A TERM REPORT OF

INTERNATIONAL BUSINESS

Kohinoor Mills Limited

SUBMITTED TO:
MR.
SAJID NAQVI
SUBMITTED BY:
TANVEER AKHTAR MES-08-08
M. YASIR IFTIKHAR MES-08-17
AFIFA TANVEER MES-08-14
RAHEELA KAUSAR MES-08-26
HAFIZA SHABANA MES-08-15

Bahauddin Zakariya University Sub Campus Sahiwal

www.bzu.edu.pk

1
In The Name Of Allah Subhanahu, the Most Gracious the Most
Merciful…

2
 Preface

Textile industry is considered to be the world’s fastest growing industries with global revenue in billions
and trillions per annum. The sector is basically focuses on consumer likes and preferences, with activities
purifying the needs for the consumer.

The aim to write this report besides entertaining our study requirements. We suppose that this report might
become helpful for an M.B.A student in the future while carrying out their research studies. This might help
them as a source of secondary data. Keeping both these aspects in mind, we have tried our level best to put
precise, accurate and easily understandable matter in this report. For this purpose we have kept our mind open
to the suggestions and guidance from our friends and seniors.

We hope that report would not only fulfill the requirements of my teachers but shall also be proved
helpful for future readers.

3
 Acknowledgement

All our praises for ALLAH THE ALMIGHTY, who bestowed potentially upon us to accomplish this
present report successfully. With all our sincerity, we express. Our gratitude to the HOLY PROPHET
(P.B.U.H) and his fellows, who are the source of enlighten guidance and wisdom for the humanity.

We have deep sense of gratitude to our honorable teacher Mr. Sajid Naqvi for his generous guidance for
this report.

We would also like to appreciate the praise-worthy efforts and the assistance of some people who have
kindly helped us out in the completion of this report. They definitely include our parents, teachers and friends.

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5
INTRODUCTION:-
Kohinoor Mills Limited Formerly known as Kohinoor Weaving Mills Limited. The Company's principal
activities are to manufacture and market textiles, covering weaving, and knitting, bleaching, dyeing and stitching. It
also deals in yarn, bed linen, home furnishing, socks, cloth and other goods and fabrics made from raw cotton and
synthetic fiber. The Company's manufacturing plant is located in Kasur, Pakistan.

Company Name: Kohinoor Mills Limited

Ticker: KML
Exchanges: KAR
2008 Sales PKR: 6,130,600,000
Major Industry: Apparel & Textiles
Sub Industry: Apparel Fabrics
Country: PAKISTAN
Employees: 4300

Kohinoor Mills Limited was incorporated as a Public limited Company on December 21st, 1987 and is located at 8th
K.M.,
Manga Raiwind Road, District Kasur. The Company produces greige cloth from cotton, blended and synthetic yarns.
The project was initially established with 48 Sulzer Ruti shuttle-less looms of 153" width from Switzerland with
modern ancillary machinery to produce high quality fabric for export markets.
Further expansions saw the installation of an additional 96 Tsudakoma air jet looms from Japan in 1990 and a third
shed comprising 60 state of the art Picanol Omni 340 cm wide looms was installed in July 1998, twelve with batching
motions. Another twelve Picanol Omni 340 cm wide looms were installed in 1999.
In 2000-2001 old 48 Sulzer Ruti looms were replaced by 48 lated Picanol Omni Plus 380cm looms. In addition to that
latest Picanol Omni Plus Jacquard Looms were also added as well as a yarn conditioning machine from Zorella was
also installed.
The entire manufacturing process from warping to fabric inspection is monitored through an on-line process control
system from Barco. The marketing strategy is to explore new markets both in quota and non-quota countries.

Company Information:-

Board of Directors:-
Mr. Aamir Fayyaz Sheikh
Mr. Asad Fayyaz Sheikh
Mr. Ali Fayyaz Sheikh
Mr. Rshid Ahmad
Mr. Aamir Ameen
Mr. Salman Akram Raja
Syed Mohsin Raza Naqvi

Chief Financial Officer:-

Syed Mohsin Raza Naqvi

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 Head of Internal Audit:-
Mr. Zeeshan Khurram

Company Secretary:-
Mr. Muhammad Rizwan Khan

Auditors:-
M/s Riaz Ahmad & Company
Chartered Accountants

List of Key Persons:-

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KOHINOOR WEAVING KOHINOOR HOSIERY
Name :Aamir Fayyaz Sheikh - Chief Executive Officer Name :Asad Fayyaz Sheikh - Chief Executive Officer
Phone :92-42-5391941-45 Phone :92-42-5391941-45
Fax :92-42-5391946 Fax :92-42-5393456
e-mail :aamir.fayyaz@kohinoormills.com e-mail :asad.sheikh@kohinoormills.com

Name :Tahir Bashir Solehria - General Manager Name :Muhammad Shafiq - General Manager
Phone :92-42-5391941-45 Phone :92-42-5391941-45
Cell :92-333-4998800 Cell :92-333-4998846
Fax :92-42-5391946 Fax :92-42-5391946
e-mail :tahir.solehria@kohinoormills.com e-mail :muhammad.shafiq@kohinoormills.com

Name :Sohail Chaudhry - Marketing Manager Name :Amer Faruqi - General Manager (Marketing)
Phone :92-42-5391941-45 Phone :92-42-5391941-45
Cell :92-333-4998887 Cell :92-332-8465051
Fax :92-42-5391946 Fax :92-42-5391946
e-mail :sohail.chaudhry@kohinoormills.com e-mail :amer.faruqi@kohinoormills.com

KOHINOOR APPAREL Name :Bushra Siddiq - Marketing Manager

Name :Haroon Asaf - General Manager Phone :92-42-5391941-45
Phone :92-42-5391941-45 Cell :92-334-4333211
Cell :92-333-4998822 Fax :92-42-5391946
Fax :92-42-5391946 e-mail :bushra.siddiq@kohinoormills.com
e-mail :haroon.asaf@kohinoormills.com
KOHINOOR DYEING
Name :Shahan Nasir - Marketing Manager Name :Mohsin Naqvi - Managing Director
Phone :92-42-5391941-45 Phone :92-42-5391941-45
Cell :92-333-8447525 Fax :92-42-5391946
Fax :92-42-5391946 e-mail :mohsin.naqvi@kohinoormills.com
e-mail :shahan.nasir@kohinoormills.com
Muhammad Aamir Alam Qureshi - Marketing
Name :
Manager

KOHINOOR GENERTEK Phone :92-42-5391941-45

Name :Sheharyar Bokhari - Dy. General Manager Cell :92-333-4998840
Phone :92-42-5391941-45 Fax :92-42-5391946
Cell :92-333-4998869 e-mail :aamir.qureshi@kohinoormills.com
Fax :92-42-5391948
e-mail :sheharyar.syed@kohinoormills.com

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9
Main Functions of Kohinoor Mills Limited
Kohinoor Mills limited have five different section, details are as follows,

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11
Kohinoor Weaving:-

Kohinoor Weaving is the flagship company of Kohinoor Mills Ltd. and is engaged in producing greige cloth
from cotton, blended and synthetic yarns.

Machinery and Equipments:-

COMPANY

Date 21st December 1987

Incorporated

12
 Production 1st July 1990
Started
40 million m² Annually
Production
Flexibility to Produce Fabrics up to 143"
Fabric

WEAVING
SECTION NO. OF
MAKE CAPACITY SPECIFICATION
MACHINES
ZA2051 209i R/S 190 CM
Tyoda 72
75"
Air Jet Looms ZA2051 205i R/S 190 CM Air Jet Looms 12
Tsudakoma 110"
ZA205i R/S 280 CM 110" 12
Weaving Picanol Omni Plus 380 CM Picanol Weaving
Picanol 48
Looms 150" Machine Looms
LX-3201 For Picanol Omni
8
Plus Jacquard Sets for Picanol
Jacquard Sets Jacquard
LX-1600 For Picanol Omni Omni Plus
8
Plus

INSPECTION &
FOLDING No. of
MAKE CAPACITY SPECIFICATION
Machines
HJ-RI 3200 MM Automatic Cloth Rolling Machine 3
DIA 1000
Cloth Rolling
MM
Al-Hadeed 75" - 110" -
10
Engineering 130"
Cloth Inspection Machines
Cloth Inspection 75" - 150" -
Nazer Industries 15
86" - 110"

WARPING No. of
MAKE CAPACITY SPECIFICATION
Machines
Auto Coner Savio 60 Spindles Savio Automatic Cone Winder Machine 1
Benninger ZELL
1
ZCR-1800
Warping ZB 24 TKD Warping Machines
Dia 1016 MM 2
(Bentronice-3800)
Benninger 1

SIZING No. of
MAKE CAPACITY SPECIFICATION
Machines
Sizing ZB 24 TKD Dia 1016 MM Sizing Machines 1

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 TKD – TKD CT 4/4/4 UB 1

BARCO No. of
MAKE CAPACITY SPECIFICATION Machines
Connected
Warping Warping - 3
Sizing -
Sizing 2
Weaving -
Looms Inspection 256
Barco Production Monitoring System
Stocks - WIP -
Barco, Belgium (Computer Integrated
Spares -
Manufacturing.
Inspection Efficiency -
25
Frames Downtime -
Production
Planning

BEAM
STACKER No. of
MAKE CAPACITY SPECIFICATION
Machines
Genkinger Yarn Conditioning Machine (Net Weight
145,000 KG 1
ULD-4W = 40,000 KG - Load Per Rod 1,800 KG)

LABORATORY
Uster Tensorapid
Uster 4SX with Hairiness Tester
Schroder Analog Elmendorf Tear Tester
Zweigle semi-automatic twist tester
Sartorious Moisture Analyzer
Zweigle N265 Fast Count System
Temperature control: 20 C +/- 2 Humidity: 65% +/- 2% through LUWA air-conditioning
Products:-
Kohinoor Weaving has the expertise to weave fabric ranging Thread Count from 150 to 850. Its product range
mainly includes Plain (T-150 to T-300), Sateen (T-150 to T-850), Twill (T-150 to T-350), Dobby (T-150 to T-
700), Jacquard (T-600 to T-700), Panama / Oxford (T-300 to T-500).

Compliance:-

ISO 9001 - 2000 Certified by Lloyds Register Quality Assurance UK

ISO 14001 Implementation Work in Progress

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Kohinoor Apparel:-

Kohinoor Apparel commenced its commercial production in March 2008 with production capacity of 1.8
Million pieces per annum.
With our vertical integration advantage of weaving and dyeing we deliver quality products to our customers.
We have state of the art equipment with complete automation from design to product engineering and
production. Our core strength is our experienced team trained by apparel consultants with hands on experience
in garment manufacturing and operations. We specialize in woven bottom wear garments ranging from the very
basic pants to high fashion slacks, shorts and cargos.
The focus is to create a seamless interface throughout the manufacturing process addressing delivery, cost and
quality issues by providing the right product the first time, and at the right time.
Lead time follow up from order placement to delivery of goods to the customer is the focal point of the apparel
division. With extensive investment into systems right from order taking and procurement through to
production and delivery, efficient planning is being done to achieve better lead times to the satisfaction of the
ever growing customer demand. The support from in-house fabric weaving and dyeing gives a new concept and
satisfaction to the customer for attaining quality under the same roof a better production lead time making us
able to deliver the full package.
Apparel Division places the highest emphasis on manufacturing its apparel products with consistent by
incorporating efficient and flexible processes to ensure customer satisfaction. Total Quality management is
achieved through effective control and continuous improvement of every process.
Machinery and Equipments:-

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CUTTING Manual Tape
Gerber Spreader End Cutter
Cutter Cutter
Make Gerber Spreader (SY251)

Capacity 2000 Meter/Hour Manual

Cutter Tape
End Cutter (Computerized)
Type GERBER Technology Fabric Cutting M/C (Eastman Cutter
629X)
Straight knife cutting machine with
Specification
automatic sharpener (10")
No. of
1 3 3 1
Machines

STITCHING
ETON Unit Production System

Make ETON Unit Production System

Capacity 12000 ~ 15000 Sets/Day

SpecificationComplete Eton Basic Production System

Stitching
JUKI SROOBA BROTHER
Machines
Brother
Srooba Single
Juki Single Needle Juki Double Needle Brother Single Needle Double
Needle
Needle
(DDL-5550N-7- (Tn875 b
SpecificationWB/SV500/CP150) (LH-3168SF) (Sarooba) (S-737-405)
045)
(LH-3128SF) Fix
(DDL-8300) - - -
Bar
(8500) - - - -
No. of
95 + 20 + 10 27 + 2 28 52 9
Machines

MOCK
FLAT STITCH/F
ZIG WAIST
Other LOCK/OVER USSING/A
BUTTON MACHINES ZAG/SAFETY/PIN BAND/WRINKLE/RIVET/TAGGING/STR
Machines LOCK/LOOP UTO
STITCH IPPING
MACKING WELTING
ETC.
Safety Machine Mock Stitch
Button Machine (LK
Pegasus (EX3216- Waist Band Kansai (1508) Brother
1903 ASS) Flat Lock
42P2/233-3x4) (BAS2361)
Machine
(W1562-013) Fussing
Safety Machine Pegasus Machine
Wrinkle Machine (Local)
Zoje (ZJ 732-85) Haseema
(HP450MS)
Button Machine TK 373 Pocket
Specification Crassing
Safety Machine Over Lock
Rivet Stud (Local) VBE
Zoje (ZJ 732-38A) King Tex
MACE
(001-V)
Ziz Zag Machine
Button Hole Machine Auto
Zig (LZ-2290A- Dennison Plastic Tagging Soked (SM9700)
(LBH-1790) Welling
SS-7) Loop Making
Machine
Kansai (2000)
Reace
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Products:-
Kohinoor Apparel is producing a wide range of bottom wear products including Basic work ware,
Chinos, Multi Pocket Trousers, Jeans, Shorts, etc.
Compliance:-

WRAP & SA 8000 Certified by World Wide Responsible Apparel Production

Kohinoor Hosiery:-

Kohinoor Hosiery is engaged in the production of high quality socks with a capacity of 9.6 million
dozen per annum. Its core product is 108 needle sports/casual socks.

Kohinoor Hosiery is designed to cater high volume customers with short through put time. Driven by market
trends and customer requirement it has developed a wide range of performance socks. It has a Product Tracking
System coupled with Effective Management Information System catering with both customer and management
requirements. Further to which customer can access its order and shipment status through Customer Service
Portal. Strict Quality Assurance right from procurement till dispatch of goods enables Kohinoor Hosiery to stay
up to customer satisfaction level.

Workforce: -

The Company enjoys the services of professionals in its various departments with a total workforce of
1900 individuals.

Turnover: -

17
 It has a total annual sales turnover of US$ 32.16 Million.

Kohinoor Machinery and Equipment:-

Knitting
Machine Type No. of Machines
LONATI
108 Needle 4" Dia 252
132 Needle 4" Dia 138
84 Needle 5" Dia 24
144 Needle 4" Dia 18
MATIC
108 Needle 4" Dia 48
Total 480
ADDITIONAL CYLINDERS
108 Needle 4" Dia 132
CAPACITY
800,000 Dozen per Month

Linking
No. of
Machine Type
Machines
Automatic Liner Linking Machine for Socks
with Rosso Ultra turn 35
Conti Complett Linking Machine Digitronic 4
Rosso Truning Devices 40
Total 79
CAPACITY
960,000 Dozen per Month
* Fully Computerized Machines That Produce Neat
Toe Finish

Bleaching & Dyeing

Machine Type No. of Machines
Continuous Bleaching Tunnel Machine with
Auto Dozing & Auto Dryers from 1
Kannegiesser Germany
Rotary Dryers Pmt Italy 4
Rotary Dryers Poly Craft 1
Rotary Dyeing Machines Reb Impianti Italy 2
Poly Craft Bleaching Machines 12
Hydro Extractors 4
Poly Craft Washing Machines 4
Total 28
CAPACITY

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 Bleaching 23,000 KGS 900,000 Dozen
Dyeing 5,000 KGS 210,000 Dozen

Boarding & Packing

No. of
Machine Type
Machines
Automatic Boarding Machines Tecnopea Italy
17
(Electric)
Automatic Boarding Machines Tecnopea Italy
16
(Electric / Steam)
Manual Press Machines 14
Total 47
CAPACITY
Boarding 960,000 Dozen per month
Packing 900,000 Dozen per month
* Online Packing: Chain system at boarding for reduced handling time.
* Offline Packing: Specialized in band/tag and assorted packing.

Kohinoor Products:-
Kohinoor Hosiery's product range comprises on Sports / Casual, Performance, Work
wear and Medical Socks.

Compliance:-
• Our Social Compliance Audit are conducted by
○ C.S.C.C
○ VF Corporation
○ JC Penny
○ Target
○ Kmart/Sears
○ Wal-Mart
○ Fruit of the Loom etc.

Kohinoor Dyeing:-

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Kohinoor Dyeing is specialized in bottom weight apparel Fabrics. It has its expertise in processing Apparel
Fabrics in 100% Cotton, Poly cotton blends and Stretch articles of Twills, Drills, Canvases, BFC, Oxford,
Herring Bones, Dobby and Jacquard designs.

Kohinoor Dyeing has state of the art Dyeing & Finishing plant producing, Dyed, White & PFGD Fabrics with a
capacity of 3.0 Million meters per month. Equipped with most modern Dyeing & Finishing range it has its
expertise in using Reactive, Disperse, VAT & Sulpher dyes for fabrics ranging 90 – 600 GSM with a working
width of 1.80 Meters. Automated recipe storage and re-call system and automated chemical and dyestuff dosing
system enables precision processing and best reproducibility. Through Strict process control and quality
assurance, Kohinoor Dyeing is able to reduce shortfalls and B-Grade percentage, resulting in increased level of
customer satisfaction.

Kohinoor Dyeing is renowned throughout the world for its remarkable Finishes and Nice hand-feels. Special
Finishes like Teflon’s, soil release, stain repellant, water repellant, fire retardant, Nanotex, anti-microbial,
lubricant, Pre-cure are produced on regular basis. Kohinoor dyeing is using all the Okotex certified dyes and
chemicals for all of its products. Kohinoor Dyeing is also processing Organic cotton fabrics to meet the
changing need of its customers.

Kohinoor Dyeing has a diversified customer base spread over different continents. It has long-term professional
relationship with most of the High Street Labels and famous chain stores:

U.S.A: Banana Republic, GAP, LEVI’S, Target, Tommy, VF, PVH, Ann Taylor, Liz Claiborne, Hagger,
Arrow, Wal-Mart, K-Mart, White Stag, etc.,

Europe: Next, Mango, Zara, Brushka, C&A, British Home Store, Hema, Carrefour, Rose By, French
Connection, Harveys, Argos, Farah UK, Tema, Amadues Jeans, and many more.

Australia: Yakka, King Gee, Charles Parsons, Farah.

South Africa: Wools Worth

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Machinery and Equipments:-

21
PLANT DETAILS
Capacity 3 million meters per month
Fabric weight Range 100gsm – 500gsm
Fabric cotton/poly cotton/Lycra Blends

PRE-TREATMENT
TWO ONE
SINGING MERC
STAGE STAGE
& ERIZI
Make BLEACHI 1.8
BLEA 1.8
DESIZING
1.8 1.8 NG
Capacity NG CHING METE
METE
METER METER
R R
Two Stage One
Singing & Continuou Stage Merceri
Type Desizing s Bleachi zing
Machine Bleaching ng Range
Range Range
Year of
2001 2001 2006 2001
Manufacture
OSTHOFF
JIANG
& BRUGMA BRUG
SU
BRUGMA N MAN
Manufacturer SAGA
N [HOLLA [HOLL
[CHIN
[HOLLAN ND] AND]
A]
D]
No. of Machines 1 1 1 1
DYEING
PAD PAD PAD
PAD
THERMOS STEA BATC
STEAM
OL M
1.8 H
1.8
1.8 1.8
Capacity
Make METE METE
METER METER
R R
PAD PAD PAD
PAD
Type THERMOS STEA BATC
STEAM
OL M H
Year of
2001 2001 2004 2001
Manufacture
MONFOR BRUGMA BENNI BRUG
TS N NGER MAN
Manufacturer
[GERMAN [HOLLA [GERM [HOLL
Y] ND] ANY] AND]
No. of Machines 2 1 1 1
FINISHING
STENTER SANFORI CURIN EMERI EMERIZING
Make S ZING G ZING
1.8 1.8
1.8 1.8
Capacity METE METE 1.8 METER
METER METER
R R
CURIN EMERI
SANFORI
STENTER G ZING
Type ZING EMERIZING MACHINE
S RANG MACH
RANGE
E INE
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Products:-Kohinoor Dyeing product range comprises of dyed Cotton, Poly Cotton, Lycra, Poplin, Canvas,
Twill, Sateen and Dobby Fabric.

Kohinoor Genertek:-

Kohinoor Genertek is a power generation plant, engaged in power generation and distribution since 1995. Its
has the generation capacity of 29.28 MW and comprises of the following types of Generation equipment.

A Turbo mach 31.23 MW Gas Turbine with a waste heat recovery boiler, producing 14 Tons of steam/hour,
which is used in textile production such as Processing, Dying and Weaving. Its also planned to recover the heat
from hot water circuit and generate 800 R/T of chilled water for Textile and Office use.

Three Caterpillar G3520C Gas Generators with a capacity of 1.95MW each. A duplex Waste Heat Recovery
Boiler is also fitted with these engines, producing 3 Tons of steam per hour. A third Gas Genset will be added in
near future to enhance the generation capacity of the Power Plant.

Three Dual Fuel, furnace oil plus Gas, fired Niigata 18V32 engines with a combined capacity of 17.88MW.
These Niigata engines are also fitted with Waste Heat Recovery Boilers to add 4 tons of steam per hour into the
steam circuit.

Workforce: -

The company enjoys the services of professionals in its various departments with a total workforce of

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65 individuals.

Turnover: -

It has a total turnover of US$ 10 million.

Machinery and Equipment:-

PLANT
DETAILS Details Characteristics
5.96 * 3 + 7.5 + 1.95 * 2
Capacity Generation Voltage 11000V
= 29.28 MW
No. of Units 6 Frequency 50 Hz
Type of
Thermal Generation Power factor 0.8 Lagging
Facility
Type of
Diesel Electric Automatic Generation control Provided
Technology
Production
1996 Ramping Rate 1.0% / Second
Year
Furnace Oil - Diesel -
Fuel Type Alternative fuel Light Diesel Oil
Natural Gas
Auxiliary Consumption 4251330 KWh During 2005
POWER
PLANT No. of
Commissioning
Model Manufacturer Specification Capacity Gen Fuel Type
Year
Sets
4 Cycle,
Compression
Ignition Water
Cooled, Turbo
5.96 MW Each
charger type
8250 PS for 5860
Niigata with charger Air HSD -
Niigata 18 V 32 K w/h generated
Engineering Cooler, Rated 1995 - 1996 3 HFO -
Engines CLX at 45Ċ or
co. Ltd Output is 8250 GAS
less Ambient
PS for 5860 K
Temperature
w/h generated at
45Ċ or less
Ambient
Temperature
LEROY
SOMER
GENERATOR-
type
Turbo
LSA 56BMBL
mach GAS -
Gas Turbine Turbo mach 13-4P, 7.5 MW, 2005 7.50 MW 1
TBM-T70 HSD
Φ0.8,
9000KVA,
RPM 1500,
AMB TEMP
40Ċ

24
 Cylinder And
Arrangement 60
Degree V 20,
Bore 170 mm
(6.7 inch),
Stroke 190 mm
(7.5 inch),
Total
Displacement
86.2 L (5262
in3),
Caterpillars CAT GAS -
Caterpillar Compression 2006 1.95 MW 2
Gas Engines G3520-C HSD
Ratio 11.3:1,
Aspiration TA
with SCAC (1),
Rotation (Fly
wheel end)
Counter Clock
wise, Firing
Order 1-2-11-
12-3-4-15-16-7-
8-19-20-9-10-
17-18-5-6-13-14
FUEL &
LUBRICANTS Fuels Lubricants
Preslia 46 (imported)
NGEO-350
Aurelia XL 4040
Fuel Type HFO - HSD - Natural Gas Grealed Oil 320
Lube Oil TLX 404
Corena AS 46
Mobile Parus SHC 1026

PURIFIERS
Lube Oil Purifiers HFO Purifiers
Make
Alfa Laval MOPX 207 Type Alfa Laval MFPX 307 Type
Centrifugal type with electric
Centrifugal type with electric heater, Automatic Operation
Specification heater, Automatic Operation for
for Sluge Discharge
Sluge Discharge
2700 Liter/ H for 380 CST at 50Ċ
Capacity 1800 Liter/Hour
class Fuel
No. of
3 4
Purifiers

Products: - Kohinoor Genertek is producing un-interrupted Electricity and quality Steam for Kohinoor Mills.

Export Business Countries and Leading International Brands: -

25
Kohinoor Mills Limited has a diversified customer base spread over different continents. It has long-term
professional relationship with most of the High Street Labels and famous chain stores. Details are as follows,

United States of America:

Brands:
Banana Republic

LEVI’S

Tommy

Wall Mart

K-Mart

Hagger

White Stag

Europe:
Brands:
Next

Mango

Zara

C&A

British Home Store

Rose By

French Connection

Hervey’s

Farah UK

Amadeus Jeans

Australia:
Brands:-

26
 Yakka

King Gee

Charles Parsons

Farah
South Africa:-
Brands:-
Wools Worth

Documents Used by the Organization for Export:-

1- Packing List
2- Commercial Invoice
3- Certificate of Origin
4- Certificate of Inspection
5- Bill of Lading
i- Shipping Documents
ii- Airway Bill
1- E-Form
2- Bill of Exchange

Purpose of Documents Used by Organization for Exports:-

• Packing List: - Packing list is detail of goods packed according to complete specification of product.
• Commercial Invoice: - Issued by the exporter for the full realizable amount of goods as per trade
term.
• Certificate of Origin: - It is required to certify on the invoice that the goods are of a particular
origin or manufactured/ packed at a particular place and in accordance with specific contract.
• Packing List: - It shows the details of goods contained in each parcel / shipment.
• Certificate of Inspection: – This document describes the condition of goods and confirming that
their quality & quantity is according to order.
• Bill of Lading: - Bill of Lading is of different types but Kohinoor mills mainly using two types of
transportation sources i-e Sea and air cargo.
• Shipping Documents: - when company sends through sea then use shipping documents.
• Airway Bill- when company use air cargo then airway bill of consignment.
• E-Form: -E-form issued by bank. It is the requirement of state bank of Pakistan to fill E-form and
submit to state bank for record and any subsidy.

27
 • Bill of Exchange: - An unconditional order issued by Kohinoor Mills which directs the recipient to
pay a fixed sum of money of their consignment to their bank at future date. The future date may be
either fixed or negotiable. This content can be found on the following page:
http://www.investorwords.com/477/bill_of_exchange.html
•
• Certificate of Shipment: - It signifies that a certain lot of goods have been shipped.
• Shipping Order: - Issued by the Shipping (Conference) Line which intimates the exporter about the
reservation of space of shipment of cargo through the specific vessel from a specified port and on a
specified date.
• Cart/ Lorry Ticket: - It is prepared for admittance of the cargo through the port gate and includes
the shipper's name, cart/ lorry No., marks on packages, quantity, etc.
• Shut out Advice: - It is a statement of packages which are shut out by a ship and is prepared by the
concerned shed and is sent to the exporter.
What is Letter of Credit?
A Letter of Credit is a binding document that a buyer can request from his bank in order to guarantee that the
payment for goods will be transferred to the seller. Basically, a letter of credit gives the seller reassurance that
he will receive the payment for the goods. In order for the payment to occur, the seller has to present the bank
with the necessary shipping documents confirming the shipment of goods within a given time frame. It is often
used in international trade to eliminate risks such as unfamiliarity with the foreign country, customs, or political
instability.
Types of Letter of Credit Used by Company:-
Kohinoor mills limited only accepts the Confirmed LC, LC at Sight
This content can be found on the following page:
http://www.investorwords.com/2774/letter_of_credit.html

Role of Bank:-
Banks have played a tremendous role in promoting exports from Pakistan. They have been
financing export bills. They have given credit for boosting in the past. They have provided guidance to
exporters. They have encouraged potential exporters to identify areas and countries for exports. They have
implemented the directives of the government of Pakistan by giving subsidized credit to exports

Banks provide an important role in exports,

1- Bank issued export form to the organization.
2- Bank perform medium of correspondent between organizations for collection of Funds
3- Banks provide its services of negotiating, collection of funds on behalf of organization.
4- Banks provide Finance Facilities for exports
i- FAPC-1
ii- FAPC-II
iii- FBP

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i- FAPC-1:-
Banks provide loans to the exporting firms are called Finance against packing Credit. This
facility based on the funds required to complete particular export order.

ii- FAPC-II:-
This facility is a subsidized finance facility provided by the state bank of Pakistan to exporting
firms through commercial banks. If a firm has annual exports more than $300 million. A running finance
facility of 50% of total sales of company allocated 9% from which 7.5 % is financial charges of state bank and
1.5% is service charges of commercial bank.

iii- FBP:-
Banks also provide Foreign bill purchase finance facility to export oriented units. In this facility
banks provide loans to cover the gap between Shipping products and receipt of payment.

Custom Procedure for Exports:-

Exports play a vital role in the development of any economy. One of
the initiatives taken by the Government of Pakistan to enhance & boost exports is to provide various export
incentives as well as streamlining export processes. Among other steps taken by Government, the simplification
of the export clearance procedure is considered to be a vital step in the facilitation of the exporter. The
following procedure has been explained in terms of various stages of inspection, clearance and documentation
required.

The Role of Clearing Agents in Export of Products:-

Once the consignment to be exported arrives at
the port, usually a clearing agent’s services are sought so as to facilitate the procedure of clearing the
consignments. The documents to be provided by an exporter to the clearing agent are as follows:

a) Packing list
b) Invoice
c) Form ‘E’ 1(State Bank form)
d) Letter of Credit or Contract
e) Certificate of Origin

Provided the above mentioned documents are complete, the clearing agent prepares the shipping bill and files
the documents with Custom department. A “machine number” is allotted to the Shipping Bill, and the case is
forwarded to the Port Gate. The consignment is allowed to enter the port vicinity, and is registered at the gate
according to the allotted number. The Deputy Superintendent (D.S.) marks the consignment for examination to
the inspector of the examination hall. Once the inspector has examined the consignment, the case is marked to
the D.S. for approval. 2% Export Development. Surcharge (EDS) of the invoice value shall be deducted through
receiving banks upon remittance of export proceeds against the Export Development Fund (EDF). However,
EDS has been waived off for small exporters and those who exceeded their exports more than 10%. Provided
the D.S. approves the case, it is forwarded to the Superintendent with the examination report for final approval.
The case if approved by the Superintendent is marked to the D.S. for “Out of Charge”. The container is given a
final physical check and is sealed by the bonded carriers or the port customs authority. The loading programme
is obtained from the shipping firm/cargo carrier for the country to which the consignment is being exported.
Loading programme lists the schedule of various ships leaving port for the export destination along with the
availability and 1 4 copies of Form E are issued by the intermediary, one copy is handed to the exporter and one
copy is retained by the bank. The remaining two copies are required to be sent to the State Bank of Pakistan and

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 the Customs department respectively.

Methods of Receiving Payments:-

1- Advance Payments
2- Letter of Credit
• Company can receive its payments depends in which currency company maintaining its account in
Bank. If company is maintain its account in US $, dollars will be credited in account upon
realization of payment. If company is maintaining its account in PKR then bank will change the
US $ into PKR on that day exchange rate and PKR will be credited in the account.

Role of Chamber of Commerce:-

The Chamber's basic function is to protect and promote the interest of trade commerce and industry. It strives
hard to espouse the cause of private enterprise and to redouble its contribution in the socio-economic
development to the country.
Chamber of commerce played following important roles for export oriented units,
• To issue Measurement Certificates as well as Certificates of Origin for the export cargoes and attestation
of commercial documents.
• The Foreign Exchange is issued on Chamber's recommendations.
• It organizes Pakistan's Pavilions in the international fairs abroad to promote export.
• It also organizes Seminars, Training courses, Conferences on various opportunities available for Pakistani
exporters to promote exports.
• It invites Minister's and Government functionaries to the Chamber to identify the problems being faced by trade
and industry.
• A number of foreign trade delegations, dignitaries and diplomats visit the Chamber and exchange views on
matters of mutual interest.
• It publishes Trade Directories, Statistical Data and other publications for the benefit of the export business
community.
• Chamber of Commerce and Industry urged the government to provide Research and Development (R&D)
support to all export-oriented industrial sectors.
• Chamber of Commerce provides Export Development Fund (EDF) relating to promotion of exports in various
sectors.
• Exporters could obtain qualified export counseling and make a master international marketing plan before
exporting business.
• Trade Missions in foreign countries are not equipped with proper information and material about Pakistani
exportable products and chamber of commerce stressed that they should develop brochures and information
material and provides it to our Foreign Missions abroad for better marketing of Pakistani products.
• Chamber of Commerce with TDAP conducts exhibitions in foreign countries so that exports could be increased
by providing first hand knowledge and experience to buyers.
• Chamber of Commerce with the help of Ministry of Finance and technology building a comprehensive profile
of countries containing e- commerce legal and regulatory data. It should follow-up consultations with
department of Commerce's staff of global experts.

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• Chamber of Commerce working to highlight the importance of Electronic commerce in boosting exports.
Pakistan can improve its conditions by using E-commerce. Internet could play a dramatic role in boosting
exports. All types of companies have the excess to internet through which they can increase trade
internationally. The Internet is a power full tool revolutionizing all aspects of business. However, few firms are
using the internet effectively to generate or support international orders because they are familiar with export
requirements. Even developed country like America is the global scope of electronic commerce and build
support for a private-sector led approach the e-commerce policy, both nationally and internationally.

Findings:-
Political environment susceptible law and order situation of the country, sharp rise in interest rate, on
going recession in U.S economy and its repercussions on the rest of the world economy massive sui gas and
electricity load shedding coupled with increased cost of doing business in Pakistan, shifting of textile industry
to Bangladesh and India exerted pressure on the overall performance of the company. Further, sharp
devaluation in the Pakistani currency, company may incur a heavy exchange loss being only an export oriented
unit.
As the major exports of the company to the U.S and England, the purchasing power of their people has
been reduced significantly resulting they reduce in the international model. And company is not utilizing
economic capacity of their plant which may effect on the financial performance of the company.
Weaving division of the company is not fulfilling the demand of yarn of other divisions which could
result the delay in completion of orders and increase the overall cost. It can also be harmful for the quality of
final product.
Despite the intense competition and rapidly changing market conditions the dyeing division show good
progress, gained momentum in the capacity utilization of dyeing division.
With the diversification of customer base, addition of new marketing channels and entry in European
market by establishing hosiery division firm has reasonably increased its exports.
The firm newly established apparel division started its stitching operations of institutional work wear,
bottom wear apparels and casual trousers in line with vertical integration of company. Currently this division
has not working at full capacity; however this new addition of apparel division will definitely generate more
revenues in long run.
The company has their on Genertek division which is mainly operating on sui gas but during the load
shedding of sui gas they are using HFO- Fired back-Up NIIGATA Engines to generate electricity which is a
source of heavy cost for the firm.

Suggestions:-
○ The company should develop a detailed strategy to overcome the grim economic conditions.
addition of new narrow width looms in weaving division and backward integration, meeting in
house demand of weaving production in dye house will not only bring synergy in inspection and
packing cost, but will also bring in saving in respect of commission, taxation and transportation
cost.
○ Company should find more new marketing channels to increase the sales of apparel division to
use the economic capacity of apparel division.

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 ○ The firm should make arrangements of electricity from LESCO in case of gas load shedding to
reduce the cost of their Genertek division.
○ China has closed their textile industry, which was a largest exporter of textile products. The
company should focus to receive the orders of China from international buyers.

Reference:-
www.kml.com
SMEDA
Karachi Chamber of Commerce

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