Company Profile

Crescent Textile Mills is a Faisalabad based textile unit. The company was listed at stock exchange in 1951. Crescent Textile Mills is engaged in the business of textile manufacturing of spinning, weaving, dyeing, bleaching, printing, made ups and otherwise dealing in yarn and fabrics. Flagship of large crescent group, CTMs main area of business is in textile. As a composite unit having ISO-9002 certification on 1997, which is engaged in spinning, weaving, processing and is one of the largest exporters of cotton yarn in Pakistan. The pioneer of Crescent Textile Mills was Mian Muhammad Shafi, who belonged to Chinyot. Crescent Textile Mills started as a weaving unit with 500 semi auto looms. Now the present picture of Crescent Textile Mills is that it is the one of the largest textile units in Pakistan. Now Crescent Textile Mills has seven independent complete units of spinning, 184 weaving sulzer looms, one separate unit of towel & one complete unit of garments. Crescent Textile Mills has one of the largest textile-processing units with a capacity of 2.5 million meters fabric monthly. The electricity consumed by Crescent Textile Mills is produced by its own power station located within the boundary of Crescent Textile Mills. All spinning, weaving, towel, processing and garment units are located within the same boundary. The total no of employees are more than 5000 from which 2000 employees are staff and on permanent basis. Factory runs complete 24 hrs a day and employees work in three-day and night shifts of 8 hours. Crescent Textile Mills was established in 1951 as a private limited company. Crescent Textile Mills was converted into a public limited company in 1958. The crescent group effectively controls the company. In the context of Pakistan, Crescent Textile Mills stands out for the composite

nature of its activities. Superior quality standards with ISO 9002 certificate management is committed to expand into the higher value added areas of industry. Crescent Textile Mills is playing a vital role in the development of Pakistan specially by earning a huge foreign exchange through exports. Crescent Textile Mills sells more than 80% of its products to the foreign market. In 1992-93 & 1994, the Crescent Textile Mills was awarded the President of Pakistan Trophy for export, given to the largest exporter from Pakistan in any category.

Historical Perspective
The Crescent Textile Mills Ltd was incorporated and set up in FSD as a public limited company. It is one of the fist few textile mills to be established in the country, and also the first unit of the crescent group. The Crescent Textile Mills Ltd is situated on Sargodha Road, at an area spread on 115 acres of land; and from the very inception, it had been designed as an integrated unit. It commenced its business operations in 1951 with 50316 spindles, 500 auto looms and finishing capacity of nearly 4000 meters per day. In the mid 50s sponsor of the company decided to divert its production exclusively towards exports and became the pioneer company to have commenced export of cloths fromPakistan in 1956. With the passage of time, the company grew in stature and its sponsors became to be known as crescent family. The period up to mid 60s was also the period of growth of the family businesses as the sponsors/ crescent family diversified their investments to more textile companies, sugar mills, jute mills, larger trading houses, shipping etc. and so the crescent family came to be known as the crescent group. As years road on, the Crescent Textile Mills Ltd continued to expand its exports and earned the reputation of being the leading exporter of yarn, fabric and various products in the home textile sector. The companys prosperity broad about a better quality of life for those who worked for it. The company provides accommodation for its employees, staff and executives as well as plays grounds, parks shops, community centers, and

industrial homes for their welfare. It insures that its work force is happy and their families are well cared of. In its desired to forge ahead in the competitive field of the home textile sector, the company has made investments for updating and modernizing its machinery and equipment and insures training of its employees by hiring and contracting its experts in textile for its workers for its staff. As well as sending executives to recognized institutes in the country and abroad for specialized training in management, accounting, IT and technical training. It was the first textile company to introduce quality circles even at the workers level and by mid 80s had graduated to total quality management and Demings 14 points. It was also the first composite company in Pakistan to obtain ISO 9002 certification and has recently been certified for Oeko-texStandard 100. The main architect of the sales in the marketing of the Crescent Textile Mills Ltd has been its Chief Executive, Mr. Muhammad Anwer, who has led the company for the front. Besides been awarded every year its highest sales in yarn and cloth, the C.E has also been recognized as the business man of the year twice in the year 1993,1994 and 1994,1995 by the Pakistan federation of Chamber of Commerce and industry. The company has also been awarded the president of Pakistan export trophy for three consecutive years in the mid 90s. For the year ending in September 2002, the company had generated export sales revenue of $60.94 million, of which clothe (beached , dyed or printed) accounted for nearly US $ 33.95 million; made ups in the textile sector accounted for US $ 14.16 million; yarn sales accounted for :Us $ 10.31 million and towel sales accounted for US $ 2.52 million. The Crescent Textile Mills Ltd has been introduced as a public limited company under the companys ordinance on 1 May 1951 and has quoted on the stock exchange. Crescent energy and SAC are fully owned subsidies of the Crescent Textile Mills Ltd. The share break down of the Crescent Textile Mills Ltd is: Crescent family and group companies 51.57% Public and foreign institution 48.43 % List of board of directors is shown below: Mr. Muhammad Anwer (Chairman& Chief Executive) Mr. Anjum M. Sleem Mr. Hamayun Mazher

Mr. Khalid Bashir Mr. Muhammad Arshad Mr. Nasir Shafi The company has signed a joint venture agreement with Green Wood mills Inc. USA. To set up a composite Denim garment-manufacturing unit at Bahuman, Dist. Hafizabad under the name and style of crescent green wood limited.

THE CRESCENT GROUP

The Crescent Textile Mills is a part of Crescent group. Which has established about 30 companies in various part of the country. The major sector of the group is an under.

Listed Companies:
y Crescent textile mills limited y Crescent Knitwear limited y Crescent sugar mill & distillery limited y Shakargani mills limited y Crescent boards limited y Crescent investment bank limited y Shams textile mills limited y Elite textile mills limited y Crescent jute products limited y Crescent leasing corporation limited y Crescent steel and allied products limited y Jubilee spinning and weaving mills limited y Pakistan industrial leasing corporation limited y Premier insurance Co. of Pakistan limited

Unlisted Companies:
y Shams food products Limited y Crescent ventures International Limited y Crescent Bahuman Limited

y Crescent greenwood energy Limited y Crescent energy Limited y Crescent powertec Limited

Private Limited Companies:

y Crescent group engineering (pvt.) Limited y Crescent (pvt.) LimitedS y Crescent software products (pvt.) Limited y Riaz and company (1962) (pvt.) Limited y Jhang electric supply corporation (pvt.) Limited y Crescent business management (pvt.) Limited y Cresent group (pvt.) Limited y Crescent group services (pvt.) Limited y Elite energy (pvt.) Limited y Juiblee energy (pvt.) Limited

STRATEGIES OF CTM
Managerial Strategy Of C T M
As its major competitors are in the country as well as in the foreign markets, while concerning with the countrywide competitors, there are major competitors like Nishat Textile Mills Limited, Kohinoor, Gul Ahmed, M.Farooq, Chenabtextile mills limited, A.M textile mills limited along with major competitors in European market. There is strictly needed a strategic focus to face the present intense competitive situation. The market for textile products is becoming more competitive every year. The customers are emphasizing on quality over all other thing and can easily search the most cost-effective supplier anywhere

in the world. Keeping this in mind, Crescent Textile Mills focus has been on meeting its customers demands and requirements, improving its competitiveness, increasing productivity, and enhancing its existing quality control systems. So it has emphasized on the implementation of the developed strategies.

Every element of cost and quality is continually scrutinized and measured according to worldwide standards. Each unit is independently analyzed as a cost center to make cuts wherever and wherever possible. The Quality Assurance department has been further strengthened with the addition of trained staff and state-of- the art equipment.

Marketing strategy of C T M
Although it may be the duty of the government to ensure availability of cotton at a reasonable price, it is the exclusive responsibility of Crescent Textile Mills to implement the total quality management concept. If units are able to minimize wastage, optimize cost of production, improve quality standards, ensure product diversification and learn to market the finished products, no country can compete with Pakistan. Taiwan, Hong Kong, Korea, Japan, Bangladesh are the large manufacturers and exporters of value added textile products, but are dependent on Pakistan and other countries for their requirements of cotton, cotton yarn and fabric. Their edge is in finishing good quality fabric; producing attractively designed garments maintaining quality standards and abide by delivery commitments. These countries also follow different marketing strategies, while the Pakistani manufacturers first produce a product and then try to locate a customer; other countries produce what the importers demand. Not only this, buyers are often willing to pay a premium for odd specifications, short delivery time or immediate commencement of shipments of small lots, extra care in meeting specification and better quality standards, using better quality package which may not cost as much as the premium offered. Lately, the manufacturers of yarn having pragmatic thinking and realizing the tough completion have started producing dyed cones. They

have not only tabbed a new market segment but also get better return. Isnt it not innovative marketing? Crescent Textile Mills have to realize the harsh reality that the days of cheap domestic cotton are over, the import of textile products is being gradually open and quota regime will be phased out gradually. They know their capabilities as well as shortcomings, products they can produce and the products the foreign buyers demand, we have to plan today how would they market their products is the days to come.

functions
EXPORT DEPARTMENT
CTM has major business of exports, round about 80% of total sales are from exports. As export market of CTM is divided geographically into four segments, so to deal each sagment a separate group op person is allocated who are responsible for all the orders of that specific territory / sagment.  Export Asia Africa (EAA)  Export U.S.A & Canada (EUC)  Export Yarn &Towel (yet)  Export Europe & Cyprus (EEC) The process of flow of work in these sections of export departments is same, so I have explained generally the process and functions of export department. The export department is situated within the finance department. There are a lot of workers, which perform different functions

Functions of export department

Following are the main functions of export department  Getting orders from aboard

 Costing  Making contracts  Order completion one per sample  Delivery of goods

Finance department
This is the major department of the company. Finance department is located with the factory. It prepares different kinds of financial reports and gives information to management for decision-making purposes. Finance department prepares the Income statements, Balance sheet, Trail balance, Cash flows, Production report for the whole month, stock taking report yield comparison report etc. these all reports are helpful for the management to make production plan, financing decisions and other important matters. The head of the department in finance manager. He is a chartered accountant.

Function of finance department

Following are the main functions of finance department 1. To prepare monthly and half-yearly reports 2. To keep the record of inventory and stock 3. To maintain a liquid position 4. To maintain adequate cash to run the operations of business 5. To reconcile the bank statements 6. To make payments to the suppliers 7. To maintain debt and credit balances of the customers 8. To deal with the sales tax and income tax departments

9. Preparations of vouchers 10. Prepare profit and loss accounts & income statements 11. Keep record for the payment of salaries

Purchase department
The department is located within the factory. There are eight employees working in the purchase department. The decision of the purchase of raw material is med by the top management or when any new machinery or plant is to be acquired. At the time of the cultivation of the cotton crop, the decision is made with considering the other factors like requirement, price, quality etc that how much we should purchase and from whom we should purchase and through what sources we can finance this purchase. So in this regard, the Chairman with the consultation of the Mill Manager, General Manager Finance and Technical Manager make the bulk orders. The finance division helps them in this regard to arrange eh funds. So in this regard, the select the bank that provide financing facility at lower rate of interest. As far as the purchase of raw material is concerned, the purchased department fully contributed its efforts in this regard. Whenever any section of the mills or he head office requires any thing they make and purchase indent to the purchase department. At mill, the storekeeper made this indent, on the other hand of the required thing is available with him, he makes the delivery to that section. When the supplier dispatches the goods to the mill, a dispatch advice is made by the department t other store keeper that the items is dispatched to you. At mill, an inward gate pass is made and the items sent to the store where the storekeeper prepares goods receipt note after inspecting the items and this GRN one copy is sent to the purchase office and one copy is sent to the account s office.

Function of purchase department

Following are functions of purchase department: o Provide link between the workers and management o Ensure the implementation of the rule and regulations of the company o Inquires of the complaints against the workers o To solve the problems and grievances of the workers

Main store
The store plays very important role in any kind of manufacturing organization.

Functions of store
Following are the main functions of the store keeper has performed in any kind of organization: o Collection of demand from different departments and issue material to them o If stock is not available with it, demand sends to purchase office o Collection of receipt of material or items purchased o Keep the stock of items up dated o Keep the items in the store in systematic manner o Link with purchase office in the valuation of the items purchased At Crescent Textile Mills there is the main store at the mill premises, which is situated away from the production and accounts offices. There are seven men in the store, which deal with the demand of the different people at the mill.

Strengths
Crescent Textile Mills is using imported machinery  It has a strong market image

 The customer is aware of the name of the company  It has high financial resources  It has competent staff working for the progress of the company  It has automated system of production  Organization has friendly environment  It has certificate of ISO 9002  It has a wide range of products  It always sets new standards for quality  Its design studio is equipped with latest technology.  It has given a large quota for exports in USA and Europe

Weaknesses
 Crescent Textile Mills has ignored than local market  Transit time for international market is comparatively long as compared to India and China.  There is lack of proper training programs especially for workers. They learn through experience and from seniors thats the reason o f high rate of wastage during production.  Wastage is very high especially in spinning sector  Crescent Textile Mills has no proper sale system for cotton waste and yarn waste.  Some time delivery lates due to lack of production planning  Middle level management is de motivated due to low salary package and promotions are held after a long period  There is no job commitment among the employees.  There is no proper criteria for performance appraisal thats why staff in not motivated  No measures has been taken to motivate the employees

Following are some findings of our report:

 There are no motivating factors for the employees  Companies personal policies are not good  The performance appraisal are not carried regularly  Company is facing the main problem of textile industry crises in the country due to floods, leaf curl virus etc. not up to the standards  The employees are not much aware of latest available computer programs  The management is not doing anything for the purpose of satisfying and motivating their employees and the workers, which may lead towards the more productivity.  Changing Govt policies are providing problems for the company exports policies.  The short-term solvency  The company is unable to use its full plant capacity, which shows that technical staff is and long term solvency of the company is better and still acceptable, because there is still a margin of getting long-term loan.  The net profit margin in increasing since 1995 but it decreased in 1999.

Following are some suggestions

 A proper training should be given to the employees and the workers to enhance their skills to increase their productivity and ultimately of the company.  The management should make the market survey time to time to get more and latest information about the market factors like the price, demand, current consumer trends etc.  As the world has become a global village, the management should have the latest knowledge and informations about the world because now a little change in any corner of the world can affect your business.  The top management should give the autonomy and the flexibility to every manage to make decisions according to the situation at any time and in the absence of the top managers.

 All the duties and responsibilities of the employees and the workers should be clearly defined.  The computer technology should also be used in decision making as well as in storing and feeding the data.  The company should make it possible to deliver the goods to the buyers at the agreed time.  The company should adopt an efficient appraisal system and give rewards to the employees who have done well.  The management should recruit right persons for the right job.  The management should be able to assess the problems before its occurring so that they are able to find the ways of their solution.  The management should hire multi-skilled workers to get economy of scale.  The company should emphasize on its personnel department immediately on emergency basis.  Long-term solvency is good but time interest ratio should also be improved.  There should be decentralization in decision-making  An effective relationship and coordination between the departments must be there.  It should be realized to be very clear about the advantages and disadvantages of each strategy to take effective decision about its continuity to make an effective strategic implementation.  Crescent Textile Mills should also introduce its brands in local markets.  Company should give proper attention to deal with dead fabric and made ups.

Conclusion
We got a lot of experience from Crescent Textile Mills. During our internship we came to know that how the different activities take place, what are the procedures The Crescent Textile Mills is on the way of progress. It has been earning profit for the last five years. The management is professionally qualified and experienced.

The Crescent Textile Mills should motivate their employees by providing different incentives. Their salary package is also not attractive. The performance of the Human Resource department is also not satisfactory. Crescent Textile Mills product (yarn & cloth) is of high quality. The demand of Crescent Textile Mills products is increasing with the passage of time. The company should expand its capacity as soon as possible to satisfy the demands of their customers.