Reason to Select the Industry:

The industry I am choosing for the project is Textile Composite. There are certain reasons to select the
industry which include the following:

 There are 35 industries in Pakistan among which Textile composite is consisting of second
highest industry in terms of number of companies.
 Why the industry has 35% default ratio?
 The analysis will be useful in understanding the industrial differences.
 The interest in financial ratio analysis.

Textile Composite Industry consists of 56 companies. There are multiple options to select and compare
among various companies and the process of selecting and comparing option will enhance the
knowledge. The share prices in the industry are varying from Rs.0.06 to Rs.900+ per share. The default
rate of this industry is 35% which means almost 20 companies are defaulters. The research will help in
concluding the factors due to which in the same industry, some companies are having share prices more
than Rs.900, some companies are having share prices less than a rupee and some companies are
defaulters.

Reason to Select the Companies:

The Industry I am choosing for the project is Textile Composite and the companies are Sapphire Textile
and Bhanero Textile. The reason for choosing these two companies is to collect, analyze and interpret
their non-financial, financial, micro, and macro environmental factors to find an appropriate answer to
the following questions: Why the industry has more number of companies as compared to other
industries?

 Among 56 Companies in an industry, why and how these two companies are having the highest
share prices?
 What are the competitive edges for each of the companies?
 What business strategies are followed by them?
 Which company is financially stable and strong?
 What are their growth strategies?
 What is the Unique Selling Propositions (USP) for each of the companies?

The financial analysis will help in understanding the Liquidity, Profitability, Leverage, Turnover and
Market position of the companies. Micro environmental factors will help in understanding about
customers, organization, competitors, suppliers and market intermediaries and macro environmental
factors such as demographics, economic, political, technological and socio-cultural will be studied. It will
also indicate that which company is carrying its business in accordance with ISO’s and Accounting
Principles. Hopefully it will be a great learning process and after that we will be able to understand the
ups and downs of business.
INTRODUCTION
History:
Umer Group commenced its operations in 1982 with headquarters in Karachi, Pakistan. Umer Group has
been a part of leading industries of Pakistan. Umer Group has been involved in the list of different
industries including Textiles, Foot Wear, Dairy, Leather, Power Generation and Construction. In this
tenure of 39 years, Umer Group has built a good reputation and trust in Pakistani market. There has
been a stream of hard work and devoted efforts towards their work to reach at this place. Due to such
hard work and passion towards the work, Umer group is now enjoying the yield of 350 Million Dollars
per year.

Umer Group has never compromised on the quality of their products and had always tried to maintain a
higher quality standard. They have an excellent quality control system which helped them to sustain a
consistent quality standard and such quality allowed them to provide their consumers with the best
products. It is their motto to satisfy their customers, to motivate their employees, to bring innovation in
the technology and to purify the foundation.

Textile industry has always been a part of main business and a centre of excellence for Umer Group.
During the 32 year period, Umer Group has captured a huge portion of local as well as export market.
Their textile group has been divided among three companies comprising of:

 Bhanero Textile Mills Ltd.

 Faisal Spinning Mills Ltd.
 Blessed Textiles Ltd.

They have five spinning mills supported with the latest European and Japanese technologies that have
the installed capacity of more than 187,008 spindles. Moreover, they occupy three weaving mills
consisting of more than 588 air jet weaving machines.

The company we chose for our project in Bhanero Textile Mills Ltd. The company has both spinning and
weaving facility. The fabric produced at the mill is used for multiple purposes such as apparel, sheeting
and house textile.

About:
Bhanero Textile Mills started its operation in Pakistan in 1982. They have been operating in different
areas such as spinning, weaving, processing and sewing.

Vision
“A premier quality organization to provide the best quality and to keep the level of ethical, moral and
professional standard at a brilliant level”
Mission
“To become a dominant producer of textile products in the local as well as international markets and to
reconnoiter the new era to obtain the excessive level of success”