Download - Internship Report on Chen One
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Internship Report on ChenOnewww.vustudents.net
INDEX
S.NO
PARTICULARS
PAGE #
1 Executive summary 4
2 Brief information about company 5
3 Vision Mission Statements 6
4 Company profile 7
5 Product range 9
6 Production facilities 10
7 Management Information System 13
8 Total quality management 14
9 Awards & Merits 16
10 Marketing Strategy 17
11 Future out look 19
12 SWOT analysis 20
13 My responsibilities and duties 21
14 List of key buyers 23
15 Departments of Chenab 24
16 Department and out put 25
17 Process flow of processing 26
18 Bifurcation of export turn over 27
19 Organizational chart 28
20 Financial highlights 29
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EXECUTIVE SUMMARY
Chenab Limited is one of the leading manufacturers and exporters of value added textile goods. It
started its business during 1975. Chenab is manufacturing a number of products relating to home
textile and garments and exports them all over the world. Chenab has the facilities of ginning,
spinning, weaving, processing, stitching, wadding and embroidery. It has own gas based power
generation generators and meets it entire electricity requirement. The company implemented an
ERP system with LAN/WAN connectivity apart from other MIS systems. As regard total quality
management Chenab has certifications of ISO 9001, ISO 14001, SA 8000 & Warp, C-TPAT and
OHSAS 18001. The company has for the 9the time won the "Best Export Performance Trophy
Award" for 2003-2004 for the Federation of Pakistan Chambers of Commerce. Chenab has been
expanding its export sales through a net work of franchise outlets, selling agents, direct marketing
and strategic alliances.
Chenab strength is lying in its vertically integration and having diversified customer based and
geographical distribution. However, the central decision making and partially dependency on
cotton are the main weaknesses. Elimination of privileges to regional competitors will allow the
company to get the higher prices of their products. On the other side levy of duties and increase
in manufacturing cost can squeeze its margins.
BRIEF INFORMATION ABOUT COMPANY
Chief Executive Officer
Mian Muhammad Latif
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Directors
Mian Muhammad Javaid Iqbal
Mr. Muhammad Naeem
Mr. Muhammad Faisal Latif
Mr. Muhammad Farhan Latif
Mr. Muhammad Rizwan Latif
Mr. Muhammad Zeeshan Latif
Mst. Shahnaz Latif
Mst. Tehmina Yasmin
Bankers/Financial Institutions
Allied Bank Limited.
Askari Commercial Bank Limited.
AlBaraka Islamic Bank, B.S.C. (E.C).
Bank Alfalah Limited.
Citibank, N.A.
Faysal Bank Limited.
First Punjab Modaraba.
Habib Bank Limited.
Habib Bank AG Zurich.
KASB Bank Limited.
National Bank of Pakistan.
Pak Oman Investment Company Ltd.
Pak Kuwait Investment Company (Pvt.) Ltd.
Pak Libya Holding Company (Pvt.) Ltd.
Saudi Pak Commercial Bank Limited.
Saudi Pak Agricultural & Investment Company
(Pvt.) Ltd.
United Bank Limited.
Union Bank Limited.
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Registered Office
Nishatabad, Faisalabad.
Tel: 041-8754472-8
Fax: 041-8752400, 8752700
Website Address
www.chenabgroup.com
Works
Spinning Unit - Toba Tek Singh.
Weaving Unit - Kharianwala, District,
Sheikhupura.
Weaving Unit - Shahkot, District, Sheikhupura.
Weaving Unit - Gatti, Faisalabad.
Weaving Unit - Khurrianwala, Faisalabad.
Processing Unit
& Stitching Units -Nishatabad, Faisalabad
VISION
To be a competitive and customer focussed organization with continuing
commitment to excellence and standards.
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MISSION STATEMENT
To be the business house of first choice for customers.
To be a change leader.
To produce innovative, relevant and cost effective products.
Setting and maintaining high standards.
To earn profits by achieving optimum level of production by using state of
the art technologies.
To provide ideal working conditions to employees and to take care in their
career planning and reward them according to their skill and responsibility.
To meet social and cultural obligations towards the society being a
patriotic and conscientious corporate citizen.
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COMPANY PROFILE
Chenab is regarded as one of the leading manufacturers and exporters of quality home textiles
products and apparels worldwide. Operational since 1975, Chenab is a vertically integrated unit,
equipped with the latest and sophisticated machinery. Housing one of the largest textile
processing facilities in the country, Chenab can meet varied requirements of its customers in any
part of the world with in-house facilities of growing highest grade cotton, ginning and spinning it
into high quality yarn, weaving it into quality fabrics in 100% cotton and various mixed blends and
stitching and export of top quality made ups & apparels. Its existing paid up capital is Rs.1950
million comprising Rs.1150 million for ordinary shares and Rs.800 million against preference
shares. The both of these shares are listed on the Karachi Stock Exchange. Its annual turn over
at present is more than 7 billion. Chenab today is capable of processing and converting into made
ups and garments more than 85 million meters of fabric per annum. The manufacturing facilities
held by the company are as under:-
Production Facility No of Machines Capacity (Per Day)
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Spinning 19,200 Spindles 36,000 lbs
Weaving 270 Auto Looms 18,000 mtrs
Weaving 240 Air Jet Looms 80,000 mtrs
Bleaching 3 225,000 mtrs
Dyeing 3 90,000 mtrs
Printing 4 160,000 mtrs
Finishing 22 250,000 mtrs
Polyester Wadding 1 Plant 18,000 kgs
Fabric Coating 1 15,000 mtrs
Stitching 1584 210,000 mtrs
Quilting 14 25,000 mtrs
Embroidery 6 4000 mtrs
Gas base power generation 14 Generators 15.6 M.W
Chenab is part of the Chenab Group ("Group"), which began its business in 1975 under the name
of "Chenab Textiles Industries" Faisalabad as a fabrics processing unit. The Sponsors belong to
a well respected family hailing from Toba Tek Singh, who have been engaged in the growing &
ginning business since the inception of Pakistan.
The Group Sponsors and directors have assumed senior management responsibilities,
maintaining a hands-on approach along with strategy and policy formulation. They are ably
supported by a team of experienced professionals in the field of export marketing, designing,
finance and accounts and production control. The Group has a team of 165 professional
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employees, which include Chartered Accountants, MBAs, B.Scs, Textile Engineers, Cost
Accountants, etc.
The sponsors recognize the significance of a good workforce and have conscientiously worked
towards creating a wide base of middle management and motivated and skilled labor force.
The professional team has implemented effective policies and procedures for streamlining and
monitoring the operations of the group companies.
The following is the workforce detail of the Company:
Particulars No of Employees
Managerial 165
Supervisor 2510
Labor 9567
Total 12242
RODUCT RANGE
Chenab offers a wide range of coordinated concepts in bed linen, bedspreads,
curtains, table linen and kitchen accessories. In addition it also produces formal
and casual garments for men, women and children that feature exclusive fabrics
and designs in line with global trends. The following are the products being
manufactured by the Chenab.
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Fabrics Sheeting
Flat Sheet
Quilt Cover
Bed Skirt
Bed Spread
Fitted Sheet
Valance Sheet
Comforter
Neck Roll
Cushion
Pillow Cover
Table Cover
Napkin
Place Mat
Tea Cozi
Bread Cover
Tissue Box Cover
Curtains
Shirts
Tie Backs
Dressing Gowns
Trousers
Bath Robe
Shorts
Tunic
Skirts
Jackets
Qamiz
Jumper
House Coats
Medical Overall
Flat Sheet With Pillow
Quilt Cover And Pillow Cover
Sheet Set
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Comforter With Bed Sheet And Pillow Cover
Shalwar Qamiz (Ladies And Gents)
Romper
Production Facilities:
The Company's production facilities have been sourced from the world's
renowned textile machinery manufacturers of Germany, Japan, Italy,
Switzerland, Austria and the UK and are of diversified make.
The following is a brief description of the production facilities: -
Ginning Unit
Chenab has associated modern ginning facilities with a capacity of ginning 200 bales of cotton
per day.
Spinning Unit
Chenab's spinning unit comprises of 19,200 spindles of Japanese & European
origin along with requisite back process machinery capable of producing 100%
cotton yarn in counts of 10, 16, 20, 22, 24, 30, and 40. All these counts are spun
in carded as well as combed versions.
Weaving Units
The air jet weaving looms project includes the latest sizing, warping, and
sectional warping machines capable of producing the finest quality of plain and
design fabric. The project also has auto looms.
Processing Unit
The Company's processing units are made up of fabric printing, dyeing and
finishing units, capable of processing over 250,000 meters fabric per day.
Printing & Dyeing Facility
The printing & dyeing facility comprises of 4 of the latest 72" to 124" width and 12
to 24 colors rotary printing machines. Chenab houses a comprehensive dyeing
facility where all sorts of reactive, pigments, disperse/reactive, VAT,
disperse/VAT dyeing are carried out while maintaining the highest quality
standards. The dyeing facility comprises of 110" to 126" width Thermosole and
Pad Steam dyeing machines. It also has special finishing facilities including
Ramish Calendering, Chintz Finishing, Glazed Finishing, Raising, Emerising,
Mercerizing and Sanforising, etc.
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The Company uses the best branded dyes as per specifications in technical
consultation with reputed companies like Swiss Specialty, Clariant, DyStar and
BASF. The latest Color Kitchen equipment and Design Studio with a Wax Jet
Exposing machine have also been installed at the project. Laser Engraving,
Digital Printing, Fabric Coating, and additional fabric washing facilities are also in
place.
Made Up Stitching Unit
This unit is capable of stitching all sorts of Textile Made Ups equivalent to
165,000 meters of fabrics per day with advanced facilities including: -
Fourteen computerized quilting machines, with automatic filling of
polyester into quilted articles. It is also capable of handling unlimited
design options catering to single line, cording, and twin line-emboss
patterns. The facility is capable of creating countless patterns both for
dimension and profile;
Six advanced computerized embroidery machines that are capable of
handling any design up to 9 colors in one go. The large 1x6m frame
allows the creation of design on a large scale;
Complete polyester wadding plant;
Advanced panel cutters;
Computerized Eton stitching system;
Complete switch track system; and
Garment Stitching Unit
This unit is also capable of stitching all sorts of casual/fashion garments
equivalent to 45,000 meters of fabrics daily equipped with advanced and
computerized mechanical systems such as: -
Gerber technology with computer aided manufacturing;
Equipment for accurately cutting articles;
Advanced panel fabric cutters;
Switch Track stitching system;
Advanced stitching machines with an automatic trimming mechanism;
and
Computerized embroidery machines.
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In-house Power Generation
Chenab has set up a 15.6 MW natural gas-based power generation facility, with heat exchanger
and waste heat steam boilers for its processing, weaving and spinning operations through which
it has made major saving in power costs. With the installation of theses gas based generators
Chenab is able to meet all of its electricity requirements.
The necessary infrastructure and equipment for a Water Treatment plant and Reverse Osmosis
process have also been added. Following is a summary of the key facilities, their location,
capacity, and origin.
Management Information System
A strong management information system in any organization enables the management to make
effective and timely decisions. For this purpose Chenab has taken every step to make is MIS
most modern and sophisticated.
The Company has implemented an ERP system with LAN/WAN connectivity.
VPN connectivity options and wireless internet access at speeds of upto
1.3MBPS have also been established. Plans for customer relationship
management, e-commerce, online order tracking system and video conferencing
will further cement the executive decision support system and speedup customer
response time.
Networking of computer in each department makes the MIS speedier, efficient
and cheaper. The use of computers at each level enables the company to create
a paper less environment.
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Hand scanning machines are installed at entry gates. Entry and exit of
employees is monitor through this system. The payroll system is also linked with
this system.
A team of highly qualified I.T professionals is working with Chenab and a number
of soft wares and packages have been developed by them for automation of the
systems.
Total Quality Management
Chenab has business dealings with reputed business houses around the world
and manages products and brands in foreign markets with a variety of different
consumption patterns and cultural backgrounds as well as different technical
requirements and legal provisions. For this reason, quality at each and every
step of production is the first and foremost concern at Chenab.
A state of the art testing lab equipped with the latest precision testing instruments
assures that specific customer standards are met. Chenab's highly qualified and
experienced technicians are able to cope with ever-increasing quality standards
and changing customer requirements. Their work starts from the receipt of raw
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materials up to the time the final finished products have passed through
inspection/testing at all stages.
The Company has also proven its commitment to quality by achieving the
following certifications:
ISO 9001: This certification is based on process approach to production,
systems approach to management, customer focus and continuous
improvement in operations and strategies
ISO 14001: Chenab's management acquired ISO-14001 as a response to
the changing face of environmental legislation that is causing serious
problems for many industries, with the textile industry being no exception.
Ecology is a new parameter that today increasingly appears in the
catalogue of requirements. For confidence in textiles, the need has arisen
for such a seal of approval or label for products that in their manufacture,
use and disposal have only a minimal impact on the environment. The
latest imported treatment plant has already been installed, which along
with a newly built gas fired power plant in place of a furnace oil plant will
help ensure pollution-free production.
SA 8000 & WRAP: Chenab obtained SA8000 and later WRAP
(Worldwide Responsible Apparel Production) certifications. Their salient
features are no child labor, no forced labor, no discrimination by race,
color or gender, equal opportunity employer, good working environment,
custom compliance, remuneration and fringe benefits as per local laws,
electronic attendance, hand-scanning, a maximum of a 56 hour working
week, proper health and safety, drug interdiction etc.
C-TPAT: Customs – Trade Partnership Against Terrorism (C-TPAT) is another milestone
that has been achieved in order to build customer confidence. It includes strict security
measures at various stages of production, packing and transportation. Examples include
scanning containers for weapons, explosives at packing and loading stages etc
OHSAS 18001: Chenab Limited is the first Pakistani textile organization to
achieve this international standard depicting management's commitment
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towards occupational health and safety requirements by ensuring a risk
and accident free atmosphere.
Awards and Merits:
Chenab's customer oriented and market driven approach is evident from the fact
that the Company has for the 9th time won the "Best Export Performance Trophy
Award" for 2003-2004 from the Federation of Pakistan Chambers of Commerce
and Industry (FPCCI), for the highest export of value added cotton fabrics. The
management of the Company is committed to excelling in the manufacturing of
high quality products.
Marketing strategy
Creativity and innovation in fashion and design is seen as a major asset for the
future control of markets. With in-house marketing specialists' and designers'
team, the Company customizes designs and packaging according to regional
and customer specifications. Chenab has been expanding its export sales
through a network of franchise outlets and selling agents, direct marketing and
strategic alliances.
The ChenOne Stores
The "ChenOne" brand, symbolizes the fast changing face of the global
clothing and textile trade with a focus on the ultimate customer – a global
consumer characterized by awareness and a desire to follow the latest
fashion trends. Chenab's visualization of ChenOne stores, a complete
family fashion store, was to cater to such consumers in Pakistan and in
international markets and to position Pakistan as a fashion producing
country. In a short span of seven years, ChenOne, with its outlets in twelve
cities of Pakistan (Karachi, Lahore, Rahim Yar Khan, Faisalabad,
Rawalpindi, Islamabad, Peshawar, Abbotababd, Multan, Sialkot and Gujrat)
has already acquired the position of Pakistan's leading fashion brand.
The success of the ChenOne concept has encouraged rapid expansion
leading to the opening of six stores in the Middle East in Dubai, Abu Dhabi,
Sharjah, Ajman, Makkah, and Bahrain. The company has already made
plans to further expand locally to Sialkot and internationally to Jeddah and
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Riyadh. In the future, the company also plans to target Kuwait, Oman and
Qatar for ChenOne outlets.
Sales through Franchised Outlets
The Company's franchised "ChenOne" outlets have been a great success.
Chenab Limited through its various group companies and associates has
set up these outlets in Pakistan, the UAE, Saudi Arabia and Bahrain. This
initiative has been very encouraging and ChenOne outlets continue to
operate as the marketing arm of the Company. Plans are currently being
made to expand the number of franchised outlets in Pakistan and in other
regional markets. The Company is also planning to set up "store-in-stores"
outlets in major departmental stores in the EU, USA and other countries.
The most important milestones covered under these initiatives are the
training of manpower, implementation of sophisticated floor and supply
chain management systems and customer services.
Direct Marketing
Management has also taken another initiative by making direct sales to
leading chain stores operating in the UAE and other Gulf countries through
a Sharjah-based sister concern named CGI. CGI has also established
strategic market alliances in the following markets:
Australia,
the EU, and
the USA.
The company plans to create similar strategic alliances in the Central Asian and
African markets for the marketing of its own brand (ChenOne) and other leading
global brands.
These initiatives have proven quite successful and direct contacts have
been established with leading chain stores operating in these markets. It is
expected that franchised and direct sales volumes would increase
substantially in future, not only in Pakistan but in overseas markets as well.
Future OUTLOOK
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It seems possible that the future changes in the textile and clothing sectors will
bring more risks and challenges than new opportunities. Comprehensive
preparation is a must to manage these risks and take action to secure existing or
additional markets.
At Chenab, the management has developed a strategic approach to tackle the
WTO challenges. At the macro level, the Company has worked to develop a
partnership between private and public sector players that is critical to developing
effective responses. This is based on the top management philosophy that while
the government needs to set up an enabling environment, the business sector
needs to develop the supply response to market requirements. Together, they
need to develop a monitoring system for trade in textiles and clothing that is
attuned to the changing economy.
SWOT ANALYSIS
STRENGTHS:
One of the largest vertically integrated units of the
country leading to low cost operations Experienced and competent management following a
carefully strategized business plan Focus on brand development and retail network Diversified customer base and geographical
distribution Continuous BMR and expansion Substantial goodwill in the market
WEAKNESSES:
Centralized decision
making. Partially dependent on
yarn and cotton procurement
OPPORTUNITIES:
THREATS:
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Free trade regime will allow the company to sell its products on high margin after imposition of compliance on regional competitor
Elimination of privileges to regional competitors in coming years
Lack of quality cotton availability andhigh cost of procurement.
Non-Tariff barriers Levy of anti dumping
duty by buyer's countries. Increased marketing
costs
MY RESPONSIBILITIE AND DUTIES IN CHENAB
During my stay in Chenab, consisting of more than sixteen years, I have worked in its various
departments such as spinning, weaving, sales tax, income tax, imports, accounts and finance
from time to time. However, currently I am working in finance & accounts department titled as
"Manager Corporate & Banking Affairs". Under this portfolio my main responsibilities and duties
are as under:
FINANACIAL AFFAIRS
Preparation of monthly financial statements and presentation to the management of the
company.
Preparation of financial projections of the company regarding BMR and expansion
programmes.
Preparation of budgeted cash flow of the company on weekly basis and its monitoring
Arrangement of finance required by the company to meet its working capital requirement
form banks and other financial institutions.
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Arrangement of funds required for expansion and new projects of the company from
banks and other feasible sources.
Negotiate with banks regarding their rate of mark up, fees, charges expenses and other
terms and conditions.
Completion of all legal formalities as required by the financial institutes in connection with
grant of loans like execution of agreements, filing of charge documents with SECP, marking of
lien of banks in revenue record in respect of properties mortgaged with them.
Renewal of financial limits from the banks on annual basis and seek modifications if
required.
Arrange the meetings between high ups of the financial institutions and management of
the company on various financial issues.
CORPORATE AFFAIRS
Preparation and circulation to shareholders, Securities and Exchange Commission of
Pakistan and Stock Exchanges, of quarterly, half yearly and annual financial statements of the
company in accordance with the provisions of the Companies Ordinance, 1984.
Supervise the maintenance of record regarding transfer of shares and issuance of
dividends warrants to the share holders.
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Correspondence with share holders, Stock Exchanges, Securities & Exchange
Commission of Pakistan and Central Depository Company.
Fulfillments of all secretarial requirements including requirements of code of Corporate
Governance, filing of statutory forms and information.
To conduct and coordinate sales tax audit and statutory audit of the financial statements
of the company
LIST OF KEY BUYERS OF THE COMPANY
Bedeck UK
C.G.I. Limited, UAE
Chenab USA, USA
Fedrated Product Development, USA
Grouppo Coin S.P.A, Italy
Ikea Asia Pacific Pte. Ltd., Malaysia
Ikea Distribution France SNC, France
Ikea Hanim Poland SA, Poland
Ikea L.U.S GMBH, Germany
Ikea Sevenska AB, Sweden
Ikea Wels Lager, Austria
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Ikea Whole Sales, Canada
Ikea Whole Sales, Belgium
Ikea Whole Sales, UK
Ikea Whole Sales INC., USA
Interfab (Pty) Limited, Australia
Kwantum B.V., Holland
Lawrence Home Fashion, Canada
Linen Things, USA
Home Centre, UAE
Primark, Ireland
Departments of Chenab Limited
Department & output
PROCESS FLOW OF PRCESSING UNIT