Domestic Failure & Key Deficiencies

Hajvery is a developing group in Pakistan.

Pakistan is also critically dependent on textile
The textile vision statement for 2005 envisages open, market driven, innovative and
dynamic textile sector.
Hajvery wanted to be among top 5 textile firms.

Reasons for the downfall

Focus on Quality or Price?

Hajvery defined two basis on which they can compete.

55% of exports are accomplished by the textile sector.

Hajvery group faced the problem of being cost effective.

Quality products to the importing countries at competitive prices.

Lack of Research & Development

(R&D)

Developed companies are using biotechnology and genetic engineering to enhance

quality.

In Hajvery, there is very little research done on small scale.

Trends of markets were not properly analysed.

More Dependence on Cotton

Textile sector is heavily dependent on cotton production.

Hajvery lacks expertise in the development, production and marketing of

synthetic products.

Hajvery has been unable to diversify in the export of textiles.

Low Labour Productivity

Hajvery was taking more time in completion and production of one piece of
cloth as compare to its competitors.

Labour productivity can be improved by giving the labour appropriate

training.

Poor Infrastructure

The important resources and infrastructure are the requirements for the development
of an industrial base.

Industry is faced with rising charges of the energy sector.

Poor Quality Standards

Most of the medium and small sized units cannot ensure the reliable and consistent
quality standards.

Preference is only given to the cheap and workable machinery.

Lack of Qualified Experts/Skilled

Labours

Lack of human resource is one of the key issues faced by the textiles and clothing
industry of Pakistan.

Hajvery complained about the lack of relevant education to impart appropriate

expertise and skills.

The gains from providing quality training are limited from employers point of view.

High Cost of Borrowing

Hajvery Textiles faced the problem which was the higher mark-up rates by the banks.

A large number of textile units have been closed down due to financial crisis.

Rise in the price of petroleum products has affect the textile industry with the
increase in cost of doing business.