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8/8/2019 18232244 Feasibility Plan
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SWOT ANALYSIS
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INTRODUCTION
• Inaugurated in 1959• Founded by Haji Bashir Ahmed & Haji
Abdul Gaffur
• Deals in
Textile Chemical
Energy
Health
Education sectors
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SITARA AN EXCLUSIVE BRAND
Market leaderPakistan’s primary exporter
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SITARA GROUP OFCOMPANIES
COMMERCIAL PROJECT• Sitara Textiles Industries Ltd.
• Sitara Chemicals Industries Ltd,
• Sitara Energy Ltd,
• Sitara Fabrics• Sitara Chemical(Spinning Units 1&2)
• Sitara Peroxide Ltd.
WELFARE PROJECTS
• Aziz Fatimah Trust Hospital• Ghafoor Bashir Children Hospital
• Aziz Fatimah Girls modal Collage
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MEMBERSHIP
• All Pakistan Textile Mills Association• Pakistan Cotton Fashion Apparel Manufacturers
& Exporters Association
• All Pakistan Bed sheets & UpholsteryManufacturers Association
• Karachi Cotton Association• Chamber of Commerce & Industry, Faisalabad
• All Pakistan Textile Processing Mills Association
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CERTIFICATION
• ISO 9001-2000• ISO 14000
BUYERS
USA, Canada, Australia, NewZealand, Europe, South Africa,Scandinavia and South America.
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BANKERS
• Allied Bank of Pakistan• Faysal Bank Limited
• Bank Al-Falah Limited
• The Bank of Punjab
• Meezan Bank • Al-Baraka Islamic Bank B.S.C(E.C)
• Soneri Bank Limited
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PROCESSING
• Spinning• Weaving
• Printing
• Design studio
• Stitching
• Quality control
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DRESS MATERIAL
WOMEN'SRANGE• Sitara Sapna Lawn• Sitara Supreme Lawn• Mughal-e-Azam Summer Collection• Sitara Supreme Linen• Sapna Linen• Mughal-e-Azam Winter Collection• Sapna Cambric( White & dyed)
MEN'S RANGE• Sitara Mughal-e-Azam Latha• Sitara Universal Latha
• Sitara Swiss Gold Latha• Sitara Sapna Latha,• Sapna Cambric• KT2000• Sitara Popline
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HOME TEXTILE
• Bed Linen• Tablelinen
• Kitchen Coordinates
• Curtains/ Valances
• Fabrics
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OUR VISIT TO SITARA
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SWOT ANALYSIS
A SWOT analysis is a datagathering tool to help analyze where anorganization is fundamentally healthy /unhealthy.
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SWOT ANALYSIS
SW PART• Company culture & image• Organizational structure & Key staff • Position on the experience curve• Operational efficiency & capacity• Brand awareness
• Market share• Financial resources
OT PART• Customers & Competitors• Market trends
• Social changes• New technology• Economic environment• Political and regulatory environment
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STRENGTHS
1. BRAND DIVERSITY variety of different seasonal
branded fabrics, extensive range
of sensational colors, seasonal collections
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3. INSTALLATION OF LATEST MACHINERY
• looms comprising of auto, shuttle less air
jet looms.• Printing Machines capable of printing 16
colors
• latest CAD/CAM designing hardware and
software• Latest automatic and manual sewing
machines.
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4. EXPERIENCED HUMAN RESOURCE
5. OPERATIONAL EXPERTISE
Spinning started the spinning unit in 1988, 35,984 Spindles.
Weaving
big portfolio of looms comprising of auto, shuttle less
air jet, facility of weaving all kinds of fabrics width
36-153 inches.
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Printing
Printing Machines is capable of printing 16 colors on fabric up to a widthof 3200mm
Designing
This department is equipped withlatest CAD/CAM designing hardware and
software.
Stitching
To accommodate the demand of its
state of the art made-ups, produces 3million made-u sets er ear
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WEAKNESSES
1-Labor TurnoverLabor turnover is the major
weakness hold by Sitara Textile. Howevera larger number of highly skilled
workforces are working there but theturnover ratio is very high.
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2-BOARD OF DIRECTORS
Sitara textile has sevenBoard of Directors but only threemembers are actively taking part indecision making and management.Consequently it is becoming the
weakness for organization and increasethe possibility of nepotism and favoritisminside organization.
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3-MANAGEMENT
Sitara Textile is however themarket leadrer in textile sector is but stillit’s facing the crucial problems regardingtheir environment. They have
decentralized system in the organizationwhich affects the relationship betweenmanagement and employees.
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OPPORTUNITIES
• ALTERNATIVE FUEL OPTION
Gas can be used as fuel to run the
steam boiler. Cost would be reduced from Rs.1to Rs.8 to process one kg of fabric
QUOTAS AND IMPORT TERIFFS Quatas are being phased out
Teriffs reduced to minimum limits
ADVANCE TECHNOLOGY:
Installation of power looms
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RAW MATERIAL MECHANICS• Cotton Rich Country
• Availabilty of raw material in Faisalabad
FINANCIAL SECTOR
CHEAP LABOR
RELATED DIVERSIFICATION
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THREATS
• Increases in domesticcompetition
• Increases in foreign
competition
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THREATS
• Few barriers to entry
• Price wars with competitors
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• Taxation is introduced on yourproduct or service
• A new competitor enter in your
home market
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• Competitors increase activitiesin foreign market
• Competitors have superioraccess to channels of
distribution
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• The Industrialization of thedistrict may affect ecology andenvironment of the district:
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FEASIBILITY REPORT FOR
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EXECUTIVE SUMMARY
• Textile industry is the largest sector of Pakistan economy. It plays a major role instrengthening the economy and alsocontributing a lion share in earning of muchneeded foreign exchange for the national
exchequer.• From the year 2005, there will be no quota
restrictions for textile products exportingcountries like Pakistan.
• High quality processing of fabric is vital for the
production of value added items. Dyed fabricis the basic raw material for manufacturing of value added products like readymadegarments, bed sheets, curtains, towels,canvas, etc.
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EXECUTIVE SUMMARY • Due to capital intensive nature of dyeing and
finishing units, the number of yarn and fabricprocessing units established in Pakistan are notsufficient to cater to the growing demand of dyedfabric. Presently, there are 600 processing unitsworking in the country. 5% of these units are partof integrated mills, while the rest of the units are
independent commercial processing units.Majority of these units have old machineryproducing low quality and high production costdue to old technology. The new entrants in theprocessing industry would have competitive edge
over their rivals by having low production cost byusing advanced machinery and latest technology.• The total project cost for setting up a knitted
fabric processing unit has been estimated atRs.50 million. It includes land, building, plant andmachinery, furniture & fixtures, office equipment,vehicles, preliminary expenses and working
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EXECUTIVE SUMMARY
• The project shall be financed throughequity contribution by the investor tothe extent of 50% and the remaining50% by a long term bank loan. The re-payment of loan shall be in 5 yearscommencing six months after thedisbursement. The markup on loan shallbe 16% per annum.
• Based on the projected financial
statements, the returns on the projectare satisfactory. Financial analysis of the project is as follows:
• Project cost= Rs.50 million
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BUSINESS CONCEPT
VENTUR DEFINE
NAME OF THE COMPANY Smart Fabrication Inc.
DATE OF ESTABLISHMENT Aug 2006
STATUS OF THE COMPANY Company
HEAD OFFICES Sargodha Road,Faisalabad Pakistan
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BUSINESS CONCEPT
PURPOSE OF THE FABRIC DYEING &FINISHING UNIT
• earning of foreign exchange for country
• cooperation among companies of the textiles
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VISION
Binding us to commitment
Achieve worldwide, preferred supplier statusin each product by:
Supplying superior quality products, servicesand value to our customers. Practicing TQMthroughout the company. TQM is foundedupon continuous process improvement and
total employee improvement regardless of race color, religion, sex, age or nationalorigin. Being recognized as a leader by ourcustomers, employees, suppliers andcommunity in our contributions to society
and the environment.
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MISSION
Binding us to commitment
To be the preferred supplier of dyed fabric
and related products by providing world-class quality products and services to ourcustomers. The mission is to enhance thecompetitiveness of the Pakistani TextileIndustry, from dying, through fabricatedproducts and retail, by implementing supplychain management to develop collaborativebusiness improvement programs which linkthe resources of government and industry.
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AIMS & OBJECTIVES
• Customer Focus
• Management Leadership
•Associate Involvement• Team Empowerment
• Continuous Process Improvement
• Supplier Relations• Environmental Responsibility
• Safety & Health Responsibility
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MARKET CHARACTERISTICS
Textile sector-future direction
• Textile is the largest sector andbackbone of Pakistan economy
•contributes more than 60% to the totalexport earnings
•accounts for 46% of the totalmanufacturing
• 8.5% of total GDP and providesemployment to 38% of the manufacturinglabor force of the country
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FABRIC PROCESSING
• 600 processing units presentlyworking in Pakistan
• 394 units are woven fabric
processing units• 206 units can be further
subdivided into knit fabric and yarn
processing units
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PRODUCT CONCEPT
We produce bleached and dyed fabric in avariety of seasonal quality and attractive
color, serving as a key element in themanufacturing of value added products
SERVICEMARK
PRODUCTS
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PRODUCT FEATURES• high quality of 100% cotton and blended
fabric
• Available in colors as per customerrequirement
• Serves as a basic material for textilemade-ups
• Key element for increasing exports of garments and textile made- ups
• Product mix ranges from light to heavy,narrow to wider width, plain, texturedfabric
• Available at negotiable prices
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MARKET RESEARCH ANDANALYSIS• Primary Research
Industry Visit
Across the Taxtile Value Chain
Brain Storming Session
Questionnaire• Secondary Research
Journals on Textiles
Local Publications
TARGET MARKETPrinting And Finishing Industry
End Customers
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POTENTIAL CUSTOMERS• LOCAL LEVEL
Population of Faisalabad is 2,386,000Growth rate is 3.1
512 weaving units in Faisalabad
POTENTIAL CUSTOMERS INCLUDE
Allied Hospital, Polly ClinicNishat Textile Mill, Faisalabad
Masood Textile Mill, Faisalabad
Ahmad Textile Mills, Faisalabad
• INTERNATIONAL LEVELExports are 8.3 billion annually
More than 25% exports comprises of blended fabrics
S
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MARKETS
• UNBLEACHED FABRIC
40% fabric export from pakistan without
procssing
15% share of global unbleached fabric
• BLEACHED FABRIC 15% exprot from Pakistan
• DYED FABRIC Exports of dyed fabric are US $ 364 million
Exports markets includes
U.S.A, Germany, Hongkong, UK
Srilanka, Bangladesh, Turkey
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• INDUSTRY GROWTH
124 units are large fabric unit, 425 aresmall weaving units
The production of the independent weavingunits increased to 1.87 billion sq.m, registering anincrease of 160% over a period of ten years.
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COMPETITORS Islam Textile Mill, Sitara textile Mill, Crescent Mill
COMPETITIVE EDGE OF THESE MILLS• They use skilled and technical staff.
• Their reprocessing cost of fabric is controlled to limit therepetition of dyeing process.
• Continuous efforts made for marketing and up-gradation
of the technology.• Use of quality dyes and chemicals for quality results and
satisfaction of the customers.
How Can We Compete Them• Upgrade technology, render the control of dyes and
chemical more appropriate.• Improve colour-adjusting technology.
• Improve systems for preliminary inspection of materials (fabrics).
• Change dyeing machinery and dyeing methods
(dyeing at conditions of low tension).
PRICING SYSTEM
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PRICING SYSTEM
Product Mix For Fabric Dying Kg Sale Rate/Kg
(Rs)
Fabric Bleached 1,280 40
51,200
Fabric Dyed 1,920207,840
Breakup of Dyed
Light Color 480 9043,200
Medium Color 384 10038,400
Dark Color 576 11566,240
Extra Dark Color 480 12560,00
Bulk Purchase
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MARKET PLAN
1. METHODS OF DISTRIBUTION Wholesale
Franchises
Consultants/ Intermerdiaries
2. PROMTION National Newspapers
Seminars
Brochures
Sampling
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3. WARRANTIES After sale services and
warranties if
The fabric is shrinked after washing it
The color of fabric became fade The quality of fabric or cloth is not up to the
standard
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MANUFACTURING PLAN
PROCESS FLOW2. Inspection Of Grey Fabric
3. Lot Making/ Shearing
4. Singe And Desize
5. Scouring6. Bleaching
7. Dyeing
8. Hydro Extractor
9. Vertical Dryer10. Tumbling
11. Calendaring
12. Quality Control
13. Packing
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PROCESSING CAPACITY
This project has thecapacity of processing 1,200 kg. Fabricand normally it will take 9 hours tocomplete one batch of fabric dyeing. Asthere are 24 hours in a day, thereforethis unit will be completing 2.67 batchesof 3,200 kg fabric processing in one day.
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G
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BUILDING
• Production hall =3,937,500
• Store rooms =
1,496,250• Boiler room =315,000
• Admin Department =
1,125,000
• Toilet/washroom =135,000
• Drive ways and pavements =
PLANT & MACHINERY
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PLANT & MACHINERY
•(3) Scouring, Bleaching and DyeingMachines(Imported) Capacity of 400 kg=
20,847,600• (2) Hydro Extractors (Local)=
400,000• (3) Tumblers (Local)=
750,000• (1) Calendaring Machine (Imported)=
1,800,000• (1) Inspection Machine (Local)=
100,000• (1) Razing Machine (Imported)=
900,000• Lifting Crane (Local)=250,000
• Boiler - 3 Tons Steam =3,000,000
• Air Compressor Pressure 5-7 Bars=
1,020,000• =
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• FUEL Steam boiler will run on gas
because there would be tremendoussaving in cost by running the boiler on
gas.
• WEAVING TECHNOLOGY
shuttle-less weaving.
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HUMAN RESOURCE
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HUMAN RESOURCEREQUIREMENTS
• PRODUCTION STAFF• ADMINISTRATIVE STAFF
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• INSURANCE On yearly basis
Group insurance of Rs200,000
CERTIFICATION After the installation of the
steam boiler, a certificate is be obtainedfrom the Chief Inspector Boiler Punjabwho will visit the place of the boiler andinspect the condition of the boiler
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ENTREPRENEURIAL
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ENTREPRENEURIALTEAM
• Chartered Accountant in Bank forthree years.
• marketing manager for five years
in a fabric-manufacturing mill.• HR manager in fabric dyeing millfor seven years
• quality control Manager in Leathermill.
• Managing Director of a Textile Millfor the past six years
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FINANCIALDOCUMENTATION
AN OVERVIEW
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AN OVERVIEW
BREAK EVEN POINT
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BREAK EVEN POINT
NO. OF UNIT PRODUCED PER MONTH = 3200
NO. OF UNIT PRODUCED IN A YEAR = 1152000
INCOME STATEMENT
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INCOME STATEMENT
BALANCE SHEET
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BALANCE SHEET