INTERNSHIP REPORT

ON

SITARA TEXTILE INDUSTRIES (Pvt.) LIMITED

FAISALABAD

Submitted by,

AWAIS MAHMOOD BUTT

MBA (MARKETING)

SESSION 2007 - 2009

Virtual University of Pakistan, Defence Road, Off Raiwind Road, Lahore.

DEDECATION

　
The Holy Prophet Muhammad (S.A.W.) The greater Social reformer and guide in every sphere
of life. My affectionate parents who taught me the first word of speak and supported me morally
and financially throughout my studies.

　　

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.

AWAIS MAHMOOD BUTT

MBA (Marketing)

　
　

LIST OF CONTENTS

Sr. No. TITLE PAGE

1 INTRODUCTION 6

2 OBJECTIVE OF STUDYING THE ORG. 7

3 OVERVIEW OF THE ORGANIZATION 8

　 3.1 HISTORY 8

　 3.2 NATURE OF ORG. 10

　 3.3 BUSINESS VOLUM 10

　 3.4 PROFILE OF EMPLOYEES 10

4 3.5 PRODUCT LINE 11

5 ORGANAZATIONAL STRUCTURE 12

6 STRUCTURE OF MARKETING DEPTT. 13

　 FUNCTIONS OF MARKETING DEPTT. 14

　 6.1 MARKETING STRATEGY 28

　 6.2 PRICING STRATEGY 28

7 6.3 DISTRIBUTION STRATEGY 29

　 6.4 PROMOTIONAL STRATEGY 29

　 CRITICAL ANALYSIS 30

8 7.1 SUCCESS & FAILURE OF PRODUCTS 32

9 7.2 MAJOR COMPETITORS 32

10 7.3 FUTURE PROSPECTS OF THE ORG. 33

 SWOT ANALYSIS 34

  CONCLUSION & Recommendations 36

REFERENCES & SOURCES 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.

UNITS

Sitara 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

BRIEF HISTORY OF ORGANIZATION

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 textile is one of the largest manufacturers and government accredited exporters of textile
in Pakistan. Specializing in home textiles, printed, dyed, bleached fabrics, an apparel and fashion
garment, Sitara is exporting quality to virtually all parts of the world. With latest “State-of-the-
art” machinery and equipment, it is a complete printing, dyeing, finishing and stitching plant.
Three huge spinning mills, a high caliber weaving unit and a made-up / garment unit is working
under one roof. The unit is capable of producing high quality with a capacity of 150 kilometers
of finished cloth every day.

Sitara textiles industries private limited has proudly maintaining its leadership in 100 percent
pure cotton products along with the man made fiber. The product range in pure cotton is
available as sateen both in mono cotton and poly cotton, bed sheets, pillow, quilt covers, aprons,
boxer shorts, and Bermuda shorts are available in most exotic and fascinating designs.

Counts aren’t all that counts! While counts reflect on the durability of the cloth, what reflect on
the aesthetics of the end-user are the design, color combination and mood of the fabric print.
That is why; Sitara never under estimates the importance of an enchanting design. Their design
department is not only well equipped with latest computers and peripherals but also manned with
a highly sensitive and sensible team of designers. These designs are based on unique but
fascinating combination of age-old traditional motifs and futuristic surreal forms given their
customers a wide range to choose from. Widening this choice further is their design library, one
of the largest in Pakistan, offering an extensive range from timeless floral and geometric to
intriguing contemporary designs and colors?

A sizeable percentage of Sitara textiles, daily textile production by the meter are converted in-
house into a ready, saleable retail product. There “Cut & Sew” division enjoys the cutting edge
in assembling and sewing of bed sheets and sets, quilt covers, bolster, valances, curtains, table
linen, bed spreads, comforter covers, pillow cases, kitchen linen and ready made garments as per
the specs defined by the customers.

From a fiber to a finished product, nothing gets spared from our ultra-sensitive, extra vigilant
laboratory. Equipped with the most modern and precision equipment, products 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 　 　 　

　 Process Pigment Printed 　 　 　

　 Construction 100 x 80 / 40 x 40 Sheet sets 　 　 　

　 76 x 56 / 35 x 35 Accessories 　 　 　

　 Blending 52 / 48 Sheet sets p/c 　 　 　

 65 x 35 Accessories p/c
　
Loom Shuttleless / Power loom 　 　 　
Style #
Bed in a Bag 　 　 　
370537
Twin 480 23.85 11484.00
370540
King 600 28.35 17010.00
370555
Accessories 84 1.25 105.00
370557
Euro shams 96 2.25 216.00
 
Table round

　 　 　 35815.00

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 76x56 / 35x35 32000 Mtrs. 87``, 84``

White 76x56 / 35x35 11000 Mtrs. 63``, 60``

76x76 / 30x30
Dyed ivory color 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

Mark & No DESCRIPTION UNIT PRICE AMOUNT

US $:

US $: 　
228 ROLLS.
PER METER 　
35000 METERS
C AND F 　
POLYESTER COTTON 60/40 PERCENT
DURBAN. 　
P.O.# 11408 PRINTED AND OPTICAL WHITE
　 　
DURBAN CALENDERED FABRIC,
　 　
ROLL NO. CONSTRUCTION: 76X56 / 35X35
　 　
1-228. WIDTH 98`` - 32, 183 MTRS. PRINTED
　 　
WIDTH 91`` -12, 152 MTRS. OPTICAL
　 US $:
WHITE.
TOTAL C&F 35000.00
COUNTRY OF ORIGIN PAKISTAN.
AMOUNT. C AND F

DURBUN

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 & NOS. DESCRIPTION OF GOODS

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 Description of Article and Country of

Number Quantity origin

228 cartons
As per Invoice No:
1850 pieces /unit /set of
Comforter, Set bed in a
STI-331/03
bag
　
Date 19/07/03
1000 twins
PAKISTAN
Style #9003725
850 Comforter
Style #9003726
L/C No: ***-****. Date:
25/06/03

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.