Allawasaya Textile & Finishing Mills Limited.

Company Profile: Allawasaya Textile & Finishing Mills Limited Multan is a well-known public limited textile spinning unit, incorporated in 1960. The mission of Allawasaya Textile & Finishing Mills Limited is to contribute positively to the Socio-Economic Growth of Pakistan through business and industrial pursuits endeavoring to achieve excellence in all spheres of such activity with effective and efficient management Allawasaya Textile and Finishing Mills Limited become a truly professional organization, achieve higher quality standards, utilize maximum capacity , capture expansion opportunities and become a least cost operator amongst its competitors. We will strive to continue as a successful company, make profit and thus create value for our shareholders without high risk to them, our Customers or employees. Business Strategy: The Company aims to achieve leadership of the textile & spinning industry through the provision of quality products according to customer satisfaction. Their strategy is to achieve the above through the following measures: Acquisition of quality raw material Manufacturing of high quality yarn as per customer satisfaction. Utilize maximum capacity. Capture expansion opportunities Become least cost operator among its competitors. Size of the Company: Total Assets Rs 222,815,024. Sales Revenue Rs 601,850,342. Shareholding Pattern: A hundred & seventy one (171) independent individuals hold 79,500 of the 800,000 shares issued by the company.

Allawasaya Textile & Finishing Mills Limited.

SWOT ANALYSIS OF ALLAWASAYA TEXTILE Strengths Weakness Maintained its ISO 9001:2000 There was a decline in sales from Certification of Quality 749,380,271 at the end of 2004 to Management System and the ISO 601,850,342 in 2005. 14001:1996 Certification for environmental Management Net profit also declined from System. approximately 17,807,262 to 12,283,265 in 05 Company is engaged in a continuous process of BMR No profile of the Companys (Biomed Realty Trust) of its mills. Directors is provided & hence their credentials remain unknown. Installation of a Captive Power Plant. They have a historical track record of outstanding employee management relations. Forty years of yarn manufacturing experience. Threat WASA Multan has issued a special notice to the Company for water effluent discharge, with the company filing a writ petition against WASA in the Honorable Lahore High Court. A complaint has been filed by the Punjab Employee Social Security Institution demanding a sum of 1.5 million of social security contribution which the Company denies saying it is unjustifiable.

Opportunities Forecast for cotton season is good. With the WTO regime coming into affect the total world market has become open to all the players in the commodity market. This has also brought advantages to the companies dealing in indigenous raw materials such as cotton. The Pakistani textile industry has benefits of raw material & the latest technology & that provides an edge to them in the international market.

Allawasaya Textile & Finishing Mills Limited.

ACCORDING TO PORTERS THEORY Threat of substitute products: Polyester and other synthetic fibers are close substitutes of natural cotton. Existing competitive rivalry: Cotton is a homogenous product and there are many existing firms in the textile industry who indulge in accusation of cotton and spinning of its yarn. Hence rivalry is fierce. Any sub-standard quality will cause huge loss to existing firm. Threat of new market entrants: The textile industry as a whole is booming and any company interested in earning normal profit can be viewed as potential entrant. Bargaining Power Buyer: Well as there are many companies in this industry, the buyer has the bargaining power. Also most of the yarn is exported, thus it has to meet the buyers demand in order to retain them. Bargaining Power Suppliers Suppliers of this firm can exert some power due to the presence of many other firms but are deprived due to government regulations.