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Report on Organizational Structure & Design of Gul Ahmed

Textile

CHAPTER # 01
INTRODUCTION OF THE COMPANY
1.0 INTRODUCTION
The group began trading in textiles in the early 1900’s. With all its know-how
and experience .Gul Ahmed Textile Mills Ltd. was incorporated as a private
limited company, in the year 1953. In 1972 it was subsequently listed on the

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Karachi Stock Exchange. Since then the company has been making rapid
progress and is one of the best composite textile houses in the world. The mill
is presently composite on 8 units in Karachi with an installed capacity of
approximately 130,296 spindles, 223 wide width air jet looms, and a state of
the art wet processing and finishing unit.

Gul Ahmed’s fine textile products represent a unique fusion of the century old
traditions of the east and the latest textile technology of the west. The purest
of cotton fibers, produced from the fertile lands of the Indus Valley, are spun,
woven and processed into the finest quality cotton and blended products
through a combination of latest technology, skills and craftsmanship of this
traditional industry.

In recongnition of Gul Ahmed commitment towards the safety of their

processes and products,Gul Ahmed textiles have been awarded Oeko–tex
Certification. The management system of Gul Ahmed Textile Mills Ltd. has
been assigned and certified as meeting the requirements of SA (social
accountability) 8000:2001”.

Submitted to Sir. Irfan Hameed

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1.1 ORGANIZATIONAL STRUCTURE:

Organizational Structure may define in different ways;

 They define the levels of management in organizations.

 Organization structures define relationships between jobs.
 They define the centers of decisions in any organization.
 They help to achieve organizational goals by grouping jobs, defining
relationship between positions as well as who takes the responsibility in
organization.

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1.2 ORGANIZATIONAL DESIGN:
Organizational Design may define in different ways;

 More specifically, Organization Design is a formal, guided process for

integrating the people, information and technology of an organization. It
is used to match the form of the organization as closely as possible to
the purpose(s) the organization seeks to achieve.
 "Organization design" can be defined narrowly, as the process of
reshaping organization structure and roles, or it can more effectively be
defined as the alignment of structure, process, rewards, metrics and talent
with the strategy of the business.
 The design of an organization is much more than the boxes on an
organization chart and the lines that connect them.  It's the systems,
structures, and processes by which work gets done, and it has immense
potential to influence organizational behavior and drive results.

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Textile

1.3 ORGANIZATION HIERARCHY

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1.3.1 Brief Explanation

The Gul Ahmed works with One Executive and 03 Directors works under him, who are
responsible of reporting of different department to the Chairman and Chief Executive
of the Company. The Director 1 handles three departments under him the main and
most important departments of the organization means department of Processing,
Logistics and IT Department of the company. The processing department is the main
area and most important department of the company which handles the conversion of
cotton into thread and then converts it into fabrics. The next Director covers the
department of HRM & Security the other main departments of the company it handles
the work resource and security department of the company. The last Director of the
company handles the core commands of the company, he handles Finance, Accounts
and Sales & Marketing department of the company. He is responsible to generate high
revenue for the company with great profit margin.

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Textile

1.3.2 Hierarchy In detail

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CHAPTER # 02
CORPORATE PROFILE OF THE COMPANY
2.0 Company History

The story of textiles in the subcontinent is the story of Gul Ahmed. The group began
trading in textiles in the early 1900’s. With all it’s know-how and experience, the
group decided to enter the field of manufacturing and Gul Ahmed Textile Mills Ltd.

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was incorporated as a private limited company, in the year 1953. In 1972 it was
subsequently listed on the Karachi Stock Exchange. Since then the company has been
making rapid progress and is one of the best composite textile houses in the world.
The mill is presently a composite unit with an installed capacity of 130,296 spindles,
223 wide width air jet looms, and a state of the art processing and finishing unit.

2.1 Corporate - Business Activities

2.1.1 Textiles

In the textile field, activities start from the spinning of cotton as well as man made
fibers and extend to weaving, processing and finishing of all types of cotton and
blended fabrics, bed linen, home furnishings, garment manufacturing, etc.

2.1.2 Management

Management of the group is professionally qualified and broadly experienced. The

directors have held top positions in various textile bodies, export committees and
have also assisted the Government of Pakistan in some of the major trade talks with
EC and USA authorities.

2.2 Membership of Trade and Organization

List of Membership of Trade Bodies and Organization

 The Karachi Stock Exchange (Guarantee) Limited.

 Lahore Stock Exchange (Guarantee) Limited.
 All Pakistan Textile Mills Association.
 Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association.
 All Pakistan Bed sheets & Upholstery Manufacturers Association.
 Karachi Cotton Association.
 Chamber of Commerce & Industry, Karachi.

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 Employees Federation of Pakistan.

 All Pakistan Textile Processing Mills Association

2.3 CORPORATE CERTIFICATION

In recongnition of our commitment towards the safety of our processes and products,
we have been awarded Oeko-tex Certification.

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"The management system of Gul Ahmed Textile Mills Ltd. has been assigned and
certified as meeting the requirements of SA 8000:2001".

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Textile

CHAPTER # 03
MANAGEMENT POLICIES OF THE COMPANY
3.0 MANAGEMENT POLICIES

As every company works under some rules and regulation and have some policies to

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maintain the product level in the mind of customer so they able to face all the
competitors in the market. Gul Ahmed have also some policies inside the company;

3.1 Quality Policy

 Maintenance of Quality Systems on the guidelines of ISO 9000 series of
standards.
 Customer satisfaction through employee participation & innovative technology
application.
 Training of employees on quality awareness, ISO 9000 concepts & system
documentation including: procedures, work instructions, specification etc.
Training should be an on-going process and refreshers and reviews are a part of
training.
3.2 Social Policy
Gul Ahmed Textile Mills Limited has striven to become one of the leading
companies to actively participate in the social and economical growth of the
country. The company will endeavor to address following issues:
 Enforcement of minimum age of employee of eighteen (18) years without
any discrimination.
 Relaxed environment for employees.
 Practical measures related to health and safety.
 Equal opportunity.
3.3 Environmental Policy
Gul Ahmed Textile Mills Limited pursue long term corporate objectives towards
conservation in the use of electricity, gas and water for setting up an
environmental management system. We plan to meet global environmental
challenges in all areas.
3. 4 Health and Safety Policy
Gul Ahmed has a H&S manual and a permanent committee to ensure safety of
staff and workers. The members of the committee are:
 Technical Directors.
 General Manager Maintenance.
 Processing Manager.
 Management Representative (Health & Safety).

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Textile

 Stitching Managers.
 Admin, Security & Fire chief.

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CHAPTER # 04
OPERATIONS THE COMPANY
4.0 Company Operations

Gul Ahmed is a network of composite mills which manufacture goods from yarn to
finished products. In order to achieve and maintain high quality control and to retain
strict focus on specialization, the production units have been decentralized into the

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following units:

 Spinning
 Weaving
 Pretreatment, Printing, Dyeing, Finishing
 Design & Style
 Hemming – House Hold Textile
 Quality Control

4.1 Operations – Spinning

4.1.1 Spinning

Gul Ahmed has two spinning units. The machinery used in these units is made in the
U.K., Japan, Germany & the U.S.A.

4.1.2 Ring Spinning

The ring spinning operation comprises of a total of 130,296 spindles. A wide range of
yarns are produced in these units: 100% cotton from 50 NM for knitting and weaving,
up to 135 NM for light weight dress fabrics. Poly Cotton, Poly viscose and 100% viscose
yarns are also produced from 7 Ne to 100 count.

4.2 Operations – Weaving

The units have 223 air jet looms. The air jet looms come from Tsudakoma of Japan.
The latest installation of air jet looms operate in a new custom built weaving facility
supported by the most modern yarn preparation equipment and are comparable with
the finest available yarn preparation equipment anywhere in the world.

These units produce fine quality lawns, sheetings, twills, drills, dobbies, satins, and
other fancy fabrics with a width of up to 330 cms.

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Textile

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4.3 Operations – Pretreatment, Printing, Dyeing, Finishing

The wet processing unit is equipped with a wide range of state of the art machines
which gives Gul Ahmed a flexible processing possibility and an edge over its
competitors.

Gul Ahmed has 4 sophisticated rotary printing machines Capable of printing up to 21

colours on fabrics as wide as 320 cm.

Processing and Finishing Machinery

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 Computerized Colour Kitchen
 Calender
 CAD/CAM System
 Colour Scanner
 Dyeing Range
 Embroidery Machine (20 head 9 colour)
 Film Plotter
 Laser Engraver
 Mercerizing
 Rotary Printing including 21 colour and upto 280 cm width
 Singeing & Desizing
 Stentor
 Sanforizing
 Washing and Drying Range
 Wax Engraver

The first installation of a laser engraver, wax engraver, film plotter, colour scanner,
& CAD/CAM system in Pakistan was made at Gul Ahmed. Gul Ahmed places great
emphasis on innovation and implements the latest technology available. It is
dedicated to computerization in aspects of design reproduction.

In the finishing section, modern stenters are fitted with the most sophisticated
electronic weft straighteners which achieve perfect finishes. Final touch to the
fabrics is given on different calenders according to the requirements of the buyers.

An automated and computerized colour kitchen enables production of exact colour

shades each time from the use of recipes which are stored in the computer's memory
station.

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4.4 Operations – Design & Styling

Gul Ahmed's design studios are staffed with experienced artists with capabilities to
meet the most stringent requirements in design and to adapt to different colourways
to meet the requirements of each individual country. The company also employs
leading European designers who constantly develop new designs for specific
geographical areas. A top French designer works full time for Gul Ahmed and spends 2
months in Pakistan and 2 months in Paris on a rotational basis throughout the year.
The designing team visits major international exhibitions to keep abreast of current
market trends.

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4.5 Operations – Hemming - House Hold Textile

These units, equipped with high speed stitching machines and an intensive labour
force, are capable of making all of the different product size and style requirements
of each individual country.

4.6 Operations – Quality Control

Company is certified by the ISO 9000 due to its quality.

 Gul Ahmed Attains ISO 9000 Certification

4.6.1 Quality Control

Gul Ahmed maintains strict quality control and possesses computerized testing for
strength of yarn, density of cloth and fastness of colours. Fully equipped labs are
installed separately in areas of spinning, weaving and wet processing.

The quality control personnel conduct pre-inspection of goods at different stages to

maintain international standards and to ensure customer satisfaction on a regular
basis.

4.6.2 Quality Policy

We at Gul Ahmed Textile Mills want to maintain our position as one of the finest
quality-managed companies capable of meeting the requirements of our external &
internal customers. Our culture stresses employee participation & innovative
technology application to achieve continuous improvement. Our efforts towards
improvement of our quality system, based on the guidelines of ISO 9000 series of
standards is a journey towards excellence.

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CHAPTER # 05
PRODUCTS OF THE COMPANY
5.0 Company Products

Gul Ahmed's fine textile products represent a unique fusion of the century old

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traditions of the east and the latest textile technology of the west. The purest of
cotton fibers, produced from the fertile lands of the Indus Valley, are spun, woven
and processed into the finest quality cotton and blended products through a
combination of latest technology, skills and craftsmanship of this traditional industry.

5.1 Bed-Linen

Quilt covers ,duvet covers, flat and fitted sheets, pillow covers, valance sheets,
bolster case with all sorts of fancy confectioning, embroidery and embellishments,
packed to buyers' specific requirement.

5.2 Curtain

Ready made curtains lined, un-lined and taptop curtains, plain or fully accessorized
with tiebacks, pelmets, cushion covers, in different styles of confectioning and
embroidery, packed to buyers' specific requirement.

5.3 Fabric

Running meter fabrics, packed to specific requirement.

5.4 Yarn

Gul Ahmed specializes in medium-to-fine-count cotton yarns and is also capable of

producing yarns using a wide variety of synthetic fibers including polyester, rayon and
other man-made fibers.

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CHAPTER # 06
SUPPLY CHAIN MANAGEMENT OF THE COMPANY
6.0 Supply Chain:

We have the very strong and effective supply chain management, we have the number
of items that are major component of the Textile Industry that is Cotton, Yarn, Gray,
Dyes & Chemicals, Spare parts, Packing Material, Stitching Accessories, General Items
etc.

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We have the very transparent procedure of the procurement of the above items,
Cotton is normally a very specific material and the cotton are trade and fluctuate on
daily basis so the forward purchasing is done from the suppliers to avoid any stock out
position. We booked our cotton on the basis of the orders received from the export
and the Local retail shops. The same procedure applies to the Yarn and the Gray
procurement.

Dyes & Chemicals are mainly imported and we have the internationally recognized
suppliers like BASF, Clariant, Dystar, Stork etc. they are the quality suppliers and they
are also recommended by our valued customer as well. For the Local purchasing such
as chemicals, Packing material and General Items we get the quotations from
different suppliers and evaluate each of them beside the price negotiations and
finally to approved supplier we visit the factory to check either any child labor or any
envoi mental violation is being done at the factory. We are the quality supplier for
our customers so we strive to maintain the best quality.

There is the procurement procedure as follows.

-The request raise from the department or user.

-The user prepares the requisition.
-The requisition review by the Store and if the item is available in stock they issue if
not the asked to raise the indent for the item to purchase.
-The Indent after scrutiny sends to the purchase department to get the rates from the
approved suppliers.
-The purchase order is made and issued to the selected supplier and the supplier send
the items on the agreed time.
-The Store takes the item in the store receiving document and update the stock level.
-The Store department then asked for the store requisition from the user to issue the
item from the store.
-After the delivery of the item from the supplier the payment summary is made as per
the payment terms agreed with the supplier and the cheque is issued for the payment
to the supplier.

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6.1 Supply Chain Drivers

6.1.1 Transportation.
The Transportation is used for several purposes and we have the mix of the in-house
and outsourced transportation facilities. We used our own transportation for the

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delivering to our retail outlets within the Karachi and for other cities and for fabric /
yarn movement within the different units we have the transport contractors for
different locations. We don’t keep the single contractor to discourage the monopoly.

6.1.2 Inventory Management:

Inventory is the major component of our financial statements and we put more effort
to maintain the inventory for smooth flow of production. We have a full proof
inventory movement system “Inventory Management” system. We are using the
weighted average inventory system for calculating the rates of the individual item.
But we prefer to use the FIFO for the issuance of the inventory to different units.

We are maintaining the minimum stock of every item that tell us about the re-
ordering of that item and we calculate this minimum inventory level by considering
the maximum lead time and the safety stock. We keep the sufficient safety stock in
our store for Spears and tool and general items as the major item are imported that
takes more time to import and for Dyes and chemicals we maintaining the minimum
stock as per our planning of the next three months orders. As the dyes and chemicals
are highly volatile items and they turn into the dead stock after one year we use
prudent approach for these items.

They recommend the average inventory turnover for the local dyes & chemicals for
two weeks and for imported dyes & chemicals for four months (based on future
orders).

And for Stores & Spares we broken down the items in three categories such as
“Insurance Items” (That could be required any time in emergency and we keep them
in stock to avoid any long stoppage of machines, they normally include the critical
parts for the machine and that could take more than 4 weeks to import. Second one is
“Running Items” that are commonly use spare parts and tool and we keep its

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inventory as per explain above and all the spare parts, Tolls and general items are
approved in the yearly budgets department wise.

6.1.3 Pricing:
Our Pricing policy is some how mixed in connection with the Local and export. We use
Total cost Plus pricing for export orders that mean we do pre order costing based on
sample approved by the customer and send them for the acceptance. And for Local
we have pricing based on the market. We have the competition in the Local market as

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well and many brands are running so that we consider the market before pricing the
product.

6.1.4 Distribution:
Distribution channel are different for Local and Export orders, we have our own
transpiration for the distribution to the retail outlets in Karachi but for the other
cities we have the contract with the transporting companies to deliver to all outlets
outside the Karachi. For export we do the direct shipment to the customer. The
shipment dates and the destination provided by the customer.

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Textile

CHAPTER # 07
COMPANY SWOT ANALYSIS
7.0 Company SWOT Analysis:
Gul Ahmed SWOT analysis is described and viewed and observe and
collected by our visit is explained in detail as below;

7.1 STRENGTHS:

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 strong brand name that it carries as its parent brand

 People across the country trust the brand Gul Ahmed for it quality,

novelty and eminence. Especially in the clothing line their quality is

considered to be superior to their competitors.

 Positive Impact of its personal wear on home products and gifts

 Offering personalization on some of their products i.e. order taking

 not many competitors on the basis of one shop stop

 capitalizing on the increasing awareness of diversion between income

and economic classes and recognizing shopping from good branded stores

and malls has become a status symbol

7.2 WEAKNESS:
There is not complete exclusive distribution for Ideas

Marketing not rigorously

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7.3 OPPORTUNITIES:
One of the major opportunities that await Ideas is the fact that they can

expand their business greatly. This expansion can be both: Locally and

Internationally

Local expansion in the unexplored cities of Pakistan

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Internationally there is a huge potential for them to setup their stores

Another diversification that holds a lot of opportunity is to invest and

venture into cosmetics market

7.4 THREATS:
Political Instability

Rising production costs

Competitors

7.5 SWOT EXPLANATION & CONCLUSION:

7.5.1STRENGTHS:
The major strength Ideas has currently is the strong brand name that it carries as its

parent brand. It banks heavily on the brand name “Gul Ahmed”. People across the

country trust the brand Gul Ahmed for it quality, novelty and eminence. Especially in

the clothing line their quality is considered to be superior to their competitors.

Consequently the loyal customers of Gul Ahmed would want to buy or try other

product range that is being offered by Gul Ahmed. Apart from the regular customers

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of Gul Ahmed clothing a lot of people who would want to buy other households might

want to try ideas because of the mere fact that it belongs to Gul Ahmed.

The fact that they are offering personalization on some of their products makes them

different from their competitors. For instance they are offering to embroider on the

bed sheets etc according to the individual customers. This is giving them an edge over

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their competitors.

Another Strength is that they don’t have many competitors, so if they market

tactfully they can make a mark within no time. The concept of having a one shop stop

is relatively increasing as people find it convenient to buy all the household stuff from

a single store. Although it is becoming a popular concept but they don’t have many

competitors in the market as the market is not very saturated.

One of the major strength they bank on is the increasing awareness of diversion

between income and economic classes. Shopping from good branded stores and malls

has become a trend. So, shopping from these big stores is becoming a status symbol.

Now is the right time to make the most out of this strength which is at its peak right

now.

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7.5.2 WEAKNESS:

There are a few weaknesses that Ideas has to take into consideration and work on for

the improvement of its business:

One of the major weaknesses is that they are overpriced for the variety they are

offering. Although it is competitive to their other competitors but the overall pricing

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is a bit too high given the fact that the clothing prints and the material they are

selling on other shops at a lower price are being sold at a higher price in the ideas

outlet. So, taking the clothing line specifically, the items that are being sold at Ideas

are also being sold at other shops so there is no exclusive distribution for Ideas. In

comparison to this the competitors have exclusive distribution for their stores. The

products offered there are not being sold anywhere else.

Another weakness is that they are not marketing themselves currently rigorously as

compared to Chen one and Bareeze which are their competitors. They don’t have a

television advertisement at all and they don’t usually advertise through print media

as such. Only a few bill boards are displayed around the town, which does not really

give them visibility or make their presence felt. So they really need to work on their

marketing to make them known. As opposed to this their competitors pay special

attention to their marketing campaign and design them well.

Another weakness is their display of items. It is too cluttered and shabby. Their

outlets in different cities have different ways of displays i.e. there is no coherence.

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Even the individual outlet is not well displayed as compared to their competitors who

have a very clear display and each section is differentiated in a lucid manner.

7.5.3 OPPORTUNITIES:

One of the major opportunities that await Ideas is the fact that they can expand their

business greatly. This expansion can be both:

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 Locally

 Internationally

Locally there are many cities that are still unexplored but they do have a lot of

potential. Apart from that they can also participate in different business festivals

where they can put their stalls and displays. So taking part in such activities would

not only bring awareness for their brand but also make it easier for them to enter the

markets that are still untapped by them.

Internationally there is a huge potential for them to setup their stores. For instance

Chen one is doing exceptionally well in Dubai, so that shows that there is a huge

market for such stores. What needs to be considered is that they need to open their

stores in markets where there is potential and the right kind of consumers that would

be able to shop from this brand.

Another diversification that holds a lot of opportunity is to invest and venture into

cosmetics market. As they are a reliable brand and offering a home concept shop,

offering cosmetics would also be successful. Cosmetics market is huge with little local
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players. People would consider their cosmetics range reliable and of good quality

because of the mere factor that their parent company has a great name as far as

quality and reliability hold. They can give their cosmetics a different brand name but

can display them on ideas outlets. They are already making perfumes so making a

complete range of cosmetics would only help them.

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7.5.4THREATS:

The dominant threats to Ideas currently are:

 Political Instability

 Rising production costs

 Competitors

The major threat to any business currently is the political situation in the country.

Strikes, riots and other instabilities are increasing by the day. It affects the businesses

adversely. It not only affects the sales of the store but may also cause damage to the

outlet itself.

Secondly, the rising costs of production that includes the costs from materials to all

the overhead costs are making it difficult for the textiles industry to sustain. Although

there is no threat of sustaining the business but it does increase the cost of

production which in turn increases the price. So, the current economic crunch is also

a threat for them to develop more efficient ways and means of manufacturing and

commuting their products to their outlets.

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Last but not the least the threat is from their competitors. Chen one is famous for

their grand sales, discounts and the offerings that they have for their prestige

customers. They also have a long established their name in this business of selling

almost all the households at one shop.

But if they make the most of their strengths and take up the opportunities that they

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have, it won’t take them long to match up to their competitors in the market.

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CHAPTER # 8
TARGET MARKET & CUSTOMERS
8.1 PLACEMENT
Idea’s is a store by Gul Ahmed and therefore it follows exclusive distribution. The
products by Gul Ahmed are available at its store that is located in the major cities of
Pakistan like

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 Karachi

 Lahore

 Islamabad

 Hyderabad

At these stores customers get the entire range of Gul Ahmed’s products including
home products, gifts and personal wear.

Along with its physical presence it has also maintained its online shopping facility for
its consumers. The consumers can log on to the website and can order online. The
online presence has helped it gain the international consumers and in this way it has
built has brand internationally.

8.2 PROMOTION
Ideas follows integrated marketing communication in which it uses a number of
advertising mediums to communicate its personality and positioning to the consumers.
Its IMC includes the following advertising mediums

 Billboards

 Banners

 Magazine

 News paper

 Internet
Ideas has its own magazine that it uses to communicate its new offerings to its target
market. The magazine is published twice a year with the changing variety due to the
change in the season. Complete information is given with images about its product
range including home products, gifts and personal wear. Different celebrity

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endorsements are used to enhance the effectiveness of the brand. It has also been
given the title of SUPER BRANDS in Pakistan.

Billboards are used to increase the brand visibility in Lahore, Hyderabad, Karachi and
Rawalpindi. Competitors have also placed billboards. New happenings are mostly
communicated through banners and newspapers. It has also maintained its online
presence through its website which also offers subscription and the consumers are
updated through mails also.

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Submitted to Sir. Irfan Hameed