Executive Summary:

The Kohat Textile Mills is at an exciting and progressive stage of development. To guide this
next stage of growth, we conducted a strategic planning process for it. We solicited input from a
broad range of interested parties including faculty and staff. We collected data and reviewed their
performance. Based on this process, we developed a disciplined long-term approach to
expanding the scope and impact of our work. This strategic plan provides a clear guideline for
the future of Kohat Textile Mills. At its core, the plan shows the way towards building on an
organization which would include both long- range and strategic elements. It outlines a focused
direction for maximizing their profit, better informing decision-makers and making it a market
leader around its competitors.

Introduction:
Pakistan is the world's 4th largest producer and 3rd largest consumer of cotton. Because of its
plentiful, indigenous cotton supply, the textile industry is central to the Pakistani economy and is
both a source of employment and a source of exports. Pakistan's industrialization began in the
1950s with the textile industry at its center. The Textile and Clothing Industry has been the main
driver of the economy for the last 50 years in terms of foreign currency earnings and jobs
creation. The Textile and Clothing Industry will continue to be an important engine for future
growth of the economy; Pakistan's Textile Industry had proved its strength in global market
during the last four decades. The exports of textile industry have shown a growing trend however
they have declined in 2007 and 2008 due to global financial crisis and country's internal
problems. These factors are discussed in other sections of the report. Textile exports share in total
export of Pakistan has declined from 67% in 1997 to 55% in 2008.

STRATEGIC PLANNING
Strategic planning is a tool for organizing the present on the basis of the projections of the
desired future. That is, a strategic plan is a road map to lead an organization from where it is now
to where it would like to be in five or ten years. It is necessary to have a strategic plan for every
organization. The plan is simple and clear, based on the real current situation, and have enough
time allowed to give it a time to settle.

PURPOSE OF STRATEGIC PLANNING

The purpose of this strategic planning is to assist the Kohat Textile Mills in establishing priorities
and to better serve the needs of its constituency. This strategic plan is flexible and practical and
yet serves as a guide to implementing programs, evaluating how these programs will be done,
and making adjustments when necessary. It reflects the thoughts, feelings, ideas, and wants of the
developers and molded them along with the organization's purpose, mission, and regulations into
an integrated document. The development of a plan required much probing, discussion, and
examination of the views of the leaders who were responsible for the plan's preparation.

AN INTRODUCTION TO COMPANY
Located in the Kohat District of the North West Frontier Province of Pakistan, Kohat Textile
Mills (KTM) has developed a strong customer base in the domestic market as well as in the
export markets of Europe, the Far and Middle East. KTM started operations in the first quarter of
1970, and the success of this company provided the catalyst for the subsequent blossoming and
diversification of the Saif Group.
Quality manufacturing procedures are validated by international accreditation agencies. A
SUPIMA licensee, KTM is ISO 9002 certified; while SA 8000 and GIZA certification is in
process. A landmark achievement in the field of Quality Management, ISO 9001:2000 standards
are the most widely applied recognized & prestigious standards in the history of Quality
Management. As part of its commitment to quality Kohat Textile Mills Limited achieved the
highly coveted ISO 9001:2000 certification for quality control operations.
Complete development, implementation and successful certification of the company without the
services of external consultants through available in-house resources is a reflection of our deep
rooted professionalism and outstanding resource availability.
The ISO 9001:2000 certified quality control lab is the heart of the system, which ensures strict
adherence to standards and puts the seal of quality on all of our products.

With an installed capacity of 44,400 spindles, KTM manufactures and markets cotton yarn,
combed cotton, carded cotton and synthetic yarn.
Quality Control is guaranteed through a select combination of modern European, Japanese and
Chinese machinery supported by a sophisticated in-house laboratory and stringent quality control
systems. These include Trtzschler, Crossrol and Howa Toyada Blow Rooms & Cards, Rieter
and Marzoli Combers, Toyoda Ring Frames, Schlafhorst and Murata Autocones and Winders.
KTM has also installed a General Electric Jenbacher 2.0 MW gas-fired Captive Power Plant to
ensure a reliable and uninterrupted supply of electricity for the companys operations.

AN OVERVIEW OF CURRENT VISION AND MISSION STATEMENT

VISION STATEMENT
To attain market leadership through unmatched quality, a diverse and unique product mix,
empowered employees, world class systems, and the highest ethical and professional standards.

MISSION STATEMENT
Give our shareholders a competitive return on their investment through market leadership,
sustainable business growth and sound financial management.
Earn and sustain the trust of our stakeholders through efficient resource management.
Provide the highest quality products and services consistent with customer needs and continue to
earn the respect, confidence and goodwill of our customers and suppliers.
Foster a culture of trust and openness in order to make professional life at the Kohat Textile
Mills Limited a stimulating and challenging experience for all our people.
Strive for the continuous development of Pakistan while adding value to the textile sector.

REFORMULATING VISION AND MISSION

Vision Statement:
To attain market leadership through unmatched quality, a diverse and unique product mix,
empowered employees, latest technology, and the highest ethical and professional standards and
to ensure wellbeing of society.

Mission Statement:
To provide, develop, implement and manage best leading edge technology, industry best
practices, human resource programs and foster innovation in products and services to customers.
Explore new markets to promote/expand sales of the Company through good governance and
foster a sound and dynamic team, so as to achieve optimum prices of products of the Company
for sustainable and equitable growth and prosperity
Be socially and environmentally responsible.

ENVIRONMENTAL ANALYSIS OF KOHAT TEXTILE MILLS

After SWOT analysis(Internal Environmental Analysis) of kohat textile mill and analyzing porter five
forces and pesto analysis, (External Environmental Analysis) we have made some changes and reset goals

and objectives for Kohat Textile Mill according to new trends and opportunities and to avoid threats while
keeping in mind its weaknesses as well for the purpose to pursue the mission and vision.

Data Collection Methodology:

We did;
Internet Surfing of documents and files, in the form of e-newspapers and magazines,
articles, mills own website and other corresponding websites, and also their annual
reports.
Interview in order to practically investigate, authenticate and broaden our knowledge
while conducting situational analysis in order to have a right tack while formulating the
strategic plan for the company. All of the questions asked, were open ended.
The questions asked were:
What do you think whether raw material in our country is costly for

you or not?
We all know that labor is the cheapest asset in our country, is there any
impact of their wages on your competitive advantage and profits

margins?
What is the role of their wages on the competitive advantage and profit

margins?
Are you satisfied with the productivity of labors? If yes/not, what is

the reason behind it?

How cultural diversity is affecting your business?
What is the impact of the technological constraints on the kohat textile

mills?
Interviewers:
Interviewees:
Ishteyaq, Munsif, Naqeeb
Time:
10:00 am-4:00 pm
Date:
1th December,2015 on Friday
Venue:
Kohat Textile Mills

Internal Environmental Analysis

SWOT Analysis: The SWOT analysis of textile industry of Pakistan is as under

Strengths:
1. Raw Material: Pakistan has high self-sufficiency in raw materials and is the 4th largest cotton
producing country in the world. Abundant use of cotton resources has made the textile industry of
Pakistan move towards area of industrialization. In kohat textile mill because of huge availability of raw
materials in country cost of production decreases as raw materials are easily available at low price.
2. Labor: Cheap labor has always been the backbone of the economy of Pakistan. Cheap and plenty
supply of labor strength both the industrial and agricultural sector. Around 39 % of the labor force works
in textile industry. This low cost of labor leads to low cost of production which gives a competitive
advantage to the textile industry of Pakistan. Same as the case in kohat labor are easily available on low
wages that decreases cost and increase profit margin.
3. RICH Heritage: Due to cultural diversity and rich heritage designers come up with new different and
attractive designs which are appreciated worldwide. Our culture comprises of Punjabi, Balochi, Sindhi
and Pashto values. We are also influenced by Indian and other foreign cultures such as India, USA etc
through media exposure which gives Pakistani designers an inspiration and tastes of new designs and
fusion of these designs, to give their best in terms of style creativity and designs.
4. Domestic market: The trend of urbanization has increased income levels, coupled with increase in
population the domestic demand has increased, which means more population more demand and labor. As
mostly other competitors are targeting foreign market their emphasis is on export of textile products
whereas kohat textile mill main target is local and domestic market.

Weaknesses:
1. Research and Development: Developed countries are using biotechnology and genetic engineering to
increase the quality and quantity of their cotton production. They are able to grow colored cotton, organic
cotton and several different varieties cotton to add value to the textile chain. In Pakistan, there is some
research done on small scale by private companies to invent modified cotton fibers. Practically no efforts
are being made by the APTMA in the R&D of the textile industry to enhance the quality of its products,
upgrade the technology used, and encourage effective methods of production in order to compete
internationally. Instead the industry suffers lack of latest means of production and falling cotton crop
output every year. Due to low quality of cotton crop, profitability decreases and the farmer switch to the
other crop such as sugar cane, maize and thus the cotton production decreases. In kohat textile mill there
is lack of research and development. As no new and trendy products are produce also there technology in
kohat textile mill is not of international standards.

2. More dependence on cotton: As the textile sector is heavily dependent on cotton production, low
cultivation of cotton will deteriorate the textile industry. On the other hand, Pakistan lacks expertise in the
development, production and marketing of synthetic products and fabrics required for items like
swimwear, skiwear and industrial apparel. So far Pakistan has been unable to diversify in the export of
textiles and is heavily dependent on single fiber that is cotton and its blends. This dependence on single
crop economy is restricting the diversification of exports from Pakistan. This situation become savers in
case of kohat textile mill as mostly cotton as produced in Punjab region so kohat textile mill depends a lot
on cotton from Punjab. Due to this their cost increases as compared to other textile mill operating in
Punjab region.
3. Labor productivity: Despite of the abundant supply of the labor, productivity of the labor is very low.
According to a study by Federal Adviser on textiles, the regional competitors of Pakistan take 75 minutes
to complete and produce one piece of cloth whereas we take 133 minutes for the same work. We also
waste 30% in finishing and 12% in washing." European buyers recommended that we should cut our
costs up to 45% in sewing by getting more efficient. Labor productivity can be improved by giving the
labor appropriate training with the advancement of technology so as to make them more efficient and with
lower wastage of resources. In China an average 70 hours of training are given to labor to enhance their
expertise. So in Pakistan particularly in kohat region fortunately there is rich supply of labor at very low
wages but unfortunately they are untrained due to which their lack of scales effects efficiency of
production. So kohat textile mill cant afford to train their labor force that leads to lower productivity.
4. Poor infrastructure: The important resources and infrastructure, such as adequate of supply of water,
continuous supply of electricity and gas, efficient logistics and transportation, tax structure, raw material
supply are all basic requirements for the development of industrial base, which are not adequate for
competing with foreign competitors. However, on the other hand, the industry is faced with rising charges
of the energy sector, which increases the cost of production, making it difficult to compete with the other
regional rivals. Also there is great issue of load shedding in kohat regions due to which cost of production
as increased as mostly work as done on generators.
5. Poor quality standards: With the exception of big and leading units who comply with global quality
standards in textiles, most of the medium and small sized units cannot ensure the reliable and consistent
quality standards. Some of these textile units import second hand machinery from China, India, Korea,
and Taiwan with no checks and balances on the quality of the machinery parts and tools. Preference is
only given to the cheap and workable machinery with no concern of the quality of the machine, therefore,
resulting in poor quality of the end product. The industry can generate more profit by adding more value
to the product, as value can be measured in terms of quality, increased per unit price, etc. Pakistan's textile

industry should focus on latest material handling techniques and should train workers. The inability to
timely modernize the equipment, machinery and labor has led to the decline of Pakistani textile
competitiveness. Mostly machinery of kohat textile mill as old which decrease efficiency of productivity
similarly labor working in kohat textile mill is untrained mostly labors are illiterate they are unaware of
using modern technology as they have modified some machinery but due to untrained labor force they are
unable to achieve desire results.
6. Unstable political situation Political unrest, strikes and terrorism:These factors have critically
affected the economy of Pakistan. Frequent changing of the government has adversely maligned the
policies of the textile sector. According to the World Trade Review "Pakistan has failed to take necessary
steps needed to meet post MultiFiber Agreement (MFA) challenges for its textile industry owing to lack
of political will by the successive governments." In 1978 World Bank surveyed the Pakistan textile
industry and reported many deficiencies in this sector. It also gave certain measures to resolve these
issues, but unfortunately all these problems still persist and the industry is still unable to keep its pace
with the international market. Successive governments lacked the will to reform human resources and
adapt the marketing techniques that resulted present scenario in this industry. Similarly in recent years
due to terrorism textile industry is highly effected but particularly in kohat as kohat region as near tribal
areas so terrorism has got so much negative effect on kohat textile mill as exporting products as well as
importing raw materials from Punjab become so difficult due to which it suffer a lot.
7. System orientation and supply chain: Nowadays, customers are very systematic in their work and
they expect the same professionalism from their vendors. Unfortunately, we lack this capability and are
not competent to struggle in the international business, thus losing many Opportunities. On the other hand
supply chain management is rarely implemented. We are disorganized, disconnected and distorted. Time
management is very much important aspect in business and buyers expect on time delivery to match the
Retail launch of the spring/ summer or Autumn/Winter seasonal collections on time. Delayed delivery of
export orders result increase in cost due to fines by the buyers and at times losing business altogether. Due
to load shedding we are unable to meet orders of our clients on time so they are switching from us
towards countries like Bangladesh and India as they are not face problems to deliver products on stated
time.

Opportunities:
1. WTO regime implementation: with the abolishment of quota system, now its an opportunity for
the kohat textile mill to capture the international market share by providing low priced and high quality
goods to international customers. In this regard is cost competiveness is a special concern.

2. Marketing targeting the unexplored export markets: with the help of aggressive sales and
marketing will open the way for the textile growth. It's all about hunting your opportunities with the
handful of colorful lollipops. If we make investment in our Sales force and train them in the fine art of
marketing textile products; we can capture a much bigger market share from other competitors.
3. Collaboration with foreign companies: By making partners with the foreign companies, we will be
able to learn a lot from them in terms system orientation, supply chain and it would be feasible to import
latest technology. We can also reduce our costs, comply with the international standards, and add value to
our products, easiness in marketing our products in different foreign regions, improved labor and thus
catching up with our regional competitors.
4. Producing high value products: It's better to export yarn than raw cotton. Similarly it's better to
export finished fabric than to export grey fabric. Furthermore it's very much feasible to export readymade
garments than to only fabrics. What makes the latter better is the value added and subsequent increase in
per unit price. Therefore, kohat textile mill should focus on the finished products so as to create more
value in their products and reap larger margin of profits. The industry should also diversify into other
areas such as technical textiles and nonwoven's in order decrease its dependence on conventional and
commodity textiles, which is highly sensitive to per unit price and volume for the profit margin.

5. Cost reduction by using modern Technology: As WTO regime has opened the doors for free
trade for the whole world, now the only survival of the firms would on the minimization of production
cost and offering innovative, high quality goods with competitive price. Kohat textile mill his having
strong financial position and can do so.

6. Local market development: kohat textile Mills Limited needs to focus on local market because
there is large market for textile product in our country, Due to diversified culture kohat textile mill can
introduce different designs. As mostly bigger textile mill target foreign markets so its best opportunity for
kohat textile mill to capture local market.

Threats:
1. New competitors: Pakistan is facing new competitors in textile sector such as Bangladesh, Vietnam
and Turkey. Though we cannot avoid competition but we can always stay ahead of them by reforming our
strategies and educating our entrepreneurs so as to move one step forward in every aspect.

2. Fashion life cycle Fashion changes:now a days Media has so much penetrated in our daily lives that
we easily adapt ourselves as it wants us to. This has resulted in shortening the fashion lifecycle thus
increasing the fashion risk. Now the buyer does not want to wait long for his consignment because he is
insecure that by the time it will reach to him he will lost its demand due to change in fashion. Therefore,
they prefer to buy from neighboring countries even at higher cost to get their products instantly rather
than to wait weeks or months for their consignments to reach them.

3.Export of Raw Cotton and Yarn:Recent trends in the Pakistan to export raw cotton and yarn to
foreign countries is hitting like nails on the heads of textile value addition units, although kohat mill has
its own spinning facilities but to somehow export of raw cotton is dangerous for it.

4. WTO regime implantation:Abolishment of quota system presents a opportunity as well as a

biggest threat to the Pakistani firms including kohat textile mill, as other countries are free to capture the
market, we the Pakistani firms are suffering with high cost of production may be driven out of the
competition.

5. Instable Political and Economic Conditions: Changing Governments, war on terror, decreasing
buying power and altering buying trends and preferences of customers are posing big threats to kohat
textile mill, in this regard we are confronting with local an well as international political and economic
conditions.

6. Government policies: Government polices like high rates of taxes, VAT, duties on international
trades, high energy cost, re-organizing unions are causing a serious damage to the performance of overall
industry including kohat textile mill.

External Environmental Analysis:

PESTO ANALYSIS
Political factors: Following are the political factors that affect the textile industry of Pakistan
1. Tariffs and Taxes: Major export partner countries of Pakistani textile industry are EU, USA, Canada
and Japan. Major influence on industry is from USA as more than 60% of total export partner of country
is US. As some experts links trade with war against terrorism failing in cooperation with NATO and US in
war against terrorism leads to have impact on trade and commerce. A recent survey report showed more
than 50% of textile export orders had been cancelled during 2009-2010 by USA voluntarily. An antidumping of 5.8% has been imposed by the European Union on Pakistan, which has put Pakistan in a
desperate position to match competitiveness posed by Bangladesh, India, China, SriLanka and Vietnam.

Meanwhile, USA imposed high tax on import of Pakistani textile products that lead in a bad manner of
Pakistani export to USA. Preferences are giving to Bangladeshi products over Pakistan.
2. Environmental Laws:The major area of concern for the textile processing sector is wastewater.
Almost .08-0.15 m3 of water is consumed to produce one kilogram of finished fabric, translating into
1,000-3,000 m3 of wastewater generation per day against a production of 12-20 ton/day of finished
fabric. Currently the wastewater generated by the industry is discharged into the local environment
without any treatment that serious negative effect on the environment. A wide range of chemicals are used
by the processing industry for dyeing and printing operations. Extensive usage of these chemicals by the
processing industry results in discharge of toxic elements as effluents, which if not treated properly have
the potential to cause significant environmental degradation. Though there are environmental laws in the
country but still there is no strict implementation; but if there are strict implementations it will reasonably
affect the textile industry of Pakistan.
3. Trade restrictions: textile industry of Pakistan is facing Import duty and Anti-dumping duty:
Government of Pakistan has imposed six percent import duty and anti-dumping duty imposed on the
import of Polyester Staple Fiber (PSF) textile industry which was heavily dependent on PSF was faced by
a shortfall of 10,000 tons each month mainly due to restricted production within the country. PSF
constituted a direct substitute for cotton, a commodity in short supply, and timely removal of import
duties on PSF would secure the textile industry competitiveness on an international and regional level.
Anti-dumping Imposed on Pakistan by European Union: An anti-dumping of 5.8% has been imposed by
the European Union on Pakistan, which has put Pakistan in a desperate position to match competitiveness
posed by Bangladesh, India, China, SriLanka and Vietnam.
4. Infrastructure: The important resources and infrastructure, such as adequate of supply of water,
continuous supply of electricity and gas, efficient logistics and transportation, tax structure, raw material
supply are all basic requirements for the development of industrial base, which are not adequate for
competing with foreign competitors. However, on the other hand, the industry is faced with rising charges
of the energy sector, which increases the cost of production, making it difficult to compete with the other
regional rivals. The governments should work in this regard for maintaining a textile sector which is so
important to Pakistan's economy.
5. Political Stability:The Ministry of Textile Industry was created in 2004;however, some of the
functions of the Ministry of Textile Industry are still under the ambit of other ministries. The Textiles
Policy 2009-14 provided a direction to the Ministry of Textiles Industry and prepared a developmental
agenda, along with identifying cross-cutting issues hindering the growth of the textiles value chain. It also
provided sub-sectoral analyses for specific intervention schemes that were approved by the Cabinet.

However, due to financial constraints much less support was provided to the industry as against the ones
envisaged in the Policy. The support provided was in-sufficient to attract further investment in new
machinery and technology compared to the incentives provided by our regional competitors like India,
Bangladesh, Vietnam, China and Turkey.Ministry of Textile Industry collaborated with various
international organizations like KOICA, UN and ILO for initiating skill development programs for value
added industry. It set up the Pak Korea Garment Technology Institute with contribution of KOICA of US$
1.28 million, with rest of the funding from PSDP.

Economic factors: Following are the economic factors that are affecting the textile industry of
Pakistan.
1. Interest rates: Pakistan has highest interest rates as compared to its competitors. For instance,
Bangladesh, India and China enjoy comparatively low interest rates than Pakistan. The prevailing rates
are 8.5 to 9.0 per cent in Bangladesh, 5.25 per cent in India. Market rate is 10.25 per cent, however
exemption of 5 percent is provided to the textile industry and 5.58 per cent in China. While in Pakistan,
the last three to four years has seen the interest rates to have risen more than 150 percent, to 14 percent.
2. Inflation rate: The inflation rate in Pakistan was last reported at 13.04 percent in April of 2011. From
2003 until 2010, the average inflation rate in Pakistan was 10.15 percent reaching an historical high of
25.33 percent in August of 2008 and a record low of 1.41 percent in July of 2003. Due to rising inflation,
higher as compared to its competing countries the prices of Pakistan textile products have increased, thus
reducing its demand as products from other countries are available relatively cheaper. The inflation rates
chart for China and India which are main competitors of Pakistanis textile industry are given which shows
high inflation rates in Pakistan. The average inflation rates of China are 4.22 percent while that of India is
7.99 percent. Textile sector is badly affected due to high production cost and double the inflation rate
within the country. Export of textile product has been decreased since 2009. At the end of 2011, price of
petroleum products has been double as compare to 2007. More than 100% taxes are included in the price
of petroleum that has direct and indirect impact on textile sector. It is shameful for the nation that no
officials are interested to subsidy this unique sector.
3. Increase in taxes: There is tight monetary policy imposed on textile sector by government and
increase the cost of production. Withholding tax of 1% also impact badly on production. During 20102011 reintroduction of 0.5% of minimum tax on domestic sales and 1% of withholding tax on all textile
import that is another shock to the textile industry. Local sales also become unfavorable because of high
mark-up rate that bound to the industry for increasing prices and operate under limited resources leading
to discourage textile business. Even federal government is well aware about the dilemma and never
revised the law.

4. Recession: Global recession started in 2008-2009 and every country of the world at macro level and
almost all industrial sectors were affected. Likewise, Pakistani textile was also affected during that period
and received international export orders at reduced rate. Meanwhile, this caused very high rate of inflation
in the country. In 2008, inflation rate was jumped dramatically from 8% in 2006 to 24 in 2008. Within 22
months only, there were very serious changes happened in the country and lead devaluation of Pakistani
Rupee. Before 2006, exchange rate was 1USD#60 PRs and in 2008, it was 1USD# 83PRs. Then prices of
commodities were really high during that time period and number of people living below the poverty line
was increased from sixty million to 82 million. All of above factors directly effected on the textile
industry and demand of product was decreased locally and internationally. Unemployment was very high
and standard of living dropped down.

Social factors:
1. Population growth rate: The total population in Pakistan grew to 175.0 million in 2010 from 45.9
million in 1960, a 382 percent increase in just 50 years. Pakistan has 2.54 percent of the worlds total
population. The increase in population means higher demand for textile products and more workforces
available for the industries. Further Pakistan is not facing the problem of aging workforce which is being
faced by China and few other European countries.
2. Cultural aspects: Due to cultural diversity and rich heritage designers come up with new different and
attractive designs which are appreciated worldwide. Our culture comprises of Punjabi, Balochi, Sindhi
and Pashto values. We are also influenced by Indian and other foreign cultures such as India, USA etc
through media exposure which gives Pakistani designers an inspiration and tastes of new designs and
fusion of these designs, to give their best in terms of style creativity and designs.
3. Consumer awareness: now a days sustainability has become a necessity driven by consumer
awareness and preference for sustainable products, compliance norms, and a realization that to secure the
future it is important to act today. Life cycle approach to sustainability in textile and apparel industry
entails ensuring the three facets of sustainability the country. A spurt in the man-made yarn exports and a
decline in the man-made fiber exports in the liberalization era is a welcoming trend as yarn is a higher
value added item which contributes more to export earnings. Still exports of cotton have emerged as a
major source of foreign exchange earnings for the country. The ratio between woven clothing and
knitwear shows an increasing trend in knitwear in the US market.
4. Increase in Price sensitivity:This goes hand in hand with a fall in price-per-item. In other words, we
can buy the same, or even larger, amount of clothing, but spend substantially less. The EU-27 consumer
statistical survey shows that since 1996 overall clothing prices have, on average, declined despite an

inflation of around 2.2% which would normally result in a price increase. In the UK, garment prices fell
by an average of 10% between 2003 and 2007, and in 2006 people bought a third more clothes than in
2002. While the 2007 recession left the total sales volume in the UK clothing retail market largely
unaffected, the retail price of clothing deteriorated drastically.
5. Demand for HIGH quality:demand for high-quality products has increased, making it profitable to
focus on this market segment. In fact, companies which have implemented strategies aiming to shift the
competitive front onto variables such as quality, innovation and product diversification rather than cost
have tended to achieve excellent results in foreign markets. The market for small lots of high-quality
products is currently growing, and this development is to the benefit of the local companies which are not
able to compete with foreign clothing companies on price.
6. Increase in old age customers:Fashion industry is one of those industries that may be most affected
by the impact of socio-cultural trends .For instance, it has been witnessed for decades that the world
population is aging. Such a demographic change may result in a threat for solely teenage-oriented apparel
firms because the competition for their shrinking segment becomes more intense. However, an
opportunity can open up for new or more flexible incumbent fashion retailers. They may differentiate in
the future by additionally focusing on more mature customers and offer appropriate sizes and simpler
designs with more qualitative and durable materials.
7. Online shopping trends:there is an increased demand for a more convenient shopping experience,
especially in times when people become more career-seeking and have less time left that can be dedicated
for leisure and shopping. Mostly now a days customers avoid going to market because of traffic
problems and security problems. Rather they prefer to give order online and product is delivered at their
door step.
8.Health and environmental awareness:Another social trend is that customers are more and more
concerned about their health, which can be confirmed by a steady increase in individual health
expenditure over the last decade .This may lead to a greater customer interest in the materials used, their
origin and their processing methods, demanding more transparency and accountability on behalf of the
fashion firms. In this respect, more and more customers have gone green and support sustainable and
ethical activities of companies.

Technological Factors:
The technological factors that influence Pakistan's textile sector are

1. Research and Development Activity:Developed countries are using biotechnology and genetic
engineering to increase the quality and quantity of their cotton production. They are able to grow colored
cotton, organic cotton and several different varieties cotton to add value to the textile chain. In Pakistan,
Textile owners argue that although the Cotton Vision 2015 targets 20 million bales till 2015, it is an
ambitious target as in reality cotton production is decreasing each year. It is the lack of proper R&D that
has led to such a state. They further accuse cartels, especially the pesticide sector, for hindering proper
R&D. The pesticide sector stands to benefit from stunting local R&D as higher yield cotton is more
pesticide resistant.Practically no efforts are being made by the APTMA in the R&D of the textile industry
to enhance the quality of its products, upgrade the technology used, and encourage effective methods of
production in order to compete internationally. The recent trends in textile industry of the world are using
synthetic fibers, however in Pakistan there is no such advancement and industry is mainly relying on
cotton crop.

2. Technological change:The textile industry of Pakistan except a few big firms have low rate of
technological change adaption, most of them import used textile machinery which is used in the
production process ,which is not fully automated or can match the foreign competitors standards. In other
words, the local industry desperately requires more modern machinery and techniques to compete in an
increasingly competitive industry. Moreover, critics argue that the textile industry has obsolete equipment
and machinery. The inability to timely modernize the equipment and machinery has led to the decline of
Pakistani textile competitiveness. APTMA has highlighted that the Pakistan textile industry faces tough
competition from the Indian, Bangladeshi and Chinese textile industries and local policies have resulted
in Pakistani textiles facing a critical condition.
3. Internet and social media role:the emergence of the Internet and improvements in communication
technologies have facilitated and accelerated the information flow of new trends and brands from the
customer to the retailer, which enables companies to respond more quickly to the latest market impulses.
In turn has this advancement increased customer demands since the media continuously updates them
about the newest fashion styles. A similar improvement in knowledge transfer and interaction can be
witnessed between retailers, wholesalers and manufacturers, which are able to benefit from more efficient
distribution and communication channels. Besides, a rise of multi-channel customers has opened up lowcost advertisement and marketing options for retailers through social media platforms or a corporate
website and new ways of buying fashion products for consumers. Innovations like matrix coding, the cocreation of products and online shopping has made the decision and purchase of fashion easier and more
convenient for customers. Despite the technological enhancements that could be detected in the last

decades and years, the apparel industry remains rather labor-intensive with limited automation because of
frequent design, textile and demand changes.

Other:
1. Load shedding:Industrialists also argue that the non-guaranteed supply of power by WAPDA (Water
and Power Development Authority) is another problem that negatively affects the textile industry. The
textile industry suffered heavy financial losses in Dec, Jan and Feb quarter, because of the inconsistent
electricity supplies. Textile owners as well as workers passionately assert that the inconsistent supplies
have and are destroying business across Pakistan. They also highlight that the high cost of the utilities has
making Pakistani textile uneconomical in the international market.Being a developing country, it is hard
to overcome the energy problems but it does not mean that whole year load shedding is acceptable at all.
Textile production capacity, because of this reason has reduced by 25-30 per cant. Being a major export
sector of the country, economic growth is heavily dependent on it. Textile mills operate twenty four hours
in three shifts if electricity is available according to requirement, but current situation is less than eight
hours electricity supply is providing to the sector. As a consequence, international trade and export orders
have been reduced gradually. Documents show about 17 per cent export decrease in November 2011 as
compared to last year following month. June and July are considered peak season for textile industry,
because of raw cotton ready is available for processing. In the year 2011, Sue North Gas Pipe Lines
(SNGPL) has cut off the supply for almost 100 days to all textile mills because of shortage, and
consumption of natural gas during summer is considered less at private sector as temperature is high
enough in Pakistan. As Growth rate is about 2% in the last three years as compared to last decades when it
was above 9% annually. During the last four months estimated loss is 882 million dollars in the Punjab
province industry and cancelled many foreign orders.
2. Unskilled or poorly trained Human Resources:Also extensive training is required to refine the skill
level of workers in accordance with the latest techniques and requirements to compete with the local as
well as international standards. One of the major reasons for these losses is unskilled workers. It has also
been observed that if the industry has managed to attain advance technology then the semi-skilled or even
the skilled workers sometimes struggle to match their expertise to required level of technological
advances as sometimes the new equipment require more specialized skill levels. Hence, the industrial
training management resists training their workers, keeping in view the highly fluid and short lived nature
of market in comparison with the high training costs.
3. Risk of Shifting Industry to Bangladesh: There are many factors that are encouraging the
businessmen to move their business from Pakistan to Bangladesh. Shortage of electricity and gas are not

the only reasons for moving out but many other factors are involved in the scenario. Bangladeshi textile
sector has been sponsored by United States and European Union. Every year, millions of euro are
provided by EU for enhancing the textile sector in the country and supported in the form of modern
machinery and know how. Textile industrialist is trying to get the advantages of more profit while shifting
their business in Bangladesh. According to the survey reports, more than 40 per cent of textile industry
and 200,000 powers looms have already shifting to Bangladesh during the last five years that are alarming
situation within the country. In Bangladesh, cheap labor force of both sexes is available as compare to
Pakistan and captive power generation using gas as fuel is cheaper than other Asian countries.
Bangladeshi Government is encouraging foreign investment because of privatization and supported many
cash incentives for the investors in this sector. Opportunity is available for Bangladeshi industry to
expand its market share to EU and US markets because of GSP and many other incentives at the moment.
But Pakistani industry is unable to get these types of benefits and discouraging present and new investors
to invest in the country.
4. Environmental Laws: More than 650 units are in operations majority of which operate at a small and
medium sized scale. These units carry out processes including: Bleaching of fabric Dyeing and finishing
of fabric Printing and finishing of fabric. The major area of concern for the textile processing sector is
wastewater. Textile processing is a water intensive process. Almost .08-0.15 m3 of water is consumed to
produce one kilogram of finished fabric, translating into 1,000-3,000 m3 of wastewater generation per
day against a production of 12-20 ton/day of finished fabric. Currently the wastewater generated by the
industry is discharged into the local environment without any treatment that serious negative effect on the
environment. A wide range of chemicals are used by the processing industry for dyeing and printing
operations. Extensive usage of these chemicals by the processing industry results in discharge of toxic
elements as effluents, which if not treated properly have the potential to cause significant environmental
degradation. Though there are environmental laws in the country but still there is no strict implementation
But if there are strict implementations it will reasonably affect the textile industry of Pakistan.

Porters Five Forces Analysis

Porter's Five Forces is a framework for industry analysis and business strategy development formed by
Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO)
economics to derive five forces that determine the competitive intensity and therefore attractiveness of a
market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry
is one in which the combination of these five forces acts to drive down overall profitability. A very
unattractive industry would be one approaching "pure competition", in which available profits for all

firms are driven down to zero. Following is the analysis of Porters five forces for the textile industry of
Pakistan.

1. Threat of the entry of new competitors: High capital requirement to enter in the industry
however attaining the customers is dependent on experience. Moreover, without any established client
portfolio it is difficult to bear costs in creating samples to attract potential customers. Thus in the sense of
reference dependency, barriers of entry are considered as very strong. Keeping in view the large
population of manufacturers in the spinning and weaving segment, any new entrant may hardly be noticed
by the competition, which minimizes the risk for retaliation. Cost and/or quality advantages are enjoyed
by the existing players and it may take time for the new entrant to reach the point where these advantages
are realized.
An explanation of Pakistan's textile industry in this regard is as following Barriers to entry:
1.1. Capital requirements: As the entry requires high capital therefore the entry barrier in terms of
required investment is high. Without any established client portfolio it is difficult to endure increased
costs in creating sample collections to show potential customers. Hence, in startup phase costs are not
only associated with the manufacturing required but also with the costs for designers and creating
samples. In the sense of reference dependency, barriers of entry are considered as very strong.
1.2. Risk of Retaliation: In addition to these potential barriers of entrance, new entrants may have second
thoughts about entering the new market, if existing manufacturers may retaliate on new entrants. The
Pakistani textile industry though, has such large population of manufacturers that any new actors may
hardly be noticed by the competition, which minimizes the risk for retaliation.
1.3. Patents, rights: As the textile industry is a technology oriented industry but it can't be regarded as a
high tech industry so there are no patents and other restrictions which may prevent new entrants or serve
as a competitive advantage for one company.
1.4. Customer Loyalty:Considering the customers in Pakistan and dress patterns, there is not much brand
loyalty. However in markets such as European and American where Pakistan exports its textile products,
brand loyalty is a hurdle in establishing customer base.
1.5. Absolute cost:Overall Pakistan has a cost advantage by having cheap labor available for the whole
supply chain of the textile industry, which serves as an attraction.

2. The threat of substitute products or services: Products within the initial category of the
textile chain may provide substitute, however, with the addition of quality and branding sense, probability
of customer switching gets lower which makes this force much weaker. When using such a broad term as

Textile, there are obvious reasons for identifying substitute product groups proves difficult. Of course,
there are variations in types of clothing and material. Variations in textile segment can also be identified
as trends in fashion and styles. Hence products within the apparel segment can act as substitutes but the
general conclusion still stands; there's no substitute to apparel.

3. The Bargaining Power of Customers:Global textile & clothing industry is currently

pegged at around US$ 440 bn.US and European markets dominate the global textile trade accounting
for64% of clothing and 39% of textile market. With the dismantling of quotas, global textile trade is
expected to grow to US$650 by 2012. World textile and clothing trade has experienced a reasonable
growth over the last few years. Although the dominating share of China makes it a 'supplier of choice', yet
the close down of 12 million spindles in China during FY10 equivalent to the total installed capacity of
Pakistan, provides a lot of opportunity for the spinning industry to tap in. Moreover, lower price image of
Pakistan benefits the domestic producers as the importers try to mitigate their risk of sourcing from only
one country. However, with increasing competitive pressure from Bangladesh, Vietnam and Turkey in few
segments of the textile chain, it is of importance for a producer of apparel to differentiate their products or
production so it will not compete with price as primary mean. Differentiation is accomplished either by
quality or service. Thus, the bargaining power of customers is considered strong.

4. Bargaining power of suppliers: Pakistan is a country where we have numerous players in

textile industry. All are varied in terms of size and power. There has been increase in production and
supply of textile products in last few decades globally, mainly due to rapidly changing social and
economic structure of the countries worldwide. In past few years, especially after the removal the trade
related tariffs and non-tariff barriers in 2005, Asian countries such as Pakistan, India, china, Hong Kong
and Japan have emerged as major players in this particular industry, mainly due to their changes on
economic front and infrastructure developments. The large number of available suppliers in Pakistan
gives an initial indication of a weak bargaining position for the supplier group. Additionally, the supplier
group lacks switching costs and has a low level of product differentiation. This leads to great possibilities
for textile manufacturers to scout the supplier group for best terms and prices for production. As a result,
manufacturers can contact a large number of suppliers and play suppliers against each other. Such
behavior weakens the bargaining power for suppliers and as a result pushes prices down and makes prices
similar among suppliers.

5. The intensity of competitive rivalry:The textile manufacturing segment in Pakistan is

made out of numerous manufacturers which all are varied in terms of size and power. It is a massive
sector with hundreds of companies producing apparel. The apparent high growth rate of total textile
exports indicates that the rivalry between manufacturers is low. The growth rate is high in some product

segments but even negative in others. Hence, the rivalry between apparel manufacturers is diverse since
they enjoy different growth rates. Additionally, textile as a perishable product group is in the risk of
temptations to cut prices when demand slackens. For example, when there are recessions in the business
cycle apparel prices will drop significantly in price. Both these factors exemplify and indicate that the
rivalry between manufacturers is high. As Pakistan's apparel manufacturers are pressured to lower prices
in order to stay competitive with companies abroad, the overall rivalry within the industry is thereby
increasing and is forcing companies to expand their customer base in order to keep profits up.

THE INTERNAL FACTOR EVALUATION (IFE) MATRIX

This strategy formulation tool summarizes and evaluates the major strengths and weakness in the
functional areas of a business, and it also provide a basis for identifying and evaluating
relationship among those areas. Intuitive judgments are required in developing an IFE matrix.

Key internal factors

weight

Rating

Weighted score

Internal strengths
ISO 9002 Certification.

.10

.20

WRAP Certified

.05

.40

Vertically integrated.

.05

.15

High quality products.

. O5

.60

Back Track System

.05

.15

Highly qualified management.

.05

.15

Adequate financial resources.

.05

.15

Competitive advantage.

.05

.20

Adopting information technology

.o5

.15

Broad and motivational vision

.05

.15

10

.10

Centralized management system

.10

. 05

High cost of production.

.05

.10

Low production capacity.

.05

.05

De-motivated Staff

.05

.05

TOTAL

1.00

INTERNAL WEAKNESSES
Increased employee turnover

2.75

THE EXTERNAL FACTOREVALUATION MATRIX

Opportunities

weigh

ratin

weighted

score

Can expand its division Such as entering in

weaving Sector also.

.15

.15

.05
.05

3
1

.15
.05

.15

.60

.10

.30

Entry of new competitors just likes China

.20

.2o

& India.
Buyer need and demand changes.

.10

.20

Political instability.

.10

.20

Changing geopolitical situation.

.05

.15

Change of government policies

.05

.10

Can introduce its own label in domestic As

well as in international market.
Can capture new market Segment.
Can reduce the cost by Proper utilization of
Resources.
Can hire well-educated and experienced
staff.

Threats

Total

1.0

2.15

DEVELOPING GOALS& OBJECTIVES

Trading profitably, remaining and developing the capital, completing producing-trading tasks issued

by managers.
Increasing shareholders revenue, creating stable jobs, improving working condition gradually and

raising the workers income.

Fulfilling the producing and trading duties following laws and sharing the social liabilities.
Sustainable developing to become one of the leading textile company in the region, having modern
technology, managing ability and high specialization, strong compatibility and accessibility into

global economy.
Taking care and improving quality of life of employees and attracting qualified human resource from
outside coming to work for company.

or

To maximize the wealth of shareholders, increase market share and achieve customer satisfaction.

To become the market leader in exports of yarn in next 5 years.

Reduce defects to minimum which will help in reducing the scraps, wastages, and rework. It

is to meet international quality standards.

To facilitate additional investment in machinery and technology.
Enhance quality of product and introduction of innovative products to increase sales.
Vocational training of workers for capacity building, internships and different programs for
enhancement of skills.

To reduce the cost of production up to minimum level.

Be environmentally responsible and Work for wellbeing and prosperity of society.

DEVELOPING SUCCESSFUL STRATEGIES

(PLANNING TO WIN)
Basis for Developing Strategies:
Four sets of strategies firms management board considers after analyzing of strength, weaknesses,
opportunities and threats and matching each other are:

Strengths with opportunities: as there is opportunity in market demand for textile product
has increased. The firm has to prepare its human resources to handle more activities. The firm has
already a qualified human resource but in order to meet firms development and market expansion,
this resource must be developed, trained to be more skillful and competent in order to grab the
opportunity.

Weaknesses and opportunities: Not only preparation of human resource, firm needs to have
strong financial resource for its operation and development to meet developing markets demand. A
clear financial strategy must be built by the firm. There is opportunity in market as demand for textile
product has increased and currently kohat textile mill is facing some financial problems so they need
to get strong its financial position. They should get help from saif group.

Strengths and threats: Facing slowdown economy and threat of more competitors, existing
competent sales team needs to increase and improve their technology to find more customers and take
care of existing ones in order to increase sale volume and attractive model if they dont want to fail.

Management of kohat textile mill has to develop a strong sales strategy for more competitiveness and
also they are having bunch of loyal domestic customers so they wont be hurt by increase in number
of competitors.

Weaknesses and threats:One of the main problems of firms weak performance is marketing. The
firm is unaware by customers by lacking of information. Products that firm provides are well known
in local market but foreign customers are unaware of its presence. All are due to weak marketing
activities of the firm. So, they really need a marketing strategy at the moment to introduce the firm
and products and to attract customers awareness. This is now a key and critical requirement for kohat
textile mill existence and development.

Strategies Developed:
Four sets of strategies are explained with details are following:

1. Human Resource Strategy

1.1. Recruitment
In order to take the opportunity of an expansion of the market following by flows of FDI to Pakistan,
the firm has to prepare its strategy of human resource especially personnel in sales and marketing
department. Strategy starts by recruitment new proficient staffs for marketing division to improve
marketing activities of the firm. More recruitment is also necessary to increase sales activities. Only
qualified people is recruited, so that they can start working immediately with high performance but
the firm wont have to spend much money on training and waste time for its market positioning.

1.2. Salary and compensation policy

Parallel to recruitment, the firm will build a salary and compensation policy to encourage its
employees. A competitive salary will be offered to employees not to encouraging existing employees
but to attract qualified people coming to work for the firm. Salary increasing for competent staff will
be reviewed in periods like every six months and annually. The increasing scale of salary will be 10 to
15 percent in comparison with other companies working in equipment and technology trading.
Incentive and compensation will be built basing on employees performance. An instant bonus will be
delivered to salesmen right after they get a contract. And a yearend bonus will also be delivered to
them basing on annual sale performance they hit. In order to ensure a fair and encouraging of
compensation, a qualification system will be built and set up for the purposes.

1.3. Training

For a firm operating in textile and garment market, training is necessary for employees to adapt new
technology and its changes. The firm plans to send their employees for overseas training organized by
its suppliers. These training courses are often organized to help employees update new products and
its technical improvement changes for competitiveness. Next to technical training, the firm will send
staffs to participate in one or two soft skills training courses on sales and marketing skills to improve
staffs skills which will help them to perform their job effectively. The training is not only planned for
staffs but also for management board to help them in the firms strategic management. In order to
have best training benefit, the firm will have its qualification system for existing and new employment
to qualify employees and needs of training. The firm then compares with the firms strategic goals and
objectives to have suitable training courses for best results.

1.4. Working environment

Most employees want to have a favorable working environment, so the firm will plan to create a
professional working environment where employees feel happy and have friendly relationship
between colleagues and even with management board. A clear regulation and tasks will be created
within the firm to help them understand their job and support each others. Teamwork will be highly
appreciated in the firm. Cultural values are welcome where management board respect employees
initiatives and recognize employees contribution. This is also to encourage employees to share their
concerns, problems and contribution to the firms development. Team building events will be held
regularly to connect people and other competitions also will be held to qualify and recognize and
encourage the performance between employees. Other building activities will be taken to get staff
close and reduce working stress periodically. Some activities should have staff family involved on the
special occasion.

2. Marketing Strategy
Marketing strategy will focus on three main groups of activities which are direct marketing,
advertising and event. In first group of activities, the firm will concentrate to improve direct
marketing activities like design and getting printed the firm and product catalogue, preparing and
sending direct mail basing on a strong database to potentials customers and calling for arrange
meeting and following up. Group two combine advertising activities which are published in three
channels of industrial magazine, online via the firms website or others industrial websites. In
addition, the firm will participate in industrial fair and exhibition and organize themselves product
seminars.

2.1. Direct Marketing

2.1.1 Database:Current database of the firm will be developed with new recruitments from trade
shows, direct meeting and online registration and other. Update and qualification of the database will
support for next marketing actions like mailing, calling. The effectiveness of these activities will
depend a lot in the quality of the database. Quantity will be increased to cover target customers in the
market working in different sectors like industrial, education, art, in different segments like foreign
companies and local companies.

2.1.2. Catalogue:The firm and products catalogue have to be redesigned in both languages English
and urdu to reach both foreign and local customers for their good understanding marketing message,
features and benefits of product and service. The format of product catalogue will base on the original
format of manufacturer and supplier to have international standard and image, so customer will
recognize it easily and attracted.

2.1.3. Mailing:Mailing activities will be increased in next period in term of quantity of customers
and sending frequency. Mailing this time will not send before direct meeting and product
demonstration but even after sale for taking care of customers. Every quarter customers will receive at
least one mailing for products and service presentation, technology update, events or other industrial
activities news.

2.1.4. Calling:Sale and marketing team will not only make a phone call to customers for meeting
arranging or product demonstration but also participate in recruitment of new database. Calling is
regular activities of the team which is held every day with high frequency of calling to reach
maximum target customers.

2.2. Advertising and PR

Therere two types of advertising that the firm will use are printed and online magazines.

2.2.1. Magazine:Advertising pages in printed industrial fashion magazines will help to gain
customers awareness regarding the firms products.

2.2.2. Online:The firm will have to invest in their website to approach their customers. This is an
image of the firm. This is a useful and efficient way to link with their suppliers and customers.
Previous Research shows that 43% of internet users search for product purchases. People who interest
in product may search and reach manufacturers website to research on the products and to place an
order. If the firm doesnt have their good website, they will lose the opportunity to sell their products.
Together with direct calling, website will support topresent the firm image and product to customers
besides mailing activities. This type of advertising is less expensive than printed magazine and can

reach a bigger number of readers with longer appearance.

3. Sales Strategy
Sale activities are not currently problem of the firm, but for a competitive positioning in the market,
the firm has to review and rebuild sales strategy basing on current sales activities. By reviewing the
firms strategic goals with specific targets, the actual situation of the firm with sales and marketing
activities and market trends, management board and sales team need to rebuild sales target which is in
accordance with real situation for each period of development.
Sales team has to keep contact with current customers and develop new relationship by looking for
new prospects. The team has to plan to follow up potentials and has a strategy to take care of those.
By visiting customers for product demonstration and taking care, sales team will collect their
feedback and comment regarding the firms products and market information especially information
relating to competitors. Information of product competitors are supplying, sales channels they
promote, and prices they are offering and other marketing and promotions they are implementing will
help marketing department for market analysis. From these analyses, the firm will have suitable
actions for competitiveness.
Commission policy for customers will be reviewed which will not only encourage customers supports
but also contribute in their decision making. In addition, a commission will make the firm offering
price become more competitive. A clear commission policy must be built that also helps sales team for
quick and flexible action to take advantage in comparison with competitors.
Next to commission policy building, the firm will consider salary and compensation policy to
salesmen to encourage them for higher performance. This salary policy has already mentioned in
human resource strategy.

4. Financial Strategy
In order to ensure enough financial resource for the firms operation and trading transaction, the firm
has to forecast their expenses for a period of time in at least six months or annually. Financial plan
will be built basing on the firms strategies, strategy of human resource, strategy of marketing or on
sales activities with specific targets. A plan will help the firm for financial preparation and avoid being
in bad financial situation.

The firm will review their expenses and cost to avoid wastes and increase benefit for a better financial
performance report. This is important to negotiate with bankers for loan and credits terms. With a

clear and feasible financial report together with reasonable expenses and cost for best benefit, the firm
will have a good financial report to banks acceptance for a credit in near future. Parallel with credit
granted from the banks, the firm will mobilize other financial resources from internal and external.
For internal, the firms shareholders will consider to increase their contributions to the firms capital
by at least 50% of actual registered capital which will support for the firms strategic activities in next
five year.
For external resource, the firm will have to negotiate with their suppliers for a long-term credit for
sales by extending the payment terms and decrease the percentage of deposit. The firm will not only
look for credit from suppliers but they will try to negotiate with customers to get more deposit for at
least 50-60 percent from the actual rate of 20-30 percent. With two key resources from suppliers and
customers, the firm will benefit much financial resources and resolve financial problem to help the
firm to become more competitive. Moreover, reduce costs to create competitive advantage - the
shortest way to improve efficiency in the investment that any business will have to take.
To generate revenue of 10% more than the previous year and so on. Company tries to become
financially strong to get the things done on time. It can be measured through increasing the sales and
services. If there is a reduction in the internal process such as rework, scraps, etc. which will help the
organization to earn more on their financials and good income. If new technology is implemented it will
help the organization to reduce the cost per product produced, use of man power and methods which use
to control them, i.e. few enterprise level initiatives, if implemented would also help the organization
to grow in their financials. Increasing the distribution network would also help the organization to grow.
To implement a 100% EOU setup. Reduce defects to minimum which will help in reducing the scraps,
wastages, and rework. It is to meet international quality standards for the purpose to identify suppliers &
reduce rework. To search for the world class suppliers, huge supply network, importing of good quality
machinery for enhancing the growth.
To become the market leader in exports of yarn in next 5, the experience of the employees from or with
fellow employees will help them to grow in the organization & to grow in the organization hierarchy. It can
be achieved through expanding distribution of the goods, connecting to new buyers in the market and
manufacturing the goods through fixed international standards.
For gaining 100% customer satisfaction, proper market research needs to be conducted. Besides, feedback
form customers is also important to be considered to generate, record and look upon the responses of
the customers for the purpose to get ideas form the customers. Besides, the company will have to
consider on time delivery of the goods as per the deadline allotted.

DEVELOPING AN ACTION PLAN

Mark up rate for Export Refinance Scheme of State Bank of Pakistan is being reduced from 9.4% to 7.5%
from 1st of July 2014. Textiles industry units in the value added sector would be provided Long Term
Financing Facility (LTFF) for up gradation of technology from State Bank of Pakistan at the rate of 9%
for 3-10 years duration. The Schemes may continue during the Policy period. In case there would be
further decrease in the policy rates then subsequently EFS and LTFF rates would be revised accordingly.
Textiles sector enjoyed duty free import of machinery under Textiles Policy 2009-14. This facility (SRO
809) has been extended for another two years. Main aim of the scheme is to improve overall
technological configuration of the sector, remove critical imbalances in the value chain and achieve
compliance with international standards. So kohat textile mill be taking loan from state bank to upgrade
its technology and import some new and modern technology as government has also announced that there
should be now duty on imports of machinery and technology.
A new vocation training program will be launched to train sufficient men power for skills required in the
value added sector such as garments and made ups. In order to have train work force so that they should
work efficiently and reduce cost of production.
The kohat textile mill will establish a Product Development & Innovation department to develop new
products, along with costing, identification of supply chains, raw materials. Awareness seminars and
training on textiles entrepreneurship in new products will be carried out for new business development
and product diversification.
A Business Portal would be launched to facilitate sales and business partnerships on the internet. This
would also enable the SME sector to increase usage of ICT and modern management practices in their
units. Each year in exports would be identified and would be facilitated for organizational restructuring,
business development, export marketing, IT usage and infrastructure etc for their growth in exports.
The kohat mill will carry out productivity analyses on processes and energy conservation. Trainings
would be provided to improve per capita productivity on cost sharing basis. To attain international
compliance in Occupational Health and Safety, trainings would for initiating Better Work Program.
Initiatives will be taken to strengthen the strategic and competitive capacities of textile mill kohat,
promote growth, sustainability, innovation, value addition, diversification and internationalization. Under
performing units will be supported through management capacity building BDS support programs.
The Ministry will take measures to give priority to textiles sector for availability of energy to fully utilize
the GSP+ status. For this purpose, a joint committee comprising senior officers of the Ministries of

Textile Industry, Petroleum & Natural Gas, Water & Power and Finance Division will be constituted to
work out solutions on a regular basis to reduce the energy gap in the textiles sector. In order to conserve
energy, textiles associations would be facilitated to carry out energy audits within their member units, so
that energy consumption is reduced through specific interventions, such as replacement of old machinery
and plugging leakages.
Market intelligence including fiber and product mix, information on different countries specific
standards and compliance requirements, along with tariffs and preferential tariffs of competitor countries
would be disseminated both through the Ministrys web portal and in regular meetings with stakeholders.
The information about best international practices in value added chain will be made available to the
stakeholders. Kohat mill will regularly publish domestic and international imports and exports data. Such
information will also be available on the kohat mill website. For such purpose international technologists,
marketing and compliance experts would also be invited. The associations and manufacturing units will
provide space where practical demonstrations would.

WEBLOGRAPHY: