Pakistan Textile Industry

Introduction :-

01
 Manufacturing Sector

1. Ginning 1,221 units

2. Spinning 442 units
3. Large weaving 124 units
4. Small 425 units
5. 20600 power looms in operation
6. 10 large finishing units
& 625 small units
02
 Manufacturing Sector - Cont

1. Garment - 50 large and 2500 small

units,
2. Knitwear - houses around 600 units
produce,
3. Towel – 400 units

03
 Established Capacity

1. Spinning -1550 million kgs of yarn,

2. Weaving -4368 million s.m of fabric &
finishing capacity of 4000 million s.m,
3. Garments - 670 million units
4. knitwear - 400 million units

04
 Contribution In Pak Economic

2006-07

Expots 61.1% OF TOTAL EXPORTS (US $ 8.92 B)

Manufacturing 46% OF TOTAL MANUFACTURING

Employment 38% OF TOTAL LABOUR FORCE
GDP 8.5% OF TOTAL GDP
Investment US $ 6.4 BILLION
Market Captilization
5.1% OF TOTAL MARKET CAPITILIZATION
(Listed Companies)
Source : Pakistan Economic Survey, SBP,TDAP

05
Organizations In The Industry

All Pakistan Textile Mills Association

(APTMA) is the chief organization.

06
Growth Of Textile Industry In
Pakistan

07
 Consumption Of Raw Material
(Fig. in '000' Kgs)

RAW MATERIAL GROWTH % % OF TOTAL

Period Cotton Fibre Total Cotton Fibre Cotton Fibre
1948 6876 N.A 6876 - N/A 100 N/A
1949 8731 N.A 8731 27 N/A 100 N/A
1950 13664 N.A 13664 56 N/A 100 N/A

2004-05 2,099,380 488,804 2,588,184 8 4 81 19

2005-06 2,407,560 525,000 2,932,560 15 7 82 18

2006-07 2,563,510 580,000 3,143,510 6 10 82 18

08
Cotton Prices

09
TEXTILE EXPORT TO EU

10
 TEXTILE EXPORT TO EU - CONT

140,000

120,000

100,000
COTTON
80,000 CLOTH
2006-07
60,000

40,000
COTTON
20,000 CLOTH
2005-06
0

11
 TEXTILE EXPORT TO EU - CONT

200,000
180,000
READY MADE
160,000
GARMENTS
140,000
2006-07
120,000
100,000
80,000
60,000 READY MADE
GARMENTS
40,000
2005-06
20,000
0
Y
Y

N
M

M
CE

S
AL
N

AI
ND

O
IU

A
AN

D
SP
IT
G

LA

G
EL

ER
FR

IN
ER
B

K
G

ED
ET

IT
N

N
U

12
 TEXTILE EXPORT TO EU - CONT

200,000
180,000
160,000
140,000
120,000
100,000 KNITWEAR 2006-07
80,000
60,000 KNITWEAR 2005-06
40,000
20,000
0

Y Y IN
M CE N L S M
G
IU
AN M
A I TA ND P A
D
O
L A S G
E FR ER L IN
B G ER K

N
E TH
N
IT
ED
13
 EXPORT OF RAW COTTON

Quantity Value Value

Period
000 Kg. 000 US $ 000 Rs.
1971-72 260,412 200,493 954,747
1972-73 216,074 106,089 1,166,975
1973-74 36,122 34,192 376,111
2004-05 117,084 109,957 6,545,740
2005-06 62,658 68,151 4,080,000
2006-07 45,065 50,226 3,045,202
14
 EXPORT OF COTTON CLOTH

QUANTITY VALUE VALUE

PERIOD 000 Sq.Mtrs. 000 US $ 000 Rs.
1971-72 409,808 81,539 388,289
1972-73 517,985 126,770 1,394,470
1973-74 353,022 143,911 1,415,926

2004-05 2,399,458 1,862,886 110,897,604

2005-06 2,633,982 2,108,183 127,060,189

2006-07 2,211,745 2,026,388 122,191,196

15
 GLOBAL EXPORT OF COTTON

5000
Fig in '000' Metric Tons
4500 4406
4000
3500 3615
3207
3000 2004-05
2500 2005-06
2000 2006-07
1500
1000
13
500 5
0 15

16
 GLOBAL EXPORT OF COTTON – Growth

20

15 13.9 13.2
10

5 4.4
3.6 3.6
1
0 % Growth
AMERICA

-2.2
AFRICA

EUROPE

Pakistan
China
USSR

India

Iran
E.ASIA

-5 -6.1
-10

-15
-17.8
-20

17
 COTTON IMPORTS

30000000
27245991
25000000
20000000 Cotton Waste
American Cotton
15000000 14877962Cotton Egyption
Other Cotton
10000000
5000000
0 337899 203449
Qty.( M.T) Rs Value Qty (M.T) Rs Value

2006-07 2005-06

18
 GLOBAL IMPORT OF COTTON

Fig in '000' Metric Tons

5000
4500
4000
3500
3000 2004-05
2500 2005-06
2000
1500 2006-07
1000
500
0
AFRICA

E. ASIA

Iran
CIS FORMER USSR

China

India
AMERICA

Sri Lanka
Pakistan
Bangladesh
E.U

19
 GLOBAL IMOPORT OF COTTON – Growth

20

15 14.7 14
10 10.3
8.4
5 5.7 % Growth
4.6

0 -0.6 -1 0
-1.2
-2.91
-5

-8.5
-10

20
 PAKISTAN SHARE OF TEXTILES
IN WORLD TRADE
(000 Metric Tons)
3500
COTTON YARN
3000 WORLD EXPORT

2500
COTTON CLOTH
2000 WORLD EXPORT

1500 COTTON YARN

PAKISTAN
1000 EXPORT
671
780
500 COTTON CLOTH
109.6 263.3 PAKISTAN
239.9
0 EXPORT
48.4
1971 1972 1973 2003 2004 2005 2006

21
PAKISTAN SHARE OF TEXTILES IN
WORLD TRADE - CONT

22
 Major Companies of Textile
Industry

Company Share Price Market Capitalization

Nishat Mills
Kohi Noor
Azgard Nine

23
 Nishat Mills Ltd

 Establish in 1951
 Most Modern, Biggest Composite unit of Pakistan
 ISO 9001 and IKO-TEX100 Certified
 SA 8000 Certification currently in process
Today
 173,000 spindles
 284 Sulzer shuttle-less looms
 244 TSUDAKOMA air jet looms
 2 stitching units and Power Generating plant with a capacity
of 33.6 MW
 total export for the year 2000 was Rs. 9.1 billion
24
 Kohinoor Textile

 Establish Textile in 1994

 Established to cater the needs of Spinning, Knitting,

Weaving & Garmenting Units of world in June 2007

 BEST SERVICES in the field of Yarns & Fabrics.

25
Azgard Nine Textile

26
 Financial Analysis

Activity Ratio
1.60
1.40
1.20
Industry Ratio
1.00
Kohi Noor Mill
0.80
Azgard
0.60
Nishat Mills
0.40
0.20
-
Current Acid Test Current Acid Test Current Acid Test
Ratio Ratio Ratio Ratio Ratio Ratio

2005 2006 2007

27
 Financial Analysis - Cont

Long Term Debt Paying Ability

180.00%
160.00%
140.00%
120.00% Industry Ratio
100.00% Kohi Noor Mill
80.00% Azgard
Nishat Mills
60.00%
40.00%
20.00%
0.00%
Debt Ratio Debt / Equity Debt Ratio Debt / Equity Debt Ratio Debt / Equity
Ratio Ratio Ratio
28
 Financial Analysis - Cont

Long Term Debt Paying Ability

6.00

5.00

4.00
Industry Ratio
3.00 Kohi Noor Mill
Azgard
2.00
Nishat Mills
1.00

-
Time Interest Earned Time Interest Earned Time Interest Earned
(1.00)
2005 2006 2007
29
 Financial Analysis - Cont

ANALYSIS OF PROFITABLITY

40.00%
35.00%
30.00%
25.00%
Industry Ratio
20.00%
Kohi Noor Mill
15.00%
Azgard
10.00%
Nishat Mills
5.00%
0.00%
-5.00%
Margin

Margin

Margin
Gross

Gross

Gross
Profit

Profit

Profit
Net Profit

Net Profit

Net Profit
Operating
Operating

Operating
Margin

Margin
Margin
Income

Income

Income
Margin

Margin
Margin

-10.00%

2005 2006 2007 30