Industrial Growth Of Pakistan By The Monnoo Family Business Essay Example

employees. Many of these companies are leaders in their respective fields and have obtained ISO certification.

Corporate MISSION STATEMENT We have established a strong reputation based on quality, flexibility, service, and unity. Our main strength lies in personalized service provided in a fast manner. We keep investing in the latest equipment to manufacture high-quality products for our customers. We are capable of designing and producing various versions for clients and can fulfill both small and large orders.

The Monnoo Group aims to be recognized as the leading provider of illusion yarn in our target markets. Our mission is achieved by delivering superior quality narratives and always prioritizing our clients' viewpoints. Additionally, we strive to maintain a competitive position in the fabric industry while valuing and nurturing the individual talents of our employees. Our team comprises highly skilled professionals who excel in their respective fields. We endeavor to fulfill our mission through outstanding customer service, sales, and manufacturing, all supported by the collaborative efforts of our entire workforce.

We will continue our longstanding tradition, established in 1940, of being honest, fair, and united in our relationships with our clients, sellers, and community.

Corporate Quality Policy/Assurance

At Monnoo Group, we are committed to ensuring a system for consistent quality at all levels of procurement, production, and marketing according to specifications and requirements of the buyers. Our dedication is to provide top-notch products and services that achieve an exceptional level of customer satisfaction. We aim for continuous improvement in all our products and services through the active involvement of all partners. Our goal is to build and strengthen positive business relationships with both external and internal customers and suppliers. By understanding their current

and future needs, we will continue delivering innovative, high-quality products and services that enhance long-term growth for our customers.

Penney, Tommy Hilfiger, and other renowned garment makers make up our client base, which is focused on choice and public presentation.

Corporate Doctrine

The pillars of our corporate doctrine are Product Quality, Innovation, Technological promotions, Customer satisfaction, and Seasonably Delivery. These pillars serve as a driving force behind our company. We maintain a strong R background at our mills and provide a pleasant working environment that meets the needs of our management and workers. We are committed to our environment and our workers.

Monnoo Group is dedicated to the growth of employees and the preservation of the environment. Our distinct strategy in the local market demonstrates these principles, allowing us to thrive in the textile sector. By giving priority to product excellence and advancement, we consistently surpass our rivals. To cater to our customers' changing requirements, we utilize our technical knowledge and provide a wide variety of products. Furthermore, we invest in cutting-edge equipment and implement strict quality control measures that adhere to global standards. Consequently, Monnoo Group leads the way in

the fabric industry.

To expand our presence in local and global markets, we are implementing a bold market-penetration strategy. Currently, we have successfully established ourselves in Asia, the Middle East, North America, and the Far East.

Our ISO 9001 Certification

The Monnoo Group of Industries represents the progress of Pakistan's textile spinning sector. As one of the pioneers in Pakistan, we have obtained ISO 9000 certification to actively pursue Total Quality Management (TQM). The dedication and involvement of our top management team have played a crucial role in developing and implementing our quality management system.

We are currently working on SA 8000 societal answerability and ISO 14000 environmental direction systems. Our Quality POLICY at the Monnoo Group is to ensure consistent quality throughout the Procurement, Production, and Marketing management processes in order to meet the specifications and requirements of our purchasers. Our quality policy includes measurable quality objectives for each department, ensuring that customer needs are identified and satisfied in order to enhance customer satisfaction.

In addition, we have established and maintained certification control to provide evidence of conformity to customer demand and the effective operation of our quality management system. Our management representative conducts regular review meetings to improve the effectiveness of the quality management system and its procedures. This includes ensuring the availability of resources, gathering customer feedback including complaints, improving products based on customer demands, utilizing statistical techniques such as Fishbone diagrams to identify root causes of problems, implementing corrective or preventative action, conducting follow-up actions from previous management reviews, and monitoring procedure performance and product conformance.

As a Quality Management System company, we are committed to continual improvement in everything we do.

We have created a Customer Satisfaction

Survey to gather valuable feedback from you, which is crucial for our ongoing improvement efforts. The survey can be conveniently accessed online. If you have any concerns or issues, kindly fill out the form and we will promptly contact you.

SWOT OF MARGALLA TEXTILE MILLS

Strengths


Market reputation

Margalla's yarn product is used by various customers such as sock manufacturers, garment producers, weaving units, and buying houses.

The company's merchandise is superior to their rivals and essential for their clients. The production section effectively meets the customers' desired quality and delivery times while maintaining cost efficiency.

Machinery

The company's machinery is capable of meeting the market demand. The company has a comprehensive maintenance schedule to ensure the machines are always operational.

The machines do not carry out any quality control tasks. The company utilizes advanced machinery and current technology for efficient production. They have imported machinery and equipment from Japan, Russia, and China.
Quality
The organization is renowned in the market for its exceptional products. The management possesses expertise in manufacturing high-quality products that fulfill customer demands and specifications.
Product Differentiation
The company has introduced a new collection of mixed yarns called "pallet." Additionally, the company manufactures Chain Yarn, Cotton Mercerized Yarn, Slub Core Spun Yarn, Singed Yarn, Covered Yarn, Neppy Yarn, Plied Yarn, Core Spun Yarn, Double Slub Yarn, Cone Dying Yarn, Cotton Yarn dyed narration, and fancy narration to meet customer requirements.

POWERPLANT

The organization operates its own power plant to generate energy for use during production, reducing downtime.

GROSS PROFIT MARGIN

The company's gross profit margin indicates that it is unable to increase its gross profit. The cost of goods is very high, resulting

in low gross profit. Only in 2006 was the gross profit good.

Net Income Margin

The net income margin ratio indicates negative results, meaning the company is experiencing losses. These losses are caused by increased input costs such as raw materials, energy, labor, and finance costs.

ASSET TURN OVER RATIO

This ratio indicates if a company is effectively utilizing its invested capital. The ratio from 2004 to 2006 shows that the company is generating one and a half times of the capital employed. However, it is also facing high costs.

DEBT RATIO

This ratio demonstrates the proportion of the business that is funded by owners' equity versus borrowed funds. The company has a high debt ratio, which is not favorable as it implies fixed interest payments that must be made regardless of the company's profitability.

CURRENT RATIO

This ratio shows the relationship between a company's current assets and current liabilities. The ratio was good in 2004 but decreased in 2005, and vice versa, which is a negative sign.

Despite the lack of a training plan to improve technical staff productivity and a shortage of skilled personnel and manpower in the region, the liquidity ratio remains satisfactory as current assets are sufficient to cover current liabilities. However, there is a decline in this ratio in 2008. Additionally, high employee turnover is attributed mainly to delayed wage payments.

Management - The company's management needs to acknowledge the current changes happening in the fabric market, such as recession and inflation. If the decision to acquire another organization is made, the existing managers will not be utilized. The

management team comprises departments like Finance, Marketing, and Human Resource.

Morale - Employees lack job security which hampers their engagement with the company. They are unable to independently handle any waste they come across.

Motivation - Due to the financial situation of the company, management is incapable of paying employees their wages on time. While money may be a primary motivator for many individuals, there is also significance in social interaction, belongingness within a group, feeling valued and needed, and receiving recognition.

The problem of inadequate motivation and attention from top management has caused a breakdown in communication among employees, which has resulted in staff dissatisfaction. This issue is widespread across various companies, including their Human Resource department, where there is a notable lack of coordination between management and workers. Employees feel taken advantage of and believe they are not receiving fair compensation for their efforts. Additionally, despite the implementation of new technology, the organization still lacks sufficient technical skills.

Due to this, the organization encounters hidden expenses.

LACK OF TEAMWORK

In any organization, teamwork is crucial for enhancing productivity. However, Margalla fabric Mills does not have such teamwork, leading to misunderstandings among employees.

LACK OF COORDINATION

Margalla fabric Mills lacks coordination among its various departments, which hinders the achievement of organizational objectives.

Opportunity

Technology

There is an opportunity to invest in new engineering in the international market in order to achieve flexible production levels with cost effectiveness. By implementing these machineries and techniques, the company can reduce costs and improve product quality.

Market

The company operates in a large market with significant competition. This presents a barrier for new entrants due to the

high capital required. However, Pakistan's fabric products are well-known in the international market.

E-commerce

Another opportunity for the industry is conducting trade on the World Wide Web. This allows manufacturers to sell their products online, ultimately reducing costs.

Change in environment:

The industry can take advantage of a change in the environment, encompassing engineering and government policies.

NATURAL RESOURCES:

Pakistan possesses extensive suitable land for cultivating cotton and has a surplus of this crop, which leads to abundant natural resources within the nation.

International MARKETS:

Pakistan's textile sector enjoys international recognition for its diverse array of fabric products. Kohinoor fabric Mills have the potential to broaden their market reach to Switzerland, Japan, Italy, and Canada.

Research AND DEVELOPMENT

The organization can improve its Research and development department to introduce new and innovative designs in the international market to compete with others.

TECHNOLOGICAL ADVANCEMENT

There is continuous improvement in technology happening worldwide, so Kohinoor fabric Mills can import new machinery & technology and can train their employees to enhance their productivity level.

Globalization

As the world is now interconnected, new opportunities have also increased in the fabric industry. So Kohinoor can offer its products globally.

INFORMATION TECHNOLOGY

The use of advanced computing machines, telecommunications, and databases in information technology provides an efficient and effective means for identifying and evaluating opportunities. Kohinoor fabric Mills has the opportunity to utilize technology and achieve increased productivity and efficiency in the future as technology continues to advance.

Menace: Economy

The

fabric industry in the country is facing challenges such as declining employment, rising inflation, increased imports, and fluctuating exchange rates. These economic factors pose a threat to the industry's stability. Pakistan is also impacted by the current economic recession, which has negatively affected international and multinational organizations. Consequently, the fabric sector has experienced a decline in fabric exports.

Politicss

Recent political decisions regarding the fabric industry have not been supportive. There is a lack of subsidies granted to the industry, and the current situation of inflation and economic recession further hampers the fabric industry.

On the other hand, if there is a change in political fortunes in any state, it will also affect the quotas and MoUs. The government is unwilling to provide further subsidies to the textile industry. They believe that the industry has been given enough special treatment and that they have already provided the desired amount of incentives and grants. The government believes that it is now time for the industry to address its own problems and make significant changes to ensure its growth and development.

Interest Rates The interest rates in Bangladesh, India, and China are lower than in Pakistan. In Bangladesh, the rates range from 8.5 to 9.0%, while in India they are 5.25% (market rate is 10.25%, but a 5% discount is given to the fabric industry). In China, the interest rate is 5.58%. However, in Pakistan, interest rates have increased by over 150% to 13.25% in the last three to four years. This significant increase in interest rates has negatively impacted small textile owners and hindered the growth of textile businesses. As a result, textile owners have

accused the government and banks of implementing harmful policies.

I believe that the actions of the new authorities that have a positive impact on the industry are crucial, as the fabric industry provides employment to approximately 38% of our working category. The Pakistani authorities should develop a coherent program that allows for some kind of exemption or concession, similar to what is done in India with the establishment of the Export-Import Bank for funding and supporting industries, particularly fabric.

Electricity Deficit

The lack of guaranteed power supply by WAPDA is a significant problem that negatively affects the fabric Industry of Pakistan. This leads to heavy financial losses for the industry. The inconsistent electricity supply greatly hampers production, resulting in the industry failing to meet its target during the months of December, January, and February. As a result, the fabric owners bear massive financial losses, and this also affects the daily wages of the workers who are most vulnerable.

In order to reduce costs, some fabric units have constructed their own gas-powered energy plants. However, small units rely completely on the electricity supplied by WAPDA.

RISING PRICES OF RAW MATERIALS.

The cost of raw materials is increasing simultaneously, resulting in higher input costs. Due to competition in the international market, fabric prices have decreased by utilizing new technologies to produce goods.

Competition

The prosperous days in the fabric business are over. After the end of fabric quotas, prices in the international market have decreased. However, in Pakistan, the cost of production has significantly increased due to the rise in export refinancing rates and relentless increases in local cotton prices. As a result, our exports have become more expensive compared to competing countries like

China and India.

RAW MATERIAL EXPORT TO RIVAL COUNTRIES

Exporting the best quality natural cotton at lower rates to rival countries poses a threat to the value-added industry of our country. Exporters and manufacturers from the value-added industry have expressed serious concerns over the export of top-quality natural cotton, especially to rival countries like India, as it could severely harm the largest foreign revenue-generating industry of our country.

Terrorism

Terrorism is a major issue for the export division, as the fabric industry makes up more than 68% of the state's entire export.

Lack of Research and Development

The cotton sector in Pakistan suffers from a lack of research and development, resulting in low-quality cotton production and low profitability. As a result, farmers are turning to other cash crops like sugar cane, which are more profitable. The cotton area in Punjab alone has decreased by 1.14% this season compared to last year. Due to the declining cotton production every year, textile owners are concerned about achieving the ambitious Cotton Vision 2015 goal of 20 million bales. This lack of research and development in the textile industry is causing international competitors to gain a larger market share.

Lack of Infrastructure in Pakistan

Infrastructure plays a crucial role in the growth of any industry. However, Pakistan lacks adequate infrastructure facilities such as roads and power supply. As a result, the cost of transportation for products is relatively high, leading to difficulties in ensuring proper and timely market delivery.