Professional Documents
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Colony Textile Mills Correct
Colony Textile Mills Correct
“Seminar in Marketing”
Textile Mill
Submitted to: Ms.Maryam Akram
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IN THE NAME OF
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Tabel Of Contents
Acknowledgeme ..............................................................................................05
Dedication…………………………………………………………………….06
Executive Summary……………………………………………….………….07
Corporate Profile..............................................................................................10
Corporate Strategy...........................................................................................11
VISION STATEMENT........................................................................................11
MISSION STATEMENT......................................................................................11
Core Competencies...........................................................................................12
Project Design & Implementation Strategy...................................................13
Implementation Strategy………………………………….……..…………..13
Financing Arrangement…………………………..........….…….………......13
Project Facts…………………………………………….….…………...……13
Location……………………………………………………….….….....…..13
Project Cost……………………………………..……..................................13
Main Supply…………………………………....…….….…..….…………..13
Completion Period………………………………….....…………..…...……13
Operation Stategy…………………………………………………....……….14
Location…………………………………………………………..….…….14
Capacity…………………………………………………………………....14
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Layout……………………………………………………………………..15
Operation Decision…………………………………………………….…..15
Quality………………………………………………………………...…...15
Process Strategy………………………………...………….….…………….16
Process Management……………...……………………….…...……….. . 16
Production Process………………………………………….….…………….17
Production Capacity…………………….…………….....…………..….……18
Market Strategy……………………………………..…………...….……….19
Competative Strategy………………………………………..…...…...……..22
Customer Reference…………………………….….……….……...…….….22
Swot Analysis…………………………………..…………………..……….23
Pest Analysis…………………………………..…………………...……….24
Recomadation…………………………….…….……….………….………24
Refrences………………………………………….………………….…….25
Conclusion………………………………………………………..……...….25
Personal Experience……………………………………………..…...……..26
Special Thanks………………………………………….……….…..….…..26
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ACKNOWLEDGMENT
All praises belong to almighty Allah who the supreme authority knows the ultimate relation
underlying all sorts of phenomenon going on in this universe & whose blessing & exaltation
flourished my thought & thrived my ambitions to have the cherished fruit of my modest efforts
my humblest thanks to the Holy Prophet Hazrat Muhammad (PBUH) who is forever a torch of
guidance & knowledge for humanity as a whole. We deem it our utmost pleasure to avail this
opportunity to express gratitude & deep sense of obligation to my revered teachers for their
valuable and dexterous guidance, untiring help, compassionate attitude, kind behavior, moral
Finally, I would like to extend hurtful thanks to my adoring parents for their day and night
prayers sacrifices and encouragement, moral and financial support throughout the course of our
study. May all of them live long and enjoy a happy life!
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DEDICATION
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Exective Summary
Colony Textile Mill made in 1952.Owner of the mill is Mr. Mian Mughis sheikh son of Mr.
Mian Fareed sheikh. It has four branches in Pakistan. It is listed with the Karachi stock
exchange. Its main product is yarn production.The main supplier of the Colony Textile mill is
ICI, Ibrheem, China & also takes the raw material from local area.They use the new technology
from China since 2000.The main competitors of the colony textile mill are Mannu Group of
Textile,Nishat Group of Textile.Colony textile mill have the four branches in Pakistan.
Automated programs are used in CTM.Colony textile mill has Storage Capacityabout 200000
bags of cones. Their main market is Faisal Abad, They also export the yarn to different other
countries.
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Independence from the British in 1947 and the division of the Indian subcontinent into Pakistan
and India started a new era for textiles production. Pakistan consisted of two entities, east and
West Pakistan. The West was the cotton producing area and the East was responsible for jute
production. At the time of partition, Pakistan had no industrial base and inherited only one textile
mill, the Lyallpur Cotton Mill in Lyallpur [now called Faisalabad]. This mill produced yarn and
gray cloth and no printed fabrics.
Under the Open General Licensing [OGL] scheme, the business community imported plants and
machinery with cash dollars. In 1950, Adamjee Mills was set up in Karachi, Kohinoor in
Faisalabad, Colony Textile Mills in Multan, Nishat and Crescent Textile in Faisalabad. These
were followed by Gul Ahmed Textile Mills, Al-Karam, Valika, Star and Rashid textile mills.
Within a decade the new country of Pakistan was self-sufficient in cotton and began exporting
gray cloth and later cotton yarn. Pakistan started exporting printed fabrics in the late 1970’s to
Africa and by mid 80’s was sending printed material to Europe. Pakistan’s location was ideal, as
it lay halfway between the western world and the Far East. Pakistan has a 28 percent share in
world export of cotton yarn and a 6 percent share in world export of cotton cloth.
It was in the 60s that the power loom took over and by the 70s gray cloth was being exported at
throwaway prices. There are about 200,000 power looms operating in Pakistan some of which
are backyard operations. Handloom, which formed the backbone of textile goods in the last
century, is now almost non-existent, its sales confined to a fast diminishing rural market and a
very small niche market.
Although Pakistan is the world’s fourth largest cotton growing nation in the world, after the
United States, China, and India, its total turnover for export is only $ 5 billion. Textile goods
form 60 % of the total exports of the country. The commodities exported are yarn, cloth, tents,
and canvas, bags, towels, bed linen, garments, synthetic textiles and other made ups.
With a large and expanding textile industry, textile education and training became imperative.
The Textile University of Pakistan was established in Karachi to train technical and management
professionals. The Textile University awards degrees in Textile Sciences and Textile
Management. The National College of Arts in Lahore and the Indus Valley School of Art and
Architecture in Karachi are the only two institutions in Pakistan, which award a degree in the
discipline of Textile Design. Designers are being absorbed into the industry, bringing about
change and vibrancy, with innovations in Print design and weaving.
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Today there are 450 Spinning mills and 35 composite textile mills. Textile goods form 60 % of
the total exports of Pakistan.
Foundation of the group was kept over a small flour milling operation, which rapidly grew into
cotton ginning that evolved into the core business of the group, constituting 21 cotton ginners
spread throughout the cotton grown belt in the province of Punjab - Pakistan. The logical vertical
process-integration paved its path for the group to invest in to Textile Spinning. The ground
breaking of the Spinning facility was the beginning of huge investments that followed which
gave the group a leading position in the Textile Industry of the Country.
Colony Textile soon became one of the largest vertically integrated textile facilities in the
country. The group further diversified in to Power Generation and Distribution network,
Banking, Insurance, and Cement sectors. The success of the group continued until the
government regime shift brought about a shift in policy from private sector pushed
industrialization to a strong wave of nationalization. The Ginning, Flour Milling, Power,
Banking, Insurance and Cement along with various other sectors were completely taken over by
the government.
Having major assets nationalized, the Group was faced with severe financial difficulties for
almost one and a half decades.
Presently, the Colony Group consists of several Textile Spinning facilities with an installed
capacity in excess of 220,000 spindles out of which more than 200,000 spindles are 4 years old
or less.
Colony Textile Mills Limited, one of the group companies of the Colony Group, is a Textile
Manufacturing unit established as on 24th August, 1946 and engaged in manufacturing of yarns
of various Ne Counts. The company has authorized capital of Rs. 411,000,000 as on September
30th 2013.
During year 2000 to 2001 the annual production capacity of the company was 34.813 million
Kg’s converted into 20 Ne Count based on 111,136 spindles. Currently the number of spindles
installed has been increased to over 175,000 spindles.
Owner of this mill Mian Mughis that is son of Mian Fareed Shiekh.Mian Mughis has four sons.
It has four branches in Pakistan. Names of branches that
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Corporate Profile
BOARD OF DIRECTORS
Registered Office:
M. Ismail Aiwan-e-Science
Shahrah-i-Jalaluddin Roomi
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Corporate Strategy
Vision Statement
Attain highest standards of quality in its all business activities.
Have professionally trained high quality motivated workforce, working as a team in all
environments.
Attain past glorious position and be recognized locally as well as internationally as a dynamic,
quality conscious and progressive company and industry leader.
Mission Statement
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Core Competencies
Cost
In colony textile mill control the cost. They purchase through local areas from small venders and
also from foreign countries with low price so there product cost is come low and also with the
good quality. Colony textile mill competitors product cost is high so the colony textile mill is
well compete their competitors through the low cost.
Flexibility
In colony textile mill flexibility is well. They adopted the changes is very well. If the
environment change or any other condition such as market trend they adopted very soon.
Time
They maintain time better. In given time they are fulfilling the orders of the customers and in
time make the delivery.
Workforce
A well trained and flexible people work in the colony textile mill. Theyallow organization
respond to market needs and in timely fashion. Thiscompetency’s particularly impartment in
service. In the CTM people are well trained.
Facilities
In CTM provide the employees to health care facilities and also their children school facilities
and park, gamesclub, livingcolonies, bankfacilities etc.
System Technology
In CTM automated system & technology used. In CTM used China machinery new 2000.
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Financing Arrangement
CTM top level management arrangement of finance. they takes the loan from the different banks
at different rates of interest.
Project Facts
Location
Textile Colony Mills Limited Muzafarbad (Multan)
Project cost
Total project cost is Rs. 411, 000, 000
Main supply
Cotton bails.
Completion period
All most 3 and half year.
Cotton
Fabric loom
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Operation Strategy
Location
Location because at that point they think all necessary items are easy available.
Capacity
During year 2000 to 2001 the annual production capacity of the company was 34.813 million
Kg’s converted into 20 Ne Count based on 111,136 spindles. Currently the number of spindles
installed has been increased to over 175,000 spindles.
A summary of the company’s production record for spinning section for the past three years is
given in Annex
Layout
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The organizational structure should be designed to provide both vertical and horizontal
information flow as necessary to accomplish the organizational overall goals. If the structure
doesn’t fit the information requirements of the organization, people will have either too little
information or will spent time on processing information that is not vital to their tasks, thus
reducing effectiveness.
Colony Group’s structure is a hybrid of divisional and functional structures; divisions are based
on two products Yarn (Spinning Facility) and Grey Fabric (Weaving Facility).
Operation Decision
Operation decision takes by general manager because they are head of unit.
Quality
On the demandof customer .three type of looms they produce these are
Top quality.
Median quality.
Low quality.
Process Strategy
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Management of CTM made strategy on the basis of different factors like that Human recourses,
equipment, outsourced service, material, work flow and method of transfer in put into output.
Process Management
CTM make management profile and on the basis of this profile they divided management work.
Like that
General Manager
Quality Manager
Quality related work performs by quality manager by using different quality test.or using
different instruments like that.
Strength tester
Fibra graph.
Hr Manager
Marketing Manager
Marketing manager perform marketing work of his final product means yarn.
Production Manager
It is duty of production manager that he control all production work started from purchasing raw
material till completing final product.
PRODUCTON PROCESS
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Production manager services the daily production schedules and try to work according to the
demand to schedule. There are many steps involved in production of the yarn.
Blow Room
The first step is that the raw cotton is sent to Blow room for the quality of the cotton. Then it is
sent to the Lab for quality check. Here basic quality and other contents are checked in proper
form. If one kg cotton is put into this room only 600 grams cotton goes into further production
process and rest goes in wastes. Here following are wastes excluded,
B/R Gutter
Dropping
Carding
In this step the cotton is carded. The production manager checks the cotton and it comes in the
drums type containers. These drums rotate and cotton comes out in specific form called as
“pones”. Here about 5% cotton goes in the shape of waste. Waste extracts from this process are
called by;
Card fly
Combing
In this step the cotton goes for combing. Combing is a process to comb and wax the cotton for
softness purpose. Following wastes are excluded from cotton in this process;
Short Fiber
Comber Noel
Simplex
After the attaining of Cotton from Card and Comb processes, which is also weak this is further
passed back to blow room process called Roving and then cotton is sent to Ring process
.
Ring
In this step small pones are developed for further process and wastes are made out named;
Phnemaphil
Auto coning
In this step the manager in specific intervals checks the quality of carded pones from which yarn
is produced in shape of cones by passing through machines for this purpose. Here also some
wastes are extracting called;
Oily hard waste
Hard waste
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Packing
Cones manufactured in proceeding step are now kept in moisturize room for absorbing required
moisture. Cones are packed into bags or cartoon according to customer requirements.
Production Capacity
With the installed capacity of 120 looms, the plant can produce more than 1,500,000 Linear
Meters per month, with a wide variety of fabrics; from percales to satins, from twills to drills,
from rip stops to high thread count fabrics, stretch fabric and much more.
Process Unit Capacity
400 per day
With the installed capacity of 100 coanes bag, the plant can produce more than 1,500,000 Linear
Meters per month, with a wide variety of fabrics; from percales to satins, from twills to drills,
from rip stops to high thread count fabrics, stretch fabric and much more.
All looms have a high speed connectivity facility through Local Area Network along with being
Web-enabled. CIL customers will be able to monitor looms allocated to their contracts, and also
view what articles are being run on what looms and at what efficiency, whereby correlating the
delivery snags, if any, on one hand and quality related issues on the other. For this organization
customer confidence is the key to success, and providing this transparency to their customers can
facilitate the business on the commercial side as well as providing CIL production team to strive
for either improving their performance or marinating the quality which is for the satisfaction of
the clients.
Inspection System
Colony Industries (Pvt.) Limited is the pioneer in the entire Indo-Pak region in deploying the Uster
FabriScan in its facility. The FabriScan replaces the traditional manual inspection by a far more consistent
and objective data collection. This system is capable of inspecting Fabric production of a 240 loom
facility. Deploying this machine in this facility was a well thought-out decision as this system is not
subject to fatigue, downtimes, or outside influences. It provides consistent checking the entire quantity of
fabric fed through it. There is no negligence factor, no favors to be made, no rules to be compromised
besides providing a big pool of information that is humanly not possible. All faults are “UV” tagged so
that mending operation can be performed (if necessary) at the exact location of the fault.
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The machine can be programmed to inspect as per the requirements of the customer and those criterion
saved for future reference and use. The inspection reports can be made available to client on the web so
that pre-screening of their consignment can be done timely, effectively and in-synchronization with their
production plan. In order to cater for our direct Dye-House customers, we have the “CUT
OPTIMIZATION” option available. As soon as the inspection is complete, the system performs the
optimization process and suggests the best possible way to cut the fabric to get the highest number of
pieces of the Optimal Quality.
Memberships
Lahore Chamber of Commerce Industries
MARKETING STRATEGY
Secondly on Europe sector this group is very well known as they purchase machinery from them
and then they supply Methane to them, which is used in mixing with petrol. Though it is a by-
product of sugar sector yet it is branch of the same company. This is helpful for the Textile
division too.
The past year has been tough for the textile industry as competition is increasing steadily and
margin of profit is becoming smaller day-by-day. Our competitors from Asia have come up in a
big way with lower prices resulting from lower overhead, cheaper and better raw materials and
machinery.
Countries like China, Indonesia, India and Bangladesh played an active role in the fabric market.
Improvement in quality and production capability was the main area of concentration.
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Market for Yarns and Grey fabrics was diversified to increase the customer base and reduce
dependency on the Far East. In this effort business with Malaysia, Korea, Taiwan, UK and South
America was initiated in case of Yarns.
In case of Grey Fabric market business was initiated in South Africa, North America, Japan,
Italy, France, and Sri Lanka etc. Product range was also increased to cater to the differing needs
of the buyers. Fancy and special items like Dobby Designs, Bedford Cords, and Caviar Twills
and stretch fabrics were developed which are being sold at premium prices.
CTML has constantly updated our machinery, replacing old machines with new ones upgrading
the existing set-up, leading to better efficiencies and quality products.
Leaving behind the traditional way of doing business and in our journey towards excellent it has
consistently expanded its buyer base and explored the different markets around the world.
Keeping in view demand of the World market, CTML pursued its strategy of value addition and
reducing the dependency on Grey Fabrics and Grey Yarn.
Having the foresight to assess that in coming year’s value addition will be the thing of the future,
CTML worked towards the achievement of its goal of future increasing its capability in value
addition.The export of processed fabric and made-Ups has shown market improvement as
compared to last year.
It has placed us successfully in the middle to upper end of the market. Our strength in Europe is
the curtain division. This included yarn dyed dobbies, engineered confections, different finishes
and embellished products. The plan is to continue with this winning strategy and at the same
time we are trying to find new clients in the high end.
We are also exploring business opportunities in countries like Spain and France where CTML
has very little business at the moment.
North America is the star market for CTML; it’s a new market for it after breaking up the
exclusive arrangement with our previous sale set-up. The quota is coming down in 2005 and we
have started to prepare for it internally as well as for the external environment. Bedding is the
bulk of the home textile business.
CTML is in the process of updating its machinery to cater the needs of the wider width fabric
requirement for USA bedding business. CTML is also taking up the social accountability issues
very seriously, which are so dear to the American consumers. A lot of big brand US companies
have visited us and are discussing the possibilities of a joint venture.
The opportunities are limitless, we have to review and analyze them very thoroughly to associate
with the right people in the long run. In shorter term we are building a small amount of quota,
which will give us recognition as a bedding supplier.
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CTML is very strong in non-quota categories like curtain and table linen. These categories are
best served with new product development (NPD). CTML will coordinate the effort for NPD by
all markets to optimize results. CTML has achieved the highest sales in 1999-2002 for North
America market.
On top CTML has developed more direct and closer relationship with its end customers. Oceanic
has been our most lucrative and mature marker. In business terms it is our “cash cow” market.
Primarily due to being a non-quota market it had no real limitations in this market. Despite
economic problems in that region, it has maintained our sales figures in the year under review.
This market is a good design source for other markets, which is helping us to maintain our print
volumes.
Middle East market is composed of South Africa and the new emerging markets like the UAE,
Egypt, Saudi Arabia, and Jordan etc. CTML has dedicated new staff with fresh energy for the
emerging market.
They have successfully broken the ground and we have very strong faith that these markets will
give us good volumes in the near future. We are also targeting printed apparel business for the
first time. The latest addition is the most ambitious Apparel Dyeing plant setup in Raiwind Mill,
which has started its production.
The effectiveness and productivity of this plant will be further enhanced, as CTML moves
towards becoming a more vertically integrated organization.
CTML has increasing its profitability by working efficiently, procuring better raw material and
most importantly kept a very close association with its customers. It visits its business partners
frequently and provides them with the best service possible. All of the above mentioned points
led to strengthened relationship with its business partners making it very difficult for its
competition to penetrate into its market share.
CTML has provided its staff with better working environment and facilities, which enhances its
efficiency and output.
At CTML, it is prospering due to its professional commitment towards excellence and giving the
best results at all times and against all odds. Its marketing and production team co-ordinates all
the time and its focus remains on maintaining its position as the market leader in the textile
sector of Pakistan.
Competitive Strategy
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As for as COLONY Group is concerned its own name is its competitive advantage. Being an old
group it has its own name in the field of Textile as well as sugar. As I have told in the above
segment that it has business of Methane gas in Europe it is its competitive advantage. As dealing
in one different side gives you edge over competitors in other field. Furthermore, its financial
assets are also an edge for the group. As being late in paying any party makes future problems
which result in delivery of any product to be late and resulting in bad image of the company.
COLONY group buys raw material from all the groups like Nishat, Sitara Textiles, Kohinoor
Textiles and many more companies like that I cannot name all of them as it is a huge number.
Which automatically makes links better and which tells its mostly products are exported. And for
sure they are of finest quality.
They purchase raw material from china, India and USA.The cotton of India is good as compare
to other country. Yarn is export in other country and also use in local industry.
They use their own transport like as trucks or small transport vehicle but if they need then they
hire transport vehicle on rent.
Customer references
Colony textile mill prefer Customer reference program because according to that they are
important as buyers frequently seek peer advice in purchasing high value products and services
in both business to business and consumer environments. A well coordinated Customer
Reference Program results in:
•Less time spent by sales representatives searching for suitable customer references.
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SWOT Analysis
Strengths:
ISO 9001-2000:
Competitive advantage
Weaknesses:
Opportunity:
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Threats:
Political instability
PEST Analysis
Political Instability
The political situation of Pakistan is not satisfactory. Due to the rapid change in the Government
every government sets its own new trade policies. Govt. should apply sustainable policies for the
beneficial of the exporters as well as the investors.
Economic situation:
The economic condition of Pakistan can also affect the foreign investors increasing inflation rate
make the cost of production high and thus reduce the profit margin of the investor.
Social situation:
The change in the lifestyle of the people affects the growing demand of the CTML products. The
change in the lifestyle and needs in different demographics also affect the demand of the
customers.
Technological factor:
Technological advancement in all the sectors of the country has changed the entire socio-
economic environment. Especially in the textile sector there is a lot of technological
development. CTML’s excellent computerized machines and devices have made extension in its
present setup of well advanced technology imported from Japan, Germany and France.
Recommendations
Colony Textile Mills Limited:
The first and most recommendation is to eliminate one man show prevailing in the company
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Different training courses should be arranged for the up lifting and improving the quality of
work for employees.
There is also a problem of work overload for the employees and it should be control
properly so that the employees are motivated. As I have seen employees working till 8 PM. And
I have come to know that sometimes they work till 1 AM late night without any incentive.
Employees should be paid extra for the work which they do after working hours.
References:
1. Mr. Zafer Iqbal (Head jabber of CTM)
0308-5253523
0307-7992617
Conclusion
This visit gave our group the practical touch of the operations. Through this, we learnt that what
activities and operations are started in this organization. we learnt from the mill officer and
understood the operations of mill. This visit program enhanced our knowledge about the
operation Management.
Colony Mill Limited is one of the leading groups in Pakistan. The system, the management style,
the policies & decentralized decision making environment is really remarkable. In this area of
technology, the "Information" is the key to success in the business. This means that the
successful businessman will be who will have the right information at the right time. This
comment leads to the conclusion that the Information Sharing Process should really be improved.
The overall analysis is indicating that the company progress has mainly attained through
dedication of employees. The effectiveness of its management, their willingness to take
advantage of opportunities and face challenges of changing economic picture, this all contributes
to the very much improved and sound position of company This is really appreciable for the devotion and
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Personal Experience:
By this study tour we experience a lot of practical exposure that how works are performed in an
organization. We experienced
Role of a manager
Management problems
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Ans: Yarn.
Ans: Single.
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Ans: Flexible.
Ans: Work divide to different departments& each department has its own manager who controls
different operations.
Ans: Purchase raw material at low price, reduce production cost & sells at higher price for
maximization our profit.
Ans: Yes.
24. How to develop the product and what kind of strategies you adopt to promote the new
product?
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Ans: Work divide to different departments& each department has its own manager who control
different operations.
30. Do you think that your work flow is flexible and up to what extent it is compatible with
your labors?
Ans: Yes.
Ans: Programmed.
Lahore.
Bhakkar.
Noshera.
Muzaffar Abad.
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Ans: 80%.
38. Can you tell us about the capacity cushion set in your organization?
Ans: When increase our product demand then we take product from our other units.
39. How to fulfill the gap between the actual capacity and required capacity?
40. What you think about the bottleneck in your whole process?
42. Up to what extent the companies use the TOC in the organization to remove the
bottleneck?
Ans: No answer.
43. What is your long term capacity planning? What is short term capacity planning?
45. What type of inventory do you have? How you control your inventory?
High.
Medium.
Low.
Special Thanks
We are specially thanks full to these personalities because without their co-operation our visit
dream will remain in our mind.
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