Report On Of Sitara Textile

Consumer Behavior Final Project

Sitara Textile (pvt) LTD Group #04

Submitted to: Submitted by:

Miss: Sobia Wajahat Nadia

Reg #08-HITEC-MBA-

Sheikh Salman Ejaz

Reg #08-HITEC-MBA-16

Usman Saeed Qureshi Reg #08-HITEC-MBA-22

Umar Farooq

Reg #08-HITEC-MBA-19

MBA # 02

Department of Business Administration Faculty of Management Sciences 1

HITEC University Taxila Cantt

Table of Contents Part 1: Acknowledgement Introduction of Textile Textile sector of Pakistan Static’s of Textile sector of Pakistan Part 2 Sitara group introduction Sitara Textile History Vision of company Specialization Part 3 Products (Exports) Sitara Brands Part 4 Processing Spinning Weaving Designing Part 5 Costumers Supply chain management Corporate social responsibility Marketing Activities Customer Approach

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Part 6 Competitive Analysis SWOT Analysis

Acknowledgement

First of all we are thankful to ALMIGHTY ALLAH for His blessings upon us in the completion of this task. We are highly thankful to our honorable teacher Miss.Sobia Wajahat particularly for his able guidance and support. 3

In the end our gratitude goes to our family members who spare time for us and keeping on moral appreciation in completion of this project.

Executive Summery Textile is a process through which cotton is given as input and after processing yarn/fabric is taken as an output. Textile industry of Pakistan contributes 60% to total Exports of Pakistan. Sitara Textile a business unit of Sitara group of industries was established in1956, is a complete Textile mill in which processing is done from yarn making to till last stage of stitching. Sitara Textile has over 10 brands those being Exported to Europe, South Africa and different countries. Sitara Textile contributes 17% in total Exports of Textile industry of Pakistan Sitara Textile does not perform marketing activity for its products if it plans to do marketing number of Exports could be raised. Sitar Textile has updated technology, quality Human Resource; own stitching department with the capacity of 400,000 sets P/M. Sitara Textile industry could be market leader in coming near future.

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Textile A Latin word, originated from texere, it means "to weave". A Textile was originally a woven fabric, but the terms Textile and the plural Textiles are now also applied to fibers, filaments and yarns. Natural and manufactured, and most products for which these are a principal raw material .Textile also refers to the yarns, threads and wools that can be spun, woven, tufted, tied and otherwise used to manufacture cloth. The production of Textiles is an ancient art, whose speed and scale of production has been altered almost beyond recognition by mass-production and the introduction of modern manufacturing techniques. An ancient roman weaver would have no problem recognizing a plain weave, twill, or satin. Descriptive of Textiles as defined above and of the raw materials, processes, machinery, the manufacture, of Textile products are components of Textile industry.

Textile industry of Pakistan Contribution to Exports According to recent figures, the Pakistan Textile industry contributes more than 60% to the country’s total Exports .Which amounts to around 5.2 billion $. The industry contributes around 46% total out put produced in country. In Asia, Pakistan is the 8th largest Exporter of Textile products.

Contribution to GDP & Employment 5

The contribution to Textile industry to the total GDP is 8.5%. It provides employment to 38% of the work force in the country. However, the proportion of skilled labor is very less as compared to that of unskilled labor.

Organizations in the Textile industry All Pakistan Textile mills association is the chief organization that determines the rules and regulations in Pakistan Textile industry

Opportunities available According to world industrial market research, the world demand for Textile is rising at around 2.5%, due to which there is a greater opportunity to rise in Exports from Pakistan.

Investment in Textile sector Textile industry has made an investment for about 6.0 billion $ during last six years. This investment includes both investments through bank loans as well as own sources.

Sect oral shares in total investment in the sector 1. Spinning 2. Weaving 3. Textile processing 4. Knitwear & garments 5. Made – ups 6. Synthetic Textile

46% 24% 12% 5% 8% 5%

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These investments resulted in following capacity improvements

Capacity (spindles) Consumption /Raw Martial Cotton MMF Production of Cotton Production of Yarn Production of Clothes Textile Exports

Unit 000 000Kg 000Kg 000Kg Bales 000Kg Mill sq Mtr 000US$

1999-00 8,477 1,970,356 1,566,348 404,008 9,745,447 1,678,536 4,987 5,156,572

2004-05 11,300 3171,123 2,680,900 490,223 14,339,852 2,063,565 6,833 9,030,153

%Change 33% 61% 71% 21% 47% 23% 37% 75%

Total Units of Textile in Pakistan

Ginning Spinning Weaving: Large Small Power looms Finishing: Large Small Garments: Large Small

1221 442 124 425 20600 10 625 50 2500

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Head office: 6KM Sargodha road faislabad Pakistan Ph# 92-41-747801-4, 785389 Fax# 92-41-785867 URL: www.sitaraTextile.com

Dubai office: P.O.Box 4696 New Industrial Area Ajman UAE Ph# 971-67433205 Fax# 97-67433215 URL: www.sitaraTextile.com

Introduction 8

Sitara Textile industries LTD is the business unit of Sitara group of companies which is most strong business group of Pakistan. Sitara group entered into Pakistani business market in 1956 by entering Textile weaving of Pakistan. This group was founded by two brothers Abdul Ghafoor (Late) and Haji Bashir Ahmed. Sitara group of companies has got several business projects:

Commercial projects • • • • • •

Sitara Textiles Industries Ltd. Sitara Chemicals Industries Ltd, Sitara Energy Ltd, Sitara Fabrics Sitara Chemical(Spinning Units 1&2) Sitara Peroxide Ltd.

History Sitara Textile came into being in 1959 with limited financial resources available. At the moment Sitara Group is the leading industrial group in Pakistan, owning assets more than US $4 billion. The Sitara Group of Industries deals in Textile, Chemicals, and Energy, health and education sectors.

Vision An honest approach in dealing, within the organization and with Customers, Vendors and related agencies.

Company’s specializations 9

Sitara Textile specializes in producing high class Fabric products made of superior quality materials & possesses state-of-the-art production facilities in made-ups and fabrics for various consumer needs. The company makes use of the latest technology & equipment to make sure that each product is original in style and shows exquisite craftsmanship. Sitara is a company that believes in originality as character & quality as foundation. The entrepreneurial spirit of the company assiduously seeks constant development, steady progress & outstanding performance.

Port folio of products Sitara Textile has several products which are being Exported and as well as being supplied in Pakistan. Company products include two categories one Export quality and second product which are to be supplied in Pakistan.

Fabrics At Sitara Textile industry (STI) produce up to 3200mm wide fabric in 100% Cotton, Poly / Cotton, Viscose, Poly / Viscose with plain and different weaves like Twills, Drills, Satins, Dobbins, and Jacquards etc. All these qualities are available in Bleach, Dyed and Printed Fabric (Pigment & Reactive).

Firstly we will discuss products which are being Exported.

Exported products

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Sitara Textile’s over 50% products are being Exported to different countries. And it contributes almost 17% in total Textile Exports of country.

Bed sheets & value added products Aim of Sitara Textile is to provide comfort in style to its costumers. Its specialty is fine quality higher thread count beddings comes to costumers in an excellent variety ranging from T130 to T600 threads. Sitara’s major products include Sheet Sets (Cuffed, Hemstitch styles, embroidered), Bed Skirts (ruffled and pleated), Quilt Covers, Sham, Comforters, Neck Rolls and Decorative Cushions. The entire product range is designed in terms of colors, sizes, designs and quality according to the costumer’s requirement.

Table covers Sitara Textile provides exclusive range of table cloth in Bigger Repeat Panel prints, napkins, Place mats, table runners and potholders etc to costumers so that their dinning could look allegiant. These products are also customized.

Curtains/ Valances 11

Sitara Textile Industry provides a complete range of home used items which are Exported to several countries in the world. One of those products is curtains. Sitara provides big range of Wide range of curtains and valances in different styles, designs and sizes. These styles include drapery styles e. g rod pocket, header tape, and tab top, tie up, balloon shade etc. Fabrication weather can be stain, dobbies in different designs and styles.

Dress Material/Fabrics Sitara also offers an impressive variety of fashion and functional fabrics for shirting & dress material such as voile, cambric, linen and poplins .Which are Exported and as well as being supplied to the Pakistani market. It also has a wide range of structured fabrics such as cotton, viscose and blends.

Sitara Brand Sitara Textile being a leading Textile unit and Exporter of Pakistan does not only produce home used items but also has its own brands for men & women seasonal suiting. These brands are available in different range of designs, colors, and styles. Some of brands of Sitara are enlisted below:

Women's Range Cotton/Linen/Cambric 12

• • • • • •

Sitara Sapna Lawn Sitara Supreme Lawn Mughal-e-Azam Summer Collection Sitara Supreme Linen Sapna Linen Mughal-e-Azam Winter Collection

Men's Range: 100% Cotton • • • • • • •

Sitara Mughal-e-Azam Latha Sitara Universal Latha Sitara Swiss Gold Latha Sitara Sapna Latha, Sapna Cambric KT2000 Sitara Popline

Processing procedure: Sitara Textile has complete processing facility within the mill. That means that from yarn making to till final product Sitara is capable of making by its own machinery and human resource.

Processing at Sitara includes:

Spinning

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Sitara Textile started its spinning department in 1988 to produce quality yarn & fabric. Spinning department of Sitara has become of mark of success because Sitara is using very latest and modified Japan’s technology. . Working strength of 35,984 spindles is supported by OTHORI TRUTCHZILER BLOW ROOM of the very latest model At the moment it is producing all type of yarn to fulfill local and Export requirement.

Weaving Sitara has facility of weaving all kinds of fabrics. it can weave multiple weaves from 1/1 plain to jacquard damask fabric in width ranging from a minimum of 36 to 153 inches with a maximum thread count of 1000 threads per square inch.

Printing Sitara Textile’s major strength is the best quality of processing machines. It also has best printing machines which can print 16 colors on fabric up to a width of 3200mm, and are called ZIMMER Printing Machines.

Designing studio Sitara's Design Department is a quintessence of pure brilliance. The department is run by a team of highly professional, artistic and innovative Textile designers. This department is equipped with latest CAD/CAM designing hardware and software.

International costumers 14

As being an Exporter for around 17% of Textile products, Sitara Textile has several countries which import the products of Sitara. List includes USA, Canada, Australia, New Zealand, Europe, South Africa, Scandinavia and South America. • Company strictly follows the American style of management or we can say the company is centralized. A clear chain of authority exits in the company.

Supply chain management Supply chain management includes • Plan • Source • Make • Deliver For

Plan for raw martial

Local market of Pakistan

Delivery to costumers

Products by company

Sitara Textile:

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Corporate social responsibility (CSR) Sitara Textile is a corporate social company and understands the social responsibility of it. There are several educational and health institutions which are working under the Sitara trust. •

SITARA TEXTILE COLLEGE AND MANAGEMENT INSTITUTE Phone # (92-21)4574040 URL: www.sitara.edu.pk

• Aziz Fatima Girls High School • Ghafoor Bashir Children Hospital P.O. Box # 223, West Canal Road, Faisalabad Pakistan Ph# 092-41-753523, 754522 - Fax: 092-41-762131 • Aziz Fatima Trust Hospital Raja Road, Gulistan Colony Faisalabad Pakistan Ph# 92-41-50346, 780910, 780815 Fax: 92-41- 629210, 618436

Marketing Activities 16

Company performs its marketing from different sources for its products. Basically company focuses on costumer orientation approach and gives great value to costumers and their satisfaction. As being a larger group of Pakistan Company does not use marketing for its product as much where as marketing helps organization to build strong, favorable image in the minds of costumers. Marketing system of Textile is as follow:

CMMUNICATION

GOODS INDUSTRY

MARKET REVENUE

FEED BACK

Tools that company uses for its small marketing are:

• TV Adverts Company uses this tool of marketing as main tool for it and provides adverts in different TV channels for its ready to wear brands of cotton/fabric for men& women.

• Fashion magazines 17

Sitara Textile also gives information about its product in different fashion magazines to attract the costumers.

• Free sampling Company uses one very good technique for its international costumers that it sends the free samples of different product to costumers so that they could check the quality of the product.

• Fashion shows Company also organizes fashion shows in which its products are consumed and people come to know about them. As it has been mentioned that company performs its marketing activities at very small scale but the mediums which company uses at very recent time are very effective and less costly. But being the oldest group of Pakistan Sitara Textile must increase the number of marketing activities and should brought different tools of marketing into practices.

Possible mediums for Sitara Textile could be: • Company could use its website as its marketing tool by providing online costumer service, by taking applications for free sample online through its website. •

Vertical integration (backward/forward) does not exist in the company, if company plans to have vertical integration so it can give a competitive edge over competitors.

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Company should start mass production so that every type of orders could be completed.

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• Company should participate in different trade exhibitions around the glob.

Costumers Approach Sitara Textile Industry is a complete textile mill that not only produces the textile products but also has proper plan & strategies to design their product, identify their customers and fulfill their needs & wants. Department of marketing and designing are engaged in these activity. Sitar textile has classified their customers in two categories, • Business Customers • Domestic customers Business customers are the corporate client of the products of Sitara Textile Industry and they require the products for their customers according to requirement to their customers STI produces the products those arte called customized products. These business customers include both national & international customers. For the domestic customers STI has different approach, it has the research department that studies the requirement of the potential customers, trend in the market and as well as the purchasing power of the customers and after that this information is transferred to product designing that designs the product. For making it further effective STI has divided its customers in different segmentation on different basis so as to satisfy them properly and maximize the revenue.

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STI produces the different products for different segments according to their proper needs and wants. STI has different segments of customers on the basis of: • Quality • Price • Use based • Product oriented • Brand oriented STI has different products & different price level for these all customers & fulfills their demands well & has earned the trust of customers. Analysis of Strengths, Weaknesses, Opportunities and Threats (SWOT) for Sitara Textile:

Competition In Textile industry there is huge competition. Sitara Textile industry’s potential rival includes local and international businesses that are producing finished and un-finished products for both national and international market. In international market Sitara Textile will compete with China and India from south Asia who is producing products with large engineering scale but Sitara Textile industry has the advantage of using Pakistani cotton which is ranked number 1 in international market. Other competitors include in international market from Pakistan for Sitara Textile industry are Koh-Noor Textile, Deewan Textile and indirect competitor Pak Dynm which only produces Dynm and several more, but Sitara Textile has several edge over its competitors like • Quality of product • Advance technology • Wide range of designs 20

• Trust of costumers from over 40yrs

Strengths First of all, the thing that strengthens Sitara Textile is relationship marketing. Sitara Textile makes very good relation with its consumers, costumers and suppliers. This is the reason that they proud to being associated STI. STI has been awarded several times for ISO quality awards • •

ISO 9001-2000 ISO 14000

This thing also shows the strength of STI (Sitara Textile Industry)

Textile industry needs to remain competitive by adopting advances in technology and STI has understood it very well and have adopting all new technology needed to remain competitive. 21

STI prefer customization and manufacture its products according to the costumer’s needs and wants. STI has fast delivery procedure of products STI owns very competitive and quality human resource Commitment to excellence in costumer service STI shows zero compromises of quality at all levels and has complete products of quality checking which is called quality control and involves inspections, spinning labs, dying lab. STI has established its own Stitching department which stitches the product according to the standards with the capacity of 400,000 sets p/m.

Weaknesses Sitara Textile does not have vertical integration at any level which could affect STI’s Profitability as compared to those who have vertical integration. Sitara Textile is not doing proper marketing of its products, it more relay on permanent costumer rather then going for new costumers as well. STI is facing shortage of supply where as demand has increased its capacity. Sitara Textile industry does not consider training its employee.

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Opportunities Sitara Textile has several opportunities waiting for them in terms of more Profitability. If STI increase the capacity of its plants it can have more international costumers who will increase the profitability. Forward Vertical integration can also help STI to have more national costumers. Backward integration means that company produces its own rawmaterial, if STI does so the cost of raw-material will be less and the cost of final product would also be less that means that company could have more profit and costumers. Company could provide online costumer services and online ordering system.

Threats The company has biggest threat of very cheap price of the products by China. There are several other threats for STI are available, as STI is operating from Pakistan so the situation of Pakistan can benefit or could harm STI. Unstable political system of Pakistan stops invertors to invest in new business units and also rules and regulations and tax policy could be changed. Crises of energy have increased the cost of goods and have brought the profit margin at very low level. 23

In Pakistan with out favoring someone doing business is very difficult because personal fevers and clout are the culture. Tariff barriers and quota system for Exporters is a big threat that they cannot Export products according to demand but according to assigned quota. Instability of Pakistani economy and especially Pakistan’s rupee is treating the organizations.

Conclusion Pakistan Textile industry is the major sector to help the Pakistan economy and also for better future prospect’s. Sitar Textile industry is one of the major Exporters of Textile in other world and contributes around 17% to total Exports of the country. It has several products those are being Exported and supplied in local market. It has centralized management. Sitara Textile has very new technology installed in mill in all departments (spinning, weaving, dying, and designing). Sitara Textile focuses on quality very much and it is their plus point. By improving some areas like marketing, online customer care, and capacity of their plants it could become one of the top Exporters of Pakistan.

References: These references were used to collect data. http://indonetwork.co.id/SitaraTextile/profile www.sitara.edu.pk http://www.sitaraTextile.com/buyer.htm http://www.sitaraTextile.com/ex_pr.htm http://www.sitaraTextile.com/Export.htm 24

http://goliath.ecnext.com/coms2/product-compint-0000499526page.html http://indonetwork.co.id/SitaraTextile/profile http://www.aptma.org.pk/Pak_Textile_Statistics/sdcotton.asp www.sitaraTextile.com/Export.htm www.sitaraterxtile.com/history.htm www.sitaragroup.com.pk Thank you

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