Reliance Weaving Mills Ltd.

RELIANCE WEAVING MILLS LTD is located in Multan. Reliance weaving Mills Ltd. (RWML) is part of the Fatima Group. Fatima Group established RWML on April 7, 1990 as a public limited company and obtained certificate for commencement of business on May 14, 1990.
I visited RELIANCE WEAVING MILLS LTD three times for my report and was always warmly welcomed by their management and employees. All machinery installed in the mill is American. Plans and strategies are made in the head Office. Raw materials purchase decision is also made in the Head Office. Employees work in three shifts, whereas these are both permanent and on daily wages. The mills units is supported by different facilities as canteen, store room, laboratory, godown, and many others. The production process is divided into two sections:
In this report I have done SWOT analysis of RWML. Good quality with reasonable price is the major strength of RWML. Export sales cover major portion of total sales due to good quality. They contain very low portion of local market. Centralized decision-making is one of the weaknesses of the RWML, but good management covers this weakness in an appreciable manner. So for as Account department is concerned though there is a little bit workload on the employees, but inside friendly environment helps a lot to cover these tasks without fatiguenes and boredom.

Finaly I have given some recommendations to cover these threats. My suggestions were highly appreciated by the management of RWML.

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

INTRODUCTION TO TEXTILE SECTOR

Textile includes all the business related with yarn and cloths, so all the business from Cotton Ginning to Cloth and Apparel manufacturing comes under the Textiles. There are different functions of Textiles, which are as under:

Ginning
This is the first stage where cotton is separated from the seeds. Raw material of this stage is Cotton Seed. RELIANCE WEAVING MILLS LTD does not deal in this function.

Spinning
Raw material of this stage is Ginned Cotton. This cotton is spun to make yarn. Yarn produced in various qualities, this is the main raw material of RELIANCE WEAVING MILLS LTD, which is purchase from local market.

Weaving
In weaving unit yarn is converted into cloth through power looms or through hand driven machines. RELIANCE WEAVING MILLS LTD, engaged in this function.

Processing and Dying

Cloth is further processed and it could be used for a lot of purposes, like Bed

Sheets and Garments etc.

Cutting and Stitching

This is a final use of cloth in which Cloth is cut and stitching made by the exporter than it commercializes to various importers of the garments through wide world marketing department.

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

History of the Textile Industry

Whilst farmers were developing new and better methods of agriculture, life in other areas of work had changed little for hundreds of years. Early in the 18th century, most of the population still lived in small, rural settlements. Few people lived in towns, as we now know them. Many people worked as producers of woolen and cotton cloth. They cleaned, combed, spun, dyed and many people worked as producers of woolen cloth. They cleaned, combed, spun, dye and wove the raw material into cloth. They did this work in their own houses. This type of production has become known by the general term of the Domestic (or Cottage) Industry. Work within the Cottage Industry was usually divided up between the members of one family. The women and girls were responsible for cleaning the sheep fleeces, carding the wool and spinning it. The process of weaving was physically hard work and, traditionally, it was the men who were responsible for it.
Generally, at regular intervals, a cloth merchant visited each handloom weavers cottage. He

would bring the raw material and take away the finished cloth to sell at the cloth hall.

As soon as the new wool arrived, it was washed to clean out all the dirt and natural oil. After this, it was dyed with color and carded. This was the process of combing the wool between two parallel pads of nails, until all the fibers were laying the same way. Next, the carded wool was taken by the spinner and, using a spinning wheel, the thread was wound onto a bobbin. The unmarried daughters of the household who were called spinsters often performed this part of the process. The term spinster still exists in English to mean an unmarried lady. The spun yarn was then taken to the loom to be woven. In a weaver's cottage, the loom was often to be found on an upper floor. There were large

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

windows in the room to let in plenty of daylight. The loom was worked by both hand and foot movements. Working the loom was quite strenuous work, which is why it was traditionally the work of the men of the household.

TEXTILE INDUSTRY IN PAKISTAN

Textile is the important sector of Pakistans economy. It is playing the important t role in economy of Pakistan and fulfilling the 65% export target.

PERFORMANCE
The textile industry which is endowed with a strong base of weaving had started its journey from almost non existence in 1947 with a meager size of 3000 shuttle looms that is too in the unorganized sector with only 10 textile units. The industry has gone through a long way and now possesses 220 units, 45000 looms in which include more or less 30000 shuttles looms. The textile industry is not only catering to the entire local requirement but sharing out 65% of the total foreign exchange earning.

Pakistan being the fifth largest cotton producing country provides a strong base for development sustenance of the textile industry. In spite of tremendous growth in all the peripheral areas of the textile industry includes cotton, ginning spinning,

processing and made up sector. This industry which is the main pillar of the economy has not attained its optimum potential so far.
The textile industry at present is passing through a transition phase. It is sailing smoothly under the protected cover of quota systems. How ever it has to face the rough water to open the sea when globalization of trade is implemented under` WTO agreement in 2004.

CAPACITY
PERIOD. 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 UNITS 55 59 91 105 115 153 166 157

INSTALLED OPERATIVE
LOOMS 6600 7080 10920 13125 14375 19125 20750 19480 Muhammad Fahim Khan LOOMS 5500 6100 9128 11125 12950 19556 19840 17850 5

Internship Report Reliance Weaving Mills Ltd.

PRODUCTION
PERIOD 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 GREY CLOTH
IN METERS (000)

602250 667950 999516 1218187 1428025 2141382 2172400

CURRENT POSITION OF TEXTILE INDUSTRY

With the exception of the period from 1958-59 to 1974-75; the textile industry could not maintain, a sustainable growth, and registered its growing rate at the nominal level in the country. In the organized sector there are 452 textile companies of which 212 are not listed and 240 textile units are listed on KSE/LSE comprising of 157 spinning units, 29 weaving units and 54 composite units. While the total number of textile units both listed and unlisted is however is around 452 approximately.

The weaving capacity of the textile industry in our country is static at 9000 shuttle looms for past many years. The capacity of conventional looms is also around 19840, which have no match with quantum jump the industry ahs taken in this spinning sector. Instead of going for value added products the frenzy for setting up spinning projects dictated the mind of the textile industry over the years which took the 4.1 million spindles in 1996-97 instead of going to more value added textile products like dying bleaching units in the country.

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

CAPACITY UTILIZATION (%)

PERIOD 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 LOOMS 79.50 81.00 82.90 85.10 86.20 87.00 88.00 90.00

EXPORTS
The textile exports projection in the trade policy 1999-00 worth 6.5 billions $ of major textile products include cotton yarn with the target of 1800 million $, grey cloths 1680 million $, ready made garments 1050 million $, tent and canvas 55 million $, knit wear 950 million $ and made-ups 965 million $.
The industry has to achieve these targets in the face of difficult t6rading conditions especially the disturb economies of Asian countries, threat of imposition of anti dumping duties on our gray cloths by the European Union countries, (E.U. has withdraw and anti dumping duty w.e.f 1.01.2002) cotton yarn of 20/s in Japan and constant decrease in imports from South Korea, all together posting an uphill task of achieving the export targets for the textile industry during the financial year. Duty drawback (rebate) is reducing from time to time and changing in sales tax refund to export oriented units, which is very poor sigh for the exporter of the value added items.

PROBLEMS OF THE TEXTILE SECTOR

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

The textile industry has been crisis ridden for some time because of shortage of raw material due to three successive cotton crop failures. The main problems it is facing are as under; 1) The production of lint cotton ahs remained below the target. 2) The shortage and non-availability of the lint cotton in the domestic market has led to the price-hike in domestic market. 3) Competitors installation of over capacity in some production lines or closure of spinning capacity due to higher prices and short supply. 4) Docile labor-intensive technology, needed to be changed to cost efficient capital

intensive. 5) Lack of institutional finance for modernization efforts.

Internship Report Reliance Weaving Mills Ltd.

Muhammad

Khan

RELIANCE WEAVING MILLS LIMITED MULTAN GROUP PROFILE

The company has been sponsored by FATIMA GROURP in Multan. The sponsors are already engaged in the field of manufacturing Sugar, Cotton lint yarn, Grey cloths. Their company, RELIANCE COMMODITY PVT. LTD has been awarded Best Performance Trophies for the years 1997-98 to 99-00 in the field of export of Molasses declared the top 5 company of the Pakistan. The sponsors have also taken up the managing control of a band new spinning unit at Rawat Distt. Rawalpindi form UBL through bidding.

Following are the companies included in the group:

Sr. #
Company Name

1. 2. 3. 4. 5. 6. 7. 8. 9.

FATIMA SUGAR MILLS LTD. RELIANCE WEAVING MILLS LTD. RELIANCE COTTON PVT. LTD. RELIANCE COMMODITIES PVT. LTD. RELIANCE EXPORT LTD. RELIANCE FIBRES LTD. FATIMA FERTILIZER COMPANY LTD. FAZAL CLOTH MILLS LTD. AHMED FINE TEXTILE MILLS LTD

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

COMPANY PROFILE
Reliance weaving Mills Ltd. (RWML) is part of the Fatima Group. Fatima Group established RWML on April 17, 1990 as a public limited company and obtained certificate for commencement of business on May 14, 1990. Authorized capital of RWML at the time of incorporation was Rs.250 million and presently RWML has authorized and paid up capital of Rs.700million which has gradually increased and at present subscribed share capital of company stands at Rs. 308109370 , listed at Karachi and Lahore Stock Exchanges and also inducted into Central Depository Company (C.D.C). The company has issued 1st tranche of Term Finance Certificate (TFCs) of Rs. million in February 2002, which has been fully subscribed. These TFCs are listed at Karachi Stock Exchange and has also been declared as eligible security in C.D.C.
The principal business of the Company is manufacture and sale of cotton yarn and grey woven fabric. RWML production capacity consists of two main segments, Weaving and Spinning, both are ISO-9002 Certified for its quality. Today Reliance weaving Mills Limited is the 3rd largest weaving mill in Pakistan with modern and technologically advanced greige weaving plant. The we4aving units are situated at Multan and the Spinning unit at Rawalpindi. The details are as under:

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

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Weaving units:
Weaving unit is situated at Fazalpur; Khanewal Road, Multan commenced its commercial production on May 01, 1993 with 96 Tsudakoma air jet weaving machines imported from Japan along with modern auxiliary machinery to produce high quality cloth for export markets. Further and additional 20 Tsudakoma air jet weaving machines form Japan were installed in 1999 coupled with yarn doubling and twisting machines to produce value added fabrics. The installed production capacity of the unit is approximately 16.085 million meters per annum. Further more, a captive power plant consisting of 2.5 MW Capacities are also installed in the weaving unit-1 by which the company is saving power cost and production losses.

During the last financial year, the company has implemented and expansion project for its weaving unit at a cost of a about Rs.500 million, comprising 108 Tsudakoma air jet weaving machines from Japan along with modern auxiliary machinery to produce high quality cloth for export markets. The project started its commercial production from October 01, 2001. The installed production capacity of the unit is approximately 21.70 million meters per annum.

Another 48 air jet looms expansion plan in existing weaving unit # 2 is at advance stage, which will result in increase in production approximately by 9.00 million meters per annum. Now weaving unit comprise of 295 Tsudakoma with production capacity of 57.6 million meters of grey cloth annually.

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

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Spinning Unit:
The spinning unit of the RWML is located at Mukhtarabad, Rawat, and District Rawalpindi in the province of Punjab. The unit commenced its commercial production on October 01, 1999 with 14400 spindles with a very good combination of European and Japanese machinery with allied accessories. It produces high quality yarn for in-house consumption and for export markets. The installed capacity after conversion into 20/s count is approximately 4.849 million kgs.

The spinning unit has 35,520 spindles with an installed capacity of 12.30 million kgs of yarn converted at 20/s count. Cotton yarn produced is used in weaving units for manufacturing of fabric being sold in local and export market.

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

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ORGANIZATIONS (RWML) HIERARCHY

CHAIRMAN

CHIEF EXECTIVE

C. F. O.

FINANCE MANAGER

MKTING MANAGER

PURCHASE MANAGER

ACCOUNTS MANAGER

INTERNA L AUDITOR

CHIEF ACCOUNTANT

DCA

ASSISTANT ACCOUNTAN T

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

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Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

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VISION STATEMENT
The company is interested to install complete textile finishing plant including bleaching, dyeing, mercerizing, calendaring, folding, printing plant in the existing weaving units at Multan to make it a complete composite unit, which can explore local and international market of high value products. The company would keep its emp0hasis on product and market diversification, values addition and cost effectiveness. We want to fully equip the company to play a meaningful role on the sustainable basis in the economic development of the country.

MISSION STATEMENT
The mission of the company is to operate state of the are textile plants capable of producing yarn and fabrics. The company will conduct its operations prudently assuring customer satisfaction and will provide profits and growth to its shareholders through:

Manufacturing of yarn and fabrics as per the customers requirements and market demand. Exploring the global market with special emphasis on Europe and USA.
Keeping pace with the rapidly changing technology by continuously balancing, modernization and replacement (BMR) of plant and machinery.

Enhancing the profitability by improved efficiency and cost controls. Recruiting, developing, motivating and retaining the personnel having exceptional ability and dedication by providing them good working conditions, performance based compensation, attractive benefit program and opportunity for growth.

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

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Protecting the environment and contributing towards the economic strength of the country and function as a good corporate citizen.

COMPANYS QUALITY POLICY

COMMITMENT TO EXCELLENCE

All of our priorities action and products must be recognized as an expression of unique quality.
We are dedicated to produce fabrics and yarn of the best export quality to meet the requirement and expectations of our customers.

We strive for continuous improvement in day-to-day quality work; organize the training and necessary feedback on our performance.

THE PROJECT
The project of setting up 96 looms was successfully completed and the company commenced commercial production on May 01, 1993. The capacity of the project is 15.50 million Mtrs. Grey Cloth per year. In addition to further 20 looms was a installed in 1997 along with doubling machine and self power generation plant of 2.5 MW was installed in 1999.

PLANT AND MACHINERY

IMPORTED
The imported plant and machinery for the project are purchased from world renowned manufacturers of textile industry machinery. The production facilities are supported bay a

Internship Report Reliance Weaving Mills Ltd.

Muhammad Fahim Khan

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very modern quality control department equipped with laboratory and testing equipment based on latest technology. The imported plant and machinery includes: 120 Shuttless Looms from Tsudakomna. Humidification Plant & Chilly Equipment from Luwa Switzerland. Overhead Travelling Cleaner from Luwa Switzerland.

Sizing machine from Sucker & Mullar Germany. Knotting machine from Tomen Corp. Germany. Air Compressor & Dryer from Atlas Capco Belgium. Warping Machine from Benninger Switzerland. Vaccum Cleaning plant from Germany. Power Generator from UK. 3 sets power Generator (Gas) from Caterpillar Switzerland. The above plant and machinery was imported with the foreign currency financial assistance of Muslim Commercial Bank Limited.

LOCAL
The plant and machinery locally purchased up to 20% of the total machinery, which is as under: Bailing Press Motor Lifter 2 Nos. Beams 100 Nos. Electric material from semins. Folding Machines 3 Nos. Equipment for workshops. Electric appliances. Internship Report Reliance Weaving Mills Ltd. Fire fighting equipment. Muhammad Fahim Khan
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Both the imported and local machinery was brand new at the time of purchase.

COST OF PROJECT AND MEANS OF FINANCE

ESTIMATED COST
Pak. Rs. In (Million) Imported machinery Import incidentals Local machinery Land, Building, Others Total Estimated cost 210.50 25.20 13.50 44.80 294.00

ACTUAL COST
Imported machinery Imported incidentals Local machinery Land, building, others Total actual cost 199.00 22.40 15.60 47.00 284.00

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