. They always look for the right candidate with the right skill for the specific job. They
have internal switching policy in which HR department share the job openings with employees if
they want to switch from department to department, this will give employee a good exposure of
different department and they are easily retaining good employees through this strategy. They
participated in different university job fair to evaluate and hire the new talent for different
department. They are mostly posted their Jobs through Social media i.e. LinkedIn portal or via
internal email.

Job Opportunities and other Employee benefits

 Academic Opportunities
YTM collaborated with different universities including Preston/KSBL University. They
encourage employees to pursue higher education through scholarship offers, 50% off to staff and
100% for those workers who are register with SESSI/EOBI.
 Summer Internship
YTM has been facilitating internship opportunities for university students. These internship
opportunities create awareness among the students regarding the present professional challenges
and dynamics.
  Give n get session
The training sessions delivered under this program are equivalent to any paid professional
training session. MoU is signed with Iqra University, NED University and TIP University to
make a bridge between academic and professional life. These sessions are delivered by talented
mangers from Marketing, Supply Chain and Environment.

Management Transformation

In 2014, company was more focusing on project and ignored the employee empowerment. YTM
was a directed organization i.e. the middle management has to follow the top management
decision. In 2015, company went through crisis because of one main customer, as a result
business suffered in start of the year. Hence they took a decision to terminate employees the very
next month. Talent employees having good salaries were also fired. In mid of the year 2015, they
got the business again with the same company but at that time they lost highly talented
employees. In the year end 2015, they were more focusing in strategy changing factors. They
were more employee focus, treating their employees with monetary and non-monetary benefits.
In 2018, a year a big change in management transformation begins with the Lean management,
Obeya and Gamba Walks, where time management, process and worker efficiency is more
focused. Within a year 15+ employees got promoted and they retained the highly talented
employees for the next 3 years. This foreign adoption of strategy give a new learning and
thinking approach to YTML people who have to think out of the box for any particular project or
plan to get maximum result.

Social Responsibility

The company has a socio-economic view that is more focusing on to do the right thing while
making profit. YTML is more socially responsible company who are working and donating more
for the poor community to make their lives stable.

Green Management:

YTML is green focused company, making a product more environmental friendly by using less
hazardous chemical, good quality cotton and making the process technology efficient that harm
the environment less. They are using recycle cotton named as ECO cotton, Polyester from
recycled PET bottles, GO green strategy (re-use paper, centralized printing, less waste produce).
Segregate the hazardous waste and non-hazardous waste properly.

Corporate Social Responsibility

YTM customers are the backbone of every initiative they take towards the progress of society,
economy, and environment. The company has taken the social responsibility seriously in the
areas of education, healthcare and community welfare. They operates the following charitable
foundation and entities: Aziz Tabba Foundation, Tabba Heart Institute, Aziz Tabba Kindey
Centre.YTM Conduct different internal training sessions on Communication, leadership, Health,
drug awareness, fire safety, compliance and sustainability Sessions for staff. These sessions are
conducted by renowned Institutions like Shaukat Khanum Hospital, Fatimid Foundation and
Indus Hospital, University Deans, British Council and by our talented managers. Regular blood
donation drives for leading health institutions like Fatimid Foundation and Indus Hospital take
place to help thalassemia patients. Here are the best corporate social responsibility activities
which Yunus company has been done till now:

 Tree Plantation
From the last 3 years, on annually basis, YTM bring the focus of people towards the importance
of tree plantation. Admin conducted a tree plantation drive within the factory premises.

 TCF School
They have partnered with a non-profit organization, “The Citizen’s Foundation”. To provide free
of cost opportunities to those children who are unable to get access to quality education. Yunus
Textile Mills is currently funding 9 primary and 2 secondary TCF Schools in under privileged
areas since 2003. Over 1600 students are enrolled in these campuses with 47% female students.

 Women empowerment
From the past few years, YTM is focusing to improve the women employment percentage and
achieved this by hiring the excellent female talent and empower them to make their contribution
in textile. The female staff percent is increasing on yearly basis. They have 1% female workforce
in 2008. They are continuously working and creating a better and safe environment for female
workers so that they can come forward and support their home. YTM trained them for stitching,
checking, inspection, cutting etc. Last year they got an excellent response approximately 16%
female workforce of all units. Here is the total female workers data which is last updated on Dec
2017
Female Female Inch. /
YTML Units Workers Supervisor
YTM-01 150 21
YTM-02 100 18
YTM-03 105 18
YTM-07 80 18
Sub-Total 435 75
Grand
Total 510
Fig 14: Female Workers (Data Dec:2017)

They have total female workforce capacity is around 4000 of all unit. Total workforce
percentage of 2017 is approximately 13%.
14.00% 12.75%
12.00%
10.01%
10.00%
7.97%
8.00%
5.85%
6.00%
4.00% 3.50%

2.00%
0.00%
Dec-13 Dec-14 Dec-15 Dec 16 Dec-17

Fig 15: Female Strength Analysis

 Indus Hospital Blood Donation

In the last 3 years 300 employees from different unites donated blood to Indus Hospital, which is
a proud achievement of YTM. Indus hospital has recently started operations in Badin and other
rural areas and almost 65% of the population is suffering from Hepatitis C.
Conclusion:

According to the above report it is deduced that YTM is one of the flourishing companies of
Pakistan mainly due to its devotion and commitment employees, who takes ownership of their
work. Their management system, policies, code of conduct and ethical working environment
make YTM significant in the market.

Reference:

1. YTEX Magazine (2018, 2017)

2. Company Website (www.yunustextile.com)

3. Ms. Nida (Corporate Communication Manager)

4. Raazia Anum (Sustainability Executive