Cobertura

STRENGTHS

HAVING OWN ELECTRICITY PLANT

KML having own electricity power plant which is producing not only for the KWML but also providing electricity to other companies and to govt. at subsidy rate.

ERP SOFTWARE

ERP (Enterprise Resource Planning) has been installed in KML that’s why company is saving all records in systems and having huge database.

POWER LOOMS

KML has purchased latest power looms Toyota Air Jet Power Looms. That’s why they have reduced the production cost and have increased the quality and efficiency of their textile products.

CROSS CULTURAL COMMUNICATION

In KML there are near about 4500 employees who are from different environments and having different cultures but fortunately there is no cross cultural communication.

MARKET REPUTATION

KML is one of the major Mills in Pakistan that’s why they have little bit reputation in local market and having trust from investors.

WEAKNESSES

EMPLOYEE’S MOTIVATIONAL LEVEL

The one weakness of KML is that their employees are not motivated that’s why they are getting off and putting their resigns in front of managers and executives. This is

the responsibility of HR department to find out at to see at the time of hiring them that what the thing is that their employees can be motivated.

EVERY BOOKED ORDER IS DELIVERED LATELY

The delivery of each contract is always not done on time. The customer has to wait for 4 to 5 weeks to get his/her desired product. The main reason is that late purchasing of raw material. Raw material just like Yarn and Sizing material is not available on time and some time it happens that there is shortage of raw material during the running contract that’s why production department has to wait for the raw material.

ADMINISTRATIVE EXPENSES

There are high overhead charges through out the year particularly administrative expenditures. Management whether it is lower management or upper management, the expenditures are same but company is getting equally profit from them that’s why expenditures are increasing.

RELIABILITYON FOREIGN CUSTOMERS

Always organization has to rely on foreign customers and it would become risk especially in financial matters and possibility of fraud would be there. KWML is too much depending upon their foreign customers. They have limited number of foreign customers but these are also losing by lacking of quality and little bit high cost.

COMMERCIAL DEPARTMENT

Commercial department of KML is showing its little bit bad performance. Means always the yarn is purchased late and on credit and payments are done by the department always very late. There is no proper or pre-plan for the month or for couple of weeks so that amount should be received to pay the suppliers. Each time purchasing of yarn is done belatedly so that looms not run and hence per day cost increased and depreciation also.

GODOWN POSITION

There is no proper placing for final products to place them safely and at the time of their dispatch there is possibility of mistake.

ERP SOFTWARE

It’s good that KML has ERP software in their systems. But there are number of errors that are occurred much time. For example, during the dispatch of product, you have to click all the rolls manually. There is no option to select them all and other problem is to calculate the weight of packed rolls. You have to do all these things manually.

COMMUNICATION GAP

There are a little bit gaps in communication between the departments. May be these confirm each and every thing from each other but still they make mistakes and blame each others to safe them.

TEAM BUILDING

A major problem is team building. There is almost no concept of team. Each person is doing individually and performing his/her activities.

CASUAL ATTITUDE

The attitude among the employees is very casual. No one following the rules and regulations of the company. Some implementation is done among the executives but not at managerial level.

HR DEPARTMENT

HR Department is almost useless and only performing two activities. These activities are making salaries and attendance of the employees and workers. They are not working to train the employees and making appraisals to evaluate them.

MARKETING OF TEXTILE PRODUCTS

KML has no proper planning for the Marketing. They advertise about their selves only from newspapers. That’s why limited number of people knows about them.

THREATS

POLITICAL INSTABILITY

As we all know that the political situations of Pakistan are one of the worst situations of the whole world. Each new government establishes its new rules and regulations which impact the industries badly. Now a day there are many major issues which are affecting the textile industry as well as other countries just like Musharaf’s impeachment, PM Shaukat Aziz Fraud, New elections for Provisional and national assemblies and the major issue was the murder of BB Benazir Bhutto. Now the new government of Pakistan has implemented some new rules for the textile industry which are almost of them are not in fever of the industrialists. These are

• 31% increment in the prices of Gas

• Near about 10 rupees per liter increment in price of petroleum

• Bann to export the raw cotton

• No subsidy for the research and developments in the textile industry

Against these rules and implications, All Faisalabad Textile Mills boycott in July 2008 by shutting down their Mills and factories. Now the government has provided them some subsidy in gas field.

HIGH CONSUMPTION OF PETROLEUM

The high consumption of the petroleum is also the major issues because in international market, their prices are going up and touching sky, due to which the freight costs are increasing day by day and hence the cost of production, is also increasing rapidly which is becoming the reason of losing foreign customers of Pakistan.

SHORTAGE OF ELECTRICITY

The government of Pakistan still unable to provide the required quantity of electricity, the usage of electricity has been increased. The companies who have their own electricity plants are save but those who don’t have are facing a major problem of shortage of electricity.

EMPLOYEES

Kohinoor Mills limited is facing a major problem of their employees because they getting off from KML. They think that they are not getting reasonable and valuable salaries and incentives from the company. The major reason is also that company is losing its value and reputation in the local market as well as in international market, that’s why they are getting off from the company to secure their future and present as well.

POOR RESEARCH & DEVELOPMENTS

KML has not been working for better Research and Development Department for some years. They are not focusing to improve their technology and expand their market share. They just keep focus on their current systems which are producing not too much good quality products that’s why some of foreign customers are dissatisfied from them and shifted towards other suppliers.

INCREMENT IN FREIGHT CHARGES

The prices of petroleum have been increased and still increasing rapidly. That’s why the freight charges have been increased and the cost of productions has also been increased by the huge amount. Due to these increments, the sale price has also been increased but customers are not ready to pay more for a good quality instead of better quality. And transport companies are demanding more increments to use their transportation services.

INTERNATIONAL AND LOCAL COMPETITORS

One of the major threats at international level which KML and textile industry of Pakistan has to face, is international competition which is growing up and competitors are capturing the market share rapidly that’s why Pakistan’s market share in foreign market is cutting down gradually due to high cost but poor quality of their textile products.

In local market, there are many companies in Pakistan who are improving their quality of textile products by acquiring new technologies. The big giants of Pakistan textile industry are

NISHAT TEXTILE SAPHIRE TEXTILE

KTM TEXTILE COLONY TEXTILE

YUNIS TEXTILE AMTEX

CHENAB TEXTILE AL-KARAM TEXTILE

GULISTAN TEXTILE FAZAL TEXTILE

LOWEST PRICE OF FABRIC IN WORLD FOR USA & UK COUNTRIES

This would surprise for all of us that Pakistan is offering lowest prices the UK and USA market. But sorry to say that these prices are coming down gradually due to losing the quality in their products and services as well. In USA the price per meter is $0.91 which is the lowest price in compare with other international and especially Asian Suppliers.

OPPORTUNITIES

NEW TECHNOLOGY

The technology has been improved for the textile industry and these technologies are being acquired by the international competitors as well as by local competitors so they are producing good quality textile products and increasing the efficiency as well as decreasing the cost of production. KWML has the opportunity to invest for the new technology. By acquiring the latest technology, they can increase the production quality, efficiency and can decrease the cost of production.

MOTIVATING THE EMPLOYEES

HR department can prove and show them they are here for employees by motivating the employees performing their best. They can find the motivation level of their employees and give them incentives to motivate them.

PROJECTS FOR THE LOCAL MARKET

KWML has the opportunity to capture the market share locally by launching new projects just like they have launched “Dhanak “in August 2008. They can start new projects in garments, Apparel or Home Tax, Dyeing, Hosiery.

ADVERTISING

KML has the opportunity to advertise about their selves to promote their textile products.

• They can advertise in international magazines about themselves

• KML can publish its own local business magazine to promote themselves

• Can also be advertised over the internet (electronic Marketing) KML’S OWN SHOPS

KML can open its own shops in local market where they can display their garments products (socks, Trousers) and Apparels as well as curtains.

ONLINE SHOPPING STORE

KML can open its online store where they can show their garments variety and apparels. The advantage of this step would be

• Online Marketing

• Capturing the market over internet internationally

• Capturing the market over internet locally

• The material which you put on your fair price shop can be sold out at online shop