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We bow our head before almighty Allah, who bless us with great courage and enthusiasm, to utilize our strengths and knowledge, we are also thankful to our talented and respectable teacher Prof. Muzamal Malik to provide us sufficient opportunity and spiritual support, to complete our project report. We are highly indebted to all respectable managers mentioned below: Mr... Irfan Ahmad Ch. Manager Production.
Mr... Zia-ul-Haque Manager Administration. We are thankful to all the above mentioned people for their commence knowledge, experience and effective behavior, which enable us to complete this report. We are also humbly thankful to our collage administration and especially to our Dean Mr. Sheikh Antique-ur-Rehman for our continuous and effective help during our project. We are gracious to our parents, family members and especially to all our group members for their mutual cooperation and unity.
Ammar Textile was established in 1984 at a very low scale. At that time the company is only operating in the Domestic Market with 100 employees. But now Ammar Textile have a vertically integrated facility for designing and manufacturing of 100 % COTTON KNITED GARMENTS. The Company has in-house Knitting, dyeing, finishing, garment manufacturing, and washing facilities.
Their product integrity Department, which is the single largest department comprising 25 % of our total salaried staff, ensure consistent standards and impeccable quality. Between their two divisions, the cotton knitwear division and the leisure wear division, they have 1100 workers employed. In 1988 the CEO Mr. KH. Bilal Ahmad goes for Internationalization and Globalization process and start exporting their product i.
e. T-shirts, outside the country. The company is having a business with Levis and provide maximum of their production to Levis. The company have 70 to 75 % of exports to the USA, 10 to 15 % of exports to Japan and 10 to 15 % to the other countries. Ammar Textile is 100 % export oriented company and have created its name for quality and integrity with some of the big name of fashion world, Levis strauss, GAP, Ralph Lauren, Polo Dockers and target.
This is the only company so far in the textile industry in Asia which achieve ISO 9000 certificate. Ammar Textile has two sister concern, Galaxy textile has business operations in OMAN. Ammar textile set up their subsidiary in 1992, and the stitching process is only done at that place. The total number of employees at Galaxy Textile is 350 and all of them are skilled and sent from Pakistan. At Ammar Textile 90 % of the work in process is used in Production and the rest of the work in process is used while stitching and making the finished product. All the major operations are done at Ammar while the re-export of the finished product is done from Oman.
Sarah Textile International owes its existence to its parent company Ammar Textile international which revolutionized knitwear made ups in Pakistan when it came on stream in 1993. Sarah came into existence and was register on 31 st May 1991, this huge project was approached by IFC & CDs for financing. Sarah was converted into public limited company on 24 th December 1992. In context to the two subsidiaries Ammar Textile is one of the modern and technologically advanced project in South Asia. The Sarah Textile project specialized in 100 % cotton knitted fabrics and quality garments with the capacity to produce 1. 38 million pieces of garments and 1. 5 million kg of the fine quality dyed Fabric.
Ammar Textile is the pioneer in adopting environmental standards set by EPA USA and the world bank by installing water effluent equipment in the factory and in its subsidiary Sarah textile. The knitwear industry in Pakistan has grown fairly rapidly after the independence. Since the knitwear industry is closely related to the textile industry its development and growth has closely followed the foot steps of the textile industry. Starting with 2 or 3 units in 1950 today there are 700 units with more than 15000 machines of these 700 units, more than 50 are fully integrated. In early years the industry produces simple items such as socks and undergarments but with the passage of time it has increasingly produced more sophisticated items such as sweat shirts, T-shirts, jogging suits, track suits, and various undergarments. Pakistan's export of knitwear has increased from US $ 9. 8 million in 1977 - 78 to US $ 513 million in 1993 - 94.
In addition to that the knitwear industry employed more than 20, 000 workers Today the estimated production of knitwear has risen above 34 million kg Knitwear exports have become an increasingly important foreign exchange earner for Pakistan. The main export destination of Pakistan knitwear exports are USA, Japan, Germany. The proportion for 1999 - 2000 are 50. 7 % to USA, 17. 7 % to Japan and 25. 2 % to Germany. The company is producing T-shirts of all designs and all sizes. All production is done according to the samples given by the buyers. Ammar textiles has a very advanced manufacturing plant, which includes knitting, dyeing, finishing, stitching, and packaging departments.
The company believes in using the most advanced and state of the art technology available world wide for each process. Ammar knitting department has a unique feature of computerized knitting machines from Germany for making wide range of gray fabrics. The companys dyeing section, has the most advanced computerized soft-flow dyeing machines for piece-dyeing and computerized yarn dyeing plant for striped fabrics. In companies finishing area this has an all star cost from the world of textile technology and also has advanced Radio-Frequency Dryers for high quality finishing. Stitching department is using the latest embroidery and stitching machines made by Singer.
Quality checks are run at every stage of production, starting from knitting to finished product, ensuring that the final garments for shipping is to be perfect in every respect. 100 % satisfaction of the customer, with the tradition of quality in product and business practice, runs unbroken through the history of Ammar Textiles since its inception in 1984. 1) To adhere the quality standards set by our customers. 2) Cost efficient and effectiveness. To increase the production 30 % to 40 % and reduce the fixed cost 30 % to 40 % up till 30 th March 2001. The company has 100 % advanced sales booking up to December 2001 now the booking for 2002 is started. The company have 45 million US $ sales in USA only.
The production of the company is 510 thousand dozens per year. The company is earning reasonable profits. In the last 10 years, Ammar has achieved remarkable position with Levis strauss most successful brand DOCKERS. One of their popular product, namely double P K POLO shirt with 250 gms M 2 weight was developed by Ammar in 1988.
The company have already got outstanding performance award from Levis. The other buyers of the company is AMC, Asia Penny, Timberland, Nike, Champion, Higher, VF-Lee, Chap and Gap. Quality is the competitive advantage and company produce costly valuable garments. Ammar Textile industry has gone for the international market for the sake of maximum profit and foreign exchange for the country.
At the time when company go for Internationalization the main reason is the credit problem in Pakistan. If they run the company at that time in the domestic market the company might get bankrupt and the textile in concerning the market is dead. ISSUE for the Company to Go for Globalization AMMAR Textiles go for Globalisation, Expansion, Open market, International market innovations as it is dependent on fully on exports. OBJECTIVE OF THE INTERNATIONALIZATION: The major objective behind the internationalization of Ammar is to capture the maximum market.
The above figures are the production share of the company. The company havent their own international policy, as they have been dealing with Levis and other buyers so they have been booked by monopolized production policy. Decline in sales due to the Quota restrictions? To overcome the US quota restrictions the company set its a new stitching unit in Oman. At the time when Ammar set its stitching unit in Oman the major factors in Pakistan like economic, legal, and political, are not favorable and there is a slum in the domestic market. The another factor which forces Ammar textile to go out of the country is a Quota problem in Pakistan.
So the company chooses a best place Oman where they have better chance to run their business operation. Oman is the country where there is a rear chance of any political disability so there is a political influence free structure. The company before setting its unit have a research study of different countries and decided to starts its operation in Oman where they found a supportive political culture where the government gave good incentive to the industry. Oman is the place where the economic condition is very supportive and a well stabilized. The government has provide a good Export & Import policies which help the local industry to grow, and that is the reason the country have very debts to pay.
The another incentive is the free port which help the industry to increase its sales and profits. As there is a stabilize economy so there is impressive rate of employment and inflation rate is very less as compare to the Pakistan. In Oman there are no legal forces implemented by the government on the local industry. This provide a good infra-structure for the neighboring countries to come in Oman and sets its business operation. All these factors are the basic reason for Ammar Textile to set its one unit GLAXY TEXTILE in the cou...
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