GUL AHMED TEXTILE MILLS LTD.

Presented By:

M. Qamar Aziz

TEXTILE INDUSTRY SITUATION IN PAKISTAN

Pakistan's textile sector export in March 2011

exhibited robust growth, augmenting by 44 percent,

while the food group posted a 56.4 percent

increase compared to the same month in the last

fiscal year.

Sources stated that the country's export of textile

and clothing, which are major export sectors and

possess 50 percent share in total export, stood at

$1,249 million in March, 2011 in contrast with

$867.253 million during the same month in 2010.

Pakistan's exports continued to strengthen, as

evident from the latest trade data. Figures revealed

that exports during March, 2011 stood at $2.5

billion, 41.1 percent higher than that of March last

year. Cumulative exports, in July-March 2011,

aggregated to $17.8 billion as against $14.1 billion

in the corresponding period of last year, an increase

of 26.5 percent. Export figures, for July-March,

depicted a similar picture.

The textile sector was the major driver of exports.

Knitwear and cotton cloth were top export products,

as their export grew by 32.7 percent and 28.6

percent respectively. Bed wear, cotton yarn and

readymade garments were items that, each,

crossed the $1.0 billion mark during the nine

months of the fiscal year 2010-11.

The textile industry is one of the most important sectors of Pakistan. It contributes significantly to the country's GDP, exports as well as employment. It is, in fact, the backbone of the Pakistani economy.

Established capacity: The textile industry of Pakistan has a total established spinning capacity of 1550 million kgs of yarn, weaving capacity of 4368 million square metres of fabric and finishing capacity of 4000 million square metres. The industry has a production capacity of 670 million units of garments, 400 million units of knitwear and 53 million kgs of towels.

The industry has a total of 1221 units engaged in

ginning and 442 units engaged in spinning. There

are around 124 large units that undertake weaving

and 425 small units. There are around 20600 power

looms in operation in the industry. The industry also

houses around 10 large finishing units and 625

small units.

Pakistan's textile industry has about 50 large and

2500 small garment manufacturing units. Moreover,

it also houses around 600 knitwear-producing units

and 400 towel-producing units.

Contribution to exports: According to recent figures,

the Pakistan textile industry contributes more than

60% to the country's total exports, which amounts

to around 5.2 billion US dollars. The industry

contributes around 46% to the total output

produced in the country.

In Asia, Pakistan is the 8th largest exporter of textile

products.

The contribution of this industry to the total GDP is 8.5%. It provides employment to 38% of the work force in the country, which amounts to a figure of 15 million. However, the proportion of skilled labor is very less as compared to that of unskilled labor.

All Pakistan Textile Mills Association is the chief organization that determines the rules and regulations in the Pakistan textile industry.

The world demand for textiles is rising at around 2.5%, due to which there is a greater opportunity for rise in exports from Pakistan.

GUL AHMED TEXTILE MILLS LTD.

(OVERVIEW)

Type: Public

Industry: Textile, Retail

Founded: April 1, 1953

Founder: Haji Ali Mohammad

Headquarters: Karachi, Pakistan

Area served: Worldwide

Products: Fabrics, bedding, yarn,apparel, accessories

Revenue: US$235 million (2010)

Employees: 7000

Parent: Gul Ahmed Group

Divisions: Ideas by Gul

INTRODUCTION THE COMPANY

The Gul Ahmed Group began trading in textiles in

the early 1900s.

In 1953, the group decided to enter the field of

manufacturing under the name Gul Ahmed Textile

Mills Limited, and was incorporated as a privately

limited company.

In 1972, it was listed on the Karachi Stock

Exchange.

Since then, the company has made rapid progress

and is currently one of the leading composite textile

houses in the world.

PRODUCTS

Gul Ahmed's fine textile products represent a unique fusion of the century old traditions of the east and the latest textile technology of the west.

The purest of cotton fibers, produced from the fertile lands of the Indus Valley, are spun, woven and processed into the finest quality cotton and blended products through a combination of latest technology, skills and craftsmanship of this traditional industry.

Bed Linen

Quilt covers ,duvet covers, flat and fitted sheets, pillow covers, valance sheets, bolster case with all sorts of fancy confectioning, embroidery and embellishments, packed to buyers' specific requirement.

Curtains & Quilted Curtains

Ready made curtains lined, un-lined and taptop curtains, plain or fully accessorized with tiebacks, pelmets, cushion covers, in different styles of confectioning and embroidery, packed to buyers' specific requirement.

Coated Fabrics

Running meter fabrics, packed to specific

requirement.

Cotton Yarn, Polyester Yarn, Rayon Yarn and

other Man made fibers Yarn

Gul Ahmed specializes in medium-to-fine-count

cotton yarns and is also capable of producing yarns

using a wide variety of synthetic fibers including

polyester, rayon and other man-made fibers

OPERATIONS

Gul Ahmed is a network of composite mills which

manufacture goods from yarn to finished products.

In order to achieve and maintain high quality control

and to retain strict focus on specialization, the

production units have been decentralized into the

following units:

Spinning

Weaving

Pretreatment, Printing, Dyeing, Finishing

Design & Style

Hemming – House Hold Textile

Quality Control

1. SPINNING

Gul Ahmed has two spinning units. The machinery

used in these units is made in the U.K., Japan,

Germany & the U.S.A.

Ring Spinning

The ring spinning operation comprises of a total of

130,296 spindles.

A wide range of yarns are produced in these units:

100% cotton from 50 NM for knitting and weaving, up to

135 NM for light weight dress fabrics.

Poly Cotton, Poly viscose and 100% viscose yarns are

also produced from 7 Ne to 100 count.

2. WEAVING

The units have 223 air jet looms. The air jet looms

come from Tsudakoma of Japan. The latest

installation of air jet looms operate in a new custom

built weaving facility supported by the most modern

yarn preparation equipment and are comparable

with the finest available yarn preparation equipment

anywhere in the world.

These units produce fine quality lawns, sheetings,

twills, drills, dobbies, satins, and other fancy fabrics

with a width of up to 330 cms.

3. PRETREATMENT, PRINTING, DYEING,

FINISHING

The wet processing unit is equipped with a wide

range of state of the art machines which gives Gul

Ahmed a flexible processing possibility and an edge

over its competitors.

Gul Ahmed has 4 sophisticated rotary printing

machines Capable of printing up to 21 colours on

fabrics as wide as 320 cm.

Processing and Finishing Machinery Computerized Colour Kitchen

Calender

CAD/CAM System

Colour Scanner

Dyeing Range

Embroidery Machine (20 head 9 colour)

Film Plotter

Laser Engraver

Mercerizing

Rotary Printing including 21 colour and upto 280 cm width

Singeing & Desizing

Stentor

Sanforizing

Washing and Drying Range

Wax Engraver

The first installation of a laser engraver, wax

engraver, film plotter, colour scanner, & CAD/CAM

system in Pakistan was made at Gul Ahmed.

In the finishing section, modern stenters are fitted

with the most sophisticated electronic weft

straighteners which achieve perfect finishes. Final

touch to the fabrics is given on different calenders

according to the requirements of the buyers.

An automated and computerized colour kitchen

enables production of exact colour shades each

time from the use of recipes which are stored in the

computer's memory station.

4. DESIGN & STYLING

Gul Ahmed's design studios are staffed with

experienced artists with capabilities to meet the most

stringent requirements in design and to adapt to

different colourways to meet the requirements of each

individual country.

The company also employs leading European designers

who constantly develop new designs for specific

geographical areas.

A top French designer works full time for Gul Ahmed and

spends 2 months in Pakistan and 2 months in Paris on a

rotational basis throughout the year.

The designing team visits major international exhibitions

to keep abreast of current market trends.

5. HEMMING - HOUSE HOLD TEXTILE

These units, equipped with high speed stitching

machines and an intensive labour force, are

capable of making all of the different product size

and style requirements of each individual country.

6. QUALITY CONTROL

Gul Ahmed maintains strict quality control and

possesses computerized testing for strength of

yarn, density of cloth and fastness of colours. Fully

equipped labs are installed separately in areas of

spinning, weaving and wet processing.

The quality control personnel conduct pre-

inspection of goods at different stages to maintain

international standards and to ensure customer

satisfaction on a regular basis.

MANAGEMENT POLICIES Quality Policy

Maintenance of Quality Systems on the guidelines of ISO 9000 series of standards.

Customer satisfaction through employee participation & innovative technology application.

Training of employees on quality awareness, ISO 9000 concepts & system documentation including: procedures, work instructions, specification etc. Training should be an on-going process and refreshers and reviews are a part of training.

Social Policy

Gul Ahmed Textile Mills Limited has striven to become one of the leading companies to actively participate in the social and economical growth of the country. The company will endeavor to address following issues:

Enforcement of minimum age of employee of eighteen (18) years without any discrimination.

Relaxed environment for employees.

Practical measures related to health and safety.

Equal opportunity.

Environmental Policy

Gul Ahmed Textile Mills Limited pursue long term corporate objectives towards conservation in the use of electricity, gas and water for setting up an environmental management system. We plan to meet global environmental challenges in all areas.

Health and Safety Policy

Gul Ahmed has a H&S manual and a permanent committee to ensure safety of staff and workers. The members of the committee are:

Technical Directors.

General Manager Maintenance.

Processing Manager.

Management Representative (Health & Safety).

Stitching Managers.

Admin, Security & Fire chief.

IDEAS BY GUL AHMED

Ideas by Gul Ahmed is the retail venture of Gul Ahmed Textile Mills Ltd. Visualizing the needs of customers and the growing trend towards the retail industry, the company decided to diversify into the retail sector in 2003.

At Ideas, Gul Ahmed’s tradition of quality and style provides an elegant taste of creatively designed home textile ranges in a vibrant palette of colors, fabrics, patterns, textures and embroidery styles. The store also features limited edition lawn and cotton designs in fresh trendy colors.

Gul Ahmed has been an exporter of textiles for the past many years and with its vast experience and reach the company is set to develop an extensive chain of stores across the country, aiming to bring its customers an unbeatable shopping experience.

IDEAS VISION

Ideas strives to be an international brand that cares

for its customers and fulfills their home and

personal needs.

Consumer and professional channels will recognize

us as the leader in exclusive, high quality, modern

designs as well as impeccable service with

courteous, informed and well-groomed sales

consultants.

Our aim is to provide a distinctive cozy shopping

environment with attractive décor, a consistent

availability of high quality products and new product

innovations.