Table of contentsCompany profileHistory IntroductionLiterature serveyAnalysis of responsisConclusionSwot analysisRecommendationsBibliography

Company ProfileCrescent Textile Mills is a Faisalabad based textile unit. The

company was listed at stock exchange in 1951 . Crescent Textile Mills is engaged in the business of textile manufacturing of spinning, weaving, dyeing, bleaching, printing, made ups and otherwise dealing in yarn and fabrics.

Flagship of large crescent group, CTM’s main area of business is in textile.

As a composite unit having ISO-9002 certification on 1997 , which is

engaged in spinning, weaving, processing and is one of the largest

exporters of cotton yarn in Pakistan. The pioneer of Crescent Textile Mills

was Mian Muhammad Shafi , who belonged to Chinyot . Crescent Textile

Mills started as a weaving unit with 500 semi auto looms. Now the present

picture of Crescent Textile Mills is that it is the one of the largest textile

units in Pakistan.

Now Crescent Textile Mills has seven independent complete units of

spinning, 184 weaving sulzer looms, one separate unit of towel & one

complete unit of garments. Crescent Textile Mills has one of the largest

textile-processing units with a capacity of 2.5 million meters fabric monthly . The electricity consumed by Crescent Textile Mills is produced by its own

power station located within the boundary of Crescent Textile Mills. All

spinning, weaving, towel, processing and garment units are located within

the same boundary.The total no of employees are more than 5000 from which 2000 employees are staff and on permanent basis. Factory runs complete 24 hrs a day and employees work in three-day and night shifts of 8 hours.

Crescent Textile Mills was established in 1951 as a private limited

company. Crescent Textile Mills was converted into a public limited

company in 1958 . The crescent group effectively controls the company. In

the context of Pakistan, Crescent Textile Mills stands out for the composite

nature of its activities. Superior quality standards with ISO 9002 certificate

management is committed to expand into the higher value added areas of

industry.

Crescent Textile Mills is playing a vital role in the development of Pakistan

specially by earning a huge foreign exchange through exports. Crescent

Textile Mills sells more than 80% of its products to the foreign market. In

1992-93 & 1994 , the Crescent Textile Mills was awarded the President of

Pakistan Trophy for export, given to the largest exporter from Pakistan in

any category.

Historical PerspectiveThe Crescent Textile Mills Ltd was incorporated and set up in FSD as a public limited company. It is one of the fist few textile mills to be established in the country, and also the first unit of the crescent group. The Crescent Textile Mills Ltd is situated on Sargodha Road, at an area spread on 115 acres of land; and from the very inception, it had been designed as an integrated unit. It commenced its business operations in 1951 with 50316 spindles, 500 auto looms and finishing capacity of nearly 4000 meters per day. In the mid 50’s sponsor of the company decided to divert its production exclusively towards exports and became the pioneer company to have commenced export of cloths fromPakistan in 1956 . With the passage of time, the company grew in stature and its sponsors became to be known as crescent family. The period up to mid 60’s was also the period of growth of the family businesses as the sponsors/ crescent family diversified their investments to more textile companies, sugar mills, jute mills, larger trading houses, shipping etc. and so the crescent family came to be known as the crescent group.As year’s road on, the Crescent Textile Mills Ltd continued to expand its exports and earned the reputation of being the leading exporter of yarn, fabric and various products in the home textile sector. The company’s prosperity broad about a better quality of life for those who worked for it. The company provides accommodation for its employees, staff and executives as well as plays grounds, parks shops, community centers, and

industrial homes for their welfare. It insures that its work force is happy and their families are well cared of.In its desired to forge ahead in the competitive field of the home textile sector, the company has made investments for updating and modernizing its machinery and equipment and insures training of its employees by hiring and contracting its experts in textile for its workers for its staff.As well as sending executives to recognized institutes in the country and abroad for specialized training in management, accounting, IT and technical training. It was the first textile company to introduce quality circles even at the worker’s level and by mid 80’s had graduated to total quality management and Deming’s 14 points. It was also the first composite company in Pakistan to obtain ISO 9002 certification and has recently been certified for “ Oeko-tex Standard 100”. The main architect of the sales in the marketing of the Crescent Textile Mills Ltd has been its Chief Executive, Mr. Muhammad Anwer , who has led the company for the front. Besides been awarded every year its highest sales in yarn and cloth, the C.E has also been recognized as “ the business man of the year” twice in the year 1993,1994 and 1994,1995 by the Pakistan federation of Chamber of Commerce and industry. The company has also been awarded the president of Pakistan export trophy for three consecutive years in the mid 90’s.For the year ending in September 2002, the company had generated export sales revenue of $60.94 million, of which clothe (beached , dyed or printed) accounted for nearly US $ 33.95 million; made ups in the textile sector accounted for US $ 14.16 million; yarn sales accounted for :Us $ 10.31 million and towel sales accounted for US $ 2.52 million.

The Crescent Textile Mills Ltd has been introduced as a public limited

company under the company’s ordinance on 1 May 1951 and has quoted

on the stock exchange. Crescent energy and SAC are fully owned

subsidies of the Crescent Textile Mills Ltd. The share break down of the

Crescent Textile Mills Ltd is:

Crescent family and group companies 51.57%Public and foreign institution 48.43 %List of board of directors is shown below:Mr. Muhammad Anwer (Chairman& Chief Executive) Mr. Anjum M. Sleem

Mr. Hamayun Mazher Mr. Khalid Bashir Mr. Muhammad Arshad Mr. Nasir Shafi The company has signed a joint venture agreement with Green Wood mills Inc. USA. To set up a composite Denim garment-manufacturing unit at Bahuman , Dist. Hafizabad under the name and style of crescent green wood limited.

THE CRESCENT GROUPThe Crescent Textile Mills is a part of Crescent group. Which has established

about 30 companies in various part of the country. The major sector of the

group is an under.

Listed Companies: Crescent textile mills limited

Crescent Knitwear limited

Crescent sugar mill & distillery limited

Shakargani mills limited

Crescent boards limited

Crescent investment bank limited

Shams textile mills limited

Elite textile mills limited

Crescent jute products limited

Crescent leasing corporation limited

Crescent steel and allied products limited

Jubilee spinning and weaving mills limited

Pakistan industrial leasing corporation limited

Premier insurance Co. of Pakistan limited

Unlisted Companies: Shams food products Limited

Crescent ventures International Limited

Crescent Bahuman Limited

Crescent greenwood energy Limited

Crescent energy Limited

Crescent powertec Limited

Private Limited Companies: Crescent group engineering ( pvt .) Limited

Crescent ( pvt .) LimitedS

Crescent software products ( pvt .) Limited

Riaz and company (1962) ( pvt .) Limited

Jhang electric supply corporation ( pvt .) Limited

Crescent business management ( pvt .) Limited

Cresent group ( pvt .) Limited

Crescent group services ( pvt .) Limited

Elite energy ( pvt .) Limited

Juiblee energy ( pvt .) Limited

VisionTo transform the company into a modern and dynamic yarn, cloth and processed cloth and finished product manufacturing company with highly professionals and fully equipped to play a meaningful role on sustain able basis in the economy of Pakistan.

To transform the company into a modern and dynamic power generating company with highly professionals and fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan

Mission of Crescent Textile Mills

Mission of Crescent Textile Mills is “ To produce superior

quality products to face competition in the international

market and to train the staff at the world-class level to

enhance the maximum shareholders value”

CORPORATE OBJECTIVESFollowing are some main objectives of Crescent Textile Mills:

To arrange timely production and maintain quality goods for entire satisfaction of the customers

To make Crescent Textile Mills a first choice for the foreign customers by improving its quality and services.

To extend exports all over the world through better services. To establish and develop excellent working environment in the

departments. Computerization Incline a sense of civic responsibility in the staff members To achieve company’s objectives Implementation of ISO-9002 standards To provide the employees a friendly atmosphere to increase their

commitment and loyalty towards their organization.

Strategies of C.T.M

INTEGRATION STRATEGIESFrom this type of strategy Crescent adopted two ways:

Forward integration

It means Crescent textile gets control over its distributors because it has its own fair price shop.

Backward integration

Crescent textile also adopted the strategy of backward integration. Which means Crescent gets the control over its suppliers because of the following reasons.

i. Maintain quality ii. Delivery time iii. Price fluctuation iv. Independency

INTENSIVE STRATEGIES:

Crescent textile adopted product and market development strategies because it exports the products to different countries according to the demands of customers.

DIVERSIFICATION STRATEGIES:From diversification strategies Crescent textile only focuses on related diversification because it also manufactures/produces kitchen products like tea cozies etc.

EVALUATION OF VISION & STRATEGIES:The vision of Crescent textile describes that it want to work in modern and dynamic environment and at the same time fulfill the demands of customers in an efficient way that create value for Crescent. According to this point of view, the strategies adopted by Crescent are matched with the vision of Crescent.

Crescent is working in the right direction for the achievement of objectives/goals which are set.

There is perfect alignment between the vision and the Strategies adopted by the Crescent.

Managerial Strategy Of C T M

As it’s major competitors are in the country as well as in the foreign markets, while concerning with the countrywide competitors, there are major competitors like nishat Textile Mills Limited, Kohinoor, Gul Ahmed,

M.Farooq , Chenab textile mills limited, A.M textile mills limited along with major competitors in European market.

There is strictly needed a strategic focus to face the present intense

competitive situation. The market for textile products is becoming more

competitive every year. The customers are emphasizing on quality over all

other thing and can easily search the most cost-effective supplier anywhere

in the world. Keeping this in mind, Crescent Textile Mill’s focus has been on

meeting its customer’s demands and requirements, improving its

competitiveness, increasing productivity, and enhancing its existing quality

control systems. So it has emphasized on the implementation of the

developed strategies.

Every element of cost and quality is continually scrutinized and measured according to worldwide standards. Each unit is independently analyzed as a cost center to make cuts wherever and wherever possible. The Quality Assurance department has been further strengthened with the addition of trained staff and state-of- the –art equipment.

Marketing strategy of C T MAlthough it may be the duty of the government to ensure availability of cotton at a reasonable price, it is the exclusive responsibility of Crescent Textile Mills to implement the total quality management concept. If units are able to minimize wastage, optimize cost of production, improve quality standards, ensure product diversification and learn to market the finished products, no country can compete with Pakistan.Taiwan, Hong Kong, Korea, Japan, Bangladesh are the large manufacturers and exporters of value added textile products, but are dependent on Pakistan and other countries for their requirements of cotton, cotton yarn and fabric. Their edge is in finishing good quality fabric; producing attractively designed garments maintaining quality standards and abide by delivery commitments. These countries also follow different marketing strategies, while the Pakistani manufacturers first produce a product and then try to locate a customer; other countries produce what the importers demand.

Not only this, buyers are often willing to pay a premium for odd specifications, short delivery time or immediate commencement of shipments of small lots, extra care in meeting specification and better quality standards, using better quality package which may not cost as much as the premium offered.

Lately, the manufacturers of yarn having pragmatic thinking and

realizing the tough completion have started producing dyed cones. They

have not only tabbed a new market segment but also get better return. Isn’t

it not innovative marketing?Crescent Textile Mills have to realize the harsh reality that the days of

cheap domestic cotton are over, the import of textile products is being gradually open and quota regime will be phased out gradually. They know their capabilities as well as shortcomings, products they can produce and the products the foreign buyers demand, we have to plan today how would they market their products is the days to come.

The past year has been tough for the textile industry as competition is steadily and margin of profits is becoming smaller day-by-day. Our competitors from Asia have come up in a big way with lower prices resulting from lower overhead, cheaper and better raw materials and machinery.

Countries like China, Indonesia, India and Bangladesh played an active role in the fabric market. Improvement in quality and production capability was the main area of concentration.

Market for Yarns and Grey fabrics was diversified to increase the customer base and reduce dependency on the Far East. In this effort business with Malaysia, Korea, Taiwan, UK and South America was initiated in case of Yarns.

A new spinning unit of 21,672 spinning has also commenced, which caters to the weaving units in Sheikhupura.

In case of Grey Fabric market business was initiated in South Africa, North America, Japan, Italy, France, and Sri Lanka etc. Product range was also increased to cater to the differing needs of the buyers. Fancy and special

items like Dobby Designs, Bedford Cords, and Cavairy Twills and stretch fabrics were developed which are being sold at premium prices.

NML has constantly updated our machinery, replacing old machines with new ones upgrading the existing set-up, leading to better efficiencies and quality products.

Crescent has established its name in new markets be creating specialized fabrics, designs and also by providing our customers with efficient service and excellent quality.

Leaving behind the traditional way of doing business and in our journey towards excellent it has consistently expanded its buyer base and explored the different markets around the world.

Keeping in view demand of the World market, Crescent Mills Ltd pursued its strategy of value addition and reducing the dependency on Grey Fabrics and Grey Yarn.

Having the foresight to assess that in coming year’s value addition will be the thing of the future, Crescent Mills Limited worked towards the achievement of its goal of future increasing its capability in value addition.

The export of processed fabric and made-Ups has shown market improvement as compared to last year. In Europe, Crescent has made the most growth in the year 1999.

It has placed us successfully in the middle to upper end of the market. Our strength in Europe is the curtain division.

This included yarn dyed dobbies, engineered confections, different finishes and embellished products. The plan is to continue with this winning strategy and at the same time we are trying to find new clients in the high end.

We are also exploring business opportunities in countries like Spain and France where Crescent has very little business at the moment.

North America is the star market for Crescent; it’s a new market for it after breaking up the exclusive arrangement with our previous sale set-up. The

quota is coming down in 2005 and we have started to prepare for it internally as well as for the external environment. Bedding is the bulk of the home textile business.

Crescent is in the process of updating its machinery to cater the needs of the wider width fabric requirement for USA bedding business. Crescent is also taking up the social accountability issues very seriously, which are so dear to the American consumers. Lot of big brand US companies have visited us and are discussing the possibilities of a joint venture.

The opportunities are limitless, we have to review and analyze them very thoroughly to associates with the right people in the long run. In the short term we are building a small amount of quota, which will give us recognition as a bedding supplier.

Crescent is very strong in non-quota categories like curtain and table linen. These categories are best served with new product development (NPD). Crescent will coordinate the effort for NPD by all markets to optimize results. Crescent has achieved the highest sales in 1999-2002 for North America market.

On top Crescent has developed more direct and closer relationship with our end customers. Oceanic has been our most lucrative and mature marker. In business terms it is our “cash cow” market.

Primarily due to being a non-quota market it had no real limitations in this market. Despite economic problems in that region, it has maintained our sales figures in the year under review. This market is a good design source for other markets, which is helping us to maintain our print volumes.

Middle East market is composed of South Africa and the new emerging markets like the UAE, Egypt, Saudi Arabia, and Jordan etc. Crescent has dedicated new staff with fresh energy for the emerging market.

They have successfully broken the ground and we have very strong faith that these markets will give us good volumes in the near future. We are also targeting printed apparel business for the first time. The latest addition is the

most ambitious Apparel Dyeing plant setup near Lahore, which has started its production.

The effectiveness and productivity of this plant will be further enhanced, as Crescent Mills Ltd moves towards becoming a more vertically integrated organization.

Our dyed fabric has already established its name in the market. It is being exported to some of the leading brands of the world.

Crescent has increasing its profitability by working efficiently, procuring better raw material and most importantly kept a very close association with its costumers.

It visits its business partners frequently and provides them with the best service possible. All of the above mentioned points led to strengthened relationship with its business partners making it very difficult for its competition to penetrate into its market share.

Crescent has provided its staff with better working environment and facilities, which enhanced efficiency and out put.

At Crescent, it is prospering due to our professional commitment toward excellence and giving the best results at all times and against all odds. Its marketing and production teams co-ordinance at all times and it focus remains on maintaining its position as the market leader in the textile sector of Pakistan.

Strategies In Price FixingThere are two types of price fixing strategies

Directly to customer Indirectly to customer

1- Directly to customer If they sell their product directly to the customer then they fix price in such a

way

Fixed cost + Variable cost + Desired profit

2- Indirectly to customer If company sells their products indirectly then they fix price in such a way

Fixed cost+ Variable cost + Desired profit + Middle man’s commissionIn this case the profit margin depends upon the quality and condition of the

market. If the market is new then the price will be new to attract the customers

and compete the existing competitors.

P romotional Strategies The CTM has not any promotion point its products. Because the demand of

their products in the world is very high. We can easily judge them from their

work. Our export figure is varying high as compare to any individual company.

Sources Of CommunicationCTM uses following sources of communication

Textile exhibition Personal visit to the customer

Customer visit to the CTM Fax, Telephone, Mail, e-mail etc\

Quality policy of the company is as underIt is the policy of CTM to provide products and services that consistently meet

the expectations of our customers. Encourage total employee involvement in

the never-ending effort to improve the quality of our products and services.

All employees are responsible for the quality of their own work. All have the

authority to initiate action to prevent the occurrence of product nonconformity.

Managers at all levels in the organization are responsible for quality

improvement activities within respective areas.

Top management will provide leadership and direction of achieving quality

improvement by interpreting policy, recommending strategies, organizing

resources, and assisting managers in the development and implementations

plans.

Quality ObjectivesThe quality objectives of CTM are as follow:

To maintain the implemented ISO 9002 quality management system

To have a strong quality check at all stages of production thus

paying a way to have a better overall quality of the product and

reducing overall rejection.

To achieve the sales target.

To improve the delivery system and to eventually achieve 100% on

time delivery.

functionsFUNCTIONS & ITS RELATION TO WHOLE STRATEGIC SETUP

With the HRM point of view, the company performs the four functions:

Staffing Training & development Motivation Maintenance

1. Staffing Staffing is the first function which the Crescent textile performs. In staffing Crescent searches the competent employees.Staffing has further 3 sub functions:

HR Planning A process by which the Crescent’s managers insures that they have right number of people in the right place at the right time.

Recruitment In this step Crescent identifying the capable applicants.

Selection In this step Crescent select the best one applicant.

Training & development

Crescent textile only focuses on:

Orientation Training issue Development issue

But not on career development because extra resources are utilized on career development.

Motivation & maintenance

Crescent textiles evaluate the performance of the employees and then motivate the employees for the achievement of motivation of goals.

RELATION TO WHOLE STRATEGIC SETUP

HR department align the HR functions with the strategies by seeking the assistance from chairman & managers of different departments.

EXPORT DEPARTMENTCTM has major business of exports, round about 80% of total sales are from exports. As export market of CTM is divided geographically into four segments, so to deal each sagment a separate group op person is

allocated who are responsible for all the orders of that specific territory / sagment .

Export Asia Africa (EAA) Export U.S.A & Canada (EUC) Export Yarn &Towel (yet) Export Europe & Cyprus (EEC)

The process of flow of work in these sections of export departments is same, so I have explained generally the process and functions of export department.

The export department is situated within the finance department. There

are a lot of workers, which perform different functions

Functions of export department : Following are the main functions of export department

Getting orders from aboard Costing Making contracts Order completion one per sample Delivery of goods

PROCESSWork in export is divided into four sections geographically for proper

distribution and handling of work. Following is the brief process for all

sections of export departments.Finding Of CustomersGeneral manager marketing and manager marketing of CTM makes

contact with the potential buyers through e-mail, telephone, faxes to get

orders.

Similarly marketing manager along with the Chief Executive attend different

international trades fairs and present their products to get the buyer

attention and order.

Making ContractsMarketing department of CTM takes following steps to make a contract with

the buyer:1)- InquiryCustomer’s inquiries are received via telex, letters, e-mails or during

meeting with the customers. Inquiry documents are directly sent to CEO for

review and comments; if any absence of CEO, the inquiry documents are

send to the GMM for review. After CEO review, these are sent to the

department incharge who after reviewing distributes these documents to

the relevant staff looking concerned marker segments.

2)- Feasibility and Availability Of GoodsConcerned sectional incharg reviews the customer’s requirements completely before quoting price to customers and ensure that:

The requirements are adequately defined Mill has capability to meet the customers desire or requirements. Conformation of raw material in house / from outside.

3)- Costing The ApprovalsAfter conformation inside / outside, sectional incharge prepare costing sheet of department incharge review and approval of CEO / GMM. CEO / GMM gives acceptable price or may suggest new price on costing sheet. In absence of CEO / GMM gives acceptance. if both are not available then the department incharge is authorized too.

4)- Quote Price Offer To The Customer

After getting the approval of costing and review of customer requirements,

price is quoted to the customer for conformation.

5)- Customer ApprovalCustomer accepts offer or may reject, if reject then the costing sheet again

repaired and the approval procedure repeated.

6)- Contract Review And IssueAfter reviewing the confirmation or purchase order, concern staff issues

contract after complete review and note it in export order register.

7)- Amendment To ContractOnce the contract is established for quality, quantity, price and delivery. Any request from the customer for change in assortment of design or increase / decrease in quantity resets, i /c terms, price and delivery. Customer may ask for any of the following changes.

L/c terms Quality increase / decrease Assortment of design Color ways Shipment schedule

8)- Review ActivityAfter receiving the amendments by customers, possibility of amendments is

reviewed of it is not possible then regret with the customer. Other wise

impact of changes in price, delivery communicated to the customer and its

copy is retained in the file for future references. The amendments copy with

regards to quality assortments, shipping or packing instructions and

shipment schedule is send to the department for implementation and

follows ups.

9)- Checking ArtworkAfter finalizing the contract and making entry in export order register, now concerns A.M receives art work for the customer for processing the clothes per customer’s desire.

Artwork contains no of colors and designed used for the final cloth and also

the packing, labeling and stitching instructions as well as telling about the

sample size.10)- Making Strike OffWhen A.M receives artwork then he gives instructions to the concerned production staff to prepare strike off (sample) as per artwork send by customer.After completion of strike off, these are checked by concerned A.M and are delivered to the customer after the final approval, so the production on large scale can be started.If the customer approves the sample the export staff order of large production. Other wise they only receive the cost incurred on the preparation of the strike off.

Instructions To All Concerned AreasNow the concerned A.M of export department send instruction to all the

concerned areas through proper documents, e-mails and all the available

sources for the completion and delivery of orders.

These functional areas are following:

PPC (planning, production and control)

ES (export sales)

Production department (spinning, weaving, processing, garments

and folding)

S&D (shipment and documentation)

EF (export finance)

Planning, Production & ControlFunctions:

Stock update

Arrangement of fabric and yarn

Follow-ups for order completion

Checking and update the stockWhen export department gives instructions for large productions for all

functional areas including PPC.

Now the duty of PPC is to check the surplus stock available in godowns .

If the gray cloth or yarn required for the completion of order is present,

then PPC gives instructions and supply material to the concerned

department to complete the period with in specified period and after

providing material stock is updated in the daily stock reports.

Instructions to grey procurement department

If the yarn or grey cloth is not available in the godowns then PPC has

the duty to inform export sales department to arrange grey cloth for the

completion of order within specified period through e-mail and proper

documentation. One copy of that is kept for the future references.

Maintaing record of machines PPC also maintain report that shows daily record or orders, which are

being processed on all available machines in spinning, weaving,

garments department and also records of machines which are busy and

which needs orders.

Follows-up and order completionThe PPC department is responsible to get orders completed from the

concerned production department with in specified time, so they make

continuous follow- ups in the production department to get order

accomplished and after ward they inform the export department about

the completion of orders.

EXPORT SALES DEPARTMENT

Functions:Arrangement of grey cloth and yarn for the export orders.

DemandWhen the grey procurement department receives demand from PPC to

purchase grey cloth or yarn, now it is their responsibility to arrange

required quality and construction of cloth. So they adopt three ways:

Purchase of grey cloth from the local manufactures

Providing own yarn and manufacturing grey from outsider with that yarn.

Using CTM own grey and yarn.

Entry in register and computerAfter receiving demand grey procurement department enters the

demand in to the register and computer and 1 copy of these reports

send to the CEO

Contract with local partiesNow production department contract with the different mills to provide

them required construction of grey cloth either with their yarn or yarn

provided by CTM.

If the party agrees to take yarn from CTM and ready to make cloth with

that yarn on their machines that is a power loom or auto looms then a

contract is finalized after setting a suitable price with the approval of

CEO.

Following are the some parties

Sac textile Tanvir gull textile Manzoor textile

Quotation

As the primary purpose of export sales is to manufacture the fabric from

subcontractors at conversion rate by providing the yarn from mills or

outside. These conversion rates and per meter yarn weight provided by

the mills are quoted by the party to get business. At the offer of export

sales department, the vendor and subcontractors send their quotation to

export sales. The offers are made to those vendors that are already

working with CTM.

Comparative reportAfter receiving of quotation the comparative report is made and sent to

CEO for approval. In that report all the comparison is made

subcontractors according to the rate offered by them.

Price ApprovalCEO gives the price approval at the quotation of vendor or

subcontractor. If the price quotation is rejected it is negotiated with party

again and revised quotation is send to CEO for approval.

Contract IssueAfter the price approval by CEO, a contract is made including all the

terms and conditions settled with party. The contract contains the name

of party, the date of issuing the contract, quantity and quality of fabric,

counts and number of bags of yarn. Per meter weight in lbs of yarn.

Yarn conversion rate and the delivery rates of fabric.

The Yarn Issued To Party

This procedure takes place when exports sales section provides the

yarn to the party / contractor for construction of cloth. The expected yarn

is calculated in order to make a specific quality and quantity. After that a

dispatched schedule is prepared in order to provide the yarn to the party

for making the grey cloth. The delivery of yarn to the party is made

according to the dispatch schedule. The finished grey cloth delivery is

also set with the party according to the export requirements.

Maintaing record When a contract is finalized then production department is responsible

to maintain record of yarn, which is supplied to the parties and grey

cloth, is received against that yarn from these parties. Similarly it also

maintain the record of CTM yarn and grey delivery to PPC department.

For this purpose the production department updates two reports daily

and submit them to CEO.

Balance to book reportUncovered goods report

Arrival Of Finished Grey ClothThe goods arrive from party according to the delivery schedule. The

goods are sent to mills grey cloth godowns .

Inspection report to export sales sectionAfter receiving the cloth in grey cloth godowns its inspection is made

and inspection report is prepared. On the basis of inspection report the

cloth status report is prepared. The report is in triplicate form and sent to

export sales department. One copy is send to party and other is sent to

the sales account and third is retained to the office record. The quantity

of grey cloth is entered in party wise register according to the inspection

report.

Rejected goods to partyThe rejected goods are returned back to the party. The rejected grey

cloth is bought from the party only after the approval of CEO at reduced

rates as compared to normal rates. Rejected grey cloth is used in

printing.

Orders booked by the customers considering for end use. The rejection

can also be sold in the local market.

Bills from PartyBills are received from the party against manufacturing or purchasing of

grey cloth. The quality, quantity and the width verified in view the

contract made with party by export sales department. Verification of the

bills is made through the records (that records is maintained in party

wise register and relevant files). After verification the bills are sent to

sales account department for payment.

PaymentThe payment is made after the approval of CEO in the form of cheques .

The cheques are issued in favor of party against the execution of

contract.

Export documentationIn the modern world all countries whether developed or under developed

are pre-occupied with problems of selling merchandises in foreign

countries. When goods are exported a number of documents are to be

prepared unless the overseas trade is properly documented, the exporter

cannot receive payment and the importer cannot make it.The major documents involved in the export process or in the foreign trade are:

Invoice/indent

Letter of credit

Transportation documentation

Packing list

Certificate of origin

Certificate of inspection

Procedure list

Form ‘E’

Bill of exchang e Before going into elaboration of these documentations, one must know all about them. No person can export any goods until he is registered as an exporter with Director general of Export Promotion Bureau.

Invoice/indent

A commercial invoice is a commercial document by which the seller charges the goods to the buyer. The in formations, which this document provides to the exporter and the importer, are as follows:

Date

Invoice number

Name and address of the buyer and the seller

Order/contract number, description of the goods, quality, unit price and the total amount of goods exported

Terms and conditions of the payments

Shipment details

Certification on the invoice

Letter of credit

The terms of letter of credit is defined as:

“ The confidence of man in man”

In financial and commercial transactions this confidence is

displayed by the willingness of a creditor to grant to a debtor time for

payment of the debt either on the oral or written assurance of the letter

that such payment will be duly effected.The procedure and the parties involved in the letter of credit are as follows:

Buyer

Opening bank

Advising and negotiating bank

Shipper/Beneficiary

Contract of sales

Transportation documentInternational trade involves the movement of goods from the warehouse of

the exporter to the warehouse of importer. There are several modes of

transporting goods and several types of documents involved in

transportation processMode Carrier Transportation document

By sea Shipping Co. Bill of lading

By air Airline Co Air way bill

By post Postal Services Post parcel receipt

By rail Railway service Railway

By road Trucking Co Road way bill

The transportation documents is the most important document because it is the evidence the goods are being transported and it enables the importer to obtain the delivery of the goods in due course.

Transportation document can be classified into two main types, which are as follows:

Negotiable documentThese are the documents whose title can be transferred from one person to another person. The delivery of goods can be made to the final or existing holder of the document.

These include bill of lading, railway receipts etc.

Non-negotiable instrumentsThese are the documents where the title of the goods in not transferable. The delivery of the goods is only made on the names of the consignee on identification.

Parties & documentation involved in export

The carrierThe firm, company or authority engaged in the business of the transportation the goods, such as steam Ship Company, airline comp etc.

The shipperThe seller of the goods who wants to export his goods from his country to another country is called shipper.

The consigneeThe consignee is one to whom are the goods are to be exported. It may be an international bank or the buyer himself.

Certificate of originIt is a signed statement providing evidence of the origin of the goods. These are often required by the authorities in the importing countries in order to satisfy themselves that the goods originates from a country from which imports are permitted or to support a claim for the professional import duty.

Packing listIt is a document, which lists each package and shows the contents of each package including in particular shipment.

The following are the important features of packing list document:

It must list each package by number

It must show the contents of each package

It usually shows the weight and measurement of each package.

Form E

It is a document issued by the exporter bank on a written request signed by the authorized signatory. Through form E State Bank of Pakistan exercises absolute control over export process.

Form E will be issued the following by beneficiary bank: Known customers

Regular exporter

Regular customer but exporting first time

Bills of exchangeBills of exchange is legally defined as,” An unconditional order in

writing, addressed by person to another, signed by the person giving it,

requiring the person to; whom it is addressed to pay on demand or at a

fix or determinable future time as uncertain in a money or to the order of

a specified person, or to the bearer.

Submission to export financeAfter competition of these entire documents before the mentioned date,

these documents are finally checked in the S&D department. And are

handed over the export finance department to submit them in the bank,

which send them to the buyer bank and finally the documents are

received by the buyers.

Quota management

This is also a separate section with in shipping and documentation

department, which is responsible to manage the purchase and sales of

textile quota.

Textile quota is a restriction from certain countries like USA, and some

European countries like turkey. Pakistan can not export more then that

fixed limits in these quota countries.

This quota is distributed in different textile organizations including CTM

through textile associations like APTMA on the basis of yearly

performance.

The quota section in S&D department of CTM perform following

functions.

Keeps the country wise record of total quota available to the year to the CTM.

Updating the record that how much quota is used and how much is remaining.

If there is excess of quota for the year then they sell it to the other exporters.

If there is need for more quotas then they purchase from different exporters and associations like APTMA .

Finance departmentThis is the major department of the company. Finance department

is located with the factory. It prepares different kinds of financial reports

and gives information to management for decision-making purposes.Finance department prepares the Income statements, Balance sheet, Trail balance, Cash

flows, Production report for the whole month, stock taking report yield comparison report

etc. these all reports are helpful for the management to make production plan, financing

decisions and other important matters. The head of the department in finance manager. He is

a chartered accountant.

Function of finance departmentFollowing are the main functions of finance department

1. To prepare monthly and half-yearly reports

2. To keep the record of inventory and stock

3. To maintain a liquid position

4. To maintain adequate cash to run the operations of business

5. To reconcile the bank statements

6. To make payments to the suppliers

7. To maintain debt and credit balances of the customers

8. To deal with the sales tax and income tax departments

9. Preparations of vouchers

10. Prepare profit and loss accounts & income statements

11. Keep record for the payment of salaries

Purchase departmentThe department is located within the factory. There are eight employees working in the

purchase department.

The decision of the purchase of raw material is med by the top management or when any

new machinery or plant is to be acquired. At the time of the cultivation of the cotton crop,

the decision is made with considering the other factors like requirement, price, quality etc

that how much we should purchase and from whom we should purchase and through what

sources we can finance this purchase. So in this regard, the Chairman with the consultation

of the Mill Manager, General Manager Finance and Technical Manager make the bulk

orders.

The finance division helps them in this regard to arrange eh funds. So in this regard, the

select the bank that provide financing facility at lower rate of interest.

As far as the purchase of raw material is concerned, the purchased department fully

contributed its efforts in this regard. Whenever any section of the mills or he head office

requires any thing they make and purchase indent to the purchase department. At mill, the

storekeeper made this indent, on the other hand of the required thing is available with him,

he makes the delivery to that section.

When the supplier dispatches the goods to the mill, a dispatch advice is made by the

department t other store keeper that the items is dispatched to you. At mill, an inward gate

pass is made and the items sent to the store where the storekeeper prepares goods receipt

note after inspecting the items and this GRN one copy is sent to the purchase office and one

copy is sent to the account s office .

Function of purchase departmentFollowing are functions of purchase department:

o Provide link between the workers and management

o Ensure the implementation of the rule and regulations of the company

o Inquires of the complaints against the workers

o To solve the problems and grievances of the workers

Store:

The store plays very important role in any kind of manufacturing organization.

Functions of storeFollowing are the main functions of the store keeper has performed in any kind of

organization:

o Collection of demand from different departments and issue material to them

o If stock is not available with it, demand sends to purchase office

o Collection of receipt of material or items purchased

o Keep the stock of items up dated

o Keep the items in the store in systematic manner

o Link with purchase office in the valuation of the items purchased

At Crescent Textile Mills there is the main store at the mill premises, which is situated away

from the production and accounts offices. There are seven men in the store, which deal with

the demand of the different people at the mill.

Swot Analysis:StrengthsCrescent Textile Mills is using imported machinery

It has a strong market image The customer is aware of the name of the company It has high financial resources

It has competent staff working for the progress of the company It has automated system of production Organization has friendly environment It has certificate of ISO 9002 It has a wide range of products It always sets new standards for quality Its design studio is equipped with latest technology. It has given a large quota for exports in USA and Europe

Weaknesses Crescent Textile Mills has ignored than local market Transit time for international market is comparatively long as compared to India and

China.

There is lack of proper training programs especially for workers. They learn through experience and from seniors that’s the reason o f high rate of wastage during

production.

Wastage is very high especially in spinning sector Crescent Textile Mills has no proper sale system for cotton waste and yarn waste. Some time delivery lates due to lack of production planning Middle level management is de motivated due to low salary package and promotions

are held after a long period

There is no job commitment among the employees. There is no proper criteria for performance appraisal that’s why staff in not motivated No measures has been taken to motivate the employees

Opportunities As Crescent Textile Mills is ISO-9002 certified company so it has a chance to increase

& expand business all over the world.

The demand of its products is high in international market Govt is providing rebate facility Long term loans are easily available Company can expand its operations easily Anti dumping duties in European market are overdrawn, so the chance is to increase the

export as compared to last years.

Devaluation of rupee made Pakistani export more acceptable to the foreign buyers. There is a chance to compete better now.

Govt’s pre import-export policy for cotton is also in favor of Crescent Textile Mills.

Threats Foreign investment in textile sector in Sri Lanka, Bangladesh and India is a danger in

future for Crescent Textile Mills

It has been seen that many other groups in Pakistan have entered in competition with Crescent Textile Mills. If they will not be competed well, there is a chance that they

can get share of export from foreign buyers.

South Africa is thinking about to impose the anti-dumping duties on Pakistan textile exports. If it is imposed, a reasonable export share and big market may be lost.

There is no proper attention towards Russian market. Crescent Textile Mills can get big orders from Russia. If attention will not be given towards this side there is a chance

that any other competitor can introduce its products in Russia and this market can be

lost.

High inflation rates hinder in competing the Indian yarn at international level. Fluctuating prices of dollar also affect the purchase of cotton in off-season. Due to economic crises of eastern countries, so many sales lost during last few years,

but now these countries are again on the road of progress. If the previous customers

are not properly attended, they may be last forever.

Due to military Govt in Pakistan, there is a chance for Pakistan to be declared as a terror country. So this thing is also a threat for Crescent Textile Mills.

Competitor analysisThe business environment of Crescent Textile Mills is facing tough competition.

Its major competitors are also inside the country as well as in the foreign markets. While

concerning with the countrywide competitors, there are major competitors like Crescent

Textile Mills and there are also other major competitors in the European markets.

The market for textile product is becoming more competitive every year. The customer is

emphasizing on quality over all other things and can easily search the most cost effective

supplier anywhere in the world. Keeping this in view, Crescent Textile Mills focus has been

on meeting its customer’s demands and requirements, improving its competitiveness,

increasing productivity and enhancing its existing quality control systems.

Findings:Following are some findings of our report :

There are no motivating factors for the employees Companies personal policies are not good The performance appraisal are not carried regularly Company is facing the main problem of textile industry crises in the country due to

floods, leaf curl virus etc.

not up to the standards

The employees are not much aware of latest available computer programs The management is not doing anything for the purpose of satisfying and motivating

their employees and the workers, which may lead towards the more productivity.

Changing Govt policies are providing problems for the company exports policies. The short-term solvency The company is unable to use its full plant capacity, which shows that technical staff is

and long term solvency of the company is better and still acceptable, because there is

still a margin of getting long-term loan.

The net profit margin in increasing since 1995 but it decreased in 1999.

Recommendations: A proper training should be given to the employees and the workers to enhance their

skills to increase their productivity and ultimately of the company.

The management should make the market survey time to time to get more and latest information about the market factors like the price, demand, current consumer trends

etc.

As the world has become a global village, the management should have the latest knowledge and information’s about the world because now a little change in any

corner of the world can affect your business.

The top management should give the autonomy and the flexibility to every manage to make decisions according to the situation at any time and in the absence of the top

managers.

All the duties and responsibilities of the employees and the workers should be clearly defined.

The computer technology should also be used in decision making as well as in storing and feeding the data.

The company should make it possible to deliver the goods to the buyers at the agreed time.

The company should adopt an efficient appraisal system and give rewards to the employees who have done well.

The management should recruit right persons for the right job. The management should be able to assess the problems before it’s occurring so that

they are able to find the ways of their solution.

The management should hire multi-skilled workers to get economy of scale. The company should emphasize on its personnel department immediately on

emergency basis.

Long-term solvency is good but time interest ratio should also be improved. There should be decentralization in decision-making An effective relationship and coordination between the departments must be there. It should be realized to be very clear about the advantages and disadvantages of each

strategy to take effective decision about its continuity to make an effective strategic

implementation.

Crescent Textile Mills should also introduce its brands in local markets. Company should give proper attention to deal with dead fabric and made ups.

Conclusion:We got a lot of experience from Crescent Textile Mills. During our internship we

came to know that how the different activities take place, what are the procedures

The Crescent Textile Mills is on the way of progress. It has been earning profit for the last

five years. The management is professionally qualified and experienced.

The Crescent Textile Mills should motivate their employees by providing different

incentives. Their salary package is also not attractive. The performance of the Human

Resource department is also not satisfactory.

Crescent Textile Mill’s product (yarn & cloth) is of high quality. The demand of Crescent

Textile Mill’s products is increasing with the passage of time. The company should expand

its capacity as soon as possible to satisfy the demands of their customers.

BIBLIOGRAPHY:www. crescenttextile .com/

Sources from where I have collected data:

Miss Parveen Abida, Production Accounting & Management System, Inspection System,

Introduction, Internship Report on Colony Textile Mills Ltd. Lahore

Miss Javed Iffat, SWOT Analysis, PEST Analysis, Internship Report on Masood Textile Mills Ltd. Faisalabad. Faisalabad

Mr. Bhatti Jamil Muhammad, Marketing Strategies, Internship Report on Nishat Textile Mills Ltd. Lahore