Bed Wear - Multan
Bed Wear - Multan
Bed Wear - Multan
BED WEAR
MULTAN
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Cluster Profile Bed wear, Multan
TABLE OF CONTENTS
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Cluster Profile Bed wear, Multan
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Cluster Profile Bed wear, Multan
1 Description of Cluster
1.1 Defining the Products
Bed linen has been defined in Fairchild’s dictionary of Textile as collective term for
various articles used on bed, especially sheets and pillow cases but blankets are not
included. Formerly, bed wears were made of linen but now may be made of pure cotton,
blends cotton and man made fibers or nylon. The term bed wear is used in textile industry
of Pakistan for items used on bed. Thus Bed wear is synonymous with bed linen.
1.2 Geographical Location
Major clusters of bed linen are in Karachi, Lahore, Faisalabad, Multan and Hyderabad.
The presence of power loom cluster in these areas strengthens the cluster of bed wear in
the area.
1.3 Core Cluster Actors
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Cluster Profile Bed wear, Multan
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Cluster Profile Bed wear, Multan
It is obvious from the data that bed wear export from Pakistan makes steady growth since
1994-1995 and has arisen from 6.5% to about 17.9 % of total textile export of Pakistan in
2002-2003. In the year 2002-03 export of bed wear from Pakistan crossed the one billion
US$ for the first time in the history of the country. And in 2004-2005 it about 16.2%
which is also significant percentage even anti dumping duty is in play since March 2004.
Upward trend in bed linen export from Pakistan continued despite of 6.4% anti dumping
duty in 1998. However, at that time three major exporters were excluded from this
dumping margin Gul Ahmad textile Ltd, Al Karam Tex, Muhammad Farooq Tex
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Cluster Profile Bed wear, Multan
Textile exports in form Pakistan in general and value added export in particular suffered a
drastic set back in consequences of tragic event of eleven September. The decision of
Govt. of Pakistan to join coalition forces in fight against terrorism was based on
principles. Afterward both USA and E.U offered aid packages in which value added
export from Pakistan like ready made garments, finished cloths, knitwear and tarpaulin
were exempted from import duty with effect from January 01, 2002
Further export quota of Pakistan for textile and clothing was increased by 15% and anti
dumping duty of 6.4% on import of bed linen from Pakistan was terminated.
Direct result of the concession provided by EU was a surge in bed linen exports to EU.
The value of bed linen export to EU increased to 350 million US$ which was 26.52% of
the value of total export of bed linen from Pakistan. This phenomenon gave a boom to
bed wear export in 2002-03 and export of the product cross the figure of one billion US$.
The European Commission has again imposed 13.1% anti dumping duty with the effect
from March 18, 2004. The imposition of duty has adversely affected the export of bed
wear .Afterward export of the product is increasing with decreasing rate.
Value 000US$
Duration BEDWEAR EXPORT % OF INCREASE
2000-2001 744,883 5%
2001-2002 918,558 23%
2002-2003 1,329,064 45%
2003-2004 1,383,334 4%
2004-2005 1,449,533 5%
Besides imposition of anti dumping duty at rate 13.1%, the concessions under GSP also
withdraw and a custom duty with rate of 12% implemented.
The manufactures of bed wear enter into WTO regime with the burden of 25% additional
duties. The effect of additional duties is obvious from the data.
Pakistani bed linen prices have increased a lot in the European market when compared to
the prices of the same products of its competitors such as China and India.
1.6 Anti Dumping Duty
Company by Company Revision of anti-dumping duties reduced the duty rates range
from 4.2 per cent to 17.3 per cent, depending upon the company concerned.
The Revision of provisional anti dumping duty for Pakistani bed wear companies hits
the Younus Textile at the lowest rate and Chenab Textile at the highest rate.
Table 2: Rate of Anti Dumping Duties Imposed on Pakistani Comapnies
Companies Old Rates New Rates
Chenab Tex 13.10% 17.10%
Gul Ahmad 13.10% 14.00%
Lucky Textile 13.10% %9.10
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Cluster Profile Bed wear, Multan
Pakistan is ineligible for the EU's Generalized System of Preferences (GSP) programme
before 2006 so firms also have to pay the 12 per cent third country tariff.
The Chenab Textile will have to pay 17.3 per cent anti-dumping duties, its total tariff on
bed linen exports to the EU will amount to 29.3 per cent.
The grey fabric is provided to printing & processing unit and printing charges are paid to
get printing according to the given designs and colors. The other possible option used in
the market is to directly buy printed fabric from the market and convert it into Bed Linen.
Once the bed sheet is stitched, final inspection is done. All the sheets are checked for any
defective stitching or loose threads and then they are packed in polyethylene bags along
with insert, which is the printed material with brand name etc and card called stiffener.
2.2 Raw Material
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Cluster Profile Bed wear, Multan
Woven fabric may be 100% cotton for cotton bed wears and fabric may be polyester
cotton mix for poly cotton bed wears
• Stitching Thread & Other Accessories
• Packaging Material
Stitching thread and packaging material are easily available in the local market.
Packaging material consists of stiffener, which is of cardboard material, an insert, which
is a printed material with company’s name and design and polyetnene bag, which is the
plastic cover.
The old machine needs to be changed for increased productivity and better quality. For
cutting procedure electric cutter is being used, these cutter are usually imported from
Korea, Japan Germany. In the industry mostly recondition cutters are used.
As for as stitching is concern three type of stitching machines are being used
• Safety Machine
• Safety cover machine
• Juke machines
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Cluster Profile Bed wear, Multan
Most of bed wear manufacturers use 2nd hand imported machines which cost them about
17000 to 20000 rupees but new one cost bout 56000,
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Cluster Profile Bed wear, Multan
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Cluster Profile Bed wear, Multan
3 Institutional Setup
3.1 Associations of Bed wear In Pakistan.
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Cluster Profile Bed wear, Multan
• Crescent Leasing
3.6 Role of Commercial Banks
All most all Commercial Banks are willing to provide short term revolving finances to
bed wear producers. But the finances have strict criteria and all such finances are
collateral bases loans. And if bed wear manufacturers could not offer any collateral, he
could not avail this facility despite SBP promises collateral free loan to SME up to 2
million in its prudential rules. Some prominent Banks having SME product are
• HBL
• PICIC Commercial
• Alfalah Bank
• Muslim Commercial Bank
• Askari Commercial Bank
3.7 Private BDS Providers
The Bed wear cluster usually avail the services of following private service providers
• Income Tax consultant
• Sales Tax Consultants
• Goods Forwarding Agents
• Goods Clearing Agents
• Financial Consultants
• IT Consultants
4 SWOT
4.1 Strengths
• Availability of labor at cheap rates
• Abundance availability of woven fabric for almost all varieties used for bed wear
manufacturing.
4.2 Weaknesses
• High rates of electricity
• No research and development in this sector
• Reliance on obsolete technology power looms for the production of fabrics for bed
wears
4.3 Opportunities
• Increasing demand internationally
• Top brands prefer out sourcing from developing countries
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Cluster Profile Bed wear, Multan
4.4 Threats
• Anti dumping duty by EU
• ever increasing charges of power
• Tough time by the produce of bed wear of china
5 Recommendations
5.1 Separate Classification for Institutional Bed wear.
Separate classification for institutional bed linen like hotels, hospitals is suggested.
Obliviously it would be in interest of Pakistani bed linen manufacturers, it would be out
preview of antidumping duty.
5.2 Technology Up-gradation
Reliance on low technology power looms for the production of fabrics for bed wears
should be reduced and the number of shuttle less looms should be increased which have
the capacity to produce wider width superior quality fabric for the international market.
In 90’s the installation of these shuttle less looms was initiated in independent units.
There number is around 15000, which is not comparable to countries like South Korea,
Japan who have more than 50,000 of such looms. The most unfortunate thing is the deep
financial crisis faced by this vital value added sector from its beginning. The increase in
cotton prices resulting in proportionate increase in yarn price coupled with the increase in
the cost of other inputs such as financial changes, electricity, labor, etc. has crippled the
financial viability of the shuttle less weaving sector in Pakistan. Special credit scheme
may offer for replacement of obsolete technology.
There are almost 250,000 power looms operating in the country and 90% of them are
plain looms. Further, most of them are of shorter width. There is need to replace old
machinery with modern one with broader width production capacity to meet the new
trends in Bed wear.
5.3 Marketing Research and Development Centers
The potential of growth in bed wear textiles is tremendous, but industry entrepreneurs
have to understand the importance and urgent need for research based marketing studies,
they must hire marketing professionals.
In comparison to our real potential competitors, such as China, India, Bangladesh and Sri
Lanka, textile industry and government combined, spends a negligible amount of money
on focused research and development. Bed wear is 3rd largest exportable commodity of
Pakistan and is important sub sector of textile industry so there must be an institution for
marketing research and development in our embassies in foreign countries who should be
responsible to pass on latest information market development to Pakistani entrepreneurs.
It would be helpful in product development.
5.4 Human Capital Formation
Human Resources Development is the most critical area of intervention. In order to
achieve high degree of value addition through making the bed wear and textile made-ups
sector the engine of exports growth The focus has to be laid on structured training
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Cluster Profile Bed wear, Multan
programs with the objective to ensure a consistent supply of well equipped manpower.
The highest value addition in the textile sector can only be achieved through a rapid
development of manpower, equipped with the requisite skills to enable the country to
compete in international markets.
5.5 Quality Control and Quality Assurance
Manufacturer ensures the quality, when product is completed after all the manufacturing
processes and poor quality pieces rejected.
It is advisable that manufacturer must introduce quality check in production process and
ensure the quality while the product in the manufacturing steps to reduce the production
cost.
5.6 Social Security on Handlooms
Social Security do not bifurcate labor intensive and capital intensive businesses. The
handloom sector labor intensive and production is very low and sector has to pay at same
rate on their number of employees. If separate rate impose on hand loom than it would
reduced the cost of hand loom weaved Bed wear.
6 Investment Opportunities
Keeping in view presence of various Textile sub sectors including ginning, spinning and
weaving, investment opportunities exist for Value Added Textile Products including:
• Sports Socks
• Bathrobes
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Cluster Profile Bed wear, Multan
7 Annexure
7.1 Annexure-I: List of Pre-feasibility Studies
List of pre-feasibility studies developed by SMEDA related to furniture sector are given
in table below
Annexure 1: Cluster Related list of Pre-feasibility Studies
Serial Title of Pre-feasibility Studies
1. Bed wear Stitching Unit
2. Sports Socks Manufacturing Unit
3. Yarn Dyeing
4. Fabric Weaving
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