Business Dynamics |
Final Project |
STITICHIG UNIT
(Men’s Dress Trousers)
Reasons for Business Idea: |
- It’s an increasingly global business, and offers many who work in it the opportunity to broaden their horizons, whether through travel or regular communication with other people around the world.
- What’s hot and what are not are constantly changing, and so even the worst fashion “Miss” will be forgotten eventually and can recover relatively quickly. There’s always next season
- It’s a people business touches consumers lives on a very personal level on a very regular basis
- Clothing is one of the three necessities of life, along with with food and shelter, so there’s bound to always be demand
- There is a “ready made” market for this product.
- Relatively low labour costs.
- Well situated industrial estate with all main facilities available
- One of fastest growing industry in the world especially in developing countries.
- Government policies favour the export of garment.
- Less duty and taxes on export
- It’s a fast-paced business in which instincts, a strong set of nerves and street smarts often triumph, and that means lots of interesting people with whome to work.
- Almost all types of classes use these products but the difference is only quality.
- There is an adequate and effective demand nationally and internationally.
-
New or Existing: |
We are going to start a new business as by considering following pros an cons We selected the business as
v Potential for higher earnings
v Make decisions about the direction of our company and career
v More responsibility
v Potential for favorable tax benefits
v No unemployment insurance or worker’s compensation, as an independent
v Income may be erratic or difficult to collect
v Cost of doing business may be more than you anticipate
v We can arrange necessary finance for the project
v Select site of our own choice
We did not chose to buy the existing business because |
v A large Investment is required
v Business transfer costs i.e. solicitors, surveys, accountants etc.
v A large amount of time and travel required to research the opportunities available may require relocating your self/family.
v Site selected for the business may be main cause of its failure or low profit and may require to relocate the whole set up so money will be wasted in relocating the whole project
v It need to invest a large amount up front, and will also have to budget for professional fees for solicitors, surveyors, accountants etc.
v If the business has been neglected one may need to invest quite a bit more on top of the purchase price to give it the best chance of success
v It becomes obligatory to honoure or renegotiate any outstanding contracts the previous owner leaves place.
CUSTOMERS: |
Our customers are of two types
1) Local
2) Export
In case of direct exports, the customers are retail chain stores, direct distribution and wholesalers. The export can either be through buying houses and/or through direct customers. And in case of local our target customer will be whole sellers and distributors
COMPETITORS: |
Major concentration of the garment stitching industry is in Karachi and Lahore Faisalabad and Gujranwala
RAJBY Industries | |
Ali Murtaza Associates Pvt Ltd. | |
M/s Azgard Nine Ltd. | |
Talon Sports Pvt Ltd | |
M/s Digital Apparel Pvt Ltd. |
POTENTIAL FOR SUCCESS: |
There is a good potential in the garment business despite the fact that a good number of units are already in operation. This is due to the fact that the trend of usage of all sorts is at rise. The commercial viability of this trousers & pent & coats manufacturing unit depends on regular business orders to operate the unit for at least 300 days a year .This requires aggressive marketing efforts at the entrepreneur’s end. The local as well as foreign markets have to be identified and approached in order to get the business and to keep the unit running efficiently.
Following are some other points that have to be ensured to make the business successful:
· Assurance of high consistent quality.
· Surety of products on time delivery
· Competitive Rates
· Cost efficiency through better managerial techniques
· Better communication development through aggressive marketing
· To sharpen consumer insights to understand and meet their needs with value-added differentiated products which are safe, effective & fast
· To contribute whole-heartedly towards the environment and society and to emerge as a model firm.
1 INTRODUCTION |
1.1 Project brief |
This Project provides information and guideline about the investment
This unit has great potential in the export as well as in the local market and therefore will earn foreign exchange for the country. There is a vast variety in dress Trousers in relation to quality of the fabric used, style, stitching techniques, etc. This project will start its operation on CMT1 basis (commercial basis), but ultimately, this would be an export oriented unit. Problems like lower margin and longer cash cycles are not prevalent in the export business because it is operated on LCs (letter of credit) basis. This unit will also capable of producing other similar garments like twill and denim trousers with little
Modification of process.
1.2 |
The main competitive advantage of this industry is the availability of fine quality Organic fiber of Pakistan
Trade in the sector accounts for 53% of the total value of global textiles trade and has been consistently growing since the last two decades. According to WTO estimates, with the elimination of quotas in the year 2005, the total trade of textiles and Clothing will exceed the US $500 billion mark, and this growth will be driven
Primarily by the clothing sector, this will constitute almost 70% of the total trade.
Readymade garments industry of Pakistan
Production in the form of garments. This industry also provides an employment Opportunity for skilled and semi-skilled labor, which is easily available in the areas where the clusters of this industry exist. Needless to say that import of one industrial Sewing machine valued at about US $500 creates 3 jobs and earns US $27,000 per
Year in the shape of foreign exchange.
The development of this industry not only Offers attractive return on capital but is also advantageous to the economy as its Exports maximize value addition to raw cotton. Global textile trade has witnessed certain shifts in the recent times. It is note worthy that over the past decade; clothing trade3 has increased at a faster rate as compared to Textile trade. According to the International Trade Statistics 2001, the textile trade and clothing trade during the year 2000 was $157 billion and $199 billion respectively.
The textile trade has increased at an overall growth rate of 2.5% per Annum, whereas the clothing trade increased by almost 6% per annum from 1990 through 2000. There will be a serious impact on those countries, which would fail to Align themselves quickly with the changing world trade patterns and other evolving (1) Cut, Manufacture and Trim
Market conditions.
Because this project is 100% export oriented, the Government of Pakistan has exempted on the import of machinery by an exporter from custom duty, sales tax and Income tax. The export of trousers are zero rated (sales tax rate zero percent) and the Whole input sales tax is refundable.
This unit can be established with low investment and industrial technological Complications and provides better returns on investments, which are the main Deriving force of medium type industries.
The quotas phase out factor in the year 2005 is also opening new doors of Opportunities in the global trade of garment exports in the coming years. It has been Forecasted, that in the coming days of post quota scenario, specialized and small or medium size garments stitching units will be able to perform in a better way. The Reason for this is a lower cost structure and more developed and concentrated skills to produce the products tailored to the specific consumer needs.
Proposed Capacity |
The proposed unit is able to stitch approximately 800 pieces per day with 40 Stitching machines. During the first two years, the unit will provide CMT services with 40 stitching Machines. This will help to establish harmonized system flow and synergies, which
Will lead to better productivity and efficiency. In the third and forth year, it will start its own manufacturing and export by utilizing 50% of its capacity, remaining 50%
Will continued to be used for CMT. In the fifth year, the unit will utilize 100% of its
Capacity for own manufacture and export.
Project Cost |
The total project cost of this Dress Trouser Manufacturing unit is Rs. 3.28 million. This includes a fixed cost of Rs 2.98 million and a working capital of Rs 0.3 million. 2 The term ‘Textile’ is used in international trade for yarn, fabric and unstitched textile products
3 The term ‘Clothing’ is used in international trade for the stitched or wearable textile products
Garments Stitching Unit (Men’s Dress Trousers)
Location |
Location is key factor for any kind of business project. For the success of any project, the project should be located where skilled manpower is within reach, and where electricity gas water and public transport are easily available.
Easy access to the normal public transport is must for a success of any garment factory /stitching units; otherwise the workers will have to be provided transport in company arranged buses. Potential industrial locations in Pakistan for setting up the unit include Karachi , Hyderabad , sukkur, Rawalpindi , Lahore , Faisalabad , Multan Karachi , Lahore & Faisalabad
We are selected site in Lahore On RAIWIND ROAD because necessary technical and skilled manpower is easily available .Secondly good quality and sufficient quantity of raw material at competitive prices is easily available .Since this industry main target is local market of Lahore and
Major cities of Pakistan and also export oriented, so Lahore
For manufacturing unit with installation of the above said machines, approx 4,500 sq. ft area is required which includes space for admin office, stitching unit and stores .The entire machinery unit will be established in a rented building , which can be easily found in the industrial zones. The rent has been taken as Rs 25,000 per month. The company intends to acquire land on rent for the period of twenty years and will pay its rent on yearly basis
Location |
Location Depends On following factors
v Availability Of Labor
v Availability Of Infra Structure
v Fiscal Incentives
v Possibility R.M
v Social & Economics Regulatory Issues
v Competitors& Customer Issues & Restriction
v Cost Of Land
v Focus Of (Financial Institution)
1) Availiblity Of Labor |
Our site is at RAIWIND ROAD Lahore
2) Availability Of Infrastructure |
On RIYWIND ROAD
3) Fiscal Incentive |
RIYWIND ROAD Basically is that area where a lot of Production Units
Already Working like Textile Units, Leather Units, Automobile Units & Spinning Unit etc. So Government Also gave Tax Exemption near about 2% in this area
4) Availability of Raw Material |
In this area raw material easily available because spinning unit near with this and also at very cheap price and high Quality
5) Cost Of Land |
We are not purchase land .Our plan is hire a building of 4,500 SQFT area at RENT 25,000 per month and 300,000 lac per year
So this way our project cost decreases. It is good for our Project Cost
Table: Total area Requirement
Description | Area in (sq. ft) |
Owner’s Room | 250 |
Accounts & Admin. Cabins | 500 |
Inspection & Cutting Hall | 600 |
Finishing Hall | 600 |
Stitching Hall | 2,050 |
Store | 500 |
Total Area Requirement | 4,500 |
PRODUCTION PROCESS FLOW CHART |
ü Procurement of Finished Fabric |
ü Inspection |
ü Cutting |
ü Stitching |
ü Washing(Outsourced) |
ü Trimming |
ü Final Inspection |
ü Pressing |
ü Packing |
ü Dispatch/Shipment |
CURRENT INDUSTRY STRUCTURE |
The readymade garments industry generally operates on small and medium scale, and mostly, in an unorganized way. According to an estimate, about 70 percent of its units are in the unorganized sector and are established in shops, commercial plazas and houses. These units normally do not have modern machines like over-locking, creasing, buttoning, and cutting. These units are mostly equipped with 4 to 10 machines, which are usually locally, assembled. The locally assembled machines operate at slow speed up to 250 stitches per minutes. The industrial sewing machines are mainly imported from Japan , Italy , Korea and China
These are especially suitable for assembly line operations.
In spite of the fact that industry has shown rapid growth, no figures of production data of formal wear dress pants are available. However, the export data of men’s trousers is available which includes formal wear trousers and casual wear trousers.
Determination of production in this industry is difficult to make. Firstly, due to predominance of unorganized cottage scale units where the major portion of work is performed manually. Secondly, the capacity of the same machines varies significantly. Thirdly, it is easy to switch over from one product to another.
According to Pakistan
Association (PRGMEA), the existing manufacturers of trousers (includes all type of trousers) are concentrated as follows:
Table | 1: Manufacturing Units of Trousers in |
S.No | Location | Nos. | % |
1 | 118 | 55.0 | |
2 | 47 | 22.0 | |
3 | 35 | 16.0 | |
4 | 5 | 2.0 | |
5 | 6 | 3.0 | |
6 | Others | 4 | 1.9 |
Total | 215 | 100% |
4 Source PRGMEA (Pakistan
3 MARKETING |
Marketing
It is a comprehensive business activity which encompasses designing to
PLAN
PRICE
DISTRIBUTE
PRICE
DISTRIBUTE
PROMOTE
The products to satisfy the wants of consumers in specific target markets to achieve prime objective of earning profit for the organsition.
Marketing plan of Super stitch
Product
As we are manufacturing men’s trousers so our product is from the field of garments in which we are manufacturing a rang of men’s wears such as trousers all most all kinds of them and men’s pants as well.
BRAND NAME
The brand of our product rang is SMARTY GARMENTS
PRICE
The price of our product is according to our competitors base price in which we are offering low price than our competitors to our customers that are
Ranged in between RS.(150 to 500)
PLACE
Super stitch is the manufacturer of garments so the location of the unit is in the industrial area of Raiwind road .And the place for the end user is all the retailer market of the garments. We will use the one level of distribution channel in which the customer that are the retailer of the garments order us according to their requirement and we distribute them on demand.
PROMOTION
Under the head of promotion we have the sales department in which our sales persons represents our products to the represent and try to generate new costumers locally
As well as out station areas.
MARKET SEGMENTATION
Our target market is Male with the age of 16 to 40
INCOME level for our customer is RS 3000/- to so on
There are no bounders for religion, language, material status for our product.
COMPETITORS ANALYS
As SUPER STICH is the new born baby in the market, so we are very conscious about our competitors and therefore we have the competitor base price for our products. We have giant’s competitors such as
AZGARD NINE
RAJBY
RAJBY
ACTIVE APERAL, etc.
Swot Analysis |
STRENGTH
We have excellent service dept in which the costumer demand is satisfied in time.
OPERTINUTIES
The main competitive advantage of this industry is the availability of fine quality Organic fiber of Pakistan
WEAKNESS AND THEARTS
We have following weakness and threats:
Continuous increase in utility rates
_ Non friendly attitudes of Government agencies
_ less productive labor due to lack of education and training
_ Lack of market research especially in prospective markets
_ Growing demand for International Standards Certifications
_ Lack of financial and human resources to attain
KEY SUCCESS FACTORS & THREATS |
Key Success Factors |
The changing global trade patterns offer more opportunities than it poses threats. The apparel export product mix from Pakistan
_ Strong marketing skills/knowledge is required from entrepreneur
_ Assurance of high consistent quality
_ Assurance of on time delivery
_ Competitive rates
_ Cost efficiency
_ Better services to the customer i.e. claim settlement etc.
_ Better communication development with customers
Threats and Weakness of the Business |
One major threat that garments manufacturers and exporters from developing Countries like Pakistan
_ Continuous increase in utility rates
_ Non friendly attitudes of Government agencies
_ Less productive labor due to lack of education and training
_ Lack of market research especially in prospective markets
_ Growing demand for International Standards Certifications
_ Lack of financial and human resources to attain
Potential Of Market |
For formulating strategies for marketing in the foreign markets, the following should be considered: A market opportunity analysis to determine suitable sales market(s) and suitable sales channels.
1. Selection of target markets to identify suitable markets for selling trousers. The evaluation is based on the following five criteria:
a. Market potential
b. Product standard
c. Trade situation
d. Export conditions
e. Exporting experience (exporting country)
2. Sales channel assessment to estimate the requirements of potential sales channels in respect to product standards, logistics and marketing. The sales channel within the international market must be assessed and identified on each particular market, which best suits the product and the unit.
3. Company assessments of the unit’s performance in respect to product standards, logistics and marketing.
4. Supply and demand comparison to compare the requirement of the sales
Channels with the unit’s performance, so as to identify the most suitable sales channel(s) Building up trade relations consists of the following:
a. Reviewing the product mix, packaging, seasonal influences
b. Identifying a suitable trade partner
c. Participation in trade fairs
d. Organizing sales campaign by internet, e-mail, Fax and telephone
e. Drawing up an offer
f. Free sampling and personal visits
g. Handling up contract
h. Sales promotion
While the USA and the European Union remains to be the largest markets for Garments and other apparel products with a combined share of 73% in total global clothing trade, the apparel production centers are shifting to the countries with lower production cost and/or strategic geographic location. Asian countries have the advantage, especially in the first case with low wage rates and indigenous production of the major raw materials. In 1997, over 59% of textile exports and 70% of clothing export originated from Asia . However, this competitive advantage of Asia is vulnerable to two basic developments; one is the emerging regional trade blocks that
Allow for preferential trade treatments and the other is the threat from countries that are located on the borders of major markets.
Apparel is a rapidly changing business with very short product life cycles; consumer preference depends not only on seasons but also on numerous other factors. Responding quickly to these changing demands is vital for the success of garment exports. Countries like Mexico and Turkey
Competition to the exporters from Asia .
At present, the major thrust of garment exports from Pakistan is on the USA Pakistan
Manufactures have so far not been able to explore include the Japanese market, the Far East and some markets in the European Union. These markets demand high product standards and in return offer higher unit price realizations.
Marketing research and development is one of the fundamental aspects that our industry lacks.
Garment industry in Pakistan
With little resources available for marketing purposes. Pakistan
I.e. post January 1, 2005 scene. The three important factors that the exporter must adhere to are 3 Cs i.e. compatibility, competitiveness and credibility on an individual level and on a collective level.
SALES AND DISTRIBUTION METHOD |
There is wide variety of possible distribution channels available for garment products. These are following
ü Retail outlets owned by your company or by an independent merchant or chain |
ü Wholesale outlets of your own or those of independent distributors or brokers |
ü Sales force compensated by salary. commission, or both |
ü Direct mail via you own catalog or flyers |
ü Telemarketing on your own or through a contract firm |
ü Cyber marketing, surfing the newest frontier |
ü TV and Cable direct marketing and home shopping channels |
Business Stages |
There are three business stages which are following
Ø Existing Stage
Ø Survival Stage
Ø Success Stage
v Existing Business
Our business is at existing stage because it is new business not existing business
There are following steps in the Existing Business
· Pre_Investment
· Investment
· Operation
1) Pre_Investment.
In this stage business planning formed to attain the better results in the operations of business.
2) Investment.
Investment means different types of initial expenditures for existing the business like gas, electricity bills.
3) Operation.
Means transactions of business started or in other words flow of business
10 REGULATIONS |
_ for an exporter, registration is compulsory with Income Tax Department,
Chamber of Commerce and Industry, Sales Tax Department and Export Promotion Bureau.
_ Income tax on export is deducted at source on export proceeds at the rate of 0.75%, which is full and final discharge of income tax liability.
_ Sales tax on export is charged at zero percent called zero-rated and whole input sales tax consumed in exports is refundable.
_ if the project is 100% export oriented there is an exemption of custom duty, sales tax, income tax, on the import of machinery by an exporter.
_ Government provides an export rebate of 2.62% of the F.O.B value on Trousers export.
RAW MATERIAL |
The basic raw material for the manufacturing of dress trousers is dyed woven fabric with different sorts of finishes on it. The woven fabric that is used in the manufacturing of dress trousers is made of cotton, or polyester/cotton (P/C), wool and other blends of man-made fibers. The weight of these fabrics normally varies from 200-240 grams/sq. m (for the light qualities of P/C 65:35 fabrics) and from 240-300 gram/sq. m (for heavy qualities of P/C 65:35 fabrics). In case of 100% cotton, light quality fabric weight should be at least 180 grams/ sq. m.
For the fabric Of blended 50/50 polyester/cotton, the weight varies from 100 grams/ sq. m (plain) to 215 gram sq. m (twill). The weight of the finish is not included in these figures. Prices of these fabrics range from Rs. 60 to Rs. 3000 per meter. During the last few years, the Dyeing and Finishing Industry has performed remarkably. Traditionally, the grieve fabric was being exported and the dyed fabric was then imported at a higher price. But due to the installation of new dyeing plants, production of high quality dyed finished fabric has increased.
This has helped in the reduction of the cost of finished fabric. The industry uses both locally produced and imported raw materials, but it mainly uses locally produced raw material. Some exporters however, prefer to purchase yarn, and process it by paying service charges according to their own requirement and buyers specification. This strategy also further reduces the cost of fabric. The last five years production of cloth by mill and non-mill sector is given below in the following table:
Table | 1: Production of Cloths (Million sq. Meter) 12 |
Year | Mill Sector | Non Mill Sector | Total |
1995-96 | 327 | 3,379 | 3,706 |
1996-97 | 333 | 3,448 | 3,781 |
1997-98 | 340 | 3,573 | 3,913 |
1998-99 | 385 | 3,600 | 3,985 |
1999-2000 | 449 | 3,690 | 4,139 |
This industry mainly uses locally produced fabric. Besides the mill sector, non-mill sector also produces fabric, which is widely used by this industry. Non mill sector is scattered and unorganized. According to an estimate, there were about 250,000 looms operating in the non-mill sector. Besides fabric, other raw materials used in manufacturing of men’s formal wear are
Listed below:
1. Sewing thread
2. Buckles
3.Hooks
4. Buttons
5. Zipper
6. Labels
7. Fusing (called ‘Buckram’ in the local language)
8 Packing Material
12 APTMA (All Pakistan
Labor |
In order to achieve high degree of value addition, as in the apparel and textile made-up sector, the engine of export growth, the skilled labor has a pivotal role in labor intensive processes like stitching.
This sector normally follows piecework system under “trolley system” (division of labor) in which one garment is prepared by different persons during different stages of process.
Normally there are 25-30 different processes involved in dress trouser Manufacturing. Each process has its separate predetermined piece rate.
The garment industry of Pakistan
Technical Study |
Machinery Equipments Lies in the Technical Study
MACHINERY DETAILS |
Table Machinery List
Description | Quantity | Price(Rs.)/Machine | Total Machinery Cost |
Cutting Machine10” | 1 | 70,000 | 70,000 |
5-Thread Safety Over Lock Machine | 3 | 62,000 | 186,000 |
1-Needle Lock-Stitch Machine | 29 | 27,000 | 783,000 |
Button Holing Machine | 1 | 225,000 | 225,000 |
Button Stitching Machine | 1 | 165,000 | 165,000 |
Belt Loops Making Machine | 1 | 142,000 | 142,000 |
Waist Band Making Machine | 1 | 111,500 | 111,500 |
Feed Off Arm Machine with Puller | 1 | 335,500 | 335,500 |
2-needle Lock-Stitch Machine | 2 | 104,500 | 209,000 |
Computer controlled Bartaking Machine | 1 | 258,500 | 258,500 |
Electric Steam Boiler | 1 | 105,000 | 105,000 |
Electric Steam Iron | 3 | 20,500 | 61,500 |
Total | 45 | 2,652,000 |
The investment layout in different years is given in the financial calculation.
Other Equipment |
Description | Price (Rs) |
Chairs for Labor | 29,250 |
Trolleys & Trays for Stitching Department | 10,000 |
Cutting Table | 10,000 |
Finishing Table | 10,000 |
Total Cost | 59,250 |
Office Equipment |
Description | Price (Rs) |
Air Conditioner | 50,000 |
Air Coolers | 14,000 |
Fans | 25,000 |
Tube Lights | 16,000 |
Computers | 25,000 |
Printer | 7,500 |
Fax Machine | 10,000 |
Office Furniture | 50,000 |
Total Cost | 197,500 |
PROJECT ECONOMICS |
Project Economics
Account Head | Total Cost (Rs) |
Plant & Machinery | 2,652,000 |
Office Equipment | 197,500 |
Other Equipment | 59,250 |
Preliminary Expenses14 | 75,000 |
Total Capital Cost | 2,983,750 |
Working Capital15 | 300,000 |
Total Project Cost | 3,283,750 |
Project Returns |
Project | |
IRR | 49% |
NPV (Rs) 2,392,000 | 2,392,000 |
Payback Period (Years) | 2.25 |
Financing Plan |
Financing | Ratio | Rs |
Equity | 50% | 1,641,875 |
Debt | 50% | 1,641,875 |
14 Includes registration cost, and 1 month salaries chief executive, Production manager, Commercial
Manager and Accounts Officer
15 Includes 12 months Prepaid Rent
World Trade Analysis |
Top ten exporters of world (US $ miilllliion)
Country | 1995 | 1996 | 1997 | 1998 | 1999 | Average Growth Rate (%) |
1,899 | 1,851 | 2,101 | 1,897 | 2,063 | 2.50 | |
956 | 1,091 | 1,213 | 1,123 | 925 | 0.06 | |
507 | 717 | 1,076 | 1,325 | 1,592 | 33.70 | |
977 | 1,085 | 968 | 984 | 860 | -2.67 | |
748 | 779 | 812 | 857 | 852 | 3.33 | |
711 | 778 | 709 | 770 | 658 | -1.35 | |
678 | 741 | 687 | 700 | 621 | -1.85 | |
486 | 522 | 536 | 597 | 594 | 5.24 | |
261 | 282 | 367 | 430 | 465 | 15.87 | |
433 | 334 | 303 | 267 | 262 | -11.47 | |
264 | 327 | 283 | 345 | 369 | 9.82 | |
370 | 348 | 296 | 296 | 270 | -7.42 | |
253 | 280 | 281 | 252 | 258 | 0.77 | |
217 | 243 | 235 | 268 | 313 | 9.88 | |
247 | 251 | 251 | 268 | 233 | -1.17 | |
207 | 226 | 309 | 412 | N/A | 26.41 | |
171 | 203 | 211 | 234 | 253 | 10.42 | |
154 | 189 | 206 | 242 | 278 | 16.02 | |
123 | 159 | 199 | 216 | 232 | 17.59 | |
112 | 177 | 184 | 183 | 198 | 17.41 | |
Others | 1,674 | 1,993 | 2,077 | 2,340 | 2,272 | 8.26 |
Total | 11,448 | 12,576 | 13,304 | 14,006 | 13,568 | 4.4 |
EU market prospectiive8 |
The woven trousers for men cover 96% of total consumption while knitted trousers Covers only 4%. Trousers for women are 70% woven and 30% knitted. Woven Trousers for men (other than denim) are mainly cotton-made. Fabric of wool and Polyester/wool is also used for formal wear trouser for men. Consumption of the clothing in the EU fell during the period from 1990 to 1995 then
Increased slightly in 1996 and rose at a considerable growth rate of 11% in 1997, Followed by moderate growth of 3% and 2% in 1998 and 1999 respectively.
The Clothing market has tended to be characterized by cheap mass produced items, but in recent years, there has been some movement away from such products towards higher quality, more individual cloths.
EU imports of woven outwear9 rose in volume by 5% and in value by 7% in 1998 and fell by respectively 2% and 5% in 1999. Imports of two product group “trousers, Shorts etc.” and shirts and blouses are the most important in the woven sector. Developing countries accounted for 41% of total EU imports of woven outwear and 65% of imports from outside the EU.
EU imports of trouser in volumes and value | ||||
1997 | 1998 | 1999 | ||
Woven Trousers | Million Units | Million Units | Million Units | |
940 | 1,008 | 1,112 | ||
Million | 10,189 | 10,958 | 11,137 | |
In 1999, size of the total EU population was 376 million and the average GDP per capita amounted to US $22,480 in 1999. The most important determining factors for exporters are the prices, product quality and reliability of deliveries and delivery time. The exporters which are continuing adopting new technologies and have the low production cost have advantages.
Export Analysis of |
In 2001 Pakistan USA and Germany are the major trade partners of Pakistan
Major trading partners of Pakistan
Country | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | Average Growth Rate (%) | |
Value | 36 | 47 | 68 | 71 | 85 | 94 | 104 | 20.10 | |
Quantity | 12175 | 14343 | 19683 | 18977 | 23181 | 32301 | 32450 | 18.90 | |
Value | 24 | 41 | 38 | 47 | 47 | 43 | 53 | 16.99 | |
Quantity | 85111 | 12794 | 13244 | 12698 | 13069 | 14384 | 15761 | 12.05 | |
Value | 22 | 20 | 21 | 19 | 18 | 15 | 16 | 4.81 | |
quantity | 8355 | 6724 | 6773 | 4895 | 5112 | 4996 | 4980 | 7.45 | |
Value | 13 | 17 | 20 | 15 | 25 | 25 | 33 | 20.35 | |
Quantity | 4257 | 4743 | 5212 | 4077 | 6988 | 8022 | 9794 | 17.97 | |
Value | 6 | 7 | 8 | 15 | 12 | 10 | 13 | 18.63 | |
quantity | 227 | 2100 | 2224 | 3625 | 3652 | 3750 | 3925 | 11.55 | |
Value | 6 | 6 | 11 | 12 | 9 | 9 | 13 | 18.64 | |
Quantity | 2851 | 2629 | 3409 | 3621 | 2719 | 3210 | 4062 | 8.04 | |
Value | 5 | 6 | 7 | 9 | 11 | 8 | 12 | 18.32 | |
Quantity | 2213 | 2026 | 2026 | 2710 | 2288 | 3102 | 2748 | 11.49 | |
Value | 2 | 6 | 13 | 9 | 7 | 6 | 7 | 44.34 | |
Quantity | 622 | 1421 | 3340 | 2428 | 1751 | 2080 | 2250 | 37.73 | |
Value | 1 | 2 | 2 | 3 | 3 | 3 | 4 | 30.54 | |
Quantity | 344 | 532 | 804 | 224 | 504 | 201 | 402 | 20.12 | |
Value | 1 | 1 | 1 | 1 | 3 | 3 | 3 | 25.00 | |
Quantity | 315 | 339 | 412 | 451 | 512 | 612 | 771 | 18.70 | |
Others | Value | 7 | 7 | 10 | 13 | 12 | 16 | 16 | 16.10 |
Quantity | 2883 | 2640 | 3390 | 2690 | 3312 | 4012 | 5556 | 11.02 | |
Total | Value | 123 | 169 | 199 | 216 | 222 | 229 | 272 | 14.64 |
Quantity | 44614 | 50492 | 60597 | 58076 | 64563 | 77019 | 83659 | 11.53 | |
RATIO ANALYSIS |
Profitability Ratios: |
Ratios: Year-1 Year-2 Year-3 Year-4 Year-5 |
Gross Profit Ratios: 34% 34% 19% 13% 10% |
Net Profit Ratios: 14% 28% 19% 18% 20% |
Return on Investment: 53.3% 89.2% 262.4% 326.3% 550.5% |
Return on Equity: 41.5% 34.2% 43.0% 28.6% 26.6% |
Contents |
1. Reasons for Business Idea 3
2. New or Existing 4
3. REASONS FOR NOT STARTING EXISTANCE BUSSINESS 4
4. CUSTOMER & COMPETITORS 5
5. POTENTIAL FOR SUCCESS & MISSION STATEMENT 6
6. INTRODUCTION 7
6. LOCATION 10
7. COST OF LAND 12
8. PRODUCTION PROCESS FLOW CHART 13
9. CURRENT INDUSTRY STRUCTURE 14
10. MARKETING 15
11. SWOT ANALYSIS 16
12. KEY SUCCESS FACTOR 17
13. POTENTIAL OF MARKET 19
14. SALES AND DISTRIBUTION CHANNEL 21
15. REGULATOR AND RAW MATERIAL 23
16. TECHNICAL STUDY 25
17. PROJECT ECONOMIC AND RATIO ANALYSIS 30
18.Income Statement 31 |
19. Projected Balance Sheet 32 |
20. Projected Cash Flow Statement 33 |
21. Cost of Sales 34 |
22. Re Payment Schdule 35 |
23. Power Load 36 |
24. Admin & Selling Exp 37 |
25.Opertaion & Admin Salaries 38 |
26. Map Of The Building 39 & 40 |
