INTRODUCTION OF THE COMPANY

INTRODUCTION
TEXTILE INDUSTRY OF PAKISTAN

In 1947, at the time of independence Pakistan Textile Industry was like a feeble child
with only three cotton mills, a small woolen spinning, whereas weaving, hosiery and
knitwear were features of cottage industry. Now when we have entered into new
millennium, Pakistans Textile Industry has become a stalwart fellow, which has grown in
all sections. Now we are not only self-sufficient but are also exporting surplus products.
Today we have over 8.358 million installed spindles, 166,00 installed rotors 20,00 shuttle
less looms, 200,00 power looms, 8,00 terry towel looms, 7620 canvas looms, 157,00
woolen/worsted installed spindles, 15,00 woolen looms, 12,00 knitting machines, over
600 processing units and over 2500 garments units.
We all know, journey of textiles starts from seed and culminates at ready-to-wear
garments and in present competitive world scenario, it is combination of high production
efficiencies, most appropriate technologies and work methods, together with trained work
force, management and marketing skills which can give any industry a successful status.
Textile industry today is the backbone of economy of Pakistan and provides the largest
number i.e. about 40% of total industrial jobs and very vast industrial service
opportunities. It has always been the pillar of Pakistans economy contributing
substantially to Govt. revenues. It also has a dual linkage. As a major consumer of
domestic cotton,

It provides a market for a leading cash crop and thus has a critical influence on the
growth and productivity in agrarian sector. Hence the performance of the textile industry
has a vital impact on the overall growth and development of the economy. The industry
also tops, as an earner of ever-so- scarce foreign exchange and exported goods worth US
$4.9billion last year and this amount is about 60% of the total national exports. Its share in
total GDP is 8.5%. The investment in Textile Industry is 31% of total investment. The
interest that banks and other financial institutions earn from Textile sector is RS. 4 billion
per annum. The salaries and wages that Textile sector provides to workers is Rs. 40 billion
per annum. Its contribution to R & D is RS.116 million per annum. This very remarkable
achievement did not come easily and is due to the combined and tireless efforts of the
Govt. Planners, industrialists, technical support staff and our hard working and
inexpensive labor. On the top of these, Pakistan has been blessed with suitable climate and
perennial supply of good quality water to grow about 1.7 million tons per annum of the
lint cotton, the silver fiber that forms a natural and sound base for a viable textile
industry. Pakistan textile industry consumed 1441 million Kg raw cotton and 406 million
Kg fiber during 1998-1999.

UUE Profile:
Mr Umar Usman who was the founder established Umar Usman Enterprise limited in
2000 and now Mr. Umar usman is the chief executive. The Umar Usman Enterprise is
established under the company ordinance 1984.
. The company has modern computerized networking system. All the Accounting and
finance relating work is carried out through computer. The company has capability in
fabric, ginning spinning, knitting laundry and apparel provided there customer.
The companys apparel division, which is provide high quality garments, is
situated at 26 p jinah colony , near nishat cinema, Faisalabad. But its registered office has
shifted to mitgumrhy Bazar Faisalabad.
The company implements the quality system and had awarded ISO 9002
certificate. The company maintains quality standard at all levels to establish consistency
and efficiency. The company is exporting its products to U.S.A.U.K. and Germany.

Vision Statement

A leading provide the textile products by producing the highest quality of products
and services to its customers.

To strive for excellence through commitment, integrity, honesty and team work.

Highly ethical company and be repeated corporate citizen to continue playing due
role in the social and environmental sectors of the company.

To develop and extremely motivated and professional trained work force, which
would drive growth through innovation and renovation.

Sustained growth in earning in real terms.

Mission Statement:

Our mission is to be a dynamic, profitable and growth oriented company by

providing good return on investment to its shareholders and investors, quality products to
its customers, a secured and friendly environment place of work to its employees and to
project Pakistans image in the international market

CHAIRMAN/CHIEF EXECUTIV OFFICER:

MR.Umar Usman
DIRECTORS:
CH. Shekel Ahmad
Rana Altaf sb
CHIEF FINANCIAL OFFICER:
MR. BINYAMIN

COMPANY SECRETARY:
MR. ABDUL BARI HAQQANI
AUDITORS:
M/S RUAZ AHMAD CHARTERED ACCOUNTANTS

BANKERS:
HABIB BANK LIMITED
MCB LIMITED
REGISTERED OFFICE:
JINNAH COLONY, P-26, FAISALABAD, PAKISTAN

History of UUE:

Umar Usman Enterprise were incorporated in 2000 with 2 braches. It is a Pvt

limited company with its registered office at Faisalabad . It is vertically integrated textile
unit. It has deal with own spinning, knitting, processing and stitching units in faisalabad.
Initially it was only deal with in spinning. But in 2002 company changed its strategy in
adding up most process and disposed off three spinning units. In 2005 enterprises made its
own garments units with only 5 stitching machines but today it has about 10 stitching
machines of different brands. All credit of this success goes to visionary personality of
Mr.Umar Usman, the Chief Executive of the company.

They always to deal with the best textile mills in creating, developing and
manufacturing of knitted apparel products right from basic to highly fashioned garments
thus responding to emerging trends in the industry. They translate conceptual ideas of our
customers into reality and shape them through our technical bent and professional
acumen. The team here strongly believes that Customer satisfaction is the essence of
business today. UUE has the technology with expertise, products with knowledge and
most importantly the right mindset to achieve total customer satisfaction.

Turn Over History

Largest Knitwear Exporting Company of the country.

Turn Over
in Millions(Rs.)

AWARDS

Faisalabad Chamber of Commerce

FTL has awarded UUE.

Divisional Quality Award 2005

JCPenney has awarded UUE "Divisional Quality Award".

Operational Excellence Award for 2002

FTL has awarded UUE "Accuracy of Information and Compliance Supplier Award ".

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Production Details of UUE:

1. Umar Usman Enterprise were incorporated in 1984 with 3 spinning mills. It is a
public limited company with its registered office at Faisalabad and listed in all
stock exchanges of Pakistan. It is vertically integrated textile unit. It has its own
spinning, knitting, processing and stitching units. Initially it was engaged only in
spinning. But in 1993 company changed its strategy in adding up most process and
disposed off three spinning units. In 1995 company made its own garments units
with only 35 stitching machines but today it has about 1000 stitching machines of
different brands. All credit of this success goes to visionary personality of Mr.
Anosh, the Chief Executive of the company.
2. They strive to lead in creating, developing and manufacturing of knitted apparel
products right from basic to highly fashioned garments thus responding to
emerging trends in the industry. They translate conceptual ideas of our customers
into reality and shape them through our technical bent and professional acumen.
The team here strongly believes that Customer satisfaction is the essence of
business today. UUE has the technology with expertise, products with knowledge
and most importantly the right mindset to achieve total customer satisfaction.

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Business Principles of UUE:

Corporate Objectives
To maximize the wealth of shareholders, increase market share and achieve customer
satisfaction. Making arrangements towards achieving total quality standards, to get growth
through professional management, to reduce the cost of production up to minimum level,
to control the atmosphere by installation of latest machinery, to continue to improve /
surpass past achievement.
To lead the local manufacturers, attain a good word of mouth and to make company
image stronger in the international market.

Quality and ISO 9000 in Umar Usman Enterprise

UUE has ISO 9002 certification and the registration # 99086699. We have the logo of
three accreditation bodies ANSI RAB USA, UKS UK. MOODY conducted DAR/TAG
Germany and the audits.
What is ISO (International Standards Organization) a worldwide body that prepares
and issues the standards?
What is quality? Performance on the parameter or customer satisfaction is called
quality.
What is quality assurance? All actions necessary to ensure that a product and services
will be satisfy all quality requirements and provide the consistency in the product.
What is Total Quality Management (TQM)? A management approach based on the
participation in the quality of every member of an organization to delight all customers

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How does UUE maintain these factors?

UUE Textile 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

Quality Control System at UUE:

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/cm 2 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 in line
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 b 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 ease the garments, has been packed in. With
the help of this, we plan to achieve the Zero Defect Level.

Corrective and preventative Action:

UUE has a very strong corrective and preventative action plan. UUE has centralized the
corrective action and controls the non-conformity arising in the system. If necessary the

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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.

ISO & TQM:

ISO department provides a management system at UUE, which is free of nonconformance. The department has training system that creates awareness of Total Quality
Management System (TQM). All the departments and people at all involved in this
program. UUE has a team of qualified and certified auditor who would check, improve
and ensure the consistency in the system.

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Organizations Values:

Trust

Integrity

Respect

Customer profile
Umar Usman Enterprise has also proud of work best Labels like
1 Nishat textile mill fsd
2 Hilal textile mill fsd

Corporate Objectives:
1. Maximization of wealth of shareholders.
2. To increase market share
3. To achieve customer satisfaction.
4. Making arrangements towards achieving total quality standards.
5. To get growth through professional management.
6. To growth through professional up to minimum level.
7. To control the atmosphere by installation of dated machinery.
8. To continue to improve/ surpass past achievement.
9. To lead the local manufactures.
10. To attain a good word of mouth and to make company image.
11. Stronger in the international market

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Management and Departmental Hierarchy in UUE apparel division:

1. Merchandising
2. Production the goods on customer order
3. Industrial engineering
4. Production which receive other textile mill
i. Cutting
ii. Stitching
iii. Finishing
iv. Clipping
v. Packing
vi. Shipment
5. Quality assurance
6. Quality control
7. Human Resource
8. Information Technology
9. Procurement
10. Finance
11. Forwarding
12. Stores
13. Marketing
14. Transportation
15. Compliance
16. Washing

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Management Hierarchy in UUE

Chief Executive
Officer

Top Management

General Manager

Middle Management
Manager

Senior

Deputy

Assistant

Officer

Manager

Manager

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Officer

Lower Level Management

Supervisor

Helpers

Foreman

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Operators

DEPARTMENTALIZATION

Departmentalization is the arrangement of Individuals job activities into groups and these
groups are combined to from larger department and units to form the total organization

The Departmentalization in UUE TEXTILE is very clear. These departments are Human
resources, marketing, finance, production, export, purchasing, administration and quality
assurance.
Except quality assurance all department are under the supervision.

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COMPANY ANALYSIS
SWOT Analysis
SWOT Analysis is necessary for the smooth functioning of every business. Following is a
brief SWOT analysis.

Strength

Specialist Financial expertise.

New and innovative product or service

Location of business

Quality processes and procedures

Weaknesses

Lack of marketing expertise

Undifferentiated products and service (i.e. In relation to competitors)

Poor quality goods or services ( for local customers)

Damaged reputation

Opportunities:

Developing market such as the Internet.

Mergers, joint ventures or strategic alliances

Moving into new market segments that offer improved profits

New international market

Market vacated by an ineffective competitor

Threats:

New competitor in your home market

Price wars with competitors

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Competitor has a new, innovative product

Competitors have superior access to channels of distribution

Taxation is introduced on your product

BCG Matrix:

Boston Consulting Group is used to help corporations with analyzing their business units
or product lines. This helps the company allocate resources and is used as an analytical
tool in brand marketing, product management, strategic management, and portfolio
analysis.
UUE is divided its channels according to its program
Existing channels

Profitability

Nishat

65%

Hilal

80%%

Indus

75%

Zhaid g

100%

Mustak

60%

Levis

40%

NIshat is not only has the largest revenues, but also enjoys the largest market share of all
Textile Industries operating in the country, in term of Production. It has high market share
and market growth is also very not low so we put it in the category of Super Stars.

Hilal show market growth is high and market share is also high so we put it in the
category of Stars.

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Indushas market share not much low but till not high and show market growth is very
high so it is in the category of starting stars and all other competitors rest in the
Question mark.

Growth Strategies:

Existing

Existing Products

New Products

1.Market penetration

3.Product development

2. Market development

4.Diversification

Markets
New Markets

Market Penetration:

Market penetration means a strategy for companys growth by increasing sales of current
products tocurrent market segments without changing the product. UUE has a better
market penetration. Many modifications come in UUE. For example: Now a days Fair
Price Storeentertain the people very well.

Product Development:
Product Development means a strategy for company growth by offering modified or new
products to current market segments. For example: They are now offering Hand Made
Trousers.

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Market Development
Market Development means a strategy for company growth by identifying and developing
new market segments for current company products. For example: UUE is now offering
apparel manufacturing.

Market Diversification
Diversification means a strategy for company growth by starting up or acquiring
businesses outside the companys current products and markets. It is no diversification in
UUE.

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Financial Analysis

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In 2008 Deffered income on sale and lease back of operating fixed asset are 4,891 and in
2009 it is decreased by 2,515
In 2008 total equity and liabilities are 8,234,421 and in 2009 it rose to 9,621,739
In 2008 non current assets are 3,047,941 and in 2009 it rose to 3,166,615
And current assets in 2008 are 5,186,480 and in 2009 it is increase by 6,455,124
So total assets in 2008 are 8,234,421 and in 2009 it is increase by 9,621,739
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