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PROJECT OF EXPORT

MARKETING

GROUP MEMBERS BY: Habibullah Khan


Ajmil AYUB
Atif ARIF
Noman Alam
Mohsin Khurshid
Zeeshan Siddique

ROLL No: F-07-026, F-07-003, F-07-006,


F-07-029, F-07-034, F-07-019.

SUBMITTED TO: SIR SARDAR IJAZ

SEMESTER: BBA 6TH

GOVERNMENT POST GRADUATE COLLEGE OF


MANAGEMENT SCIENCES ABBOTTABAD
Dedicatio
n
These efforts are dedicated to
Our parents,
Our teacher Sir Sardar Ijaz
Whose kind co-operation, blessings, help,
and inspirations gave
Impetus to complete this work and also
my friends.
Acknowledgement:
It is always said that we need “two hands to
clap” and it proved exactly the same. One hand
was ours and other was provided by none
other than Sir. Sardar Ijaz who served us as a
mentor and also lifted our moral up in the
whole process. He took pain and helped us in
overcoming the hurdles of our path. Along with
sir we would like to give our special thanks to
individuals who devoted their precious time on
our live project and helped us by filling the
questionnaire. In short words this project is
one among those which will live in our hearts,
as the project made us come across various
facts of life and may be time will also fail in
diluting it from us as all together.

Overview of Textile Industry:


The subcontinent is the inheritor of one of the richest and oldest textile traditions in the
world. Excavations at Mohenjo Daro and Harappa 2500-1500 BC revealed that the
inhabitants of the Indus Valley cultivated cotton. Sir John Marshall, the archaeologist has
stated that a few minute scraps of cotton were found adhering to the side of a silver vase.
Clay and faience spindles whorls indicate that cotton and woolen fibers were spun. A
well-equipped dyers’ workshop was excavated at Mohenjo Daro and the fragment of
cloth indicates that woven cotton cloth was dyed with madder root.

Independence from the British in 1947 and the division of the Indian subcontinent into
Pakistan and India started a new era for textiles production. Pakistan consisted of two
entities, east and West Pakistan. The West was the cotton producing area and the East
was responsible for jute production. At the time of partition, Pakistan had no industrial
base and inherited only one textile mill, the Lyallpur Cotton Mill in Lyallpur [now called
Faisalabad]. This mill produced yarn and gray cloth and no printed fabrics. Under the
Open General Licensing [OGL] scheme, the business community imported plants and
machinery with cash dollars. In 1950, Adamjee Mills was set up in Karachi, Kohinoor in
Faisalabad, Colony Textile Mills in Multan, Nishat and Crescent Textile in Faisalabad.
These were followed by Gul Ahmed Textile Mills, Al-Karam, Valika, Star and Rashid
textile mills.

Within a decade the new country of Pakistan was self-sufficient in cotton and began
exporting gray cloth and later cotton yarn. Pakistan started exporting printed fabrics in
the late 1970’s to Africa and by mid 80’s was sending printed material to Europe.
Pakistan’s location was ideal, as it lay halfway between the western world and the Far
East. Pakistan has a 28 percent share in world export of cotton yarn and a 6 percent share
in world export of cotton cloth.

It was in the 60s that the power loom took over and by the 70s gray cloth was being
exported at throwaway prices. There are about 200,000 power looms operating in
Pakistan some of which are backyard operations. Handloom, which formed the backbone
of textile goods in the last century, is now almost non-existent, its sales confined to a fast
diminishing rural market and a very small niche market.

Although Pakistan is the world’s fourth largest cotton growing nation in the world, after
the United States, China, and India, its total turnover for export is only $ 5 billion. Textile
goods form 60 % of the total exports of the country. The commodities exported are yarn,
cloth, tents, and canvas, bags, towels, bed linen, garments, synthetic textiles and other
made ups.

With a large and expanding textile industry, textile education and training became
imperative. The Textile University of Pakistan was established in Karachi to train
technical and management professionals. The Textile University awards degrees in
Textile Sciences and Textile Management. The National College of Arts in Lahore and
the Indus Valley School of Art and Architecture in Karachi are the only two institutions
in Pakistan, which award a degree in the discipline of Textile Design. Designers are being
absorbed into the industry, bringing about change and vibrancy, with innovations in Print
design and weaving.

Today there are 450 Spinning mills and 35 composite textile mills. Textile goods form 60
% of the total exports of Pakistan.
Masood Textile Mills Limited
MTM was established in February 1982. Started from a single unit Sheikhupura Road
Faisalabad. In 1990 the revolution of this company started. Masood textile has over 10
years manufacturing experience in all textile fields. Our company specialized in knitted
fabrics. They offer innovative ideas comprehensive solutions for garment manufacturers.
Their satisfied customers benefits from their excellent quality, completive price, prompt
delivery and most important is tailor made services for different needs. Cotton/poly,
cotton/stretch spandex etc.
Country: Pakistan
City: Faisalabad
Address: Universal HOuse West Canal Road
Phone: Shabir Abid
Fax: +92 41 8731180
Local Business Registration Code: na
Number of company employees : 1000+
Approximate annual sales : USD$100,000,000 +
Percentage of exports : 90%
Masood Textile Mills Limited is a textile composite unit of Faisalabad and a public
limited company incorporated in the province of Punjab. It is primarily engaged in the
manufacturing and sale of cotton/synthetic fiber yarn, knitted/dyed fabrics and garments.
The paid-up capital of the company at Rs 160 million remained constant since 1998.
During the year under review, the paid-up capital was enhanced to Rs 200 million by
right share issue. Hence it reached the ceiling of Authorized Capital. Therefore, necessary
amendments have been incorporated in the Memorandum and Articles of Association for
raising the authorized capital to Rs 300 million.
The company has made substantial additions in the operating fixed assets at the capital
outlay of Rs 146.14 million as against the figure of Rs 96.24 million in the preceding
year. So it can be seen that capital investment has been a continuous business process of
the enterprises. In addition, investment has also been made in assets acquired under lease
finance and assets booked in the account of the capital-work in progress. The capital
investment was necessitated to make the project more value added by modernizing the
existing production facilities to enhance the quality for meeting the requirements of the
customers. The directors reported that more capital investments were made during the
current financial year, in the production facilities of dye house, knitting and garments.
During the year under review the company generated sales in terms of value at Rs
1,737.43 million as against the figure of Rs 1,248.41 million posted in the previous year.
So the company attained 39.2% growth in sales which is commendable and major
contribution to growth came from exports.
The directors also reported that exports sales had reached Rs 1720.01 million which were
99% sales. Last year export sales were recorded at Rs 1,215.92 million which works out
to 97.4% last year's sale. It is reported that the star performer was the garment department
because improvement in exports were mainly due to increase in export of garments. The
profitability profile has been improved substantially. Gross profit at Rs 392.46 million,
operating profit at Rs 192.51 million and pre-tax profit at Rs 113.24 million registered
increase over the corresponding figures of last year by 42.8%, 37.8% and 31.6%
respectively.
The leadership in the company is fairly optimist with regards to future positive financial
results despite 9-11 incidents and the country becoming front line state in the war zone.
Hence these factors adversely affected exports. But the export orders since February 2002
started.
During the year under review, the company posted net profit after taxation at Rs 97.57
million which works out to the rate of return on the capital employed at 11.57% as
against 9.21% in the preceding year.
The company declared 5% cash dividend to the minority shareholders only. The
directors, sponsors and their associates decided to forego their portion of dividend to
ensure the cash availability for repayment committed with the banks etc. The company
was not able to announce cash dividend since 1996. It is good that the company is now in
a position to meet its commitment to the stake holders, ie better quality product to
customers, repayment to bankers and profit pay-out to the shareholders. The company is
listed on all stock exchanges in the country. At present the share in the company is
trading at Rs 5.20 at substantial discount to its par value of Rs 10. Last year the share
remained within the price band of Rs 3 and Rs 2 per share.

COMPANY INFORMATION:
Chief Executive: Chaudhry Asim Nazir
Director: Chaudhry Muhammad Amin
Director Finance: Muhammad Farooq
Company Secretary: Abdul Bari Haqqani
Registered Offices: Universal House, West Canal Road, Farooqabad, Faisalabad;
Factory: 32-Km, Sheikhupura Road, Faisalabad.
products of masood textile mill

Respect for the individual, integrity, speed, simplicity, self-assuredness, and a 100%
commitment, Our values are non-negotiable, they are never to be jettisoned.
For us, our values are our well-spring.

• To provide market leadership and brand coverage


• To pursue technological innovation
• To partner with operators for their maximum productivity
• To provide virtuous to our customers, employees, communities, and the
environment

Our Vision
"Our vision is of continual improvement and sustained growth, and of a family of
workers. Who are given the best compensation benefits and working conditions in the
region? In this respect, mTm continues to emphasize the need to invest in and develop its
most precious resource - its human capital. mTm continues to provide training courses
and self-enhancement opportunities for all our workers".

Turn Over History


Largest Knitwear Exporting Company of the country for the Year 2005

Turn Over
in Millions
.

Division of Masood Textile Mill Limited

Masood has invested in growing and ginning of cotton. The company would ask the
growers to sow the most suitable cotton variety for knitted products. With the help of
ginning process, we procure the raw cotton for the whole year. This helps us to provide
the consistent quality products for our customers through out the year. If the customers
want to lock the prices for a certain period, Masood can offer this service as we reserve
the cotton for the particular program.

Maximum number of lots are mixed to get uniform results and avoid Barre(patta). Raw
cotton is procured from best cotton growing areas. Sandwich mixing technique is used for
stocking, which is a conventional method. Its contamination picking system is unique one
contamination system. It is designed and made by Masood's Engineers. It claims the
lowest level of contamination in yarn of Pakistani cotton.

We have a single line Toyoda OHara Hergeth Blow Room in operation. All produced
Laps made are weighed and those found beyond quality controls limits at this stage are
discarded. Removal of waste at subsequent beaters improves cotton cleanliness.

Carding section has 24 carding machines of Cross Roll MK-4. Best quality wire is used
for cylinder, doffer, taker-in and flats. Additional stationary flats are installed to reduce
IPI Level. We have a very good cleaning and suction system. Filter room is also of Cross
Roll.Our technical expertise and equipment allows reducing higher percentage of fly and
dropping to get good results.
Combined machinery setup of TOYODA and latest model of RIETER is at function in
our premises. In addition to photocells, in-house designed and fabricated Electric Silver
stop motion on Toyoda Drawings is installed. Color silver picking system on Breaker
Drawings is introduced. A special team of color- silver picker work round the clock.
Rieter SB-2 and RSBD30C are installed with auto leveler. Barco silver watch system is
used for color contamination. Wrapping is checked round the clock.

Lap formers of Toyoda Sk-4 and eight combers of Toyoda CM-10 are in operation at
Masood. Strict quality and maintenance checks are followed at Top comb and cylinder
for proven quality product.

Six Toyoda Fl-16 type machines are currently in operation in Simplex sector. Special
type of Flyer on machines is installed to get even quality roving.

Thirty RY-4 TOYODA Ring Frames work round the clock at ring section. SKF PK-225
drafting system is attached on these Ring frames. LUWA Air conditioning systems in
Ring department maintain the required R.H and temperature in the whole ring department
to maintain low hairiness in yarn. Cots, Apron and Steel rings of machinery is changed at
proper time.

We installed new 21 C Process Coner. We are producing yarn having low level of
contamination.It is a fully computerized system and helps to determine departmental
efficiency round the clock. Yarn hairiness is controlled on 21 C Process Coner by its
special balloon system.

Our packing department consist of Xorella machinery. With the help of Xorella, we get
superlative conditioning of yarn in very short period of time. Enhanced conditioning of
yarn increases the strength of yarn and therefore, decreases the breakage of yarn during
the knitting process. This result in a product which is not only conditioned exceptionally
but additionally it helps to decrease the wastage as well.

To produce knitted fabric of supreme quality, it is impetrative that superior quality raw
material is procured at competitive prices. At Masood finest quality yarn in the market is
produced for our in house knitting.

We have dedicated a complete unit of machines for fleece fabrics with additional
capability to produce heavy single jersey fabric as well. A variety of fabric such as plain,
cross, sueded, textured fleece can be produced at our versatile facility. We have
"Vanguard supreme" Machines to knit body size fleece fabric and "Mayer & Cie"
machines for open width fleece fabric. The vast variety of available Dia Gauges has
enabled us to produce all the widths thus reducing our costs in cutting.

Another unit is dedicated for main Rib fabric while a few 8-locks machines are capable
of manufacturing mini thermal and waffle. Additionally, we also have machines for Neck
size ribs that help us producing consistent ribs for necks. All the rib machines are
equipped with "LYCRA" attachment for producing the best stretch recovery fabric. In
addition, we are also using " Mayer & Cie " and "Terrot" to knit high quality ribs with
excellent recovery.

Single knit fabric is knitted on four track machines. These machines can produce fabric
such as single jersey, P.Q, mesh, drop needle jersey, bird eye jersey etc. Masood also has
Lycra attachment equipment for best fabric stretch recovery. A large number of " Mayer
& CIE " and "Vanguard" knitting machines are currently in production at Masood.
Available Dia Gauges given below:
Dia: 16'' 18'' 20'' 22'' 24'' 30''
Gauges: 20e-24e-18e

Drop needle and feeder stripe fabric are mostly produced on our inter lock machines
which have the capability to produce rib fabrics in addition to Interlock fabrics.
Available Dia Gages given below:
Dia: 30''
Gauges: 20e - 24e

Considering the importance of fabric accessories such as Collars, Cuffs, Waist band,
Trims, we have invested in a vast number of Matsuya flat knitting machines that are
producing the trims for all our major replenishment programs.
Our knitting units are producing fabrics of excellent quality with minimum defects.
Additionally, an online 100 percent fabric inspection system is in function to meet the
international quality parameters as required by most of our customers. �4�points
quality system �introduced by J.C PENNY (USA) is also being followed at our knitting
facility.

The Fabric Processing Division of Masood Textiles has a capacity of dyeing 41,450 kgs
per day. It is equipped with Thies, T.S.I, SCHOLL, Gaston dyeing machines. It is capable
of dyeing both 100% cotton and blended fabric. The machine size selection gives the
flexibility in dyeing a lot size ranging from 100 kgs to 1,000 kgs. The department has two
Santex finishing lines from Switzerland, which include hydro extractors, dryers and
compactors. In order to maintain the quality of processed fabric, Masood has the testing
laboratory with latest equipment to check the fabric. It ensures that the fabric quality is
maintained and is according to the required parameters of our customers.
Our in-house and very well-equipped Dyeing department with a production capacity of
around 41,450 Kg of dyeing / day allows us to fully meet our dyeing requirements. We
have dyeing machines for dyeing cotton fabric and a fully computerized high temperature
jet-dyeing machine to dye all kinds of synthetic fabrics including polyester. A well
equipped laboratory ensures all dyed fabric is properly checked, as per buyer's
requirements, for factors such as shrinkage, color fastness, etc.

Finishing department at Masood, comprises of automatic hydro-extractors for the


removal of moisture from dyed fabric, computerized tensionless dryers for instant fabric
drying, soft-setting and calendaring machines for systematic soft-setting and rolling of
fabric, fully computerized compaction machines for complete shrinkage control, and
panel wash machines and tumble dryers for panel washing the fabric to give minimum
shrinkage value. Again personal attention ensures that all the fabric leaving the finishing
department is properly inspected and thoroughly checked for relevant factors before
being forwarded to the next stage of production.

We believe that prevention is better than cure. The sooner the problem is tracked, the
better it is in delivering the goods on time. During the process of stitching we have inline
inspection and final inspection processes. The garments are 100% inspected by highly
experienced inspectors. Our objective is to produce with Zero Defects.

The �BACK TRACKING SYSTEM� plays a vital role in developing sense of


responsibility and accountability in every person in making and inspecting the garments.
The same thing is emphasized in ISO-9002, so we are not only the ISO-9002 Certified
holder but also the true executors. The company has independent Quality Assurance
Team that conducts inline audits and final finished goods audits. The QA. Manager
ensures that before the goods leave the factory, they comply to the customer�s AQL
standard.

5 cutting units working under the supervision of skilled unit managers, these cutting units
are well equipped with latest machinery including Gerber Plotter, Spreader etc.

With over 1,749 stitching machines, manned with the most skilled and expert operators,
Masood is capable of producing about 120,000 dozens per month versatile garments
ranging from basic to high fashion, men�s, women�s and kids with maximum
flexibility in size and color assortments. The Quality control and Quality Assurance
departments are in place to make sure the company�s objective of zero defect.
Computerized Bar coding and Back Track systems provide Masood 100% predictability
and tracking performance.

Latest Tajima embroidery machines, fully automated, 6 color 40 heads provide Masood
the flexibility and capability to cater to the customer requirements.
Products of Masood Textile Mill:
Top apparel companies presents Masood´s loungewear as the most comfortable stuff and
sell it with the tag of Ralph Lauren, Calvin Klein and Tommy Hilfiger.

Our pro-cotton, blended and polar fabrics when stitched by our skilled hands, become a
rich source of ease, flexibility and vigor.
Sport was never so entertaining. Our yarn dyed Polo’s, fashioned crew necks and pants
have added more delight to the world of sports.

There is unique joy in wearing Masood´s underwears. Being the no.1 exporter of
underwear category in Pakistan, we have specialized in making superior quality
underwears through modern machine attachments and Innovative techniques.

One can find enough energy and more drive while wearing Masood´s active wears.
We at Masood, define sleep as pleasure, charm and fantasy and our products do reflect
more than that.

Masood has documented a quality manual that states the quality management system of
the organization. Management establishes a documented quality plan setting out the
specific quality practice, resources required and the sequence of activities relevant to
particular product.

Masood has a very strong corrective and preventative action plan. Masood has
centralized the corrective action and controls the non-conformity arising in the system. If
necessary the relevant person immediately takes the corrective action. For preventative
action, the department head keeps the record. Electronic records are kept by the
Information Technology Department.

Masood has own calibration laboratory. Before using any instructions, they are calibrated
as per the international standards.
We are proud being WRAP (Worldwide Responsible Apparel Production) certified. The
certification ensures that sewn products are produced under lawful, humane and ethical
conditions.

Following are the core standards that we strictly follow through out our production
process.

Compliance with Laws and Workplace Regulations


Prohibition of Forced Labor
Prohibition of Child Labor
Prohibition of Harassment or Abuse
Compensation and Benefits
Hours of Work
Prohibition of Discrimination
Health and Safety
Freedom of Association and Collective Bargaining
Environment
Customs Compliance
Security

Masood has the ISO-9002 Certification and the registration # 9908699. We have the logo
of three-accreditation bodies

• ANSI RAB (USA Based)


• U.KAS (UK Based)
• DAR/TAG (Germany Based) conducted by Moody International.
ISO department provides a management system at Masood, which is free of non-
conformance. The department has training system that creates awareness of Total Quality
Management System (TQM). All the departments and people at all levels are involved in
this program. Masood has a team of qualified and certified auditors who would check,
improve and ensure the consistency in the system.

There are quality checks at every stage of manufacturing starting from Raw Cotton, Yarn,
Fabric, Processing, Cutting, Stitching and Packing. Before the fabric is cut, it is checked
whether it conforms to the customers standards of shrinkage, finished g/cm2 etc. After
each lot of fabric is cut, 100% cut parts inspection is conducted to ensure that only good
quality pieces move to the stitching units.
During the process of sewing, each and every process is inspected by inline inspectors.
The inspectors make sure that only good parts move to the next stage. An individual
tracking number is sewn inside each garment. After trimming and pressing of the
garments, highly experienced final inspectors inspect each garment. The Quality
assurance team monitors the performance of every individual inspector by picking up the
inspected garments and checking the quality of these garments.
To ensure that the garments are packed as per the requirements of our valued customers,
we can even track & check, which case the garment, has been packed in. With the help of
this, we plan to achieve the Zero Defect Level.
EXPORT PROCESS OF MASOOD TEXTILE MILL LIMITED

BUYER’S INQUIRY

The work of export department starts from Buyer’s inquiry. First the buyer inquires the
STIL regarding his required specified products, which he wants. Inquiries received from
customers by any one of the following sources,

Textile exhibitions

Customer’s visits in Masoods Textile mill Limited


In the buyer’s inquiry, the buyer specifies the required quality, design and quantity of
fabric.

REPLY TO INQUIRIES

After receiving the inquiry from buyer, the Deputy export Manager ensures that all the
inquiries for the products are processed efficiently The Deputy Export Manager satisfies
himself that the company has the capability of fulfilling the offer. Now the DEM (Deputy
Export Manager) and EM (Export Manager) make analysis of inquiry to make decision to
proceed it or not.

PROCUREMENT SHEET

The Export Manager analysis the order confirmation sheet received from the customer
and prepares Procurement accordingly. The Deputy Export Manager, General Manager
Export and Chief Executive sign the Procurement sheet and also costing sheet. This
Procurement sheet is faxed to Procurement Department.

SALES CONTRACT

The export manager prepares the sales contract in accordance with the order confirmation
sheet. The Deputy Manager Export signs this sales contract and it is faxed to the
customer for his counter signature.

BUYER’S PURCHASE ORDER

After signing the sales contract the buyer gives the order regarding the specified design,
quality and quantity. The purchase order consists of date, purchase order no, terms,
shipment date, prices, vendor name, reference no, description of products required and
price of products.

SAMPLE IS SEND TO THE BUYER

If customer approves the sample then we consider this for bulk production and if he
needs some changes in design and colors then the Export Manager pass this information
to the Designing and Printing Department to meet the demand of customers.

PRODUCTION SCHEDULE

Then production schedule is made by the company.

After the production of order. The company will start to make the export documents.
EXPORT DOCUMENTATION DEPARTMENT

Following are the important documents, which are prepared in this department,

Bill of exchange 2 Copies

Commercial Invoice 6 Copies

Packing List 3 Copies

2/3 Original Bill of Lading (As per L/C requirement) 2/3 Copies

Certificate of Origin

L/C Original 1 Copy

These above are the important documents. These will send if the buyer required.

Beneficiary’s Certificate 2 Copies

Quota Statement 2 Copies

Textile Declaration 2 Copies

Inspection Certificate 1 Copies

Weight Note

Visa form

Foreign Commission Certificate 2 Copies

After all the above legal documentation. The goods are now ready to export.

OCEAN BILL OF LADING


SHIPPER
MASOOD TEXTILE MILLS LTD
UNIVERSAL HOUSE,WEST CANAL ROAD, FAISALABAD PAKISTAN

CONSIGNEE
PACIFIC TEXTILES AND SOURCING,INC..
3324 N MILLS AVENUE CLAREMONT,CA 91711,USA ;
NOTIFY PARTY BILL OF LADING NO.
APLU068036886
VOYAGE NO. VESSEL NAME
00167 AMERICAN PRESIDENT LINES LTD

ARRIVAL DATE
2009-01-12

PORT OF LOADING PORT OF DISCHARGE


SINGAPORE LOS ANGELES

DECLARATION OF GOODS
HOSIERY KNITTED GARMENTS MENS CREW NECK WHITE T-
SHIRT(UNDERWEAR) 200 G/M2,100%COMBED COTTON HTS. .
6109.10.0004, LOT.NO.4067,P.O. .0514295 WHITE S-XXL 3,096-
PCS MENS TAGLESS V-NECK WHITE TEE-SHIRT,150 G/M2, HTS. .
6109.10.0004 LOT.NO.4679,P.O.

PARTICULARS
CONTAINER NO. QTY. MARKS (2) CARGO WEIGHT COUNTRY OF ORIGIN

913 NO MARKS 13677 KG SINGAPORE

(NOTES)
(1)
As declared by Shipper and
not acknowledge by Carrier
(2)
Said to contain

SIGNED ON BEHALF OF CARRIER 3

Export Destination of Masood Textile Mill Limited

 Singapore
 Hong Kong
 Canada
 America
 Japan
 South Africa
 South Korea
 Norway

Competitors
 Internal competitors
 Dawood Group of Industries
 External competitors
 in south Asian region in India Kailash textile mills