Beruflich Dokumente
Kultur Dokumente
Conducted By
Mr. Khurram Zia – CDA PSIC Chiniot
Supervised By
Mr. Aftab Ahmad Ashraf – Project Manager, CDP PSIC
June 2006
Partner Agencies
All rights reserved. No part of this document may be reproduced or transmitted, in any forms or
by any means, without prior written permission from SMEDA, PSIC & UNIDO
Table of Contents
Annexure
3. Costing For Manufacturing Bed Set & Dinning Table with Chairs 41
1
2. DESCRIPTION OF THE CLUSTER
Furniture was named in two ways: After its use or after its maker or manufacturer.
Knowing that will help you in purchasing older pieces that may have names that seem
strange to you today, for over time many furniture names have changed through use
and have become part of the vernacular of English.
For instance, Lambert Hitchcock of Hitchcocksville, Connecticut, created the first
mass-produced chair which today bears his name. The Boston rocker originated in a
cabinetmaker’s shop in Boston. The davenport, a small desk with a hinged lid that
opens out for writing, was originally made by William Davenport. Later, a large sofa
which sometimes converted into a bed also became known as a davenport.
In colonial days, a bed meant a featherbed or mattress. The frame was known as a
bedstead. Mirrors were known as looking glasses. A chest with four or more drawers
was known as a high-daddy.
One of the oddest pieces of furniture is the commode. Initially a French chest of
drawers on legs, later called a chiffonier and moved to refer to a movable washstand,
with basin, waste pipe, etc. to a piece of furniture containing a chamber pot. Finally,
the name became a pseudo-intellectual name for the common toilet.
Sofa, couch, love seat, or divan–all refer to the same type of seating. Or do they? A
couch was actually a bed, from coucher, the French word meaning to lie down. A
settee was an elongated armchair that accommodated two or more people. Developed
in the 17th century, it was often upholstered.
A love seat was and still is a long seat consisting of two seating cushions and
intended to accommodate two people. Anything with more than two cushions was
called a sofa.
The sofa’s origins appear to stem from the French day-bed, referring to any type of
elongated seating, including the chaise longue, or “long chair,” designed for resting
rather than sleeping. It usually had a raised end. While most early sofas were
upholstered, springs weren’t used in them until the early 19th century.
An ottoman was an upholstered footstool or low bench without arms or back, named
after the Turkish influence of the early 18th century.
Case furniture, that is furniture used for storage, came in all sorts of forms. The trendy
armoire was originally a large mobile cupboard or wardrobe featuring doors and
shelves for clothes storage. A German variation was known as a kas. A more modern
version, also containing drawers, came to be called a wardrobe.
Chests also came in many varieties. Originally a piece of squared furniture with
drawers, it became known as a commode to the French. A variation used a desk,
featuring a fall-front, a cylinder front or a tambour (roll-top) was called a bureau. A low
English chest of drawers on long legs was known as a lowboy and later as a dressing
table. By mounting a chest of drawers on top of it, it became a highboy, from the
French haut bois which means "high wood."
Dining rooms had a sideboard, a table with a wide drawer at the center flanked by
drawers or cupboards on the sides and made to be used against a dining room wall
for storing and serving food. Sideboards began as credenzas, a serving table with a
cupboard below the surface, in the 15th Century. In the 16th Century, an upper,
recessed tier was added. This was also known as a “dresser,” where dishes were
2
dressed before serving. Today, this piece of furniture is commonly called a buffet,
based on its use as a vehicle for self-serve dinners.
Today’s china closet was originally called a vitrine, a cabinet with a glass door. The
sides and top were often also of glass, and it was designed to store and display china
and curios.
Lastly, to keep milk and freshly-baked pies protected from flies, simple cupboards,
known as pie and milk safes, with doors fitted with decorative, pierced tin panels to let
the air circulate through them, were popular from the 1820's to after the Civil War.
Source: http://www.theantiquesalmanac.com/furniturecalled.htm
Furniture carries a significant value in everyone’s life as it is one of the items that are
used daily in every household, institution and organization. Cluster is famous to
produce house hold furniture. House hold furniture includes following items:
Wooden furniture has the largest share in total international furniture trade. The
percentage share of each category is as follows:
Wooden
Furniture,
73%
Products Range:
Drawing Room
Sofa set
Centre table set
Wooden swing
Floor clock
Floor screen
Ottoman (stool)
Console table
Bed sets & dinning tables are the major items manufactured in Chiniot.
Bed set
This includes bed, side tables, dressing table, and dressing stool
Sofa Set
This includes standard sofa set of three seats, two seats, and one seat.
4
Dinning table
Superior Quality
Superior quality bed set and dinning set were made of supreme quality pure wood
furniture with elegant hand carved design. Superior quality had extra carving with
complex and elegant design and extra fine polishing and finishing. While superior
quality sofa set was manufactured form best available upholstery material for elegant
design & extra comfort.
Fine Quality
Fine quality bed set and dinning set were made of fine quality pure wood. Simple and
appealing hand carving was done with fine quality polishing. While fine quality sofa set
had a quality upholstered material & elegant design.
Normal Quality
Normal quality bed set and dinning set were made of a mixture of pure wood and
substitute material Lasani, Medium Density Fiber (MDF) and win board, etc). Lasani
gave fine and even surface for finishing and paint. Smooth surface gave eye-catching
effect. This finish of bed set & dinning set were assumed to be of paint due to the
extra fine surface. The normal quality sofa set a simple design sofa set with good
quality fabric material.
The basic raw material used for hand carved furniture in Chiniot is Sheesham wood.
Chiniot cluster engaged in the furniture manufacturing. It is the only hand carved
wooden furniture manufacturing cluster. The finishing of the products i.e. polishing and
finishing is done by the retailers according to their buyers requirement. However
majority of the furniture manufactured in this sector is semi-finished (locally called
“Kora”). Finishing and polishing is done later on by the retailers to their customer’s
demand.
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2.3 Preparation of Product
It is also called process mapping, the objective here is to clearly define how the
process functions: who does what when. The environment in which managers operate
their businesses is hardly stable and predictable. Processes vary within a company
due to a variety of factors: different people with different skills operating under different
managers with different suppliers. Variation in the inputs frequently yields variation in
the output.
Core Process: The primary activity that produces the output that customers
purchase.
Technical Support Process: Includes the activities that influence the core process
performance.
Social Support Process: The activities that influence the workforce's performance.
Support process is just like the foundation of a building; they tend to operate behind
the scenes. They literally support the core work that generates the product or service
the customer is willing to pay for, but they are generally considered overhead, non-
proprietary, are frequently neglected and often outsourced. Examples of support
process include: accounting, human resources, information systems and
maintenance. They are essential to the success of the organization, but the customer
does not identify them or their outputs as part of their specifications. No matter how
well designed and maintained the core process is, a poorly built and maintained
support system will eventually collapse taking down the core process with it.
POLISHING/PAINT
6
Purchase of wood
Wood was purchased after quality inspection. In determining quality following points
are considered.
Cutting of wood
When purchased, wood of natural form, this wood after purchase was cut into different
sizes of blocks, planks and slices.
Seasoning of wood
Season wood was higher in price than the fresh wood, also if the wood purchased was
not properly dried wood then these blocks/slices are seasoned through different
processes,
1. Condensation
2. Boiler System
3. Vacuum System
4. Seasoning through putting the wood slices/planks under normal environment
temperature for considerable duration.
Presently forth number practice was famous for wood seasoning by the manufacturers
before furniture making.
Selection of design
The seasoned/unseasoned wood blocks are cut into desired shape and slices
according to the requirement of design.
Molding
Wood moldings are divided into products produced in hardwood such as oak or maple
and softwood products such as pine. The slices of wood are molded into desired
shape according to the design.
Carving
Carving means different elegant pattern carved in the wood. Quality of carving
depends on the skills of the carver.
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Assembly/Fitting
Once different pieces are carved & molded than these parts/pieces were assembled
or fixed together to give the shape to the final product.
Finishing
Assembled product was grind to make the surface smooth. Once the surface was
smooth, finishing material was applied to make the surface ready for paint or polish.
After the base was prepared final finishing was applied depending upon on
requirement in term of paint/polish. Upholstery of fabric/leather was carried out
according requirement of design.
The annual production of woodworking cluster was estimated at 288 bed sets, 250
dinning table sets and 250 sofa sets at full capacity, i.e. 4,000 units (approx) working
200 days. Value of the wooden products was estimated at Rs. 15.9 million. This was
also based on an assumption.
Workshops having 6-7 numbers of workers had ability to make 2-4 bed sets (bed set,
side tables, dressing table & dressing stool) in a week. Similarly the workshops with
same capacity of work force had ability to make 2-3 dinning sets (dinning table with
chairs) in a week.
Polish
Charges
Rs. 4,000
10
Wood Wood Designer Carver Fitter Finisher
Raw Material Seasoning Designing Carving Fitting Finishing
Rs. 3,000 Rs. 250 Charges Charges Charges Charges
Rs. 500 Rs. 1,000 Rs. 500 Rs.300
Cousin Polish
Charges Charges
Rs. 1,500 Rs. 1, 500
2.5.1 Craftsmen
The wooden furniture manufacturing cluster Chiniot is famous for hand carved
furniture. The basic raw material used for hand carved furniture is Sheesham wood.
Medium Density Fiber (MDF) was also used in furniture manufacturing. Sheesham
wood which is basic raw material was short in supply due to the time to time ban on
cutting of trees imposed by the forestry department on the cutting of trees. Ban on
cutting of trees caused a price hike. There was no schedule rate of wood in the
cluster.
Southern Punjab
Sale of timber in the cluster depend on cash base & credit base (50 % each)
12
Total estimate wood consumption of cluster per month was 150,000 cubic feet.
Total timber merchants in cluster 30-35 approx
Every timber store buying 5000 c. ft wood per month approx.
Total wood buying per month 5,000 c. ft
Total number of units x 30
---- --------
Total wood buying per month 150,000 c. ft
These forest officers were government employees. They made contact with the
contractors at the time of auction of timber. Interested contractors form different places
approach at the place of auction.
2.6.3 Contractors
These were the businessmen who directly purchased wood from the forest officers
and sold to the timber merchants.
Chiniot wooden furniture is famous for different types of work like cut work, brass
inlay, and wood inlay etc. Machinery for this specific cut work is called jig saw which
was being manufactured in Chiniot. There were 10-15 manufacturer of machinery in
this cluster.
The specific tools which carvers used for hand carving are called tools for carving
(locally called Chappo). They were available in different sizes & shapes. The set of
hand carving tools consisted of 36 industrial tools. 8-10 manufacturers of these tools
were present in the cluster.
2.6.5 Designers
15-20 designers were available in the cluster. Most of the designs were being
repeated in the furniture products for quite some years now. New designs were only
copies out of different brochures and catalogues. These products did not have
conference quality. They lack innovation and exhibit poor quality.
No software like Auto-CAD & I MOS (computer aided design and software) were being
used for the enhancement or development of new designs and detail drawings.
Wood and brass inlay craftsmen (2,000 each) were present in the cluster. Furniture
13
manufacturers some times used to perform wood/brass inlay work by their self. Some
times they outsource these services too.
Brass material which was used in brass inlays work manufacturing in this cluster. This
material is made by brass sheets. Manufacturers of these material used dyes for the
manufacturing of this material. These manufacturers were 4-5 in numbers in this
cluster.
Similarly material used for wood inlay work also manufacturing in this cluster too.
Manufacturers of this type of material used jig saw (locally called chabakka machine)
for the manufacturing of these material. These manufacturers were 50-60 in this
cluster.
Local retailers were 200 to 250 in numbers. Some were manufacturers cum showroom
owners. These retailers directly buy furniture from the manufacturers.
Some retailers were also exporters but they were very low in numbers. Only 4-5
retailers were exporting furniture & handicraft with 2-3 exporting on regular bases.
Role of trade bodies was very important for the development of the industry. Profile of
existing furniture manufacturer association is as under.
There was only one (active) association in the cluster named Small Scale Furniture
Association (SSFA). Existing furniture manufacturer association was not selected as
well as not elected by the craftsmen community. The current president of the furniture
manufacturer association has also recently again been elected as “Nazam” of the
cluster. The President & other members were of Small Scale Furniture Association
(SSFA) were furniture manufacturers and has their own showrooms. Almost five years
back some people or group (furniture manufacturers & retailers) selected President,
General Secretary, Secretary and Executive body members of their own with out any
election. They selected the persons whose business was established and who had
good influence. Some craftsmen & manufacturers came to resolve their problems like
raw material related issues, social security related issues, & different types of taxes
related issues etc.
14
The local representative body namely the Small Scale Furniture Association (SSFA)
did not have any developmental agenda and served the purpose of wage negotiation
and resolving of any major crisis. See Annexure XIII for more detail
The cluster had hardly any active support / service institutions to guide it in the right
direction.
The following institutions supported the cluster in the past but presently out of these
only Punjab Small Industries Corporation (PSIC) has continued its support
Punjab Small Industries Corporation was established in the year 1961 and since then
has been a sound contributor to small industrial development in the province through
its various loaning schemes
To promote small and cottage industries through market driven industrial and credit
support, contributing to employment generation and socio-economic uplift of the
province.PSIC has been disbursed loan to some needful manufacturers of the cluster.
Only unseasoned wood was available in the market, In general only natural seasoned
wood was available. The natural seasoning process used to take several months.
However, a wood seasoning plant used to take 10-15 days (approx) for wood
seasoning (depends on the thickness of the planks/blocks)
15
“Wood Seasoning Facility Centre” on Oct 14, 2005 to provided the facility of wood
seasoning to the craftsmen of Chiniot cluster for the manufacturing of quality furniture.
There were two kilns available at this centre each with 600 c.ft capacity. Each kiln was
equipped with electric source heaters and condensers installed for creating heat to
reduce the moisture of wood. It used to take 10-12 days to reduce the moisture of
wood from more than 60% down to 10 %. To manufacturer good furniture 7% to 12 %
moisture is required, but it varies area to area.
SMEDA was established in October 1998 to take on the challenge of developing Small
& Medium Enterprises (SMEs) in Pakistan. SMEDA is relatively a new organization
with a futuristic structure and focus on providing business development services to
small and medium enterprises. SMEDA is not only an SME policy-advisory body for
the government of Pakistan but also acts as a one-stop-shop for its SME clients.
SMEDA has conducted time to time seminars/workshops in the cluster. During visit of
SMEDA team the stakeholder highlighted different issues concerning industry. In the
light of the problems identified during these visits a workshop was held in Chiniot
cluster, whose purpose was to assess the shortcoming and drawbacks of the cluster
and according propose recommendations for its development.
A Sole proprietorship firm or any other company or a concern shall be eligible for the
membership of the Faisalabad Chamber provided that such a firm or company has its
head office, registered office, branch office or manufacturing plant located in the
territorial jurisdiction of the Chamber.
As per information provided by the banks, some craftsmen had availed loans facility
from these banks previously, directly as well as under various government schemes
floated by these banks. However, the default rate of mark-up of these banks was
substantially high, and almost all of them were willful defaulters. With the result, now
the banks hesitate in providing further loans to these craftsmen.
Following banks has branches in the cluster that were providing services;
National Bank
Muslim Commercial Bank
Allied Bank
Habib Bank
United Bank
Bank Alfalah
Zaraei Trakiyati Bank
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Punjab Provincial Cooperative Bank
See Annexure I for the list of government departments working at Tehsil level Chiniot
s
Transaction Cost Analysis Matrix
Out of 4,000 units (approx) more than 150 small & micro level units and 50 numbers of
have been visited by CDA to filling of questionnaires.
An unfilled sample of questionnaire for Small & Medium Enterprises Wood Working
Cluster, Chiniot is available at Annexure II
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C. Banks (6-8) JCCI WSFC PSIC FCCI
L. M.SUPPLIERS (8-10)
M.SUPPLIERS (Woodworking)
G.WALA, LHR, F.ABAD
Direct Exporter
Finished (4-5)
Carvers (12,000)
SMALL UNITS
End Consumer (500-600) Fitter (12,000)
Polisher (1,000)
Local Retailers
Semi-Finished/Finished
(250-300) Jig Saw Craftsmen (4,000)
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WSFC………... Wood Seasoning Facility Centre
FCCI…………. Faisalabad chamber of commerce
JCCI………….. Jhung chamber of commerce
GCT…………. Government College of Technology Faisalabad
CFA…………. Chiniot Furniture Association
APFEA……… All Pakistan Furniture Export Association
R.M……….. Raw Material Suppliers
M.S……….. Machinery Supplier
LHR………. Lahore
G/WALA…. Gujranwala
F/ABAD…. Faisalabad
L.M.S………. Local Machinery Suppliers
R.M.S………….. Raw Material Suppliers
S.S.F.A……….. Small Scale Furniture Association
A.P.F.E.……… All Pakistan Furniture Export Association
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3. Social Dynamics of the Cluster
The present configuration of the cluster is a reflection of the occupational changes and
adjustments that have taken place, the manner in which the woodworking
relationships have developed and the spread of the craft has taken place from Chiniot
to some other areas in the Pakistan.
The industry was facing a continuous decline in the number of both skilled and
educated workforce, which had resulted in the lack of expertise in handling of
technical aspects of product designing and arising of the limitations of repetition of
traditional designs.
Currently Sheesham wood was under an attack of unknown decease, which had
resulted bad quality products after manufacturing. Instead the wood seasoning plant
facility available in the cluster the furniture manufacturers not approach due to the
high rate which low quality products were being manufactured. Use of primitive and
obsolete machinery further deteriorated the manufacturing quality of these products.
Sale of these semi-finished items was limited to only major cities across Pakistan due
to the lack of practicing marketing techniques.
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4. Value Chain
MACHINERY
SEEDS WATER
FORESTRY
CONTRACTOR
CARVERS
SEASONING
MACHINERY FITTERS
MOLDERS
RETAILER EXPORTER
PAINTER / POLISHER
END CONSUMER
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5. Problems Identified
Over the number of meetings that were held with the various craftsmen & retailers
they had expressed the feelings that they were not organized properly in one way or
the other. They were aware of the problems but were unable to find any solution for
them.
Lack of modern & efficient wood processing & hand carving tools/equipments,
This industry was faced with the issue of traditional tools & equipment for wood
working and wood carving. There was no concept of latest and modern computer
numeric control (CNC) machinery in the cluster. Mostly craftsmen in the cluster were
poor; they had no capacity to buy such costly machinery.
Currently most of the units supply furniture products to local markets in unpolished
(kora) form. There were only 4-5 manufacturers in Chiniot who exported directly.
Some manufacturers used to supply wooden products to the exporters of Karachi,
Lahore and Gujarat. Manufacturers/traders of Chiniot had no facility of any advisory
cell for consultancy in various areas such as international trade trends, export
procedures, quality standards and coordination with furniture exporters.
22
Majority of the SMEs in cluster required finance for working capital and
machinery/equipments. Most of the banks were reluctant in financing these SMEs
because they did not have proper documentations as required. This was the actual
reason in loan credits from informal sectors at high cost of capital.
5.6 Recommendations
Establishment of Raw Material Bank that will ensure consistent supply of ready
to use raw material
Provision of trade, marketing and business development services
Establishment of training institution that will provide skilled & professional
manpower
Networking and linkages of stakeholders.
Financial institutions to provide and devise loaning schemes to facilitate and to
meet financial requirements of the cluster.
Capacity building of private/public institutions and associations
Make the existing unregistered association a register association
Identify the willing entrepreneurs for opening show rooms in cities like Lahore,
Islamabad, Karachi etc
5.7.1 Strengths
Wood seasoning facility centre was available in the cluster. Craftsmen could
get facility of wood seasoning to pay Rs. 48 per c.ft in 10-12 days.
Suppliers of raw material were available in the cluster.
Local tools called (jig saw) manufacturers were available in the cluster.
Motor way was just passing 35 km away from the cluster. Due to motor way
wood working business of this cluster enhanced. Customers from other cities
felt comfortable to approach Chiniot through motor way to buy furniture.
3,000-4,000 furniture manufacturing units present in the cluster
35,000-40,000 people (approx) are directly and indirectly attached with this
occupation
Strong historical background of some craftsmen
5.7.2 Weaknesses:
High cost of production due to high rate of raw material, operational losses,
inefficiency losses, wastage costs, etc.
Lack of educated, certified and professionally trained work force. There was
shortage of certified/skilled manpower in furniture cluster. Most of the craftsmen
were uneducated. All the labor force and craftsmanship had been developed
through the inherited system of “Ustad and Chhota”
No availability of VTI (Vocational Training Institute). There was no proper
vocational training institute to train these workers about latest designs & trends
and latest techniques to manufacturer furniture products as per local as well as
export market requirements.
Unawareness of Social compliance and Environmental issues
Unawares of any quality control and standards
23
Unawares of international certification and non-tariff barriers
Inability to penetrate export market with weak furniture designs based on
repeated, non standard copies from catalogs/broachers
Unawareness of international trade trends, markets due to poor marketing
skills
Lack of knowledge about seasoned wood
Unavailability of ready-to use seasoned wood
Lack of knowledge about latest technologies & modern designing trends
Inaccessibility to obtain formal financial support resulting in loan credits from
informal sector at higher cost of capital
Absence of networking & linkages amongst stakeholders
Poor infrastructural facilities like:
1. Roads network in the city was very bad
2. Poor power supply
5.7.3 Opportunities:
5.7.4 Threats:
Migration of trained work forces from the cluster because less profit margin
especially for manufacturers to the big cities like Lahore, Karachi, Gujrat etc
Raw material cost increased (Due to shortage in the stock of Sheesham wood
at any stage because no further plantation as required)
China and India’s low price articles
24
Poor road connectivity inside the city, lack of
communication, inconsistent power supply &
space
Demand condition:
1. Size of domestic market 3 Sold allover the country but limited consumer
segment
2. Number of buyers 4 No of buyers increasing, due to dowry
3. Growth rate of domestic 3 Growth rate is stable since last 2-3 years due
demand to quality
4. Sophistication of buyers 2 Customers has low quality orientation and
cannot distinguish a copy from an original
5. Presence of inter-regional 3
buyers
8. Cluster Vision. (For vision please check the latest version of the DS which I
have submitted in the last after so many corrections)
“By streamlining the value chain the cluster will reduce the manufacturing cost
and give the best value of money to its customers & planning to organize trade
25
mission and commercial intelligence trips (exposure visits) to assist in
enhancing local manufacturer’s capacity (capacity building) with in the period
of three years”.
Develop linkages between stakeholders & financial institutions (PSIC) for easy
accessibility to obtain formal financial support to improve their businesses.
Roll of trade bodies are very important for the development/uplift of the
industry. So strengthen of association (to convince an unregistered association
to become a register association) is very important to fell the significance of the
body among all cluster players.
There is great need for vocational training to upgrade the skills of the workers
and to induce innovative ideas for designing. Courses in the following areas will
be conducted with the support of technical institutions.
Training programmes for artisans for skill up gradation will organized. ...
26
10. Future Cluster Map
27
Banks (10-12) JCCI WSFC & CDC PSIC FCCI
L. M.SUPPLIERS (15-20)
M.SUPPLIERS (Woodworking)
G.WALA, LHR, F.ABAD
Direct Exporter
Finished (10-15)
Carvers (12,500)
SMALL UNITS
End Consumer (700-800) Fitter (12,500)
Polisher (1,200)
Local Retailers
Semi-Finished/Finished
(300-400) Jig Saw Craftsmen (4,500)
29
11. Action Plan
FUNDS
Sr. ACTIVITY OBJECTIVE Associ- Stake- Other Total RESPONSIBLE DATE OUTCOME
# ation holders Organizati Rs: STAKEHOLDERS
on
1 Networking Raw material / 1,000 Up to Efficient
Wood 31 Supply of
seasoning Oct Raw
Consortiums * * 2005 Material
(Short term 1,000 Stakeholders
activity)
2 Workshop Promote EPB EPB Up to Show rooms
Export 5,000 20,000 15 Owners &
Culture, PSIC & Nov manufacturer
& Certificatio Certification 2005 s
Awareness * n Body (40-50)
ISO Body 5,000 Participants
Certification
(Short term PSIC 35,000
activity) 5,000
3 Linkages Strengthen Best-line Furniture Up to Export quality
Linkages with Consortium 15 Regular order
other cluster’s & Nov
network * * * * Greenways 2005
(Medium term Wazirabad
activity) Network
4 Linkages Strengthen Stakeholder Up to Regular
Linkages with 5,000 & 31 Order
PHS Lahore * * 5,000 PSIC Shops Dec
(Short term 2005
activity)
30
5 Workshop Awareness 5,000 PSIC Association Up to Least
PSIC Lending 5,000 10,000 31 1 Million
Schemes MCB PSIC Jan Disbursement
& 5,000 2006
Awareness &
Training Govt.
(Auto CAD College Commercial
Designing) Of Tech Bank (MCB)
(Short term Faisalabad 35,000
activity)
10,000
6 Registration Organized & Association Up to Registered
Of Strengthen 50,000 28 Association
Association Body * * Feb
(Medium term 2006
activity) 50,000
32
Annexure I
Source: Mr. Hamid Ali, Manager (Muslim Commercial Bank Madina Sugar Mill
Branch) Ph: 0466-332280
33
Annexure II
1. Basic Information
Date/Day of visit:
Name of
Enterprises:
Name of Owner:
Name /Position Of
Respondent:
Location:
Phone: Ptc: Cell:
Fax:
E-mail
Main Product (s)
Form of Sole proprietorship, Partnership,
Organization: Family enterprise,
2. Other Businesses
Who are the major buyers of the wooden furniture manufacturing industry?
(Locally, In the country or Export Market)
34
(Design/quality/information/control price of raw material/marketing intelligence
etc)
4. Premises
Are the premises of the enterprise rented or owned? If rented, from a public or
private landlord?
What are the principal sources of machinery parts, servicing & repairs?
(Including self-servicing by the enterprises it self)
What are the main problems with the production equipment or with the
35
processes of production?
Where did the owners and employees receive their basic useful training?
(On jobs/from public or pvt training institute)
Does the enterprise specialize (in whole or part)? Does it rely for supplies on
others SMEs?
2.
3.
What are the sources to provide main raw materials used by your enterprise?
Are many of these raw material providers within or close to the cluster?
Yes No
Does your enterprise have any substantial problems with its raw material
36
suppliers?
Is your enterprise getting the same quality of raw material (wood), if it buys on
cash base or credit base?
7. Finance
What are your enterprise main problems with sources & terms of credit finance?
Do you feel your enterprise needs more external loan to enhance your business?
Yes No
37
8. Infrastructure, Policies, Regulations, Etc.
What are the principal customary sources for the main infrastructural facilities
and services used by your enterprise?
Electricity Telecommunication Water Gas
Do you have any idea about WTO? If yes, do you prepare your self for that?
Yes No
Does your enterprise have any problems with laws & regulations?
9. Associations
38
Annexure III
1. Bed
2. Side tables
3. Dressing table & mirror frame
4. Dressing stool
39
Fitting charges (Rs: 500) Rs: 500
Finishing charges (Rs: 100) Rs: 100
Electricity charges (Rs: 100-200) Rs: 200
Rs: 6,650
Total cost of un-finished dining table is Rs: 6,500 (approx)
40
Annexure IV
Background
Furniture craft came to the Philippines through the Galleon trade in the 16th century.
Its evolution is reflective of the diverse influences that have enriched the country’s
heritage, the wide variety of locally available materials and the existence of native
artisans with deft hands and a flair for design. A culture of adaptation best describes
the history of the industry. These, plus the Filipinos entrepreneurial spirit are the
reasons for the industry’s growth and the wide acceptability of its products.
Product coverage
While wooden furniture manufacturers previously exported only sanded items and
parts, they have now penetrated the global market with finished products that
showcase local skills in carving, marquetry and inlaying. Philippine-made wooden
pieces were previously reproduction or period pieces. However, several firms are now
producing modern and contemporary style furniture. Others have ventured into the
use of particle boards and medium density fiberboards for panel furniture.
Metal furniture, on the other hand, combines wrought iron with wicker, wood, seagrass
and other indigenous materials while stonecraft pieces are made with wooden
carcasses and laminated with pieces of fossilized stones. These stones vary in color
from white to beige, to gray, coral, green and black. Tabletops are the main items
produced using fossilized stones.
Major producers
These are three major furniture making areas in the country: Cebu, Metro Manila and
Pampanga. The largest-sized rattan, stonecraft and metal furniture manufacturers are
located in Cebu. Lately, however, several rattan factories have shifted to wood
furniture production, thus, making Cebu a major destination for buyers of such
products. A large number of rattan, wood and metal furniture companies may also
found in Manila. Pampanga is known for fine bone inlay work.
Information gathered reveals that the average age of machines used for rattan and
wood furniture production is 5 to 10 years. Rattan companies are well-equipped with
the machines necessary for efficient production while semi-mechanized production is
the norm in wood furniture manufacturing. Aware of the growing need to improve their
productivity, majority of wood furniture firms are investing in modern woodworking
machines and increasing the application of specialized technology to streamline their
production.
Raw Materials
The industry has branched out from utilizing rattan, wicker and buri to using wood,
metal, stonecraft, bamboo and plastic in production. New forms have also emerged
with the combination of two or more of these conventional materials, and their
combination with other items such as grasses, shells, coconut lumber and leather.
Rattan poles, mainly those with a diameter of two centimeters or more, are either
sourced locally or imported. Rattan furniture includes chairs, tables, headboards and
casegoods constructed with rattan frames and combined with natural or colored
wicker woven in myriad patterns. Items may also be made with wooden carcasses
laminated with rattan splits and wicker. Styles vary from traditional and Victorian to
contemporary.
While lumber is available in the domestic market, manufacturers have started using
imported species. Lauan and tanguile are the commonly used types of wood that are
locally-sourced. On the other hand, Honduras and Brazilian mahogany, pine, oak,
beech, cherry and maple are imported by some manufacturers. Malaysia, Brazil and
the USA are the largest suppliers of imported lumber.
Manufacturers have broadened their product range to include pieces using plantation
species. Rubberwood and gmelina are being utilized at the moment. A priority concern
of the industry is the development of tree plantations. The use of particle boards and
medium density fiberboard’s for panel and office furniture and the manufacture of
upholstered items are also gaining popularity among manufacturing firms.
“We tried to create opportunities out of the government’s total log ban policy,” said
Emmanuel Padiernos, president of the Chamber of Furniture Industries of the
Philippines (CFIP). “Since the ban is discouraging the export of rattan and timber, we
see a growing use for wrought iron, metals and even wooden furniture. Timber, after
all, can be easily imported whether in raw or processed form.”
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The problem in sourcing rattan, a major industry raw material, has also strengthened
the use of mixed media, he added.
The CFIP is urging its members to develop tree plantations to help preserve the
environment and assure continued material supply within the country.
Prices of furniture are determined by their sizes, their quality, cost of materials and the
areas where they are acquired.
Technology
Wooden furniture producers are currently giving special attention to the retooling and
modernization of their facilities. The Philippine Furniture Training Center (PFTC) has
been set up to improve the sector’s productivity and enable the industry as a whole to
develop its manpower resources through various training programs.
The PFTC’s training curricula was a result of a study conducted in the country by the
Skive Technical Institute of Denmark. It is the most comprehensive, one of its kind
training schools in the Philippines that can approximate the level of those given in
specialized schools in Europe.
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Rattan companies are well-equipped with the machines necessary for efficient
production while semi-mechaniz is the norm in wood furniture making.
“Within the next two years, we plan to organize trade missions and commercial
intelligence trips to assist in enhancing our local manufacturers’ capacity and
technology,” said Emmanuel Padiernos, president of the Chamber of Furniture
Industries of the Philippines (CFIP). “One of the international shows we will be visiting
in Europe features suppliers and furniture manufacturers.”
A priority project of the CFIP is the conduct of an annual design consultancy program
in line with the holding of the Philippine International Furniture Show (PIFS). This year,
the association was able to obtain a grant from Canada to subsidize the cost of
participating in this program.
“We always urge our manufacturers, especially our exhibitors to come up with new
products and designs at least twice a year. This will make the show more exciting and
their company more interesting for buyers,” noted Padiernos.
“The United States is still our biggest buyer and it goes for classic bulky pieces of
furniture, while Europe and Japan prefer clean-looking, simple and classic designs in
light colors,” he said. Busy, complicated designs seem to be losing popularity, he
added.
His company, Pacific Arts and Décor, Inc., has been promoting its brandname
Sofamatic both in the domestic and export markets.
Export Statistics
The industry, considered one of the country’s export winners, is aiming to generate
$500 million by the end of 2000.
“While the market has indeed grown because of globalization, globalization has also
offered more stiff competition. To reach our goal, we will need government support in
providing the necessary infrastructure and policy environment that will help us be
more productive. We also need investments and sources of funding to help us in our
modernization program,” said Padiernos.
Padiernos does not see any sharp price increases at least in the first six months of the
year. Instead, the peso devaluation has influenced a five to 15 percent decrease in
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FOB prices in general, he said. He projected that prices will continue to stabilize due
to the improving economic condition in the country and the stable exchange rate.
Two distinct yet adjacent halls will house furniture pieces for the living room, dining
room, bedroom, kitchen, bathroom, garden, and office. Occasional furniture, tables,
and chairs; reproduction and period furniture; upholstered furniture; avant-garde
furniture; and other items of furniture can also be sourced from this show. Lamps and
lighting fixtures; decorative accessories; gazebos and trellises; artificial plants,
planters, jars, and pots; antique reproductions; and other home accessories will also
be highlighted to provide a wide array of complementary products that will complete
an entire interior design project.
With the theme Obra 2004, the show exemplifies the aspiration of globalizing
Philippine culture through furniture design. It is a celebration of the global Filipino’s
tradition of craftsmanship in furniture making and design.
"Obra" is a word of Spanish origin that means work or body of works, as in obra
maestra (masterpiece). In Filipino, it is a verb
that has taken a new meaning that explicitly suggests: can be, can be done, or
possible -- "u-obra."
The show will present a new thematic structure under the sub-themes LIKHA
(Creation) and KALAGAYAN (State of Being).
Under the sub-theme Likha (Creation) are the processes and tools of creative
expressions like Ukit (Carving), Kulay (Color), Habi (Weaving), and Panday
(Metallurgy); which represent the Filipino manufacturers.
A visit to PIFS 2004 will surely be a totally different experience because it will not only
offer finely-crafted furniture pieces. It will also offer its buyers and visitors a treatment
that is only fit for a king or a queen with its new Buyers’ Incentives Program.
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Annexure V
Summary:
Market shares of the major furniture exporters are provided by geographical region
and developed countries / emerging countries. The analysis of the opening of furniture
markets covers the past eight years, with data on trade balance, imports/consumption
and exports/production ratio.
Statistics and outlook data are also available in a country format: origin of furniture
imports, destination of furniture exports, historical series on furniture production,
consumption and trade, country rankings to place all statistics in a broad worldwide
context.
The report provides a picture of opportunities for furniture exporters arising from the
increasing openness of markets and a rich collection of key country-data, allowing
comparisons among specific interest areas.
The sixty country tables have been expanded to include three additional items:
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Mostly Muslim states prefer Pakistan for trade, if we able to provide them
according to their requirements which can be
1. Good quality products
2. In time supply
Middle East countries are rich countries & have not their own raw material
(wood)
Style of furniture are same which is under the usage of these countries
Carved furniture is popular in Middle East countries
Royal families use carved home furniture
In TV news or information reports (In the back ground) we mostly see that the
furniture which these countries are using is carved style
Saudi Arab is very found in carved furniture
Easy to penetrate in these markets comparatively Europe or America
These countries accepted that Pakistan is a good market & they can afford the
expensive furniture of Pakistan
EU & US do not afford Pakistani furniture due to high prices
Marketing is easy in Middle East countries
Dubai is hub of Europe ,Africa & Asia
Saudi Arab has not its own wood, so we should target Dubai & Saudi
Carved living furniture is very famous in the royal & common families of Middle
East countries
Target all Islamic countries for furniture export
China, Korea & Japan has different style in furniture
These countries can be our good buyers, we need marketing through internet,
exhibitions and establish our own ware houses
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The Middle East Countries
United Arab
Jordan Kuwait Lebanon Libya
Emirates
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Annexure VI
This report offers a comprehensive picture of the furniture sector in the Middle East,
providing trends in furniture production, consumption, imports and exports.
Factors determining the demand for furniture are examined, as well as distribution
channels and prices. For each country the furniture supply structure is analyzed,
with data on companies and employment. Imports and exports are broken down by
country and product.
Countries covered: Turkey, Israel, Egypt, Saudi Arabia, Kuwait, and United Arab
Emirates.
This report offers a comprehensive picture of the furniture sector in the Middle East,
providing trends in furniture production, furniture consumption, furniture imports and
exports in Turkey, Israel, Egypt, Saudi Arabia, Kuwait, United Arab Emirates (UAE).
Factors determining the demand for furniture are examined, as well as furniture
distribution channels and furniture prices.
For each country the furniture supply structure is analyzed, with data on furniture
companies and employment. Short profiles of the main furniture manufacturers, with
production facilities, employees and product mix, are provided.
Furniture imports and exports are broken down by country and product (office
furniture, kitchen furniture, upholstered furniture, non-upholstered seats, bedroom
furniture, seats parts and parts of furniture).
The wood and forestry sector is also considered: production, imports, exports and
consumption data are provided for the main semi-finished wood products (sawn wood;
wood-based panels: plywood, veneer sheets, particle board panels, fiber board
panels, MDF). Data on woodworking machinery imports are available for some of the
considered countries.
Among the covered products: wooden furniture, metal furniture, plastic furniture,
contract furniture, office furniture, home furniture (household furniture), kitchen
furniture, upholstered furniture (sofas and armchairs), non-upholstered seats (chairs),
bedroom furniture, beds, tables, wardrobes, seats parts, parts of furniture, sawn wood,
wood-based panels, plywood, veneer sheets, particle board panels, fiber board
panels, MDF (medium density fiber board), woodworking machinery.
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Annexure VII
In 2001-02, Saudi Arabia imported $162.3 million worth of household and office
furniture. The value of U.S. exports was $24.05 million and had a market share of
14.8%. The major competitor was Italy with exports valued at $35.1 million and a
market share of 21.6%. Due to tough competition in the Saudi market, many large
furniture manufacturing facilities are in a difficult financial position and have already
stopped production and started to import furniture from abroad and market it. Good
opportunities in tens of millions of U.S. dollars exist for U.S. manufacturers/exporters
of household and office furniture in Saudi Arabia.
It has been reported that due to strong competition in the Saudi market, a number of
local manufacturers of household furniture have changed their activities from
manufacturing furniture into importing and marketing furniture. Some of the
manufacturers, who have taken this step, believe that it is better than stopping their
business, closing their facilities and/or offering them for sale.
The real problem is that the workforce in this sector depends 100% on imported
labor and is operated by non-Saudis. In addition to that, raw materials such as wood,
fabric and hardware are not produced locally. So, instead of buying or importing the
required raw materials to manufacture and market furniture, it would be more
profitable to import furniture and sell it.
Investors based in the Eastern Province of Saudi Arabia have said that a good
number of furniture manufacturing facilities is presently in a difficult financial position
due to low sales and a decline in demand. Quality products of local big
manufacturing facilities and/or of well-known foreign furniture companies are
imitated by small carpentry shops and are sold at a much lesser price. This is
despite the fact that some local manufacturing facilities have launched a marketing
campaign underlining the importance of buying national products, which enjoy high
quality and offering a warrantee for 20 years. They added that a large number of
Saudis prefer nowadays to buy furniture imported from Italy, US, Indonesia and
Malaysia because of competitive prices and higher quality. Some Saudis place direct
orders with foreign furniture manufacturers or travel abroad to buy it and ship it.
Statistics:
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To the best of our knowledge, the information contained in this report is accurate as of
the date published. However, The Department of Commerce does not take
responsibility for actions readers may take based on the information contained herein.
Readers should always conduct their own due diligence before entering into business
ventures or other commercial arrangements. The Department of Commerce can assist
companies in these endeavors
The Saudi furniture market is the largest in the Middle East and is projected
to remain so for the next three years. The Size of the Saudi market is
estimated at $600 million, 60% for household furniture and 35% for office
furniture. The United States share is estimated and 16% of the whole market for
the year 2001 and is expected to grow at a rate of 8% for the coming 3 to 4
years. Europe, mainly the Italy and the France, as well as South East Asia are
the major competitors for the US in the Saudi furniture market.
The import market is declining as a result of local production and the changed
spending habits. Even though the market is declining, US furniture is very much
in demand in this region. Saudis like American furniture because of the good
quality, design, and durability, even though it is considered a bit expensive
compared to the Far Eastern or European furniture. So the prospect for US
furniture exports to Saudi Arabia remains good especially for wooden furniture,
bedroom sets with closets, living room sets, dinning rooms and kitchens.
Market Value
Saudis like American living rooms, dining rooms, kitchens and family rooms.
American bedrooms are not that popular because usually they do not come with
closets. To solve this problem, furniture stores try to make or import
matching closets. Keep in mind that homes in Saudi Arabia don’t have built-in
closets like US homes. Wooden furniture is particularly popular and American or
Canadian wooden furniture is preferred.
Demand for American furniture high among upper and middle class families and by
young Saudis who have lived or studied in the US. The average Saudi family
spends early income on furniture. The average monthly income is about $1,600 or
about $20 thousand dollars yearly.
Italy controlled the market in 1995 with a market share of 45%. Since then
because the demand for US furniture has grown, Italy's share has fallen to 22%.
The US share is estimated at 16% and expected to grow 8% annually for the
coming 4 years. The Far East producers are also doing well due to their
competitive prices and good designs. Many US manufacturers have established
factories in the Far East. As a result Saudi retailers are buying from US
companies based in the Far East because they have lower prices.
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Another factor contributing to market growth are the young and fast growing
population. The average family in Saudi consists of 5.86 people in it. More
than 50% of the population is under 21. By 2010 the Saudi population is
expected to rise to 30 million. The creation of millions of new households
will continue to fuel furniture demand.
Market..Trends
There are many American furniture importers in Saudi. The largest are American
Homes, Elegant Home and Habitat. About 80% of these stores products are
imported from the US.
There are about 156 furniture factories in Saudi. A few make wooden furniture.
Many make metal furniture and the rest upholster furniture. Some of the local
factories import the wooden frame from the US and Far East and then upholster
the chair or sofa locally. Usually these factories are small. They can not
cover all local market demand. The factories also do not have the specialized
equipment to make new designs.
Many furniture imports are re-exported to other Gulf countries. This is because
of the wide selection of choice available in Saudi Arabia. Re-exports are
particularly noticeable during the Hajj when foreign pilgrims buy furniture
and household accessories.
Import Market
Sources:
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Annexure VIII
1.
Malik Khalil Ahmed
President
Small Scale Furniture Association
Nazam UC-38 Chiniot
Exporter of wooden furniture & handicraft
Tehsil Road Chiniot, Pakistan
E-mail: qasimcop@fsdnet.com.pk
Showroom: 0466-333020, Workshop: 0466-331680, Fax: 0466-331481
Res: 331201,331481, Mob: 0320-4465101, 0300-7709201
2.
Haji Adrees Ahmed Saharan
Joint Secretary
Super Wood Handy Craft
Exporter Quality Manufacturers & General Order Supplier
Near Library Park Tehsil Road, Chiniot, Pakistan
Showroom: 0092-0466-334467
Res: 0092-0466-331467
Fax: 0092-0466-332910
Mob: 0320-4892043, 0320-4891344
3.
Atta-Ur-Rehman Tahir
Vice President
Glaxy Furnishers
Shahrah-E-Quaid-Azam Chiniot, Pakistan
Workshop: 0466-332213
Res: 0466-333213
Mob: 0320-4891113
4.
Sh.Shahzada Alam
Executive Member
Hi-Light Furnishers
Shahrah-E-Quaid-E-Azam, Chiniot
Show Room: 0466-332690
Res: 0466-335090 Mob: 0320-4890090
5.
Mian Mohammad Rauf
Executive Member
Rauf Furnitures
Shahrah-E-Quaid-E-Azam, Chiniot
Mob: 0333-6702755
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Annexure IX
List of Timber Merchants
1. Tanveer Hayder
Burhan Timber Merchant,
Faisalabad Road, Chiniot
Ph: 0466-334932
Cell # 032-4891701
4. Mohammad Shah
Iqbal Khan Timber Store
Jhang Road, Chiniot
Tel: 0466-224694
0466-330216
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Annexure X
3. Hi-Light Furnishers
Sh.Shahzada Alam
Shahrah-E-Quaid-E-Azam, Chiniot
Show Room: 0466-332690
Res: 0466-335090
Mob: 0320-4890090
5. Mohammad Afzal
Afzal Furnitures
Shahrah-E-Quaid-E-Azam, Chiniot
Showroom: 0466-332531
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List of Furniture Manufacturers, Exporters and Show Room’s Proprietors
(I have visited more than one hundred fifty stakeholders, some are listed as follows)
2. Mr.S.Asif Ali
Rose Wood Collection
Manufacturer and export quality furniture and handy crafts.
Shahrah-e-quaid-e-azam, chiniot, pakistan.
Tel:0092-466-333805 fax:92-466-335842
E-mail: rwcollection@hotmail.com
5. Mr.Mohammad Tayyab
Workshop of Wooden Furniture
Mohalla Terkhana, Chiniot, Pakistan
Tel:
Cell#
56
8. Mr. Tanveer Ahmed
Mohalla/chok Terkhana, Chiniot, Pakistan
Manufacturer wooden furniture (workshop)
Cell# 0300-7701839
9. Mr.Rasheed Ahmed
Manufacturer Of Wooden Furniture (Workshop)
Mohalla Terkhana, Chiniot, Pakistan
Tel Res:0466-335958
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17. Mr Mohammad Aslam.
Wooden Furniture Workahop.
Mohalla Thatti,Garbi Chah, Hamayyon Road, Chiniot, Pakistan.
Tel: 092-0466-333496
Cell#
58
List of Handicraft & Furniture Manufacturers
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List of Free Hand Designers
2. Akhtar Pirjah
Mohalla Rorean Wali, Chiniot
Cell # 0300-7707840
3. Samiullah Pirjah
Khan Plaza, Shahrah-E-Quaid-E-Azam
Chiniot, Pakistan. Tel: 092-47-6336796, Cell# 0300-7716796
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