Textile Industry And The Power Blackout Commerce Essay

The history of fabric began in Eden where Adam and Eve nudity revealed to them upon eating out fruit. Soon after cognizing this both started covering themselves by run uping fig foliages. And today this necessity has become the most of import economic sector particularly in provinces like Pakistan. Before holding detailed expression on Pakistan ‘s fabric industry it is imperative to cognize its significance. The word fabric is a noun means a cloth made by weaving, knitting, etc or cloth. Textile industry includes cotton narration, cotton fabric, garments, bed wear, natural cotton, knitwear and other fabric stuffs.[ 1 ]

Boost in the cotton production and development of fabric industry has been impressive in Pakistan since 1947. Cotton – bales increase from 1.1 million bales in 1947 to 10 million bales by 2000. Number of Millss increased from 3 to 600 and spindles from approximately 177,000 to 805 million likewise looms and completing units increased but non in the same proportion. Pakistan ‘s fabric industry experts feel that Pakistan has reasonably big size fabric industry and 60-70 % of machines need replacing for the economic and choice production of merchandises for a extremely competitory market. But unluckily it does non hold any installation for fabrication of textile machinery of equilibrating modernisation and replacing ( BMR ) in the fabric Millss. We need to believe about joint ventures for the production of complete whirling units with China, Italy and production of bird less looms with Korea, Taiwan and Italy. Reflecting on the province of personal businesss, Abid Chinoy, Pakistan cloth merchandisers Association ( PCMA ) Chairman, Appreciated authorities ‘s attempts to promote new exports and happening new markets, which need aggressive export selling. The stairss taken on the pecuniary forepart, such as the frequent devaluation of Pak rupee in footings of dollar could non better the cost fight of exportable merchandises due to increase in monetary values of the local and imported inputs of the local fabric industry. During the period 1973 to December 1992, some 71 whirling units with 1,136, 835 spindles, 6,600 rotors and 7,329 looms were closed down. In 1992, a foreign adviser signifier was hired by the authorities to look into the stagnate conditions in the local fabric industry. One of the observations of the foreign adviser was “ Pakistan has failed to do existent advancement in the international market and is being over taken by many of the neighbouring rival states. The rise in export of value-added merchandises from Pakistan was another point of encouragement for the fabric sector. “ The export of value-added merchandises rose to 57.4 % from 53.9 % in 2002 which is clear mark that we are traveling in the right way, “ said the Chairman of all Pakistan fabric Millss association. The trade policy is considered an acceptable paper, but in the industry does non ticket anything that could take to a high degree exports accomplishment and take trade instability. Pakistan ‘s fabric sector earned US $ 5.77 billion during the 2003 twelvemonth, compared with US $ 5.577 BILLION OF 2000-2001 bespeaking a growing of 0.69 % . The entire exports of fabric sector in 2004 were US 5.7 billion which shows 2.5 % growing it increase to 4 % growing in 2005 as compared to 2004.The fabric sector shows 8 % negative growing in 2006.T he negative growing continue in 2007 besides with the value of 5 % .The fabric sector shows 15 % growing in 2008. Now we will discourse the chief grounds of crisis in fabric industry item.[ 2 ]

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The fabric sector enjoys an indispensable place in the exports of Pakistan. In Asia, Pakistan is the 8th largest exporter of fabric merchandises. The part of this industry to the entire GDP is 8.5 % . It provides employment to about 15 million people, 30 % of the state work force of about 49 million. The annual volume of entire universe fabric trade is US $ 18 trillion which is turning at 2.5 per centum. Out of it, Pakistan ‘s portion is less than one per centum. The advancement of the Manufacturing Sector has been given the highest precedency since Pakistan ‘s initiation with major emphasis on Agro-Based Industries. For Pakistan which was one of the taking manufacturers of cotton in the universe, the development of a Fabric Industry doing full usage of its abundant resources of cotton has been a precedence country towards industrialisation. At present, there are 1,221 ginning units, 442 whirling units, 124 big whirling units and 425 little units which produce fabric merchandises.[ 3 ]


The current scenario posses challenges foremost to prolong its planetary placement and secondly to increase its market portion by both addition in volume every bit good as addition in unit values. The unit value can be increased merely through marked betterment in quality, market affiliation, image edifice and alteration in concern doctrine. This requires up step in resource development both in fabrication and selling. The focal point should be on R & A ; D, proficient invention, merchandise development on one manus and trade name & A ; market development on other with the end of traveling up in the planetary fabric value concatenation.[ 4 ]Pakistan ‘s state of affairs is delicate because they are non traveling frontward in fact they are puting back when it comes to engineering. Pakistan has so far failed to accommodate to alterations and suffered effects by losing their portion in universe fabric market.

Pakistan is the 4th largest cotton manufacturer in the universe. Because of its plentiful, autochthonal cotton supply, the fabric industry is cardinal to the Pakistani economic system and is both a beginning of employment and a beginning of exports. Today, fabrics account for 38 per centum of entire fabrication and 8 per centum of GDP. It consists of 40 % of Pakistan ‘s employment. In malice of the important function fabrics play in the economic system, most fabric makers are cottage or small-scale industries. Pakistan relies on outside fabrication capableness and must buy most of its equipment abroad.

Cotton and narration are Pakistan ‘s chief fabric exports. The fabric industry accounts for more than 60 per centum of Pakistan ‘s entire exports. The All Pakistan Textile Mills Association is theA instituteA that legalizes the industry, which is presently confronting a figure of troubles, including the demand to better quality.

Pakistan now faces more competition from China, India, Indonesia and Turkey and so it must vie with them in conditions and comparative advantage. But the status of Pakistan is bad because of assorted grounds because of which they are losing their portion.[ 5 ]

Today Pakistan has an integrated fabric industry consisting cotton spinning ( narration ) , cotton weaving ( fabric ) , cotton cloth, fabric processing, place fabrics, towels, hose and knitwear and Apparels. These are manufactured both on big graduated table every bit good as in little & A ; average bungalow units all over Pakistan. Back in history fabric was for Faisalabad merely but now it is scattered all over Pakistan[ 6 ]


Fabric industry is of involvement to me fundamentally because my household concern is from this industry. My pa owns a little graduated table mill of fabricating athleticss wears and distributes it to different schools and athleticss institutes of Pakistan. After my MBA, I joined my pa ‘s concern and get downing assisting in increasing the clients to derive farther gross. The major parties that we are working with are Atchison, Punjab University, Chand Bhag, Beacon House, Pakistan Cricket Board and most significantly Punjab Sports Board. We are little graduated table and there is huge competition in our industry. Lower monetary value and high quality are the order victors and every bit far as monetary value is concerned there is a immense disturbance that we and most likely all companies in the industry are confronting.

Power blackout, intending short or long deficit of electricity, is the biggest expletive on every industry. Pakistan ‘s submerging state of affairs is the majorly due to power deficit. And we all know this job will ne’er travel off. Our mill is in danger because of this job, we already are a little concern and when we are pushed with power deficit we go more deep down. When our clients give us order they do non care of the being of power blackout and anticipate order to be completed on clip, if non so they either call off the order or take the finish goods and ne’er return. And if we try to finish the orders on clip utilizing other power methods Lashkar-e-Taiba ‘s state generators so the cost of production additions, reduces our net incomes or giving us loss.

Since I started assisting my male parent, I met some possible clients like UMT and UCP and they were rather impressed by our quality and related monetary values and wanted to give us order but because of power blackout we did non take hazard and decided to work with the bing clients because it ‘s even hard to carry through their order in the first topographic point.

Generators lower net incomes because their cost is really high, foremost the purchasing cost and our machinery requires a heavy generator so its operating cost, so its service cost it is excessively much for us. We have a generator which operates on gasoline every bit good as gas. We all are cognizant of gasoline monetary values and yes we all are besides cognizant of gas deficits and vacations. Furthermore the country where our mill is located has no gas connexion and so we use LPG cylinders which is really dearly-won and we have to confront its bringing charges every bit good. So in short running a fabrication company with power blackout is like playing an already hard game on difficult manner.

Let ‘s reexamine the hold rhythm, when we get order, we call the fabric maker who provide us with natural stuffs, they face the same power job and charge us high monetary value with hold on supply, when we get the natural stuffs we give it to the deceasing unit which besides do the same thing so the concluding stuff comes to us which is converted into finished goods and we sent to the respected client after hold or by facing loss. Many of the concerns of the same industry shut their operations because they were traveling insolvent or had no concern at all because of power blackout.

Now here some of the big graduated table companies still benefit because they can utilize other methods of electricity and still do net income because they are big graduated table and usage efficiency as their kicker. They manage to finish their orders on clip and still do good net income. But some big graduated tables which are working internationally face the same job as we do because their competition is planetary and non every state is “ blessed ” with power blackout.


Soon Pakistan has a really low portion of the international fabric market and due to the economic lag in US and Europe, Pakistan ‘s fabrics exports are besides worsening as they are largely dependent on these two markets. China tops the US market with a portion of 36 % followed by Bangladesh 21 % , India 18 % , and Morocco 19 % and Pakistan 13 % . South Korea has lost 20 % market portion of the US market. In the European market, China tops once more with a portion of 29 % , Vietnam 28 % , India 19 % and Pakistan merely 1.5 % while the Philippines had lost 11 % of the market. Harmonizing to APYMA, fabric exports have declined by about 20 % in 2008. The industry is poising for more problem in front with go oning crises of electricity and gas, international market entree, planetary economic lag, and inauspicious travel advisories. APTMA, Pakistan ‘s whirling industry association established for the publicity and protection of the fabric industry, says that the high cost of finance because of the state ‘s tight pecuniary policy has added to their continuing sufferings.[ 7 ]

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As we can see here entire exports of Pakistani fabric has fallen from 61.1 % to 53.8 % . This could be the consequence of many factors that Pakistan is confronting today. Major factor behind such a loss is power blackout, power replacement increases the cost of production and makes Pakistani fabric less competitory and hence we lose our portion from the planetary market.

Another article named, “ Inefficiency: Fabric industry admits it has a productiveness job ” Mohsin Aziz, the caput of the All Pakistan Textile Mills Association ( APTMA ) , the largest fabric anteroom in the state, said: “ Based on the recent studies of foreign advisers, we believe that the overall Pakistan ‘s fabric Millss are rather efficient. The existent jobs of industry are power deficits and high involvement rates in Pakistan that are impeding the growing of industries in the state. ”

This means that overall fabric industry is efficient but the power blackouts and involvement rates are downgrading the economic system.

But while most textile executives acknowledged that the power crisis was a job, they besides say that it is non an unsurmountable 1. “ It is true that Pakistan has been affected by the continued power deficits, ” Sohail Tabba, CEO of Gadoon Textile Mills and Fazal Textile Mills toldA The Express Tribune, “ But unless we work on efficient power systems, we can non command power deficits.


Working CAPACITY ( in 000 )

Time period

Unit of measurements


Growth %


Growth %


Growth %


Growth %


Growth %


Growth %

The thought here is to better the degree of efficiency which will in return better the power deficit. The chief construct they are seeking to portray here is that the concern theoretical account of fabric industry is weak and this is because the authorities is feeding them with subsidies doing them inefficient and unproductive.






















































Furthermore most textile companies in Pakistan are whirling and weaving and they buy cotton from other parties this makes them endure the big fluctuation in cotton monetary values and hence their concluding merchandise comes out expensive.[ 8 ]

Beginning: Growth of cotton fabric industry in Pakistan, TCO

The tabular array show the growing of cotton fabric in Pakistan from 2007 to 2011 and it is really apparent from the statistics that fabric growing has fallen. Furthermore there is a immense difference between the installed capacity and working capacity which means fabric industry is no manner near full capacity use. Reasons for this could be many ;

For illustration, the industries are non utilizing the resources given to them expeditiously

Power and energy crisis is non doing the industry work to its full potency

Competition is later high and Pakistani fabric industries are non acquiring adequate orders.

Pakistani industries are non acquiring adequate orders because they lack quality

Another article, ” Pakistan ‘s Textile Industry Is Perilously Fragile ” Farhan sharif negotiations about the proprietor of Dilkhush Hosiery Mills, Chaudhary Maqsood Elahi who was a really successful exporter of knitted garments, tried to salvage his mill for two old ages, he sold his house, cut down on employees and switched to aerate shipment to run into the orders on clip but failed and shut down his 15 twelvemonth old mill, he said the ground was, “ Power blackouts last every bit long as 20 hours at a stretch in Faisalabad, while deficits of natural gas, which powers the looms, can travel on for six yearss at a clip ”

Farhan farther said more than 200000 workers lost their occupations because of power crises and 1000s of fabric workers came out on the consecutive and protested against power deficit but to no help.

Farhan farther said, “ The Pakistani fabric industry has had a aureate chance to gaining control markets lost by Chinese manufacturers because of lifting pay force per unit area in China and the grasp of the kwai. But harmonizing to the Pakistan cardinal bank ‘s latest one-year economic study, the local industry has n’t been able to prehend the advantage. Alternatively, Bangladesh and Cambodia have increased gross revenues of dress as Pakistani makers struggle with energy deficits ” Now the inquiry here is why Pakistani industries did n’t take this advantage. This would hold helped the economic system boomed and flourish but nil happened.

Our premier curate at that clip Yousaf Raza Gilani promised to put in new power workss in Faisalabad so that energy crises can be resolved, but since now nil has been done about this and still many exporters are enduring loses like Mr. Elahi did.[ 9 ]

Mirza Ikhtiar said, “ Labour productiveness is really low. Our regional rivals take 75 proceedingss to finish and bring forth one piece of cloth whereas we take 133 proceedingss for the same work. We besides waste 30 per centum in coating and 12 per centum in rinsing. ” ( Mirza Ikhtiar Baig )[ 10 ]which evidently means that corruptness is traveling on in utilizing resources. Furthermore, we can reason that our machinery is either uneffective or have gone disused due to inadequate timely investing and invention. One of major ground might be theA lifting involvement rate which has crippled the little investors andA made themA risk-averse.[ 11 ]So because of deficient capital investing fabric industry is unable to accomplish its full efficiency. Mr. Mukhtar farther said, “ The deficiency of R & A ; D in the cotton sector of Pakistan has resulted in low quality of cotton in comparing to rest of Asia. Because of the subsequent low profitableness in cotton harvests, husbandmans are switching to other hard currency harvests, such as sugar cane. In Punjab entirely, the cotton country sown this season was less by 1.14 per centum as compared to the last twelvemonth. Fabric proprietors argue that although theA Cotton Vision 2015A targetsA 20 millionA bales till 2015, it is an ambitious mark as in world cotton production is diminishing each twelvemonth. It is the demand of proper R & A ; D that has led to such a status. They further laic incrimination on trusts, particularly the pesticide sector, for impeding proper R & A ; D. The pesticide sector stands to take advantage from stunting local R & A ; D as higher output cotton is more pesticide resistant.

Industrialists besides argue that the non-guaranteed supply of power byA WAPDA is another job that negatively affects the fabric industry. Although, some fabric units have built their ain energy bring forthing workss to cut cost ( these units run on gas ) , little units production depends wholly on the electricity supply of WAPDA. The fabric industry suffered heavy fiscal losingss in Dec, Jan and Feb one-fourth, because of the inconsistent electricity supplies. The deficiency of production later resulted in the industry non run intoing its mark for the one-fourth, monolithic fiscal losingss were borne by fabric proprietors and unhappily, it hit the most vulnerable: workers on day-to-day wages.A Their defeat was observed late, when the WAPDA and MEPCO ( Multan Electricity Power Company ) offices in Multan, were torched by day-to-day pay workers. Fabric proprietors every bit good as workers passionately assert that the inconsistent supplies have and are destructing concern across Pakistan. They besides highlight that the high cost of the public-service corporations has doing Pakistani fabric wasteful in the international market.

Even foreign involvement is demoing that Pakistan need to better its fabric sector if they want to stand out as a state. For the sustainability of Pakistan ‘s economic system, the hurdlings faced by the fabric industry must be removed with friendly policies as the industry is the individual largest supplier of employment, brings immense export orders and lends support to all those western concerns which are switching focal point to this part, says a foreign industry representative.[ 12 ]Denis Chiarello, country gross revenues director of Italian based company Tonello, who was in Lahore a twosome of yearss ago for Garment machinery Exhibition farther said Pakistan ‘s power crisis and unfortunate jurisprudence and order state of affairs have damaged non merely the local companies but besides the foreign investors and companies.

Fabric exports from Pakistan stood around $ 12 billion in 2011-12, but the industry supposes that it can easy strike the $ 20 billion grade if provided with uninterrupted power supply. Which means Pakistan can derive its original place if and merely if energy crisis supported Pakistan.

The Garment machinery Exhibition IGATEX Pakistan 2012 which took topographic point in Lahore exhibition Centre, opened many chances for big Millss to upgrade their machinery since more than 500 companies came to Pakistan to sell their machinery. This helped the industries to purchase the machinery right at that place and so and avoid the importation cost and responsibilities. I myself visit the topographic point and was impressed by the presentation they displayed and many machineries were sold on the really first twenty-four hours, by many big fabric industries of Pakistan.

In another article Mr. Paras said, “ Quality issues have been good known since so as hapless quality seeds and low Bt toxin in these harvests has been reported. Low toxin could intend that Cotton plagues may develop opposition, sooner than anticipated and therefore rendering Bt Cotton engineering ineffective. This must be blamed on hapless control by the Agricultural section and deficiency of quality control and parametric quantities by the local seed companies. ”[ 13 ]And when there is no quality command the quality of cotton will evidently fall, this is the ground why China and India are taking our portion of the market. At one point we do n’t hold engineering to bring forth progress seed and if we do hold we do n’t cognize how to manage that engineering and do faulty seeds that produces low quality cotton.

Cotton monetary value plays a major function is set uping or destructing a fabric industry, Pakistan ‘s cotton monetary values are hiting high breakage records as pointed out in this article, “ Cotton monetary values continued to mount Thursday in Pakistan interrupting all old records for better quality harvest. On old twenty-four hours topographic point rate, at the Karachi Cotton Association ( KCA ) , increased by Rs 75 to Rs 4,700, interrupting all old records. ”[ 14 ]Our fabric industry is already in danger and the natural stuff that is used is interrupting records in high monetary values. There is no support from anyplace to better the state of affairs.

There was a really of import Swot analysis I found in Mohammed Ather Akhlaq ‘s study, the Swot is given in the diagram below ;


Raw Material base


Rich heritage

Domestic market


R & A ; D

Poor Quality criterions

Labour productiveness

Unstable political state of affairs

Poor substructure



Power blackout

New rivals

Phasing out of quota system

Fashion life manner


Pakistan fabric metropolis


Collaboration with foreign companies

Production high value merchandises

Image edifice of Pakistan to pull FDI


Pakistan is the 4th largest manufacturer of cotton, which helped them do a really strong base for its natural stuffs ; Pakistan is non depending on imports for natural stuffs.

Cheap labor has ever helped Pakistan in developing its economic system, ample supply of inexpensive labour strengths the fabric and agricultural sector of Pakistan.

Pakistan enjoys diversified civilization which helps in increasing the assortment of designs. Increase in income degrees and growing of urban life has increased the demand of fabric merchandises.[ 15 ]

Fabric industry of Pakistan is the largest foreign exchange earner

Availability ofA low-priced Land

Availability ofA low-cost machinery

Major parts of fabric goods are from semisynthetic fiber instead than man-made one.[ 16 ]


In Pakistan, there is some research done on little graduated table by private companies to contrive modified cotton fibers. Practically no attempts are being made by the APTMA in the R & A ; D of the fabric industry to better the quality of its merchandises, progress the engineering used, and carry effectual methods of production in order to vie internationally.

The industry suffers deficiency of latest agencies of production and hence suffers falling cotton harvest end product every twelvemonth. Due to low quality of cotton harvest, profitableness lessenings and the husbandman switch to the other harvest such as sugar cane, corn and therefore the cotton production lessenings.

With the exclusion of large and taking units who comply with planetary quality criterions in fabrics, most of the medium and little sized units can non guarantee the dependable and consistent quality criterions.

Some of these textile units import 2nd manus machinery from China, India, Korea, and Taiwan with no cheques and balances on the quality of the machinery parts and tools.

Preference is merely given to the cheap and feasible machinery with no concern of the quality of the machine, hence, ensuing in hapless quality of the terminal merchandise.

The industry can bring forth more net income by adding more value to the merchandise, as value can be measured in footings of quality, increased per unit monetary value, etc.

Pakistan ‘s fabric industry should concentrate on latest stuff managing techniques and should develop workers.

The inability to seasonably overhaul the equipment, machinery and labor has led to the diminution of Pakistani fabric fight.

Political volatility, work stoppages and terrorist act have critically affected the economic system of Pakistan. Recurrent changing of the authorities has adversely harmed the policies of the fabric sector. World trade reappraisal states that there are many lacks in Pakistan ‘s fabric industry.


Pakistan Textile City in Port Qasim, Karachi with an country of 1250 estates, will be completed in 2011 as a private public sector joint venture. The chief intent of the fabric metropolis is to supply the fabric industry with the universe category substructure to run into the planetary fight and challenges and as to supply value added textile industrial zone.

Targeting the chartless export markets with the aid of repetitive gross revenues and selling will pave the manner for the fabric growing.

Partnering with foreign states will assist Pakistan larn a batch, they can portion engineering and thoughts, which will return in cut downing cost of capital and better efficiency.

Pakistan should seek to export value added goods globally instead than exporting natural stuffs. It will make more value and increase net income borders.

Pakistan needs to better its image in order to pull foreign direct investing. They should supply them with security so that their assurance can be built-up.


Power blackout is the biggest menace Pakistan is confronting, major fabric companies fear shut down and many have already witnessed it. Power blackout is making unemployment, and many skilled labors are change overing their accomplishment into something else to avoid unemployment.

The replacement of power energy is really expensive and is non efficient plenty for fabric industry to vie globally.

Pakistan is confronting new rivals in fabric sector such as India, Bangladesh, Vietnam and Turkey and our schemes are non good plenty to contend against them.

Now that the quota system is out of inquiry Pakistan fright from China and India because they have low cost of production and efficient labor.

Manner is altering and it is doing hard for Pakistani fabric industry to get by with it. Buyers force for speedy bringing because they fear that by the clip the order will make the manner will travel out.[ 17 ]




The narrative of fabrics in the subcontinent is the narrative of Gul Ahmed. The group began merchandising in fabrics in the early 1900s. The group entered in the field of fabricating with the constitution of today ‘s iconic name of Gul Ahmed Textile Mills Ltd in the twelvemonth 1953. Since its listing on the Karachi Stock Exchange in 1970, the company has been doing rapid advancement and basking a prima place in the universe of fabrics.

With an installed capacity of more than 130,000 spindles, 300 state-of-the-art weaving machines and most modern narration dyeing, treating & A ; sewing units, Gul Ahmed is a composite unit – doing everything from cotton narration to finished merchandises. Gul Ahmed has its ain confined power works comprising of gas engines, gas & A ; steam turbines, and backup Diesel engines. Believing in playing its function in protecting the environment, Gul Ahmed has besides set up a waste H2O intervention works to handle 100 % of its wastewater, conveying it to NEQS degrees.

Gul Ahmed is playing a critical function non merely as a fabric giant, but has its strong presence in the retail concern every bit good. The gap of its flagship shop – Ideas by Gul Ahmed- marked the group ‘s entry into the retail concern. Get downing from Karachi, Gul Ahmed now has an extended concatenation of more than 40 retail shops across the state, offering a diverse scope of merchandises from place accoutrements to manner vesture.

More than 50 old ages since its origin, the name Gul Ahmed is still globally synonymous with quality, invention & A ; dependability.


Puting tendencies globally in the fabric industry.

Responsibly presenting merchandises and services to our spouses.


To present value to our spouses through advanced engineering and teamwork.

Carry throughing our societal and environmental duties.






Business Activities

Excellence in quality and service is the trademark of all operations performed at Gul Ahmed. Firmly standing by its concern values, Gul Ahmed is active in industry and sale of fabric merchandises.

The fabrication wing is an indispensable constituent in Gul Ahmed ‘s operations. The fabrication rhythm, which includes spinning, weaving, processing, planing and sewing, consequences in an terminal merchandise that is tailored to the most rigorous client demands.

On the retail forepart, Ideas by Gul Ahmed offers cloths and made-ups, runing from place accoutrements to vesture. It non merely provides manner at great value, but besides caters to assorted client demands by offering a diverse merchandise mix. This leads to a complete and gratifying retail experience. As a consequence of this, the concatenation has expanded to 40 shops across Pakistan since its origin in 2003.[ 18 ]


The Company commenced operation in 1953 as a private limited company and became a populace limited company in 1968. The initial capacity of its Rawalpindi unit comprised 25,000 spindles and 600 looms. Subsequently, cloth processing installations were added and whirling capacity was augmented. Extra production installations were acquired on the Raiwind-Manga Road near Lahore in District Kasur and on the Gulyana Road near Gujar Khan, by manner of amalgamation.

The Company ‘s production installations now comprise 151,902 ring spindles capable of whirling a broad scope of counts utilizing cotton and Man-made fibers. The weaving installations at Raiwind comprise 204 looms capable of weaving broad scope of greige cloths. The processing installations at the Rawalpindi unit are capable of dyeing and publishing cloths for the place fabric market. The sewing installations produce a diversified scope of place fabrics for the export market. Both the dyeing and sewing installations are being augmented to take advantage of greater market entree. Fully equipped research lab installations for quality control and procedure optimisation have been up at all three sites.

The Company has been puting to a great extent in Information Technology, preparation of its human resources and fixing its direction to run into the challenges of market integrating.

Kohinoor Textile Mills Limited continues to guarantee that its current competitory place is maintained every bit good as back uping the on-going betterment procedure in our enterprise to keep universe best pattern fabrication.


KTML was established in 1953 at Rawalpindi and is one of the oldest companies of Pakistan with over 50 old ages experience in fabric fabrication. It was ab initio set up as a spinning and weaving undertaking with 25,000 spindles and 600 looms. However, after decennaries of aggressive enlargement and modernisation KTML has emerged into a to the full vertically incorporate place fabrics company with province of the art capablenesss for whirling, weaving, dyeing, printing and sewing. The company has a diverse client base with gross revenues in both the local and export markets. The chief international markets include Asia, Europe, USA and Australia.

Our corporate mission:

Put the client foremost ever.

Be flexible to the client ‘s demands.

Adhere to the highest quality criterions.

Think innovatively but do informed concern determinations.

Deliver consequences.

Vision Statement

The Kohinoor Textile Mills Limited stated vision is to accomplish and so stay as the most progressive and profitable Company in Pakistan in footings of industry criterions and stakeholders involvement.

Mission Statement

The Company shall accomplish its mission through a uninterrupted procedure of holding sourced, developed, implemented and managed the best prima border engineering, industry best pattern, human resource and advanced merchandises and services and sold these to its clients, providers and stakeholders.

Principal Business Activities

Kohinoor Textile Mills Limited is a public limited Company incorporated in Pakistan under the Companies Act, 1913 ( now Companies Ordinance, 1984 ) and listed on all Stock Exchanges in Pakistan. The registered office of the Company is situated at 42-Lawrence Road, Lahore. The chief activity of the Company is fabricating of narration and fabric, processing and sewing the fabric and trade of fabric merchandises.[ 19 ]





The ratio tabular array of Gul Ahmed shows the Gross net income has increased from 16.12 to 18.19 which means they were able to do more gross revenues than 2010 and they were able to pull off their cost of goods sold expeditiously compared to 2010, whereas Kohinoor ‘s tabular array shows their gross net income fell from 18.71 to 15.15 which identifies that even though their gross revenues increased but their cost of goods went higher than 2010. Gul Ahmed ‘s gross net income was less than Kohinoor in 2010 but in 2011 because the cost of Kohinoor increase their gross net income fell compared to Gul Ahmed.

Net net income to gross revenues ratio for both industries went in the same flow both went from around 2 % to 4 % , but Gul Ahmed ‘s addition was approximately 48 % and Kohinoor ‘s was 35.8 % so Gul Ahmed ‘s cyberspace net income went higher than Kohinoor ‘s.

Tax return on Equity, a really of import profitableness ratio states how much of net income is returning to the entire capital involved. Gul Ahmed ‘s went from about 14 % to 28 % which means their ROE doubled in 2011. Whereas Kohinoor ‘s ROE did non increase with the same ratio it merely went from 8 % to 11 % .

Debt of equity ratio shows the balance of how much debt is at that place in reflect to how much equity employed. Gul Ahmed ‘s debt to equity ratio was 0.62 in 2010 which is excessively much because it states that 62 % is debt and merely 38 % is equity. This will frighten stockholders off but Gul Ahmed improved their ratio to 0.47 which is relatively better than 2010. Kohinoor nevertheless was effectual with merely 34 % debt and 66 % equity in 2010, but they improved their ratio even more to 24 % and 76 % severally.

Current ratio states how much capital is available in order to pay off short term debts called current liabilities, it is a liquidness ratio and must be over 1.5 to be perfect and unluckily both the industries are missing behind. Gul Ahmed ‘s ratio did increase from 0.97 to 1.03 which agencies now they have 1.03 current assets to pay off 1 liability, but Kohinoor is in problem because their 2010 ratio was 0.80 and it went worse to 0.67 which is highly hazardous because they merely have 0.67 current assets to pay off 1 current liability, creditors will experience loath to impart money to Kohinoor.

Another liquidness ratio Acid-test ratio neglects stock and so sees how much of current assets are available for current liabilities. This ratio gives flooring consequences for Gul Ahmed their ratio for 2011 is merely 0.19 even though its simple current ratio was 1.03 this means most of its current plus is stock. With this ratio Gul Ahmed wo n’t be able to pay back its liabilities and may coerce to acquire belly-up. Kohinoor on the other manus is better than Gul Ahmed though their ratio is non ideal either.

Net incomes per portion, is a really of import ratio for the investors they view this ratio in order to put in an administration. It states how much an investor can gain by its portions. Gul Ahmed ‘s gaining per portion is 18.85 was 7.52 in 2010 which means they have increased their net incomes by 59 % it is improbably attractive for an investor. Kohinoor ‘s net incomes per portion is 2.2 was 1.91 in 2010 which mean they have increased their net incomes as good but non in the same flow.

Inventory turnover, shows how many times an administrations stock list is sold and replaced in a given clip period. It is a turnover ratio and show efficiency of a company. The turnover for Gul Ahmed is merely 0.37 and for Kohinoor its 5.04 which means Kohinoor is expeditiously change overing its stock list into gross revenues.


To happen out the power blackout consequence on fabric industry?

To happen out the growing of fabric industry

To happen out what steps authorities is taking to get the better of this job

To happen out what is doing Pakistani fabric less competitory

To happen possible solutions


“ Is Textile Industry agony because of Power Blackout or there is a concealed Truth? ”


Choosing the right research is really of import and it holds the whole research together, one incorrect determination and consequence in incorrect decisions or biasness. In my research most of the informations will be based on Secondary research, by intelligence articles, web articles and web logs and other related researches. For Primary information questionnaires, series of structured inquiries related to the research which brings out really of import informations, will be given to the people working or having a fabric company and perchance from authorities organic structures and follow up inquiries will be asked from them which will be random.Same size will be 30 respondents so that more information can be gathered and there are no prejudices in the research paper.Interviews will be taken from the higher authorization people so that their perceptual experience is seeable and can be used in the research.[ 20 ]


I have about four months to finish my research and present it with assurance. Four month continuance is good plenty for thoro survey and research.


Web is the best resource I will be utilizing since it ‘s a general subject acquiring one individual wise man in an administration will non assist. I will be taking aid from assorted people working in different companies and authorities persons.


Is Power Blackout the chief ground of fabric industry agony?

H0: Power Blackout is the chief ground of fabric industry agony

H1: Power Blackout is non the chief ground of fabric industry agony

Is Quality of Cotton the chief ground of fabric industry agony?

H0: Quality of Cotton is the chief ground of fabric industry agony

H2: Quality of Cotton is non the chief ground of fabric industry agony

Is Unskilled Labour the chief ground of fabric industry agony?

H0: Unskilled Labour is the chief ground of fabric industry agony

H3: Unskilled labor is non the chief ground of fabric industry agony

To warrant the research hypothesis I used questionnaires and follow up interview inquiries and used 30 respondents to reply the inquiries so that there is no biasness in the research. All the respondents were qualified and were working in the field of fabric as either the proprietor or senior employee.

The questionnaire analysis is given below ;

1. Make you believe Textile industry of Pakistan is enduring?



Now the information here shows that 97 % respondents said there is a job with our fabric industry which means the industry should take enterprises to better their state of affairs. 97 % means 29 out of 30 respondents are confronting job in their concerns.

2. Is your company a victim of power blackout?



Now this inquiry was really of import for the research since it brings out the prevailing job. 100 % respondents said their fabric companies are a victim of power blackout, there was non even a individual 1 who could state we have no job with power blackout. But is power blackout the nucleus job of fabric industry loss or there is some other factor, we will happen out in approaching inquiries.

3. Make you believe power blackout affect fabric industry?

Strongly differ




Strongly hold

The graph shows that out of 30 people 12 strongly agree that power crisis is impacting the fabric industry and their administration while 8 respondents disagree, which mean they have some sort of counter onslaught for power supply. But as a whole 22 responds are affected by the power deficit.

4. Are you utilizing any replacement for power energy?



This graph brings out the fact that 83 % respondents are utilizing replacement for power energy in order to last in the industry while the other 17 % 5 respondents are non utilizing any replacement and therefore face so much jobs. They farther revealed that even though they use replacements their cost of production gets really high and they lose their portion in competition.

5. If yes so which replacement are you utilizing?

Diesel Generators

Gas generators

Company owned power works

Solar energy

Otheraˆ¦ . Please specifyaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ .

Now since 5 respondents said they merely use the “ sometimes provided ” power energy the other 25 respondents showed this consequence when asked which replacement they are utilizing. 10 respondents said they have their ain power workss which evidently mean they do non depend on Wadpa. But they besides added that because they use their ain power workss their cost is really high and they are non competitory in the market but they are still making concern. The gas and Diesel generator respondents are 12 in entire and they said the care cost is really high and is frequent. They said the generators are non dependable plenty to convey productive end product and so their monetary values are higher than in the market. Merely 3 respondents are utilizing solar energy, when asked why merely 3 they said it ‘s because the proper apparatus is non available is Pakistan and there are no reliable care administration is Pakistan so it becomes really hazardous to put up a solar works. But they farther said still it is cost effectual and they fear its sustainability and continuity

6. Make you believe utilizing power replacements increases the cost of production for fabric industry?

Strongly differ




Strongly hold

Well all the 30 respondents said power replacements increase the cost of production because they added to the production cost. Cost of care and fix is immense in power replacements and they can non be ignored because it will in return terminal up halting the whole production procedure. When production cost is increased the borders of fabric companies are lowered or in some instances goes to losingss. So companies are forced to raise their concluding monetary values in order to pay for their disbursals and when they do that they become less competitory and importers buy from other states. This is one of the grounds why China and India are taking more portion of the market now.

7. What do you believe is the basic job fabric industry facing?

Power crisis

Quality of cotton

Political force per unit area

Lack of R & A ; D


Unskilled labor

Other aˆ¦ . Please specifyaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ .

Now this graphs points out something really interesting. Out of 30 people 14 really think the nucleus job of ruin of fabric industry is low quality of Cotton which means 46.7 % people think it ‘s non power crisis that ‘s doing textile industry a incubus. Merely 8 respondents said power crisis is the chief ground. 3 said political force per unit area and other 3 said deficiency of research and development and one said engineering and the other one said unskilled labor.

Now all these factors are really of import for the growing of fabric and as we can see all the factors are non ideal for Pakistani fabric. Quality of Cotton is a large issue, they said even if we do n’t hold power shortage our concluding merchandises are non as high of quality as of other exporters because our basic cotton is non of good quality. They said monetary value do play a function in the success of fabric industry and power crisis do impact on the monetary value but overall monetary value drama a little function the chief function is of the quality of the merchandise. They added our merchandises are bought by importers who add value and sell the concluding result in interior decorator image and if our merchandise is of low quality so our merchandise is rejected because they want to protect their ain image. They farther said they have latest engineering and their workers and rather efficient but what can they make if the quality of their natural stuff is non good plenty.

8. Make you believe our fabric industry provides high quality merchandises?

Strongly differ




Strongly hold

This is the lone inquiry with Zero Strongly agree respondents, 20 respondents said our merchandise quality is non good and 5 respondents strongly Disagreed with the statement every bit good. This means the last inquiry consequence is really of import to this research it pointed out that our cotton quality is truly bad which makes a bad concluding merchandise. Merely 3 respondents agreed to the statement and said there is nil incorrect with the quality of their merchandise.

9. Harmonizing to you if power crisis improved our industry will easy vie globally?

Strongly differ




Strongly hold

Harmonizing to the replies if power crisis improved 10 plus 2 respondents are positive that their fabric status will better. 10 said there will be no difference if power crisis improved they said yes the monetary values might travel down but still the chief affect will non better. 7 disagreed and one strongly differ.

10. Harmonizing to you if cotton quality improved our industry will easy vie globally?

Strongly differ




Strongly hold

This is turning out to be an interesting analysis, 16 respondents agreed that if quality of cotton improved the fabric industry will be more competitory and 9 strongly agreed to this point, which means 25 out of 30 respondents want cotton quality to better and harmonizing to them power crisis are non of that importance. Merely 2 respondents disagreed to this point and 3 remained impersonal. Apparently the chief ground is turning out to be non power crisis but cotton quality.

11. Harmonizing to you if political force per unit area reduced our industry will easy vie globally?

Strongly differ




Strongly hold

Well as the diagram represents political force per unit area is non the nucleus job in fabric industry and their decrease will better the fabric but non that much. 56 % respondents said it wo n’t do any difference. Merely 27 % said it will.

12. Harmonizing to you if R & A ; D improved our industry will easy vie globally?

Strongly differ




Strongly hold

Research and development is really of import for an industry, it makes the industry efficient and progress and assist face competition, but Pakistani textile industry think it is non that of import. Apparently merely 27 % agreed to the statement and over 46 % people disagreed.

13. Harmonizing to you if labour accomplishments improved our industry will easy vie globally?

Strongly differ




Strongly hold

If the labor is skilled it helps in cut downing the cost of production and aid in invention every bit good. But when asked if they help in doing textile industry competitory and replies were non that supportive 47 % people said no it ‘s non of import while merely 33 % said it is.


1. Is Power Blackout the chief ground of fabric industry agony?

H0: Power Blackout is the chief ground of fabric industry agony

H1: Power Blackout is non the chief ground of fabric industry agony

Harmonizing to the replies to the questionnaire and follow up inquiries we can analyze that fabric industry is affected by power crisis and many companies have bared losingss because of the really ground. We even found out that these companies are utilizing power option and what are the options available in Pakistan. But whether it ‘s the chief ground so the reply is No power blackout is non the chief ground for lack of Pakistani fabric. Because with the aid of surrogates they can counter onslaught this yarn.

Hence WE FAIL TO ACCEPT H0 because power blackout is non the chief ground of fabric industry agony.

2. Is Quality of Cotton the chief ground of fabric industry agony?

H0: Quality of Cotton is the chief ground of fabric industry agony

H2: Quality of Cotton is non the chief ground of fabric industry agony

Quality is the most of import mill in any industry if they want to be competitory and win. Quality makes or destroys a company, and harmonizing to the replies Pakistani fabric stakeholders said bad cotton quality is the chief ground for fabric industry non being competitory any longer. They pointed out that monetary value is of import but non to that much extent as quality, many exports lost their portion because of quality and non because of power deficit or high monetary value or deficiency of R & A ; D. They said they have their ain power workss and power crisis least bother them.

Hence WE FAIL TO REJECT H0 and the statement Quality of Cotton is the chief ground of fabric industry agony is justified.

3. Is Unskilled Labour the chief ground of fabric industry agony?

H0: Unskilled Labour is the chief ground of fabric industry agony

H3: Unskilled labor is non the chief ground of fabric industry agony

Unskilled labour makes and industry makes an industry disability and their opportunities of promotion seizes because it ‘s really hard for unskilled labor to follow new engineering. Fabric industry is acquiring affected by unskilled labor but it ‘s non the chief ground.

Hence we fail to accept H0, and the statement is non justified.

From the findings and analysis it is apparent that nucleus job of fabric industry agony is QUALITY of cotton and non power blackout.


We have studied and tested assorted hypotheses in order to do a base on what really is making major jobs for fabric industry. We came up with really interesting world and found out that the chief issue was n’t the nucleus issue at all.

We found the concealed truth behind the failure of fabric industry and that truth is OUR COTTON IS OF POOR QUALITY, and it ‘s non fundamentally because of the power blackout or energy crisis it ‘s because the natural stuff we are utilizing is non of the international criterions which is doing us lose foreign market portion.

Even in the Swot analysis given in literature reappraisal shows that Pakistan ‘ s fabric industry has no quality criterions and so there are no quality cheques for the natural stuffs. This is the major failing which is impacting the fabric industry.

It was besides given in literature reappraisal that hapless quality is a consequence of low toxin bt they said because of this the pest start defying sooner than usual and destroy good harvest.

It is like a rhythm the fabric industry is faulting bad quality cotton and cotton husbandmans are faulting agricultural industry for holding hapless pest control cheques. It ‘s really hard to happen out the existent perpetrator.

Though seldom, but if good quality of cotton is generated it is sold in really high monetary values which makes it hard for textile people to afford it and even if they do purchase it they sell the concluding merchandise in high monetary values every bit good in order to interrupt even, or do net income.

Though we can non disregard the fact that power blackout is impacting fabric industry, it ‘s doing the industry expensive and less efficient, and many companies are forced to either close down or happen options to power in order to last. Making their ain power works is the lone safe and effectual manner but non all companies can afford such an outgo and so merely large participants of the market is profiting from this thought. Both Gul Ahmed fabrics and Kohinoor fabrics are ain owned power works industries that is why they have no issue with Wapda generated Power.

We even found out that solar power is resourceful, is cheaper to put up and can replace the Wapda but it is still in procedure and has non been launched officially, Pakistan is still constructing Solar power workss and we all know, how much clip it will take, since corruptness is our state slogan.

We besides read that we have the engineering to do good quality cotton seed so it ‘s all a prevarication that we are outdated. We have everything it takes to vie globally and locally but the job is we do n’t cognize how to utilize the engineering and the incorrect usage is doing our cotton of bad quality.

What fundamentally the issue is that before there is merely China as our rival as even if we perform bad it was a 50 to 50 or 60 to 40 portion of the market, but now we have India, Bangladesh, Vietnam, Philippines and many other states keeping each others from the cervix in order to acquire portions. Now quality, monetary value, efficiency consistence is all every bit of import, and since we are amongst the cheapest labour force we do hold an border against some states in bear downing relatively low monetary values now merely quality is the issue and we are non taking attention of.

Yes it is true that for little fabric company proprietors, like my male parent, it ‘s really hard to cover with power blackout, they evidently can non afford power workss nor can they afford large size generators, it is unusual conflict for them, conflict for endurance. My pa because of power deficit lost a really large order of presenting 25000 tracksuits to Punjab Youth Festival, he knew it would be impossible to finish on clip sing the power deficit so he merely took 7000 tracksuits and the remainder went to some other large company in Sialkot.


Pakistani cotton industry should follow the national criterions so can be easy compared globally.

Measures must be taken to do certain that the quality standardisation is being followed.

Textile ministry should set up conferences to supply value added information to the participants of fabric, in those conference they can educate different Fieldss of fabric where quality can be improved, learn the husbandmans how to reap better quality cotton.

The ministry of fabric should with full committedness cooperate with the fabric industry and work for their benefit, because fabric industry entirely is the lone industry that is the profitable spinal column of Pakistan.

Pakistan Cotton Standard Institute, PCSI, should develop quality control steps and be really rigorous and all right companies that are non following the criterion.[ 21 ]

PCSI should offer preparation and development seminars and talks for upcoming engineering and up step

I have analysed that even if the authorities organic structures are making their portion the local purchasers still in order to purchase cheaper natural stuff ignore the criterions and purchase from hapless cotton manufacturers, the purchasers should inquire for good quality, for a cotton of good weight, so that manufacturers are forced to bring forth good quality.

Government organic structures should organize a private section for review of quality, and give them authorization to call off the license of manufacturers of low quality cotton.

The authorities should take down the monetary values or give inducements to manufacturers for pest control medicine.

Government should come frontward to supply inducements to little fabric companies by bettering energy crisis jobs or by cut downing generator monetary values

Government should besides take action to set a monetary value ceiling for gas and gasoline monetary values so that little companies can afford keeping generators.


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