AL KARAM TEXTILE MILLS (PVT) LTD.

INTRODUCTION:

The Al-Karam Group of companies started as a pioneer in the textile industry of Pakistan and
since expanded into several other industries. The Al-Karam Textile Factory was founded in
March 1986 with a vision to be a provider of innovative textile solutions worldwide. The
nature of Al- Karam Textile Mills is Textile and Textile Made Ups. We are a manufacturer
and supplier of distinguished fabric for apparel, home and industrial markets with clients all
over the world.
Our core services include:

* Fiber manufacturing
* Spinning
* Weaving
* Knitting
* Dyeing and printing of woven and knitted fabrics designing
* Cutting and Stitching

The group also includes salt, cork, and dairy companies, and others.

List of companies of Al-Karam Group

 Al- Karam Textile Mills (Private) Limited

 Amna Industries (Private) Limited
 Pakistan Synthetics
 Dabheji Salt Works Limited
 Orient Textile Mills Limited
 Pakistan Dairy Products (Private) Limited (manufacturers Igloo ice cream)
 Gul Agencies (Private) Limited
 Imran Crown Corks (Private) Limited

Al- Karam Textile Mills has an area of 263,000 SQ. Meters. We are one of the few vertically
integrated operations in Pakistan. Offering a diversified range of products, our customers can
mix and match from a wide variety of print, yarn dyed, solids, dobby and jacquard. We also
deal in twill, sateen, basket weave and percale, knitted to woven fabric; and thread counts.
The total value of assets of Al- Karam Textile Mills 900 MILLION US $. The current
President of Al- Karam Textile Mills is Mr.Iqbal Ibrahim.

Board of Directors

The Board of Directors includes the following gentlemen:

* Mr. Ebrahim Haji Karim
* Mr. Umer Haji Karim
* Mr. Anwar Haji Kari
* Mr. Yakoob Haji Karim
* Mr. Iqbal Haji Ebrahim
* Mr. Sajid Haji Haroon
* Mr. Afzal Umer

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SUCCESS AND FALIURE:

SUCCESS:
The success of a company depends on four things which are:

 Labor force
 Advancement in production methods
 New ideas
 Leadership

The Al Karam Textile Mill has all of the above things and this is the main reason of the
success of Al Karam. At Al Karam they provide their customers with complete in-house
design solutions. Their creative center is equipped with state of the art designing and
sampling equipment and skilled textile artists. The Al Karam textile mills works according to
their vision and mission statement

Vision Statement

 To be an important link in the global textile supply chain. Effective use of technology;
continuous focus on the modernization.

Mission Statement

 Al karam will remain an undisputed leader in providing high quality products &
services, to its customers.
 Al karam will continue to provide superior quality high thread count Home Textiles
and Fashion Apparel.

The Al Karam Textile Mills is working according to this statement and providing their
costumers quality, value and satisfaction, and Al Karam is the biggest yarn dyeing exporter in
Pakistan and it targets the high end product customers. High thread count production to 1000
TC is the strength of Al Karam and proof of success in this regard.
In an industry where deadlines are a way of life, Al karam is proud to have a proven track
record of service quality and on-time delivery. For your convenience we maintain a
comprehensive order tracking system, so you can stay on top of your order at all times.

Due to efficient labor force and exceptional leadership qualities the daily production capacity
of Al- Karam Textile Mills is 63 tons of cotton and blended yarn, 225,000 meters fabric,
15000 sets of bed linen, 8200 sets of table linen, 10000 units of garments, 600 pieces of
quilted bed spreads, bed covers, foulards & throws. The total number of workers of Al-
Karam Textile Mills is over 6,500. The name of Al Karam is not only known in Pakistan it is
also highly demanded in international market. The main exporting countries are USA,
HOLLAND, SWEDEN, GERMANY, SPAIN, ITALY, BELGIUM, FRANCE, FINLAND,
CANADA, RUSSIA, KOREA, SWITZERLAND, GREECE, PORTUGAL, and MIDDLE
EAST & AUSTRALIA. Ability to create forward-thinking solutions that give our clients a
competitive advantage is what sets up apart. Al Karam has the capacity to fulfill small,
medium and large scale order. In an industry where deadlines are a way of life, Al Karam is proud
to have a proven track record of service quality and on-time delivery. For your convenience we
maintain a comprehensive order tracking system, so you can stay on top of your order at all times.

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Some of Al Karam’s strengths and opportunities include:

Strength

* It is one of the largest producers of fashion and basic bedding

* Compliant with international quality, social and environmental standards
* Largest yarn dyed manufacturer in Pakistan
* Largest high thread count jacquard installation in Pakistan
* Latest technology at every stage of manufacturing
* Wider Width Weaving
* Leading exporter of bed linen to the USA for the last 2 years
* Capable of providing LDP and EDI services

Opportunities
 Establish strategic alliances with major US and European importers
 The demise of major American Textile manufacturers, hence the shifting of sourcing
from local manufacturing to overseas manufacturers
 $ 26.6 billion Dollars worth of US Home Textiles market
 Safe-guard provisions on China in place until 2008

If we compare the total turn over of Al Karam of last two financial years we came to know
that it has increased, in 2006-2007 the total turn over was 250 Million US dollar and it
increased by 26 Million US dollar in 2007-2008 and it reaches 276 Million US dollar. In the
same way the exports of Al Karam has also increased which is a good sign for Al Karam in
2006-2007 the total export was of 135 Million US dollar and it increased by 7 Million US
dollar in 2007-2008 it becomes 142 Million US dollar. The total turns over of Al Karam
group US $ 350 Million. If we compare the total value of assets of Al Karam of last two year
in 2006-2007 the value was 850 Million US dollar and in 2007-2008 the value increased by
50 Million US dollar and reaches 900 Million US dollar.
Al karam textile mills has also adopted some of the modern technologies which are still not
adopted by any textile company which are

Water Treatment Plant

 Conversion of severge water in to fresh water.

 Wastewater sampling and testing
 Determination of pollution load generated by the industry
 Determination of wastewater flow and characteristics for the design
 Evaluation of treatment alternatives and selection of most suitable treatment scheme
 Process and hydraulic design of selected treatment scheme
 Treated wastewater to comply with national environmental quality standards
 The plant is designed to comply with all discharge requirements

Air technology to generate electricity

When the company was formed in 1986 it was dependent on the National Grid to fulfill its
power requirements, and conventional boilers were fired to generate process steam.
In 1988, 6 gas engines were installed to make Al-Karam meet its additional power needs.
Then in 1992, Al-Karam opted to install its own in-house co-generation plant that would
serve as a stable and reliable on-site source of electric power and process steam. This also

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substantially reduced its energy cost. This was done by installing two 3.3 MW Solar-
Caterpillar gas turbines and a 17 tons/ hour Waste Heat Recovery Boiler.
In 2006, Al-Karam upgraded its gas engines with four 1.5 MW Caterpillar Gas Engines and
two 2.5 ton/ hour duplex waste heat recovery systems placed at the exhaust flue of the
generators.
In 2007, on an experimental basis, Al-Karam brought a part of the hot flue gases of the gas
turbines to one of the stenters in the Finishing Unit at 135 degrees centigrade. In rupee terms,
there was a saving of Rs. 2.4 million/ year/stenter. During late 2006, with the help of the
government of Pakistan and the German Ministry for Economic Cooperation and
Development, Al-Karam participated in the Pakistan-German Renewable Energy and Energy
Efficiency Program (REEE).

A detailed company-wide energy audit was conducted and several energy conservation
measures were revealed with a bottom line savings of about Rs. 25 million per annum.

• Exhaust reused for steam/ power generation

• Wastage recovery system
• Hi-thermal efficiency in the industry

By adopting this technological advancement the cost of production is reduces to a greater

extent. They also have modern laboratory capable of testing along ASTM, AATCC and ISO
standards. To provide quality the Design Studio of al karam is always equipped with 20
artists and designers, and also equipped with 14 CAD stations and wax engraving.

Social compliance is a vital part of Al-Karam’s business strategy. Al-Karam complies to

social compliance programs for various customers. Realizing the need and importance of the
Social and Security Compliance in manufacturing sector of Pakistan, an initiative guided by a
multi-stakeholder (Public & Private Sector) Board was formed back in 2004 called the
Pakistan Compliance Initiative (PCI). Al-Karam Textiles is a founder member of this
compliance board.

The marketing department of Al Karam is always working for satisfying the need have a
customer and providing them value and quality. Marketing department works in two ways. In
first case Al Karam develops the products in product development department and display in
exhibitions etc. Secondly queries from various customers come and Al Karam develops
products as per their requirements. Some times customer provides their products samples and
ask for price bid. Once the price is finalized, marketing people start planning the production,
fabric and stitching material procurement and follow the production processes to meet the
target shipment dates. Marketing department play the middle role between the customer and
production departments and co-ordinate between them in case of any problem from either
side

Stitching Machine Operator Training (SMOT) Program

Recently Al-Karam Textile in collaboration with the Ministry of Textiles, Government of

Pakistan has embarked on a training project for the development of skilled work force. For
this purpose, we have designed an in-house systematic training for cut & sew skilled labor
force. As a matter of fact, stitching syllabus for Home Textile products has been designed by
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Al-Karam and approved by board. Many textile industries in Pakistan have adopted this
training syllabus

Failure:

As far as failures are concern there is no major draw back happens in this regard. There are
two major markets for Bedding and Garments. One USA and second Europe. USA market
now days in slump condition so buyers from USA demands lower prices and short order
quantities that affects the productivity. EU market is also affected from world wide recession
and since last few days antidumping duty from EU hit the home textile exports to Europe.
The global recession has badly affected the exports of al karam because due to global
recession the purchasing power of people all around the world is badly affected in this
manner the exports of textiles are badly affected.
Some of the weakness of Al Karam is

WEAKNESSES

 High transit time to North America and Europe. 3-5 weeks

 Absence of middle management or weak middle management vis-à-vis growth
 Lack of skilled and trained work-force vis-à-vis growth

Due to the global recession and due to the political and economic condition of Pakistan the
number of Al Karam contracts has been canceled of by USA and EUROPE which has a
negative impact on Al Karam revenue and sales. The Al Karam also faces some of the major
problems because of the cancelation of their orders and consignments.
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Suggestions:

In my opinion the Al Karam should focus on delivering quality in a price which can be beard
by a common man. The company should run labor training programmes like Stitching
Machine Operator Training (SMOT) Program, and workshops by which workers would be
involved and will work as they are working in their own company. The management also
improves their leadership qualities and motivates their employees and management should
adopt trait and behavior theory of leadership to lead them in a right way. The management
should also bring changes day by day and adopt the new technologies and try to reduce the
cost of production.

In this way the organization will made progress and will not left behind in the race of being
no one. The management also heir people which are qualified and have complete knowledge
of textile industry and the jobs should be given purely on merit no jobs should be given on
source basis or by using any wrong mean.

The management also has to work on their weaknesses so they can get rid of them and
convert their weaknesses in to their strength, so they can lead the market. The management
should also try to give lesser time to North America and European market and try to motivate
the middle management and the workers. The management also announces bonuses and trips
on achieving the goals set by management. By this the workers will do their work efficiently
to achieve the goals set.

One another point is that the government should also made focus on the textile industry sot
the negative publicity in the western media of law & order situation should be controlled
because it is having a negative impact on the foreigners and hence it is discouraging foreign
customers to visit the Country. The Al Karam Textile Mills also has to try to reduce their cost
of production and the price of their finished product because due to the global recession the
US market and the European market also demanding the goods on low price and short order
quantity if the prices were low it is possible that their demand increases.
Al karam also spent some money on advertisement of their new collection as MID SUMMER
collection in this way people came to know that what products are launched in the market and
the company should also their retail stores chain as Ideas by Gul Ahmed in this way only
one price will prevail in the market because if it is available on different stores everyone will
charge their own price and this has a negative impact on the customers and by this the
company also have a clear idea about supply and demand of the market which will help them
in production. They also have to launch some variety other than the textile as the Gul Ahmed
is producing, for example ladies bags, t-shirts and shirts for men, sandals, baby items, jewelry
items, trousers and etc. This will generate good revenue to Al Karam these products will
satisfy the need of every customer.
The management also adopts various strategies to increase their sales and exports. The
management made surveys of market get public opinion that what people think of the product
and what are their suggestions for the betterment and the company also introduces a toll free
number for customer suggestion and queries.
In my opinion by working on these areas the Al Karam can capture the whole market national
as well as international

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Conclusion:

In a nut shell I want to say that the Al Karam Textile Mills is one of the major industries of
Pakistan. They are one of the few vertically integrated operations in Pakistan. Offering a diversified
range of products, our customers can mix and match from a wide variety of print, yarn dyed, solids,
dobby and jacquard. We also deal in twill, sateen, basket weave and percale, knitted to woven fabric;
and thread counts ranging from 130 to 1000. The Al Karam also has a cooperate social responsibility
b which they are opening schools donating to collages and hospitals. The biggest example of this is
TCF School Al Karam campus, and COMMECS INSTITUTE OF BUSINESS AND MERGING
SCIENCES.
Due to efficient labor force and exceptional leadership qualities the daily production capacity
of Al- Karam Textile Mills is 63 tons of cotton and blended yarn, 225,000 meters fabric,
15000 sets of bed linen, 8200 sets of table linen, 10000 units of garments, 600 pieces of
quilted bed spreads, bed covers, foulards & throws
The Al Karam produces the finest quality of textile products. The products produced by Al
Karam are

Product Range:

 Yarn.
 Griege Fabric.
 Printed & Dyed Fabric.
 Bed linen.
 Made-ups.
 Garments.
 Curtains.
 Kitchen Linen.
 Home Textiles.

The Al Karam Textile Mills provide the best quality of all of these products at national and
international level. The Al Karam textile products are the most demanded textile products in
the market. . The main exporting countries are USA, HOLLAND, SWEDEN, GERMANY,
SPAIN, ITALY, BELGIUM, FRANCE, FINLAND, CANADA, RUSSIA, KOREA,
SWITZERLAND, GREECE, PORTUGAL, and MIDDLE EAST & AUSTRALIA The Al
Karam Textile Mills is the only textile mill which textile products having a higher demand in
foreign market especially in USA and EUROPE. The Al Karam Textile Mills is adopting new
technologies day y day which is resulting in low cost of production, such as Water Treatment
Plant and Air to Generate Electricity.
The total turn over of Al Karam during the year 2007-2008 was of 276 Million US $ and the
total exports of Al Karam during the year 2007-2008 was of 142 Million US$. The total value
of assets has also increases and reaches 900 Million US$.
They should also establish retail chains as Gul Ahmed. So the uniformity of the price prevails
in the market and also introduces a toll free number for suggestions and complains.

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