National University of Modern Languages

Faculty of Information Technology and Management Sciences

It is hereby certified that the report has been thoroughly and carefully read an

recommended to the faculty of Management Sciences for acceptance of Final Project

Report by Qaiser mehmood, Roll 7241, Session (Jan 2007 to Dec 2008) Evening, in partial

fulfillment of the requirements for the degree of Master in Business Administration of

National University of Modern Languages, Islamabad.

Date: June 20, 2009

Supervisor:_________________________

Observer:__________________________

Head of Department: _______________

Dedication
I want to dedicate my this project to following persons
•
Hazrat Muhammad (PBUH)
•
Qauid-E-Azam Muhammad Ali Janah
•
My Teachers
•
My Parents
•
My Best Friend Qaiser Mehmood Khan
•
And All Those Who Are Struggling And Fighting For Islam In Right Directions.

ACKNOWLEDGEMENTS
“In the name of Allah, the most merciful and beneficent”
All praise to Almighty Allah, the most Gracious and compassionate. Who created the
universe and bestowed mankind with the knowledge and blessings of Allah be upon the
Holy Prophet Muhammad (S.A.W.) who guided mankind with the Holy Quran and
Sunnah, the everlasting source of guidance and knowledge for humanity.
I deem it an utmost pleasure to be able to express to heartiest gratitude and deep sense of
devotion to my reverend and worthy supervisor Mr. Muhammad Awais for his skillful
guidance, unfailing patience, inspiring attitude and invaluable suggestions to improve the
script of this report.
A deep sense of appreciation is owed to Mr. Shahid Mahmood for his kind attitude and
keen interest during my internship. I am also thankful to Mr. Waseem Ahmad who helps
me during my internship in Marketing department. I am also thankful to all the
executives of export department specially Mr. Muhammad Awais, Muhammad Yaseen
who provide me a valuable guidance during my internship program.
I fervently extend my thanks and appreciation to my friends Khalid Sultan, Kashif
Mahmood, Zaheer-ul-Din, Muzammil Ahmad, Muhammad Imran, and Abdul-Qayyum. I
owed a debt of gratitude to my ever-affectionate brothers Mr. Muhammad Khuram and
Mr. Ashfaq Ahmad for their fragrant love nominated to me.
Last but not least I offer my humble heartfelt gratitude and deepest affections to my great
mother and respected father for being inspired for higher ideals of life, supported morally
and financially throughout my studies, and always prayed for glorious success about my
pursuits throughout all of my life.
LIST OF CONTENTS
Sr. No.
TITLE
PAGE

National University of Modern Languages

Faculty of Information Technology and Management Sciences

It is hereby certified that the report has been thoroughly and carefully read and

recommended to the faculty of Management Sciences for acceptance of Final Project

Report by Qaiser mehmood, Roll 7241, Session (Jan 2007 to Dec 2008) Evening, in partial

fulfillment of the requirements for the degree of Master in Business Administration of

National University of Modern Languages, Islamabad.

 Date: June 20, 2009

Supervisor:_________________________

Observer:__________________________

Head of Department: _______________

Dedication
I want to dadicate my this project to following persons
•
Hazrat Muhammad (PBUH)
•
Qauid-E-Azam Muhammad Ali Janah
•
My Teachers
•
My Parents
•
My Best Friend Qaiser Mehmood Khan
•
And All Those Who Are Struggling And Fighting For Islam In Right Directions.

ACKNOWLEDGEMENTS
“In the name of Allah, the most merciful and beneficent”
All praise to Almighty Allah, the most Gracious and compassionate. Who created the
universe and bestowed mankind with the knowledge and blessings of Allah be upon the
Holy Prophet Muhammad (S.A.W.) who guided mankind with the Holy Quran and
Sunnah, the everlasting source of guidance and knowledge for humanity.
I deem it an utmost pleasure to be able to express to heartiest gratitude and deep sense of
devotion to my reverend and worthy supervisor Mr. Muhammad Awais for his skillful
guidance, unfailing patience, inspiring attitude and invaluable suggestions to improve the
script of this report.
A deep sense of appreciation is owed to Mr. Shahid Mahmood for his kind attitude and
keen interest during my internship. I am also thankful to Mr. Waseem Ahmad who helps
me during my internship in Marketing department. I am also thankful to all the
executives of export department specially Mr. Muhammad Awais, Muhammad Yaseen
who provide me a valuable guidance during my internship program.
I fervently extend my thanks and appreciation to my friends Khalid Sultan, Kashif
Mahmood, Zaheer-ul-Din, Muzammil Ahmad, Muhammad Imran, and Abdul-Qayyum. I
owed a debt of gratitude to my ever-affectionate brothers Mr. Muhammad Khuram and
Mr. Ashfaq Ahmad for their fragrant love nominated to me.
Last but not least I offer my humble heartfelt gratitude and deepest affections to my great
mother and respected father for being inspired for higher ideals of life, supported morally
and financially throughout my studies, and always prayed for glorious success about my
pursuits throughout all of my life.
LIST OF CONTENTS
Sr. No.
TITLE
PAGE

INTRODUCTION

OBJECTIVE OF STUDYING THE ORG.

OVERVIEW OF THE ORGANIZATION

3.1 HISTORY

3.2 NATURE OF ORG.

3.3 BUSINESS VOLUM

3.4 PROFILE OF EMPLOYEES

3.5 PRODUCT LINE

ORGANAZATIONAL STRUCTURE

STRUCTURE OF MARKETING DEPTT.

FUNCTIONS OF MARKETING DEPTT.

6.1 MARKETING STRATEGY

6.2 PRICING STRATEGY

6.3 DISTRIBUTION STRATEGY

6.4 PROMOTIONAL STRATEGY

CRITICAL ANALYSIS

7.1 SUCCESS & FAILURE OF PRODUCTS

7.2 MAJOR COMPETITORS

7.3 FUTURE PROSPECTS OF THE ORG.

SWOT ANALYSIS
CONCLUSION & Recommendations
REFERENCES & SOURCES
678810

10 10 11 12 13 14 28 28 29 29 30 32 32 33 34 36 40

INTRODUCTION
Sitara Textile Industries Pvt. Limited Faisalabad has the privilege to be the first member
of the esteemed Sitara Group. Founded in 1972 by the most illustrious brothers, Haji
Abdul Ghafoor (late) and Haji Bashir Ahmad, is now led by the young Anees Ahmad, a
dynamic second generation leader of Pakistan textile industry.
Sitara Textile is one of the largest manufacturer and registered leading exporter of textile
goods in Pakistan. It is exporting high quality products. Its products of brand name such
as “Sapna” and “Mughal-e-Azam” are amongst leader in the market. Sitara Textile has
designing, stitching, and printing departments. The bedding and fabric collection of Sitara
Textile are exported to South America, USA, Canada, New Zealand and Europe.
Sitara Group by now is in textile cloth finishing and processing, textile spinning, color
alkali industries and power plant. Haji Abdul Ghafoor (Late) and Haji Bashir Ahmed the
present Chairman of the Group, the two creative and courageous men, latter joined by
second generation, making a blend of experience and modern business knowledge,
managed the business growth and development with assistance of highly qualified team
of professionals. Faith in Almighty Allah and in their own abilities & commitment to the
cause, untiring efforts and leadership qualities of the family, established the group, which
now stands amongst Leading Industrial Groups of the Country, under the Chairmanship
of Haji Bashir Ahmed.
UNITSSitara Chemical Industries Ltd

Sitara Chemical Industries (Textile Div-II)

Sitara Chemical Industries (Textile Div-I)

Sitara Textile Industries Ltd

Sitara Energy Ltd

Yasir Spinning Mills Ltd

OBJECTIVES OF STUDYING THE ORGANIZATION

Textile sector is a backbone of our country .Our major export is consisting of textile
appliances. Following are the basic objectives of studying the Organization,
• Sitara Textile is the One of the Leading Organization in the Textile
Sector
 • Export Oriented Organization

• ISO certified Company

• Having a Qualified and Experienced Staff

• Proper Utilization of Human Resources

• Having a latest Machinery to Compete Globally

• Friendly Environment
COMPANY QUALITY POLICY
“Quality is our future”
STIL is a Unique, Versatile industry and is dedicated to the continues improvements in
producing different types of processed fabrics by providing Excellent services through
motivated qualified and Dynamic team of people. We ensure that the products are
produced according to the customer’s requirements and expectations.
STIL is renowned in Local and International markets due to its excellent services, Timely
delivery of Quality finished products to their valued customers. STIL’s Philosophy of
continues improvements relies on an intensive training programs / regular meetings,
discussions which emphasis the employee’s direct involvement. Our aim is to respond to
our customer’s ever-changing needs in the more Effective way.
OVERVIEW OF THE ORGANIZATION
BRIEF HISTORY OF ORGANIZATION

NATURE OF THE ORGANIZATION

BUSINESS VOLUME

PROFILE OF THE EMPLOYEES

PRODUCT LINES

are frequently subjected to tests against most relevant international standards at every stage
of manufacture. Tests are conducted to control shrinkage (dimensional change), pilling
resistance, and abrasion, color fastness and washing fastness etc.
Much of their wide success and popularity is attributed to there technically being ahead in
there printing. There printing staff and design teams combine years of practical experience
in printing with top-of-the-range Austrian J. Zimmer rotary printing machines producing
280 cm finished width up to 12 colors per design and maximum repeat of 91 cm. Flat bed
printing facility comprised Reggiane machine with 320 cm working width and 320 cm
repeat.
Thanks to their modern and sophisticated facility, processing to finishes like chintz, silicon,
scotchgard, fire retardant down proof and raisin etc, is invariably a pleasure. With Sitara,
there world wide clientele gets quick quality sampling on Austrian J. Zimmers latest rotary
strike off machine facilitating production of strike offs up to 15 meter length.
NATURE OF BUSINESS
Sitara Textile is one of the leading organization which provide the a variety of Textile
products consist of following items such as Bed sheets, Pillows, Quilt covers, Aprons
Kitchen aprons, Boxer shorts, Bermuda shorts, Nighties, Bolster, Valances, Curtains, Table
linen, Bed spread, Comforter covers, Ready made garments.
Sitara Textile is multinational export in nature. It is specialized to produce the above said
items and distribute locally and internationally through their own distribution channels and
Agents.Sitara’s export spread over the 3 main continentals such as America, Europe and
Asia.
BUSINESS VOLUME
Sitara Textile deals with local and international Market. It contributes major share in
Pakistan Economy and provide its products locally on economic rates. Sitara Textile ‘s
business volume consist of US$25 million annually and local business consist of 10 to 15
crore. Sitar’s management is very efficient so they always looking new opportunities for
development of their business and increases the economic activities in the country.
PROFILE OF EMPLOYEES
Sitara Textile Industries consist of 1453 employees in Office, Production and Stitching
department. List are given below
OFFICE AND PRODUCTION STAFF
Office and Production section consist of 636 employees .In which 452 employees are
Technical, 62 are Non Technical, and 122 is remaining staff which provide different
services.
STITCHING UNIT
Sitar’s stitching Unit consist of 817 employees in which 403 are Technical, 356 are Non

Technical and 58 employees are provide different services

PRODUCT LINES

Sitara Textile has a variety of products. Following are main products, which are
mentioned below
Main products:

Bed sheets

Pillows
Quilt covers

Aprons

Kitchen aprons

Boxer shorts

Bermuda shorts

Nighties

Bolster

Valances

Curtains

Table linen

Bed spread

Comforter covers

Ready made garments

ORGANIZATIONAL STRUCTURE
CEO
MIAN ANEES AHMAD
GM
ADMIN
Mr. ZIA ULLAH ALVI
GM

PRODUCTION

Mr. SAEED KHAN

GM

FINANCE

Mr. M.RAZZAQ

GM

EXPORT
Mr. M AWAIS
MANAGER PERSONAL & ADMIN

COMMERCIAL

MANAGER

CHIEF

ACCOUNTANT

HIERARCHY LEVEL OF EXPORT MARKETING DEPARTMENT:

DIRECTOR EXPORT
MR. MUHAMMAD AWAIS

SENIOR EXPORT MANAGER

Zone 3

Mr. M. Imran

SENIOR EXPORT MANAGER

Zone 2
Mr. Ashfaq Ahmad

SENIOR EXPORT MANAGER

Zone 1

Mr. M. Yaseen Mehar

Deputy Export Manager
Mr. Muzzamil Ahmad
Deputy Export Manager

Mr. Abdul-Qayyum

Deputy Export Manager

Mr. Khalid Sultan

Deputy Export Manager

Mr. Zahee - u l -din

Deputy Export Manager

Mr. M. Kashif
Deputy Export Manager

Mr. Shahid Mahmood

Asst. Exports Manager

Mr. Waseem Ahmad

Zone 1: South America, Chile, Brazil

Zone 2: Australia, Canada, United States

Zone 3: South Africa, Europe

FUNCTIONS OF EXPORT MARKETING
Exports are the major portion of Sitar’s textile production. More than 90 % of Sitara
textile’s products are exported to different countries of the world. The export department is
handling the international market in a very appropriate and proper way. Sitara textile has
been proudly maintaining its leadership in 100 percent pure cotton products along with the
man made fiber. Sitara textile industries limited is value adding to the country’s silver fiber
by vertical integration of the product line. The product range consists of the following, but
is not limited by this list. It has the ability to be immediately tuning its infrastructure to
meet any specialized requirements of the ever-demanding export markets of both east and
west.
The product range in pure cotton is available as Sateen both in mono cotton and poly cotton,
Bed sheets, Pillows, Quilt covers, Aprons, Kitchen aprons, Boxer shorts, Bermuda shorts,
Curtains, Comforter Shells, Bed in a bag, Swag set, Festoon set, Place mates, Nighties, ready
made garments, and are available in most exotic and fascinating designs. Sitara textile has
pioneered in the following fabrics unrivalled by any other in the industry.
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
Personal visit to customers
Customer’s visits in STIL
Faxes, Telephone, Mail, E-Mail, etc.
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 in STIL. 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.
GREY PROCUREMENT SHEET
The Export Manager analysis the order confirmation sheet received from the customer and
prepares Grey Procurement accordingly. The Deputy Export Manager, General Manager
Export and Chief Executive sign the Grey Procurement sheet and also costing sheet. This
Grey Procurement sheet is faxed to Grey Fabric Procurement Department.
Following is the format of Grey Procurement sheet,
GREY PROCUREMENT

Buyers order no : 970002

Supplier : STIL

Buyer : LENNOTTE

Construction : 76 x 56 / 35 x 35

Width : 93``

Price / meter : . 45 $

Weight of fabric : 95 gm / m2

Weave : Plane

Loom : Power

Quantity : 50000 Mts.

Delivery : As soon as possible

Piece length : 80 % 80 Mts. Up, 20 % 25 Mts. Up

Process : Printing

Mending : Mending should be done very

For Sitara textile

Export Manager
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.
If customer wants some changes in the sales contracts then the Export Manager and the
Deputy Export Manager make analysis of these changes as per requirement of the customer
and make decision that whether these changes are workable for us or not. If these changes
are workable for the STIL then new sales contract as per new amendments is faxed to the
customer fort 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. The purchase order is received from the importer, which is on their
letterhead and signed, by the concerned authorities of that organization. The format of
order is like this,

PURCHASE ORDER
PURCHASE ORDER
DATE P. O. No.
22 / 06 / 2001 970002
EXIMPO, INC. Export House / Manufacturer / Distributors / Agent

VENDOR

Sitara textile industries limited

6 KM Sargodaha Road,

Faisalabad.
PAKISTAN

Terms Against L/C

Shipment 01/07/2001

Ship Via Sea

Prices C & F US C
5%

Our Ref # Description Qty Rate Amount

Design Horizons
Style # Process pigment printed
370537 Construction 100*80/40*40 sheet 480 23.85 11484
370540 sets 600 28.35 17010
370555 Blending 52/48 sheet sets p/c 84 1.25 105
370557 65*35 Accessories P/C 96 2.25 216
Loom Shuttle less / Powerloom
Bed in a bag
Twin
King
 Accessories
Euro shams
Table round

35815

STRIKE OFF PROGRAM

Most of the customers send there own designs in the form of Artwork and fabric sample in
case of the printing of the design of the customers. The Deputy Export Manager and
Export Manager discuss the design comprehensively with the manager Design department.
Sitara has a rotary strike off machine from J-Zimmer Austria with 15 meters blanket for
making strike off’s as per buyer’s requirements. Strike Off program is prepared by the
Export Manager and it is distributed to all the concerned departments e.g., Designing,
Engraving and Printing, etc.
The Deputy Manager Export and Manager Export do inspection of the Strike Off as per
buyer’s instructions before its dispatch. If it is as per requirement of the customer then it is
dispatched to the customer otherwise it is processed again to meet the demands of the
customers.

OPENING OF LETTER OF CREDIT

If customer approve the strike off then we consider this for bulk production and if he need
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.
Before the bulk production, the Deputy Export Manager asks the customer to open Letter
of Credit as per terms and conditions of the Sales Contract. The Deputy Export Manager
studies comprehensively all the clauses of L/C. if any amendment is required then this
amendment is managed with the customer.
The Export Manager prepares the Production Schedule as per requirements of the customer
and is signed by the Deputy Export Manager. The production schedule is distributed to all
the concerned departments.

Following is the format of Letter of Credit and Production Schedule,

PRODUCTION SCHEDULE

Party : EXIMPO, INC.

Order no : 786 / 01

SGP no : STIL 5

Quality : 76 x 56 / 35 x 35 PC 70 / 30 Printed cloth 84`` finish from

87``, 63`` Grey width printed and calendard cloth.

Product : White, Dyed

Quality Standards:

Pilling rating : 4 Washing : 4

Rubbing fastness : Dry 4, Wet ¾ Bowing: 1% Crossing : 1%

ASSORTMENT:

Color Quality Quantity Width

White 76*56/35*35 32000 mtrs 87”, 84”

White 76*56/35*35 11000 mtrs 63”, 60”

Dyed ivory color 76*76/30*30 11000 mtrs 93”, 83”

100 % cotton

FINISHING : We will give you Standards

PAKING : Role on Tube

SHIPPING MARK:

Order no. Roll no. Hungry port Mtrs.

Sitara Textiles Gross Weight Made in Pak. Net Weight

Note: We will confirm you shipping mark.

Manager Export

CC to,

GM Processing Grey Department Design Department

Laboratory Department Printing Department Dyeing/Bleaching Department

Finishing Department Packing Department Accounts Department

QUALITY CONTROL
The Export Manager is responsible for quality of the work during processing. The Export
Manager daily visits the production department and gives the proper guidance to the
production department’s employees regarding the processing of Fabric. At each stage of
 processing samples are sent to the laboratory for inspection, and laboratory tests are very
helpful for maintaining the quality.
The quest of quality in today’s technologically day in advancing era and STIL is enable to
analyze in detail the procedures of checks and numerous tests to balance out through the
involved stages of processing specially to enhance and make quality a consistent feature at
Sitara. Control Shrinkage, Pilling Resistance, Abrasion, Color Fastness, and Washing
Fastness are few very carefully monitored.
Acquisition of the best possible quality control equipment ensures best quality products.
Unit has a most modern and latest computerized equipment in its laboratory, for every test
required for fabric, including shrinkage, rubbing fastness, light fastness and vowing of the
fabric.

FINISHING
Finishing depends upon the buyer’s order, if the end product is made-up (in stitched
form) then the Export Manager prepares Stitching Schedule as per requirement of the
customer mentioning all the details of stitching and packing and send this schedule to the
stitching department.
The Export manager does inspection of the made-ups goods at every stage of production
of make-up, e.g. cutting, stitching, packing, etc. and before the shipment the Export
Manager does the inspection of the consignment.
Manager Export maintains all the records of the correspondence of the customers in very
organized way. He also maintains records for each shipment for future reference.

DISPATCHING
After completing the finishing of the cloth as per requirements of the buyer, then the
cloth is packed as per the buyer requirements. And shipped to the port or as per mentions
on the L/C.

EXPORT DOCUMENTATION DEPARTMENT

All the documentation required is maintained in this department. The Export Manager
Banking supervises this department. This department prepares all the papers, which is
necessary for banking negotiations. They prepare these documents and send them to there
bank for collection of payments.

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

Following are the formats of these documents,

THE MANAGER

HABIB BANK LIMITED Ref: STI-331/03

CORPORATE CENTRE Dated: 24/07/03

FAISALABAD.

Sub: Documents for US$ 35000 for negotiation against the Letter of Credit no.

DEAR SIR,
We are please to enclose herewith the following documents for negotiation under above
mentioned Letter of Credit and credit the amount to our account no******-** at the time
of negotiation.

Bill of Exchange
Letter of Credit
Commercial Invoice
Beneficiary’s Statement
Packing List
3/3 original Bill of Lading
Certificate of Origin
Quota Statement
Textile Declaration
Copy of Purchase Order
Inspection Certificate
Weight Note
Form E Duplicate
Foreign Commission Certificate

Thanking you
Yours Truly
Export Manager

BILL OF EXCHANGE
No. STI-331/03
For US $: 35000 Dated: 20-07-2003
At________________ sight of this second of exchange (First of the same tenor and date
being unpaid) pay to HABIB BANK LIMITED corporate center Faisalabad, Pakistan. Or
order the sum of US$ 35000 only. Value received and charge the same to amount of 1002
cartoons printed made-ups made of Poly Cotton 52/48 and 70/30 %.
Drawn under first union national bank charlotte, charlotte, NC US. Letter of Credit no
***-****. Dated 25/06/03.
To

First Union National Bank Charlotte,

Charlotte, NC US.

Export Manager
BENEFICIARY STATEMENT

PO # 9002763

LC # ***-****

We hereby certify that:

Each carton indicates PO number and style number.
Each lead carton contains a copy of P/L.
Evidence that one full set of original documents including non-negotiable B/L,
original visas, certificate of quota charges, textile declaration and any other
pertinent documents.
Along with two additional copies has been forwarded to expeditors INT, L of Washington

2550 Ellsmere Ave, Norfolk, VA 23513 VIA courier at tie of shipment.

SITARA TEXTILE INDUSTRIES LTD.

SIGNATURE
COMMERCIAL INVOICE
No: STI-229/03 Date: 29/05/03

Form E no: HBL******* Date: 29/05/03

On Account and Risk of M/S : ALBARAKA Bank, 134 Commercial Road,

Durban 4001, South Africa.

Shipped per S.S: MSC Veronique VOY/38.

From Karachi Pakistan to: Durban Port, South Africa

Drawn under L/C no: ***-***** Date: 17/02/03

Payment Terms: Cash Against Documents

Marks & No. Description Unit Price Amount

P. O. # 11408 228 rolls US $ US $

Durban 35000 mtrs per mtr

Roll No. Polyster cotton 60/40 percent C&F

1-228 Printed Optical white Durban

Calendered fabric

Construction: 76*56/35*35

Width 98”-32,163 mtrs printed

Width 91”-12, 152 mtrs optical

White

Country of origin Pakistan

US $:

Total C& 35000

F amount C&F

Durban
CERTIFIED THAT THE ABOVE GOODS ARE OF PAKISTAN ORIGIN

BILL OF LADING

ATTN: MR. MAQSOOD / EBRAHIM AGENCY, FSD. DATED: 29/05/2003

DUMMY B/L AGAINST INVOICE NO. STI-229/03

SHIPPER: SITARA TEXTILE INDUSTRIES LTD.,

6-KM SARGODHA ROAD, P.O.BOX 223, FAISALABAD, PAKISTAN
CONSIGNEE: TO THE ORDER OF MONOR HOUSE, MONOR PARK WORKS, 182
GARRISON STREET, BORDESLEY, BIRMINGHAM 89 4DN.

FORM ‘E’ NO. ABL-0026671 DATED: 29/05/03

NOTIFY PARTY: MONOR HOUSE, MONOR PARK WORKS, 182 GARRISON

STREET, BORDESLEY, BIRMINGHAM 89 4DN.

VESSEL NAME:_____________? ON BOARD DATE

PORT OF DISCHARGE: BIRMINGHAM WHAREHOUSE, U.K.

Marks & No.

MANOR HOUSE 228 CARTONS. GR.WT:

BIRMINGHAM PRINTED DUVET SETS, COMPLETE 6667.100

WAREHOUSE BED SETS AND CURTAINS PAIR MADE KGS

PO# 786/01/1111 FROM POLYCOTTON 70/30% CLOTH

CARTON NO. QUALITY: 76X56 / 35X35. NET WT:

1-228 1621 SINGLE DUVET SETS. 4667.900 KG

154 SINGLE COMPLETE BED SETS
121 CURTAIN PAIR 66X72``
AWSU-191333-3 1X20’FCL.
THC AND FREIGHT PREPAID

WEIGHT NOTE
Ref: STI-331/03
Dated: 29/05/03 Reference letter of credit no. 22 PK 04099/1542 dated 13/05/01
35,336 meters quality: 76x56 / 35x35 PC 70/30% weight per square meter.
92grms.
5,555 meters quality: 76x76 / 30x30 100% cotton weight per square meter:
120grms.

Total rolls: 228

Total meters: 40921

Total gross weight: 8540.400kgs.

Total net weight: 8132.400kgs.

For SITARA TEXTILE INDUSTRIES LIMITED

Export Manager
QUOTA CHARGE STATEMENT
SUBJECT: Shipment of 228 cartons 1850 Pcs/units/set of duvet sets and curtain pairs as
per purchase order no 9003725 and Horizons designs as per purchase order no 9003726.
QUALITY: 100x80 / 40x40 PC 52/48 % and 76x56 / 35x35 PC 70/30 %.
I Export Manager manufacturer of goods covered by invoice no STI-333/03 (Purchase
order number 9003725 and 9003726 dated 20/07/03) hereby state that the CFR value
declared on the invoice included cost of quota and number separate quota payment will be
paid.

Export Manager
INSPECTION CERTIFICATE
EXIMPO, INC.
Export House / Manufacturer / Distributor / Agent Date: 20/07/03
This is certify that 228 cartons are being shipped against invoice no STI-331/03 dated
20/07/03 are in accordance with purchase order no. 9003726 and 9003725.
The merchandise is 100% new and according to the specification required by M/S
Domestication USA.
For EXIMPO, INC.

Design Manager
TEXTILE DECLARATION
STI-331/03
I Export Manager hereby declare that the articles listed below and covered by the entry to
which this declaration relates are wholly the growth, product or manufacturer of a single
foreign territory or country or insular possession of the united states as identified below. I
declare that the information set forth in this declaration is correct and true to the best of my
information, knowledge and belief.
Marks of Identification
Number
Description of Article and
Quantity
Country of
origin
As per Invoice No:

STI-331/03

Date 19/07/03

Style #9003725

Style #9003726
228 cartons
1850 pieces /unit /set of

Comforter, Set bed in a bag

1000 twins

850 Comforter

L/C No: ***-****. Date:

25/06/03 PAKISTAN

MARKETING STRATEGY
The export department is handling the international market in a very proper and
appropriate manner. The export department consists of competent and skilled team of
professionals. Taking in to consideration that the 90 % of total production of Sitara textile
is exported through out the world, the export department tries its best to generate valuable
customers through out the world. Following is the procedure of export department,

PRICING STRATEGY
When the DEM confirms that the required design is easily prepared in STIL, then he
replies to the buyer that we are in a position to make your order. Then the EM takes Grey
fabric price from the Grey fabric procurement department. The EM calculates the prices
then the DEM checks and signs the costing.

Most of the customers send there own designs in the form of Artwork and fabric samples
in case of printing of the design of the customers. On the instructions of DEM the EM asks
the sampling department and also coordinates for the sampling requirement and its
dispatch if the customer for quality purpose requires it. If the price quotation is workable
for the customer then he places order on terms and conditions.

Sometimes if prices are not workable for the customer he offers his target price. Then the
DEM and EM recalculate this price and if it is workable for STIL then DEM proceed to
ask the customer for order placing other wise do not proceed.

There are three pricing strategies are being used in STIL,

Competitive base price
Customer base price
Product base price

DISTRIBUTION MIX OF STIL

There are two ways of distribution adopted in STIL,
Direct channel
Indirect channel

Direct channel
STIL
CUSTOMERS

Indirect channel
STIL
AGENTS / MIDDLE MAN
CUSTOMERS

PROMOTIONAL STRATEGIES
STIL use following sources for communications,
Textile exhibitions
Personal visit to customers
Customer’s visits in STIL
Faxes, Telephone, Mail, e-mail, etc.
Print media

CRITICAL ANALYSIS
During internship, I was done critical analysis of Sitara Textile industries .In my point of
view following factors is disturbed the functionality of any organization.
POLITICAL FACTORS
Laws, Govt. agencies, and pressure groups that influence and limit various organizations
and individuals in a given society are included in political factors. Recent political changes
will hopefully have a favorable effect on the economy during the next financial year. The
sanctions, which were made by the Americans after the nuclear tests, have been removed.
Now the exports of the country increased and expand to more foreign countries. In this
way foreign exchange earnings increased. Govt. should have sound policies, which helpful
in marketing the textile sector.
The Govt. must take care of textile sector and make good policies for the textile sector for
exports and imports. The Govt. has favorable policies to encourage the exports of the
country especially in textile sector.

ECONOMICAL FACTORS
The Sitar’s products are at the maturity stage and have positive image in local and
international market. A present and future capacity of the products of Sitara textile is
forecasted to be good because of the designs which are made, up to the standards of new
generation. The economic environment consists of factors that effect consumer purchasing
power and spending pattern. In most of the international market the consumption of Sitar’s
products are considered best in quality. Changes in major economic variables such as
income, cost of living, interest rates and savings and borrowing patterns have a large
impact on the market place. So before entering to the international market, the Sitara textile
must considered these things.

SOCIAL FACTORS
The cultural and social environment is made up of institutions and other forces that affect a
society’s basic values, perceptions and preferences and behaviors. People grow up in a
particular society that shapes their basic beliefs and values.
This is the policy of Sitara textile that the products for exports are designed according to
the beliefs and values of the international consumers. The products are made according to
the changing lifestyles and liking and disliking of the customers.

TECHNOLOGICAL FACTORS
STIL has good financial resources and they are in a position to install the latest machinery
and introduce latest technology in their production department. They have a ability to
designs new products after the introduction of new technologies in designing and
production department. Introduction of new technologies creates new markets and
opportunities for Sitara textiles. Companies that do not keep up with technological changes
soon will find their products out dated and they will miss new product and market
opportunities. Because of good financial resources Sitara textile introduce new technology
in all its departments.

SUCCESS & FAILURE OF PRODUCTS

Sitara Textile is producing quality products throughout the world especially in local
market. This is because of its quality of yarn and fabrics. Fabrics is based on quality yarn
and yarn is based on the quality of cotton. Top Management is basically religious minded
people so the public respects its products. STIL started this unit for its production since
1967 because of Faisalabad oldest unit the demand of its product is very high
The prices of its product is very high due to high quality spinning, weaving and finishing
cost. That’s why most of its products are out of the range of the poor people. There is no
fare price shop in the unit as well as in the open Market.

LIST OF MAJOR COMPETITORS

• Chenab Textile Mills.
• Nishat textile Mills
• Crescent textile Mills
• Masood Textile.
• Shahzad Siddique Textile
• Afroz Textile Mills
• Amtex PVT Ltd.
• Bissmillah Textiles
• Kamal Textiles

FUTURE PROSPECTS OF THE ORGANIZATION

STIL is one of those well organized and established textile units which have ISO9001:
2000, ISO 14001:1996, OEKo-tex and working for the certification of SA800 and

WRAPE that is why the turnover of the employees are very low. To meet WTO
requirements top management is planning to invest huge investment in modernizing the
existing machinery set up and also extending buildings in this unit. This is the era of
information technology the top management is already develop IT cell in unit and planning
to develop E-Commerce. Future of this unit is very bright because top management main
focus is deadly strict on quality management in production and as well as main focuses on
time management.

SWOT ANALYSIS
STRENGTHS•
Adequate financial resources
• Specialized in printing
• Have a diversified group of industries
• Good market image
• Competent management and workers
• Have a ability to compete with competitors
• In home facility of production
• Loyal customer
• Loss sustaining capacity

WEAKNESSES
• Less chances of promotion
• Centralized decision making
• Salary package is not attractive
• Less motivation
• Not enjoy the economy of scale

OPPORTUNITIES
• New market coverage
• New quality introduction
• Extension of stitching department
• Latest machinery installation
• Market trend analysis

THREATS
• GST is a biggest threats
• Prices increases due to currency devaluation
• New entrance of quality conscious competitors
• Low price offered by the competitors
• Strong promotional activities to convince buyers by competitors

CONCLUSION & RECOMMENDATIONS

Sitara group of industries is one of the renowned industrial groups of the country. This
group started its industrial activity with textile weaving sector in 1956, under leadership of
two brothers. Sitara group by now is in textile cloth finishing and processing, textile
spinning, chlor alkali industries and power plant.
Sitara textile is one of the largest manufacturer and registered leading exporter of textile
goods in Pakistan, exporting quality products through out the world. Sitara has its own
designing both manual and computerized, developing and screen-making department.
Sitara has large number of designs and qualities of fabrics that comply with any
requirements and cover all the styles, in the most extensible range of colors and printed on
such varied fabrics as polycotton 50: 50 plain weave, 100 % cotton fabric plain weave,
percale, sateen in bleached, dyed and printed form.
Apart from fabrics Sitara has its own stitching department having 120 machines for
producing value added products i.e. bed sheet sets, quilt covers, comforter shells, pillow
covers, curtains, table cloth and also ready made garments.
Equitation of the best possible quality control equipments ensures best quality products.
STIL has a most modern and latest computerized equipments in its laboratory for every test
required for fabric, including shrinkage, rubbing fastness, pilling, light fastness, bowing
and washing of the fabric. In Sitara textile during my internship I noticed that STIL is one
of the major exporter in cloth sector of Pakistan. They are very properly contributed their
share in earning foreign exchange. According to my information STIL is earning more than
30 million US $ foreign exchange, and 90 % of the products have been exported while 10
% are sent to the major cities in Pakistan. And this 10 %, which is sent to local market, has
a very good reputation in Pakistani market.
There is no doubt that STIL is one of the leading companies in textile export in Pakistan,
but they achieve this position after many years of hard work and entering efforts. One thing
that I want to discuss here is that the wordings of the STIL, s chief executive to all the
managers and employees that, “ do work as that the whole company depends on you” and
CEO gives proper attention to all employees of the STIL.
During my intern ship in concluded that the following factors contribute in the success
and popularity of STIL. These factors are as follows.
The first thing which count in the success of every organization is the environment of the
organization, during my internship one thing which inspires me is the friendly
environment of STIL. The behavior of employees with each other and especially with
juniors as well as with internees. The CEO of STIL daily visits the all department and
personally knows about the work progress and difficulties during working of the
employees. Here one concept arises that the employees feed proud when they meet with
CEO and directly convey their problems to CEO.
In STIL there is a modern and sophisticated processing plant consisting of singeing,
shearing, continues bleaching, dyeing, mercerizing and calendaring both normal and
friction. Printing department is equipped with two rotary printing installations from J-
Zimmer Austria, having all modern arrangements to handle cotton and polycotton fabrics.
It can produce printed fabric up to 280 cm finished width in maximum of 8 colored
designs.
The presence of centrally air-conditioned laboratory, all the machinery of laboratory is
imported from foreign countries to ensure the quality of the product according to the
standards set by the customers. The laboratory is playing its key role in all the departments
in providing 100 % correct result in all fields of processing department. The entire
production department cannot work properly with out the presence of laboratory.
Definitely the laboratory is the backbone of Sitara textile.
An other factor that counts much in the success of STIL is the strict rules and regulations
of the organization. The credit of this goes to the human resource department. The
management and the employees have to abide by these rules and regulation in every
circumstance. The shifting time, Lunchtime and the HR department very strictly observes
closing time.
The most important factor is customer satisfaction. The satisfaction of customer is the
priority of STIL’s management. The STIL producing good quality products and exported
90 % of there products. I noted during my internship that proper care is given to the export
quality cloth during processing so that the customer must be satisfied with the quality,
which he receives from STIL. The bleaching dyeing, printing, finishing even packing of
export quality cloth is done taking in to consideration the requirements and demands of the
foreign parties concerned.
One thing that is the positive point for inexperienced persons that STIL offers variety of
training programs for the peoples coming from different institutions and fields. In the
entire department the peoples from different institutions and fields get proper training for
the betterment of there future.
The last but not the least important factor is the introduction of the computer technology in
all the departments. The computer system has increased the efficiency and effectiveness of
work by decreasing work time, load and labor. STIL is not only arranged computer system
in their organization but they also managed special short term training programs for the
employees so that they can use the computer system properly.
During my internship I noted that the Sitara group of industries is a big group. The Sitara
spinning is providing very fine quality yarn where as Sitara chemicals are producing fine
export quality chemicals and these things are necessary for the textile industry. Sitara
textile gets the yarn and chemicals from these units and thus they have assured the
continues supply of these and hence the shortage of yarn or unavailability of chemicals like
problems have been totally terminate by Sitara textile and this is the apparent cause of their
rapid success.
The other factor is the design studio of STIL. The designers of STIL are very skilled
persons and they are expert in there fields. The design store is producing very good,
innovative and unmatched designs, which really play important role in popularity and
acceptance of Sitar’s products. AZIZ FATIMA TRUST HOSPITAL is one of the
prominent health institutions in Faisalabad, which provides medical relief to the poor and
needy. It is run by donations of Sitara Group of Industries. The Hospital is equipped with
latest medical fixtures, equipment and instruments. It has almost all of the necessary
departments such as Medical, Endoscopies, Haemodialysis, CCU, Neurology, Radiology,
Pathology, Pediatrics, Gynecology, Urology, Eyes, and ENTand Orthopedic. It has highly
qualified and experienced doctors, specialists and other pera medical and administrative
staff. GHAFOOR BASHR CHILDREN AND MATERNITY HOSPITAL This hospital
has two operation theaters, recovery room, labour room and an I.C.U. Hospital Pediatric,
Pathology, Radiology and Anesthesia Departments situated in a very beautiful building
equipped with all modern facilities.
AZIZ FATIMA GIRLS HIGH SCHOOL This school is situated in Gulshan-e-Eqbal to
provide quality education at doorstep to the girls residing in this area. It has highly
qualified and trained teachers. School has just started its first educational year.
Sitara textile industry also provides residential facility to their employees, for this purpose
they have a Sitara colony, which is situated, at the rare site of the textile. The residential
facility is available for both the employees and trainees living out side the city. The
employees have to pay very small amount as fare where as this facility is free for the
trainees.

REFERENCES & SOURCES

MR.MUHAMMAD AWAIS G.M.EXPORTS (MARKETING)

MR.NASRULLAH DY.MANAGER EXPORTS

CH.MUHAMMAD SALEEM PERSONNAL MANAGER

SOURCES