Company PROFILE

ACTIVITY:
Design & Manufacture of Leather Apparel and Fashion Accessories. We are
Manufacturers and Exporters of leather goods. Our experienced well trained staff
has developed a widely line of Leather & Textile Garments, all type of Fashion
Leather Garments, All Type of Gloves, including Kidney Belts, Saddle Bags along
with Tool Bags & Accessories. We have close contacts with the tip importers, buyers
as well as agents throughout the world.

Company Overview
Blink leather Company came into existence as a separate leather manufacturing
and designing plant in 2007. The company is designing & manufactures Leather
Apparel and fashion accessories and is run by a team of professionals. BLC is
primarily focusing on to make such quality leather that can exactly meet the
customer requirements around the globe.

BLC's Strategic Objectives

Blc has adopted a new strategy which is geared towards the future and based on
research. State of The Art Technology has led to many important discoveries,
particularly in the area of Leather tanning and finishing. A high performance
leathers and new extremely sophisticated treatments make BLC distinctive. A
dynamic management, channels the experience of BLC's Technical Department,
encouraging finding new solutions to improve and increase the performance of
leathers goods. Furthermore, close cooperation with manufacturers of leather and
leather machinery manufacturers helps BLC in providing users with leathers better
suited to their requirements, resulting in production of superior leather products.
Vision
A global source of unmatched superior quality leather products with full
commitment to ensure quality for excellent output and prompt delivery in very
competitive prices.

Mission Statement
”To become the premier manufacturing company in the leather industry, gaining
market competitiveness and diversifying into value added leather with clean, well
maintained and friendly environment and establish quality product and quality
relationship by being accountable & responsible as we consistently provide products
and services that meet and/or exceed customers requirements”

Unique Selling Proposition:

Our USP is the quality of leather products along with new styles and fashion trends.
We also make products of customer’s choice designed by them on order in
economical rates. Our Products cover the full range of customer requirements. As
new technologies are introduced, BLC will continue to lead by adapting those
technologies to meet the changing needs of its customers. Quantity is inspected
throughout manufacturing.

TYPES OF LEATHER USED:

Wet Blue

Full Chrome Wet Blue Goat and Sheep skin in different sizes and selection. Offers
to be submitted upon request.

For Shoe Uppers

Articles in Goat include Glazed Kid, Imitation Glazed, Glazed Milled, Polish Goat
Upper, Suede Kid in sizes 2.5/4, 3/5, 4/7 sq ft. etc.

Items in Sheep leather includes Sheep Softy Upper, Resin Uppers etc. Offered in
sizes 4/7 and 5/8 sqft.

For Shoe Linings

Goat linings in different versions from Aniline, Resin to Corrected Grain Economical
linings. Available in sizes 3/6 sq ft. Sheep lining leathers in size 4.5/7, 5/8 sq ft etc.

For Garments
sheep nappa leather is very well accepted for the garment industry. Offered in
various price range in both colors and black in size 5/8 sqft. Also in goat skins.
For Gloving
Soft goat and sheep leathers are used in sizes 3/6 and 4/7 sqft for both fancy and
working gloves..

PRODUCT PROFILE:

GARMENTS:
High Quality Leather Garments for Ladies, Men's & Children

• Jackets,

• Motorcycle Jackets,

• Trousers, Skirts,

• ¾ Coats all on Sheep, Goat, Cow & Buffalo Leathers.

ACCESSORIES:
• Ladies Purses,

• Wallets,

• Folders,

• Office Bags,

• Desk Sets,

• Vanity Boxes,

• Key Holders,

• Coin Bags,
 • Organizers,

• Travel Bags,

• Belts etc.

PRODUCTION CAPACITY

• Garments: 20,000 Pcs/Month

• Accessories: 15,000 Pcs/Month

MACHINES:
500 Sewing Machines including Double Needle, Single Needle, Triple

Transport, Zigzag, Buttonhole machines, Over-locking (Safety over-lock machine),

Splitting machines, Skiving machines, Folding and Embossing machines, Bar Tack

Machines.

DELIVERY PERIOD:
4-12 weeks after receipt of L/C Depending on prior booking

of production capacity.

LEATHER SOURCE:
From own tanneries or best available sources. We also use Domestic or imported
hides and skins.

SUB-MATERIALS & TRIMS: Zippers, Buttons, Hooks, Rivets, Buckles,

Linings, Etc. imported from Japan, Singapore, Korea, Hong Kong, Italy & Germany.
Also from Best domestic sources.

EXPORTING TO: USA

CUSTOMERS: We cater to wide range of customers including Importers,
Wholesales, Manufacturer, Department Stores, mail Order House etc.

MINIMUM QUANTITY: No Restrictions.

PAYMENT TERMS: 100% CONFIRMED & Irrevocable L/C at sight.

SHIPMENT: By Air/By Sea

PACKING:
A reasonable quantity wrapped in plastic sheet and packet in 7 ply

craft/corrugated cartons covered with a sturdy polypropylene bag or as per

customer’s instructions.

Overview of the LEATHER market:

Leather industry, including leather products, is the second largest export earning
sector after textiles. Currently, this sector is contributing around $700 million a year
but has the potential to multiply volume of exports with the improvement of quality
and diversification in different range of products, specially garments and footwear.
Basically, it is a job-oriented sector providing employment to a very large segment
of the society besides earning foreign exchange for the country.

Leather industry can be divided into five major categories i.e.

• Finished leather

• Leather garments

• Leather footwear

• Leather gloves

• Leather goods
Global Perspective:
The global export market of leather garments in 1999 was around $3 billion. The
five-year trend indicates a negative growth (an average of -7% per annum) for
leather garments as an international commodity and its share as a sub category of
leather has also fallen from above 8% to 6.85%.

LEATHER GARMENTS EXPORTS (84811&84819)

Exporters:
Leather garments exports consist of article of leather apparel (88%) and other
leather clothing accessories (12%). China is the leading exporter of leather
garments for the last five years and shared 43.09% of the total international trade
for the year 1999. Then comes India with 12.56% while Pakistan has managed to
capture 10.16% of the market in this sub sector.

Importers:
U.S.A. is the top importer of this sub category of leather and has expensed up to
US$ 1 billion years per annum (for the last five years) for importing leather
garments. Its share was approximately 34% of international leather garment
imports in 1999, Germany with 18.16% and France with 6.03% were the other major
players in international imports of leather garments.
Pakistan Perspective:
In 1999 leather garments accounted for $287.4 million in foreign exchange earnings

which is 48% of the total leather exports of Pakistan. As the global export market

declined by 20% a similar effect was observed in Pakistan’s exports which declined
by

11%.

For international comparisons the data used here is for the year 1999, data is also

available for Pakistan for the year 2000-2001 and according to which there is a

significant increase in exports i.e. by 30.8%, from $287.4 million in 1999 to $376
million

for leather garments in 2000-2001. A contributing factor here could be the outbreak
of

foot and mouth disease, which resulted in the slaughter of millions of animals in
Europe.

As a consequence Asian developing countries exports increased to meet the

shortage of

leather in the global market.

Some of the leading importers from Pakistan include Germany with 18.19%, U.S.A.
with

18.13% and U.K. with 12.22% and France with 9.27% share of total Pakistan exports
of

leather garments.
Present status of Pakistani Leather Industry
The leather industry is the second largest export-oriented sector of the country that
has achieved export target of $715 million during fiscal year 2003-04, out of which
share of tanned leather was $260 million. Basically, it is a job-oriented sector
providing employment to a very large segment of the society besides earning
foreign exchange for the country. Pakistan produces very fine quality leather, which
is recognized worldwide and the main export markets of the Pakistani leather are
Italy, Germany, Spain, Portugal, China and Korea. Exports to USA, the main market
for Pakistani leather apparel and clothing, which accounted for 19 per cent share
i.e. $61 million also, registered a decline of 9 per cent over 2001.

During the current financial year, the shortfall in Leather and Leather products
exports was stated because of the leather manufacturers were facing liquidity
shortage as their funds were blocked in stocks of leather garments production. In
addition the duty drawback rates on both finished and leather made-ups were
slashed; thus, further aggravating problems for exporters hampering the sector to
reach the target.

US-Pakistan Trade Relations:

Major Exports and Imports between Pakistan and US
The leather industry of Pakistan is second largest export industry with total export
value of $1.24 billion (2007-08) and the industry can grow by cent percent in three
years and to the level of $5.00 billion in next 10 years if provided level playing field
with its major competing count.Pakistan's primary export commodities to the rest of
the members of international business include textiles such as garments, bed linen,
yarn, cloth and cotton. Other products transported to other nations are rice, leather
and sport goods, carpets and rugs, manufactures and chemicals. Its export
activities are very strong with nations such as US, United Arab Emirates,
Afghanistan, United Kingdom and Germany while its major suppliers are Saudi
Arabia, UAE, China, Japan, US, Kuwait and Germany.

For the year 2007, the following statistics were available as to the trade relations of
these two nations:

• Pakistani Exports to US. The aforementioned US agency recorded

exports from Pakistan to US at $3.58 billion for the entire 2007.
Leading the list of the products were apparel and household goods
from cotton which had total earnings amounting to $2.68 billion
equivalent to 74.86%. Other noteworthy commodities on the charts
were: cotton cloth and fabrics, thread and cordage; apparel and
 household goods from other textiles; rugs and other textile floor
coverings; nontextile apparel and household goods; sporting and
camping apparel, footwear and gear; other scientific, medical and
hospital equipment; toys, shooting and sporting goods and bicycles;
synthetic cloth and fabrics, thread and cordage; and cookware, cutlery,
house and garden wares and tools. The last products made it to the
top because of sales amounting to $22.51 million which is 63% of the
year's total.

• Pakistani Imports from US. While products from Pakistan made good
earnings for 2007 on US grounds, those coming from the latter to the
former had a remarkable stint in the market as well. The total
amounting to approximately $2.04 billion was led by civilian aircraft.
The said product made sales up to $452.03 million which is 22.21% of
the year's total. Other goods on the list were: raw cotton; generators
and accessories; telecommunications equipment; parts for military-
type goods; steelmaking materials; tanks, artillery, rockets, guns and
ammunitions; other industrial machines; drilling and oilfield equipment;
and medicinal equipment. Medicinal equipment made a total of $42.89
million which is 2.11% of 2007's total under this category.

• Fastest-Growing US Exports to Pakistan. Of all the products coming

from US to Pakistan, oilseeds and food oils made a very large turn from
the earnings it made in 2007 compared to 2006. The total sales for
these goods went up to $1.7 million which is 2,492.65% higher than
how it faired in the market for 2006. Other goods along this line were:
complete military aircraft; copper; musical instrument; and nonmetallic
minerals. Nonmetallic minerals were sold for 2007 at $630 thousand
which is higher by 446.81% than what it made in 2006.

• Fastest-Growing US Imports from Pakistan. The imports coming from

Pakistan to US were remarkable as well. Along this line, other
chemicals such as photo chemicals, print inks and paint topped the list
with a total increase of 4,433% from 2006 with the total sales
amounting to $133 thousands. Under this category, outstanding
commodities were: leather, raw hides, skins and fur skins; plastic
materials; synthetic rubbers, wood, cork, gums and resins; and food
and tobacco processing machinery. The last listed product increased
its sales to $1.16 million which is 37.355% higher than what it made in
2006.
The Conflicts which Affected the Trade between the Two
Nations
More than their willingness to assist each other economically, Pakistan and US were
both concerned about each other's security. There were wars which left their
relationship a bit marred coupled with issues which in one way or the other affected
the trade. Some of the most significant facts in history which led to problems with
their trading relations were:

• US's suspension of military assistance to Pakistan. During the Indo-

Pakistan War of 1965, US had to suspend its military assistance not
only to Pakistan but to India as well. This was because it did not want
to help the other while it sacrifices its relationship with the other party.
The suspension was said to affect more of Pakistan than India, hence
the former concluded that US is not a good ally after all. To be able to
help Pakistan solve the problems created by the war, US agreed on
reestablishing its connection with the country thus increasing arms'
sales in 1975.

• US's suspension of economic assistance to Pakistan. Economic

assistance was also suspended by US during its dealings with Pakistan.
Shortly after reviving the ties militarily, in 1979, the American
government cut off all types of assistance except food because of
Pakistan's nuclear program. Since Pakistan explained its side about its
unintentional construction of the nuclear weapon, the US Congress
lifted all restrictions.

• Other Issues. One of the issues that have destroyed the relationship is
the violence on American officials and US mission employees by
Pakistanis. Some rumors added to the plot of mob attacks to the US
embassy. This resulted to death of six Pakistanis by US police
enforcers. One event led to another thus the ties were a bit broken.

Future Trade Opportunities between the Two Nations

The concern on establishing the grounds for security will lead to a better union
between Pakistan and US. Deaths and violence here and there have affected the
bond but with the former's participation in the US's Global War on Terror as well as
in the campaign of eliminating Taliban from Afghanistan marked the start of a
promising future. Much more than these things, there are other future trade
opportunities that both sides should take advantage of.

With the help of the www.uspakistan.org, the future trade relations of these two
nations will surely be seen. Along this line, Pakistan encourages US direct foreign
investors to make propositions and establish their own businesses on Asian
grounds. The Council also focuses on discussion of key investment and economic
plans and issues for the future. The support from both governments is needed in
order to realize the dreams that will lead to the future.

A noteworthy start seen is the holding of several exhibitions by the Pakistan

government. It involves expos and industry exhibits. A trade fair is a good indication
of seeing which among the Pakistan products are worth starting business with. The
automation and machine tools exhibit is also commendable.

SWOT Analysis of the company

 • High Growth
Strengths • Ready availability of
highly skilled and cheap
manpower
• Large raw material base
• Policy initiatives taken
by the Government
• Capability to assimilate
new technologies and
handle large projects
• Continuous emphasis on
product development
and design up gradation

• Lack of warehousing
Weaknesses support from the
government
• International price
fluctuation
• Huge labor force
resulting in high labor
charges
• Lack of strong presence
in the global fashion
market
• Unawareness of
international standards
by many players
• Rising potential in the
Opportunities domestic market
• Growing fashion
consciousness globally
• Use of information
technology and decision
support software to help
eliminate the length of
the production cycle for
different products
• Use of e-commerce in
direct marketing
 • Major part of the
Threats industry is unorganized
• Limited scope for
mobilizing funds through
private placements and
public issues (many
businesses are family-
owned)
• Difficulty in obtaining
bank loans resulting in
high cost of private
borrowing
• Stricter international
standards
• High competition from
East European countries
and other Asian
countries
• Lack of communication
facilities and skills

GDP
At present, the industry contributes at least 1 percent to total GDP, 5 per cent to
manufacturing GDP, and 7 percent to total exports.

Contribution to Total Exports of the Country 7%

Contribution to GDP

• In Total GDP 1%

• In Manufacturing GDP 6%

Impact of WTO on company:

1. Technology
Technological factor does not create significant high hindrances for

exports of Pakistani Leather into international markets after the

implementation of W.T.O
2. Environmental Law
Environmental laws factor will creates hindrances for exports of

Pakistani Leather into international markets after the implementation of

W.T.O

3. Quality Production

Quality production factor will creates hindrances for exports of

Pakistani Leather into international markets after the implementation of

W.T.O

4. Freight Charges
Freight charges factor will creates hindrances for exports of Pakistani

Leather into international markets after the implementation of W.T.O

5. Raw material Availability

Raw material availability factor will creates hindrances for exports of

Pakistani Leather into international markets after the implementation of

W.T.O

6. ISO Certificate challenges

ISO Certificate challenges factor will creates hindrances for exports of

Pakistani Leather into international markets after the implementation of

W.T.O

7. Labor Cost
Labor cost factor does not create high hindrances for exports of

Pakistani Leather into international markets after the implementation of

W.T.O

8. Availability of Skilled Persons

Availability of Skilled Persons factor will creates hindrances for

exports of Pakistani Leather into international markets after the

implementation of W.T.O

9. Research and Development (R&D)

Research and Development (R&D) factor will creates hindrances for

exports of Pakistani Leather into international markets after the

implementation of W.T.O.

10. International Politics

International Politics factor will creates hindrances for exports of

Pakistani Leather into international markets after the implementation of

W.T.O.

11. Taxes and Duties

Taxes and duties factor will create hindrances for exports of Pakistani Leather into
international markets after the implementation of W.T.O.

12. Government Policies

Government policies factor does not create high hindrances for exports

of Pakistani Leather into international markets after the implementation of

W.T.O

Conclusion:
This means that finished Leather and Leather Garment exporters should

emphasize on environmental laws, quality production, ISO

certification challenges, etc to be competent in the international market after the

implementation of WTO.

BLC’s Manufacturing Process:

Process Flow for Leather Garments Manufacturing

PROCESS DESCRIPTION
The process starts with customer providing the manufacturer details regarding
quantity

requirement, type of leather, design specifications, accessories detail, stitching

style etc.

Upon receiving the information, a sample garment is prepared and sent onward to
the

customer for final approval. Once the sample is approved and order is confirmed,
the

design template for producing the required quantity is developed by Pattern Cutting

department.

Matching
Leather made from different skin/hides inherently varies in grain style for

each other. In the matching process the grain and color of leather are matched

on per garment requirement. This is the most critical part in the whole process

and requires expertise of the matcher.

Cutting
After the matching, the cutter cuts different panels of a jacket with the help of
the design templates and knives. The list of panels includes Front, Back,

Collar, Sleeves, and Cuff etc. Generally, design templates made of cardboard

are used in cutting process. In case single type/design garments are to be

manufactured in large quantities, then press machines with metal dyes can

also be used. Average wastage of leather in cutting process ranges between 15

to 25%. In Pakistan, a cutter cuts 15 to 20 jackets per day per shift (shift 8

hours).

Assembly
After the cutting process, fusing is added to different panels of the garment, as

per design requirement. Fusing machines or irons are used for this purpose.

Generally, half fusing is done on the end area where stitching is to done and

full fusing is applied on front & back panel for providing garment outlook.

Fusing reduces stretch ability and adds stiffness to the leather making it

convenient for the stitcher to stitch. In this process, accessories are added and

rolled together for sending to the stitching section. Major accessories include

lining (Cotton, Viscose, and Satin), zippers (Metal, Nylon), padding, wadding,

shoulder pads, buckles, buttons, labels and thread.

Stitching
Next to assembly is the stitching of different panels of the garments by using

sewing machines. Two stitching methods, depending upon the quantity

produced, are currently being employed in the industry.

1. One stitches one garment

2. Chain process (Assembly Line)

the stitcher gets specialized

by constantly performing one task resulting in production efficiencies and

better quality. In each assembly line, there are seven stitchers who perform the
following sub-processes:

• Folding

• Lining Stitching

• Sleeves

• Back

• Front

• Pocket

• Panel Joining

Finishing
Finishing is the last process in leather garments manufacturing. In the

finishing process, buttons are attached to the garment, extra thread and fibers

are clipped off, and finally, the garment is ironed. The final stage is the quality

check by the quality inspector. His job is to check the conformance of the

manufactured garment to the customer’s specifications. The quality check is

followed by the final packing of the garment.