Finance

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Industry Analysis

Group 3

Yasir Mir                                    16110188

Arif Hussain                        16110220

Haroon Nasir                        16110221

M. Asad Naeem                16110263

M. Nouman Ameen                     16110209

Ramish Hassan                16110211

M. Abdullah Afridi                 16110166

Industry Overview:

Pakistan has always been strong in textile industry due to huge investments in this sector and abundance of cotton. In the last decade, weaving of denim fabrics had increased to a great extent. The export of cotton denim fabrics from Pakistan has increased from 45 million square meters worth PKR 4.37 billion in 2005-06 to 229 million square meters worth PKR 20.49 billion in 2009-10, thus showing an average increase of 74% per annum in terms of value. Other than foreign market local demand for denim jeans is also increasing day by day, creating investment and job opportunities in this sector. Almost all the leading manufacturers are mainly focusing on the export market where A-class product is demanded and exported, whereas B- class product is being sold in the local market. Manufacturers which are working primarily for domestic market are very few. Major known manufacturers are in Karachi and Lahore. Other important hubs are Sialkot, Faisalabad and Gujranwala.

           SWOT Analysis

Strengths                                                                                                                        Weaknesses[pic 2]

>Low cost labor (usually piece rate system)                           >Less concentration on domestic market

>Abundant raw material available (particularly Cotton)        >Power and Gas shortages

>Availability of low-cost machinery                                      > lack of capital and finance to small

>High market demand                                                                 enterprises.

> Huge Available work force                                                 > Low differentiation                                                                                

>Progressive increase in capacity (as units are small and      > Lack of trained and skilled machinists and

Can be installed when needed)                                                  technicians

> Well-situated industrial estate with all major facilities

available

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Opportunities                                                                                                                 Threats