1. Internship Report
The Crescent Textile Mills Ltd.
By The St u d e n t of Un i ve r s i t y of Edu c at i on Lah o re , Fai s al ab ad Cam p u s
Dedication
I dedicate all my efforts and struggles of the educational life to my dear parents; without them I’m
meaningless. Also I devote the work of this internship report to respectable and honorable teachers
who taught and supported me in developing my personality as a competent professional. And alsoI
dedicate to Mr. Ali Murtaza , Mr. Fahad Shafique, Mr.Azeem Saddiqui that they guide me
about the working criteria, organization history, departments and units working in the organization
and help me in the issues that I had faced in the daily routine work. They guide me how I have to sort
out the issues that I will face in the coming time span.
2. Acknowledgement
Countless thanks to almighty Allah, the lord of the whole universe and the greatest force behind my
success in my life. I also pay my heartily to Hazrat Muhammad (Peace Be Upon Him) whose whole
life is marvel and model of any person belonging to any walk of life.
I feel great pleasure and honor to express my Heartiest gratitude and deep sense of obligation to my
supervisor professor Mr. Dr. Usman for his keen interest skillful guidance, enlightened views,
unfailing patience, mastery advice, inspire attitude and valuable suggestions for the accomplishment
of present study. In fact it was not possible to bring this work to fruitful conclusion with out his day
and night persuasive and sincere efforts.
I pay my gratitude to all other respected teachers at University of Education Lahore, Faisalabad
Campus. Especially Director of the department “Dr. Usman', who is an ideal personality and it is a
great blessing of Allah that we have the opportunity to learn from him.
I am highly indebted to Mr. Ali Murtaza and Mr. Azeem who provide me useful information
during the internship program.
I am grateful to those who have directly and indirectly contributed towards the preparation of this
assignment.
Finally I would like to thanks to my adoring parents, for their day and night prayers, sacrifices,
encouragement, moral and financial support through out the course of study.
3. Executive Summary
The Crescent Textile Mills Limited started its business as a Private Limited Company in 1950 and
subsequently converted into a Public Listed Company. It is a state of the art vertically integrated
textile manufacturing Company known for its world-class textile development and exports. It
engaged in manufacturing of supreme quality Yarn, Greige, Processed Fabrics, Home Textile, and
Institutional Garments. Crestex have a passion for innovation and quality standardization which
keeps their ready for today and tomorrow. The infrastructure and services are backed by innovative
products and solutions which deliver enhanced results to their customers. Crestex is a composite
Textile unit and engaged in Home Textile, Processing and Textile. Main products include Made ups,
processed fabric, greige fabric, and yarn. Company has a paid-up capital of PKR 800 Million with
annual sales turnover more than PKR 13.946 Billion & its assets base is PKR 17.371 Billion
Customer base of the company is global with major exports to USA & Europe.
Textile is the largest sector and backbone of Pakistan economy. It contributes more than 60% to the
total export earnings, accounts for 46% of the total manufacturing, 8.5% of total GDP and provides
employment to 38% of the manufacturing labour force of the country. Due to small number of
existing processing units and increased demand of value added products, this sector has a great
potential for investments. There is also a large demand of textile products in Pakistan market.
Spinning converts raw material (cotton) into yarn which makes it perfectly suitable for weaving
process, which converts the yarn into fabric (Cora). The weaving unit of crescent textile mills is in
Hattar (KPK). There are dedicated areas, passages and procedures to process organic raw
materials.Processing includes bleaching, dyeing, printing and finishing of fabric. For the production
of the value added products, dyed fabric is the key element. The export of dyed and printed finished
fabric are contributing a major share in the total foreign exchange earnings from textile products.
This unit will process fabric on commercial basis meeting the requirements of export oriented units
as well as the manufacturers of fabric and made ups for supply to the local market. After processing
the finished fabric is move towards the Home textiles where that finished fabric is converted into the
made ups/ finished goods according to the customer’s demand. The finished fabric is rolled on tube
and stored in the fabric inventory while the finished goods or made ups that received from the home
textile is stored in the made ups inventory. Shipping and Documentation department is handling all
the matters regarding export consignment from the Crescent Textiles and logistics of import, export
as well as all local goods and staff vehicles transportation. After arranging the vehicles the shipment
is ready for the delivery and is delivered to the desired port from where the customer received the
products.
4. Table of Contents
1. Brief Introduction to the Industry..................................................................................................1
2. Overview of the Organization......................................................................................................... 2
A.Brief history, Mission and Vision of the organization................................................................................2
B.Introduction of the organization, corporate objective and market standing................................................2
C.Policy of the organization............................................................................................................................3
D.Competitors.................................................................................................................................................3
E.Business Volume......................................................................................................................................... 4
F.Product Lines............................................................................................................................................... 4
3. Organizational Structure.................................................................................................................6
A. Organizational Hierarchy chart..................................................................................................................6
B.Number of Employees.................................................................................................................................7
C.Main Offices................................................................................................................................................7
D.Brief Introduction of all the departments....................................................................................................7
E.Comments on the Organizational Structure...............................................................................................17
4.Plan of your internship program................................................................................................... 18
A.A brief introduction of Business Development Zone................................................................................18
B.Starting and Ending dates..........................................................................................................................18
C.Name of Department and Duration of Training........................................................................................ 19
5.Training Program............................................................................................................................20
A. Detailed description of the operations/activities performed by the Business Development department
where I worked in................................................................................................................................................20
B.Description of Assigned Tasks (The Task I Performed)...........................................................................23
6.Structure of your concerned specialization department..............................................................25
A.Hierarchy of Marketing Department.........................................................................................................25
B.Number of Working Employees................................................................................................................26
C.sub-department under Business Development.......................................................................................... 26
7.Marketing Functions.......................................................................................................................28
A.Products and Services Offered .................................................................................................................28
B.Pricing Strategies......................................................................................................................................29
C.Distribution Channels................................................................................................................................31
D.Promotion..................................................................................................................................................32
8.Human Resource Management......................................................................................................33
9.Financial Analysis........................................................................................................................... 36
10.Critical Analysis............................................................................................................................ 37
A.Analysis of Micro environment.................................................................................................................37
B.Analysis of Macro Environment............................................................................................................... 37
C.For-casting Analysis:.................................................................................................................................38
D.Industry analysis .......................................................................................................................................38
E.Customer analysis......................................................................................................................................39
F.Competitior analysis.................................................................................................................................. 40
G.Marketing Strategies of CTM................................................................................................................... 42
11.SWOT Analysis............................................................................................................................. 43
12.Conclusions.................................................................................................................................... 45
13.Recommendations......................................................................................................................... 45
14.References/Sources........................................................................................................................46
15.Annexes...........................................................................................................................................46
5. 1
1. Brief Introduction to the Industry
Intro of Crescent Textile Mill
Faisalabad, the largest textile city of Pakistan also being called Manchester of Pakistan is the hub for
textile manufacturers and contributing towards Pakistan’s economy with its substantial share of
textile exports. In the heart of Faisalabad resides The Crescent Textile Mills Limited, a state of the
art vertically integrated textile manufacturing company known for its world-class textile
development and exports.
Crescent Textile Mills (Crestex) was founded in 1950. It’s a vertically integrated composite textile
unit, and engaged in supreme quality manufacturing of Yarn, Greige/Processed Fabrics, Home
Textile, and Institutional Garments. 60+ years since its inception, the name of Crestex is known for
its quality, innovation and reliability all over the world.
Crescent Textile Mills is a Faisalabad based textile unit. The company was listed at stock exchange
in 1951. Crescent Textile Mills is engaged in the business of textile manufacturing of spinning,
weaving, dyeing, bleaching, printing, made ups and otherwise dealing in yarn and fabrics.
Flagship of large crescent group, CTM’s main area of business is in textile. As a composite unit
having ISO-9002 certification on 1997, which is engaged in spinning, weaving,processing and
stitching that is one of the largest exporters of textile products in Pakistan. The pioneer of Crescent
Textile Mills was Mr. Mian Muhammad Shafi, who belonged to Chiniot.
Crescent Textile Mills started as a weaving unit with 500 semi auto looms. Now the present picture
of Crescent Textile Mills is that it is the one of the largest textile units in Pakistan. Now Crescent
Textile Mills has four independent complete units of spinning, 184 weaving looms along with
processing and stitching units as well. Crescent Textile Mills has one of the largest textile-processing
units with a capacity of 2.5 million meters fabric monthly.
All spinning, processing and stitching units are located within the same boundary while weaving
unit is in Hattar(KPK). The electricity consumed by Crescent Textile Mills is produced by its own
power station located within the boundary of Crescent Textile Mills.
Crescent Textile Mills was established in 1951 as a private limited company. Crescent Textile Mills
was converted into a public limited company in 1958. The crescent group effectively controls the
company. In the context of Pakistan, Crescent Textile Mills stands out for the composite nature of its
activities. Superior quality standards with ISO 9002 certificate management is committed to expand
into the higher value added areas of industry.
The total no of employees are more than 5000 from which 2000 employees are staff and on
permanent basis. Factory runs complete 24hrs a day and employees work in three-day and night
shifts of 8 hours.
Crescent Textile Mills is playing a vital role in the development of Pakistan specially by earning a
huge foreign exchange through exports. Crescent Textile Mills sells more than 80% of its products to
the foreign market. In1992-93 & 1994, the Crescent Textile Mills was awarded the President of
Pakistan Trophy for export, given to the largest exporter from Pakistan in any category.
6. 2
2. Overview of the Organization
A. Brief history, Mission and Vision of the organization
History
Crescent Textile Mills (Crestex) was founded in 1950. It’s a vertically integrated composite textile
unit and engaged in supreme quality manufacturing of Yarn, Greige/Processed Fabrics, Home
Textile, and Institutional Garments. 60+ years since its inception, the name of Crestex is known for
its quality, innovation, and reliability all over the world.
We believe our success is due to our committed workforce. Our employees have the ability to take
up any challenge with a CAN DO attitude. They are focused towards a quality, speedy turnaround
and exceed customer expectations.
VISION
To be the preferred choice of customers through innovative products and solutions and be a leading
contributor to the economy by enhancing value for stakeholders.
MISSIONSTATEMENT
“To produce superior quality products to face competition in the international market and to train the
staff at the world-class level to enhance the maximum shareholders value”
B. Introduction of the organization, corporate objective and market standing.
Introduction of Organization
Faisalabad, the largest textile city of Pakistan also being called Manchester of Pakistan is the hub for
textile manufacturers and contributing towards Pakistan’s economy with its substantial share of
textile exports. In the heart of Faisalabad resides The Crescent Textile Mills Limited, a state of the
art vertically integrated textile manufacturing company known for its world-class textile
development and exports. From our inception in 1950, we are engaged in supreme quality
manufacturing of Yarn, Greige/Processed Fabrics, Home Textile, and Institutional Garments.
We at Crestex have a passion for innovation and quality standardization which keeps us ready for
today and tomorrow. Our infrastructure and services are backed by our innovative product and
solutions which deliver enhanced results to our customers.
Our HR Philosophy is to provide a conducive environment with a special focus on career
development and making our employees enable to deal with the challenges of today and tomorrow.
Indeed, Crestex is a fun place to work at!
Corporate Objective
Following are some main objectives of Crescent Textile Mills: To arrange timely production and
maintain quality goods for entire satisfaction of the customers To make Crescent Textile Mills a
first choice for the foreign customers by improving its quality and services. To extend exports all
over the world through better services. To establish and develop excellent working environment in
the departments. Computerization Incline a sense of civic responsibility in the staff members To
achieve company‟s objectives Implementation of ISO-9002 standards To provide the employees
a friendly atmosphere to increase their commitment and loyalty towards their organization.
7. 3
Market Standings
Since FY14, top line has contracted thrice, in FY15, FY16 and recently in FY20. Profit margins have
also been fluctuating, dipping in FY17 and FY18, rising slightly the following year, before dropping
again in FY20. Revenue in FY17 grew by close to 3 percent; local sales grew by nearly 10 percent,
while export sales declined by 3.5 percent. Local sales grew because of increase in yarn prices that
were pushed upward by increase in cotton prices. Export sales remained low due to low demand,
particularly in the first half of the year. However, this gain was more than offset by the increase in
cost of production that climbed to 91 percent of revenue, up from 87 percent seen last year due to
increases in input costs. As a result, gross margin reduced to 8.9 percent. This also trickled down to
the bottom line that shrunk to Rs 113 million compared to Rs 251 million in the previous year; net
margin was also down to 1 percent for the year.
C. Policy of the organization
THE COMPANY AND ITS ACTIVITIES
The Crescent Textile Mills Limited (the Company) is a public limited company incorporated in
Pakistan under the Companies Act, 1913 (Now Companies Act, 2017). The registered office of the
Company is situated at Sargodha Road, Faisalabad, Punjab.
Its shares are quoted on Pakistan Stock Exchange Limited. The Company is engaged in the business
of textile manufacturing comprising of spinning, combing, weaving, dyeing, bleaching, printing,
stitching, buying, selling and otherwise dealing in yarn, cloth and other goods and fabrics made from
raw cotton and synthetic fiber(s) and to generate, accumulate, distribute, supply and sale of
electricity.
Energy Policy
Create sustainable energy security through energy management system based on continual
improvement and,
1 – To be recognized among the textile sector as benchmark for energy performance.
2 – To comply with all applicable Energy Laws and Regulations.
3 – Strive to adopt new energy efficient technologies to improve our business processes.
4 – Committed for availability of information and necessary resources to achieve Energy Objectives
and Targets within the Organization.
5 – To promote energy efficiency with respect to products, processes, and systems in all divisions of
the company during procurement.
6 – Monitor and economize the cost of energy with respect to products, processes, and systems
through Energy Information Management System including use of latest Digital Tools Mainly Data
Analytic and Artificial Intelligence.
7 – Support Design Activities considering Energy Performance Improvement within the
Organization.
8 – Drive energy conservation awareness at all levels within the organization.
9 – Explore opportunities to shift and increase share of Renewable Energy in Energy Mix.
D. Competitors
As it’s major competitors are in the country as well as in the foreign markets, while concerning with
the countrywide competitors, there are major competitors like Nishat Textile Mills Limited,
Kohinoor textile mills limited, Gul Ahmed and Chenab textile mills limited along with major
competitors in European market.
8. 4
E. Business Volume
As at June 30, 2020, over 9 percent of the total shares of the company were held by the directors,
CEO, their spouses and their children. Within this, Mr. Ahmad Shafi, one of the directors in the
company, held the majority of the shares. Nearly 55 percent shares were owned by the local general
public, followed by 23 percent in other companies, corporate bodies, etc. Associated companies,
undertakings and related parties held another 9 percent shares, majority shares in this category were
owned by Trustees- The Crescent Textile Mills Employees Provident Fund Trust. The remaining
about 4 percent shares were with the rest of the shareholder categories.
F. Product Lines
Crescent Textile Mills is a vertically integrated composite textile unit engaged in supreme quality
manufacturing of Yarn, Greige/Processed Fabrics, Home Textile and Institutional Garments. Crestex
is known worldwide for quality, innovation, and reliability.
i. Products
The main product Line of CTM are as follow:
1) Yarn products
2) Fabric products
YARN PRODUCTS
Two types of yarn products
1)- Cotton Yarn
20/1 also called 20 single
24/1
30/1
40/1
It may be carded or combed.
2)- Poly-cotton Yarn
21/1 blended ratio 76:24 Cotton ( Raw Material )
30/1 blended ratio 68:32 Yarn ( Produced )
FABRIC PRODUCTS
They can also be distinguished
under two heads:
1- Gray Fabric or Cora
20*20/60*60
30*30/76*68
40*40/100*80
12*10/60*60
22*22/60*60
24*24/68*63
2- Other Fabric (processed)
Printed Fabric
Dyed Fabric
Bleached fabric or white
Stitched Items / Made Ups
9. 5
Other finished products of CTM are as follow:
Bed Leering
Home Furnished Products
Bed Sheets
Quilt Set
Kitchen Napkin
Kitchen Towel
Kitchen Apron
Blanket Cover
Duvet Cover Bed sheets Curtains
Curtain
Kitchen Napkins
Blanket Covers Duvet Covers
Bed Leering
Quilt Set Cushions
Napkins
10. 6
3. Organizational Structure
A. Organizational Hierarchy chart
MANAGEMENTSTRUCTURE/ORGANIZATIONCHART
Human Resource and
Remuneration Committee
Board ofDirectors
Audit Committee
Head of Internal Audit
Deputy Chief Executive Officer
Spinning Spinning Weaving Home Processing Power Utilities Electrical Out ProcurementInventoryProduction Import Quality Security System Talent Information Legal LW&TO Yarn& Processed Treasury Accounts&
A B Textile Generation &
Electronics
sourcing Planning
&
Control
&
Export
&
HRF
Audit ManagementTechnology Greige
Sales
Fabric &
Made Up
Sales
Budgeting
Executive Director
Operations
Executive Director
Business Development
Spinning Operations Engineering SupplyChain HumanResource BusinessDevelopment Finance
Chief Executive Officer
11. 7
B. Number of Employees
The total no of employees are more than 5000 from which 2000 employees are staff and on
permanent basis. Factory runs complete 24hrs a day and employees work in three-day and night
shifts of 8 hours.
C. Main Offices
As we know that The Crescent Textile Mills Limited (PSX: CRTM) was set up in 1950 under the
Companies Act, 1913 (now Companies Act, 2017). The company is in the business of textile
manufacturing that comprises of spinning, combing, weaving, dyeing, bleaching, printing, stitching,
etc. It also deals in yarn, cloth, and fabrics made from raw cotton and synthetic fiber. The production
unit is located in Faisalabad, while the weaving unit is in Hattar, Khyber Pakhtunkhwa.
KEY PEOPLE
CEO: Mr. Muhammad Anwar
Chairman: Mr.Khalid Bashir
Company Secretary: Mr. Naseer Ahmad Chaudhary
ADDRESS: The Crescent Textile Mills Limited, Mills Premises, Sargodha Road, Faisalabad
REGISTRAR: Corptec Associates ( Pvt) Ltd. 503 E Johar Town, Lahore.
AUDITOR: Riaz Ahmad & Company Chartered Accountants.
Fiscal year End: June
Tel: +92-41-111-105-105
Fax: +92-41-8786525
D. Brief Introduction of all the departments
1. Production:
The shade of production covers spinning, weaving, processing and home textile. All the production
departments are in the premises of Crescent textile mills limited Faisalabad except weaving which is
based in City of Hattar, KPK.
I. Spinning
12. 8
Crestex spins diverse raw material (cotton) into yarn which makes it perfectly suitable for weaving.
Crestex have four spinning mills. There are dedicated areas, passages and procedures to process
Organic raw materials. (including Organic & Normal brands). The company manufacture two types
of yarns 'Combed and carded'. The testing laboratories ensure that we produce only the best quality
of yarn which makes us unique and the most trusted brands in the market.
Crestex also produces fancy yarns like Slub, Dyneema, linen, Acrylic, Duo core, wool, Colima, flax
productions. Besides the best Pakistani cotton and medium staple, long staple USA (Pima), Egyptian
(Giza), Indian (DCH) and Greek cotton are also used for finer counts.
Our world-class processes are executed excellent people. The company state-of-the-art machinery
belongs to prestigious manufacturers such as Rieter Swiss, Germany, Japan and Chinese.
II. Weaving
We have state-of-the art weaving facility, based at Hattar, Haripur, KP. Weaving converts yarn into
the fabric. Having a phenomenal capacity of producing 10.82 million linear meters per year;
Crescent Textile Mills weaving unit has been utilizing systematic, energy-saving and productive-
modernized techniques to fulfill customer demands.
The unit consist of 112 Air Jet looms ranging from 75” to 134”, with electronically equipped
Dobbie's which are used for converting its own created yarn into customized fabrics.
III. Processing
Crestex aims to focus the need of market, and in doing so, it keeps itself updated with the latest
equipment and machinery. In Processing division, Crestex has up-to the mark machinery from
Germany, Austria & Italy. Basically in processing the gray fabric can be converted into finished
fabric by doing bleaching, dying, printing and finishing.
The grey fabric is issue to processing where the singing process is implemented, it burns the rashes
of grey fabric after that it will be chemicalized in the process of sizing, then it will be desized
13. 9
through flame to remove the extra chemicals from the gray fabric. After desizing the grey fabric
again chemicalized for completing the process of chemicals.
Now the grey fabric is put on the beam for rotating for absorption of the chemicals by the fabric.
After rotating the fabric will be washed that can be called as first wash of the fabric. After first wash
the fabric will be bleached through the bleaching plant. After bleaching the fabric, the second hard
wash is done on the fabric for removing the chemicals and unnecessary bleach from the fabric. In the
next step the fabric will be dryed through steamer. The fabric will be pressed after that the white
fabric will be ready from where it will be moved to raising, dying and printing, after that it will be
finished and the folding is done after that it will be rolled on tube.
There is a continuous Bleaching Plant, Continuous Pad Thermosol, Pad Steam, updated Reggiani and
Zimmer (Narrow and wider width fabric) Rotary Printing Machines, 3 Monforts and 1 Bruckner
Stenters & Ramisch Calender Machine.
14. 10
Bleaching Plant
Crestex Processing department has capability of printing designs up-to 16 colors with a workable
width of 300cm.
Zimmer Machine Reggiani Machine
To enhance the designs clarity, they have further moved ahead and installed latest Laser Engraving
machine that helps in producing more clarity in critical designs.
Design and Color Matching along with excellent color and consistent fabric results have always
remained the unique feature of Crestex output.
Crestex Product Design & Development department uses cutting edge and other innovative methods
to produce new products with diverse textures and strategies to meet new trends of fashion all over
the globe.
IV. Home Textile
Uniquely designed and finely stitched Home Textiles adds value to any home and the beholders eyes
get the pleasure of seeing fresh colors all the time. Be it any theme based bed room Made-up, or any
customized product for specific use, we master elegance in all our products.
15. 11
Basically there are three major departments working for the Home Textile which are:
I. Cutting Department
II. Stitching Department
III. Packing Department
i. Cutting Department
The Fabric received from the processing unit is rolled on tube and is ready for cutting move towards
the home Textile unit cutting Department for cutting according to the demands of the customer.
There are various types for cutting the fabric
Standard Cutting Scissor Cutting Tear Cut
Hand Cutter Panel Cutting
After cutting the fabric it will be send to the work in process department for the proper record
maintenance.
16. 12
ii. Stitching Department
After Cutting the fabric according to the sizes of the product it will be shifted to the stitching
department for stitching the several products according to the customer demand some of the Stitched
article names are :
Flat Sheet
Pillow Covers
Fitted Sheet
Plated valance sheet
Fitted valance sheet
Duvet/Quilt Cover
Table Linen
Bed Linen
Curtains
Kitchen Linen
Patient Gowns
Other Products on Customers Demand
During the Stitching some accessories like Elastics, labels, Zip, Buttons, Thread etc are used. Having
a whisk of 462 state-of-the-art sewing machines highly equipped with modern technologies are
integrated into Five sewing facilities. Further, it have in-house set of quilting, embroideries and most
modern fabric spreading cutting machine with a production capacity of 2.5 million meters per month.
iii. Packing Department
When the product is stitched according to the demand of the customer needs it will be move for the
inspection and packing to the packing department for the proper process.Further more some
accessories like cartons, stickers, insert card and poly bags etc are used.
17. 13
Product line is tailored to cater diverse and rich patterns, designs and sizes in respect to requirements.
2. Services
The main role of services is to support the production division in attainment of its target.
3. Engineering Zone
1. Compressors and Chiller House
18. 14
2. Power Generation
3. Mechanical Workshop
4. Boiler House and ETP Plant
5. Electrical Maintenance
4. Business Development Zone
Marketing is the process of planning and executing the concepts and distribution of innovative ideas.
Marketing department comprised of people and equipment that can sort, analyze and disseminate
information in time. The basic information includes order to payment cycle, sales reporting system,
pricing and inventory
Process Route
Other Departments of BD are:
1) Yarn & Grey
2) Exports
3) Research & Innovation(R&I)
5. Finance Zone
It is responsible for keeping the balance between sources and funds available to the company. It also
aims to generate revenue and maximize profitability. Finance zone deals these below mention
departments.
1) Sales Accounts: Deals with the Local and Export sales of Yarn, Fabrics and made-up.
2) Cost Accounts: Deals with Costing of Yarn. Fabrics and Made-up
3) Banks: Deals with loans, share capital managements, Borrowings terms, payments and
Receipts. In addition, Bank also deals with income and sales taxes.
4) Book Keeping: Deals with Trial-Balance Sheets (Debit/Credits) and Accounts (Publishing
Documents)
5) Regulatory: deals with income tax, sales taxes and Corporate Laws
6) Internal Audit: Deals with finance and reserves audits.
There are two types of audits under IA
1. Pre-Audits
2. Post-Audits
6. Supply Chain Zone
1. Import
2. Procurement
3. Out Source
4. PPC
5. Inventory
6. Quality Control
a. Import
Supply chain’s Import Department Deals with the Imports of Cotton, Machine Parts, Chemicals,
Yarn, Laces, Stitching Elements and Insert Cards etc.
Import procedure Steps:
19. 15
1. Demand
2. Contact to Supplier
3. Rates Quotation
4. Comparative Statement
5. Approval
6. Invoice Performa
7. Preparation of Documents
8. LC (Sight/USANSE)
9. Goods Arrival
10.Inventory
b. Procurement
Supply chain’s Procurement Department Deals with the Local Purchase of Cotton, Machine Parts,
Chemicals, Yarn, Laces, Stitching Elements and Insert Cards etc.
c. Out Source
Supply chain’s Out Source Department Deals with the Import/Local Purchase of yarn, Gray and also
deals with the Conversions
Procedure Steps:
1. Order taken by B.D
2. Rate Quotations by B.D
3. Demand Shared by B.D
4. Bookings(CHL/Conversion/Direct
Purchase)
5. Rates Quotation
6. Comparative Statement
7. Approval
8. Purchase Order
9. Follow up
10. Quality Checking on Looms startup
11. Testing
12. Bulk Go-Head
13. Inventory
d. PPC
Supply chain’s PPC department plays a major role during order booking. They decide (suggest) how
much order they should accept according to their production capacity. Allocating of total capacity or
deciding how much capacity to be used for an order out of total factory capacity
e. Inventory
Basically there are two types of inventories in Crestex
I) Fabric Inventory
II) Made up Inventory
I) Fabric Inventory
The major activity performed by the fabric Inventory is to received fabric from processing against
20. 16
move order and issue fabric against demand number to Home Textile. The Fabric issued to home
textile is ready for cutting and the fabric which is rolled on tube can sometimes directly exported to
the customer according to the customer demand.
Material or fabric is packed according to specific location, that where that specific fabric placed. The
fabric maybe placed sequence wise, order wise or design wise.
II) Made Ups Inventory
The made ups are received from the home Textile to the shipment store where made ups are stacked
in location wise. PPC and BD plan the container for loading and Shipping. They received stock from
Home Textile then load and Shipment after verification. SND arrange vehicle for Shipment and
Ready Documentation for the successful Shipment.
To ensure end to end hassle free, smooth, efficient and effective production operations to deliver in
time quality products and customer service with stringent cost controls.
Inventory management performed the activity to:
Ensure that all material is protected from damage and in suitable conditions for
production/maintenance purposes.
Make sure that all goods are adequately protected from damage, deterioration and loss, in order
that they remain in optimum conditions for use.
Make sure that all goods are delivered well on time against proper documentation to get the
smooth flow of Production.
Updating of all inventory records.
To check that stock are used in rotate
f. Quality Control
Supply chain’s QC department Deal with the Quality Checking during the formation of products as
well as the final Goods
7. HR Zone
1) HRF & Security 2) Talent Management 3) System Audits
3) Information & Technology 5) Labor Welfare Office 6) Legal HR
HR is responsible for human capital and its development in Crestex. The department has further four
sub zones i.e. Human resource facilitation and security (HR-F and S), Human resource recruitment
and employ branding & Organizational development (OD). HRF & S is responsible for
administration, housekeeping, horticulture, plantation, guest handling, maintenance and security in
the premises of Crestex. OD is responsible for setting of goals and evaluation of employees working
in Crestex. Evaluation is done according to grading and employees get promotion in accordance with
the evaluation. The section aims at developing the skills to the employees and increasing retention
factor is the goal of OD as well. Human resource recruitment and employee branding performs the
activities related to hiring of employees in the organization.
21. 17
HR Departments key Areas are as following:
Administration
Performance management & Development Plan
Talent Acquisition/Recruitment & Employer Branding
Compensation & Benefits
Training & Development
Policy & Procedures
Communication
Facilitation & Security
Information Technology
IT Department supports operations through the application of effective and efficient technology. IT
Department is responsible to provide high quality, reliable and sustainable Information
Communication and Technology solutions and services. ERP Application solution is being
implemented and 60-70 % work processes are currently on the systems.
System Audit
The department of System Audit at Crestex exists to establish, implement and maintain requirements
of latest international standards of management systems and product certification. Keeps the
company compliant with relevant laws including the requirements laid down in buyers' code of
conduct. EHS section of SA dept is mainly responsible for keeping Plant operation safe for the
people working in it, keep environment clean for the health, and ensure that plant and its operations
have no harmful effects on the people and natural environment in and around the production facility.
Guiding philosophy of SA Dept is rooted in the ethical value of caring for the Crestex, people and
the community as a whole, now and in the future. The mission is to maintain all activities at the
Crestex plant, safe, healthy and environment friendly.
Shipping and Documentation
Shipment & Documentation Department is handling all matters regarding export consignments from
Crestex and Logistics of Import, Export as well as all Local Goods & staff vehicles transportation.
Departmental Objective performed by the S&D is: To minimize Cost of Sea, Air, Local freights and
charges of Custom clearances To Utilize maximum spaces of containers for export dispatches
E. Comments on the Organizational Structure
As in the above discussion the complete structure of the Crescent is mentioned that how they convert
the cotton into yarn and how the employees and workers are working, overall structure of Crestex is
fantastic but the machinery used in the units of the Crestex for the production is a bit older they have
to use latest machinery which helps in increase in overall production.
22. 18
4. Plan of your internship program
Getting knowledge from the institutions, it is necessary to conclude that how much this knowledge is
helpful and useful in the practical life and how it helps us in our related field.
So, for that regards it is advised to do the Internship program from a well reputed organization and
get knowledge about the working of the organization.
After a deep analysis, I concluded that Crescent Textile Mills is the organization where I have the
opportunity to analyse my educational knowledge with the practical organizational working.
A. A brief introduction of Business Development Zone
Marketing is the process of planning and executing the concepts and distribution of innovative ideas.
Marketing department comprised of people and equipment that can sort, analyze and disseminate
information in time. The basic information includes order to payment cycle, sales reporting system,
pricing and inventory
Process-Route
Other Departments of BD are:
1. Yarn & Grey
2. Exports
3. Research & Innovation(R&I)
DEPARTMENT: Business Development Zone(BDZ)
ADDRESS: The Crescent Textile Mills Limited, Mills Premises, Sargodha Road, Faisalabad
REGISTRAR: Corptec Associates ( Pvt) Ltd. 503 E Johar Town, Lahore.
AUDITOR: Riaz Ahmad & Company Chartered Accountants.
Tel: +92-41-111-105-105
Fax: +92-41-8786525
CEO: Mr. Muhammad Anwar
B. Starting and Ending dates
Started Date: 09 December 2021
Ending Date: 20 January 2022
23. 19
C. Name of Department and Duration of Training
Business Development Zone(BDZ)
During my internship program the major department in which I got training is Business Development.
In business development basically the employees takes the orders from the international customers
and get updated from the customers regarded their purchase orders and also updated with the factory
production and execution of the customer orders. Expect from the business development I visited
several other departments as well which are as follows:
Business Development Zone (6 Weeks)
Spinning (1 Days)
Processing (3 Days)
Fabric Inventory (1 Day)
Home Textile (1 Days)
Cutting Department (2 Days)
Stitching Department (2 Days)
Packing Department (2 Days)
Made ups Inventory (1 Day)
Shipping and Documentation Department (1 Day)
24. 20
5. Training Program
A. Detailed description of the operations/activities performed by the Business
Development department where I worked in.
Business Development is the process of planning and executing the conception, pricing promotion,
and distribution of ideas, goods, services, organization, and events to create and maintain
relationships that will satisfy individual and organizational goals. Business Development has
dynamics of innovation and creativity.
Departmental Objectives
Business Development ensures continuous revenues streams and generate revenue. High moral
values, nurtured through the year of entrepreneurial spirit of the people operating this organization
make Crestex an exception where value is created through exceeding customer expectations.
Business Development has divided in following Sections:
Business Development (UK, EU, H&H, NSA & OAA)
Crestex Home Store
Portfolio of Services/ Key Responsibilities
Innovative concepts based on market research
Customer relationship management
Development and execution of corporate Business Development strategy
Development and implementation of promotional and business development plans
Successful delivery of customer orders
Internal coordination for production according to client specs
Development and implementation of a market-based pricing strategy
Key Result Areas
Generation of revenue through Business Development activities
Meet customer expectations/taste
Optimum utilization of the resources available to the department
Make sure that pricing and other strategies of Crestex comply with the overall corporate strategy
of Crestex
Export Sales Marketing
CTM has major business of exports, round about 80% of total sales are from exports. As export
market of CTM is divided geographically into four segments, so to deal each segment a separate
group op person is allocated who are responsible for all the orders of that specific territory /segment.
Export Asia Africa (EAA)
Export U.S.A & Canada (EUC)
Export Europe (EE)
Hotel & Hospitality (H&H)
The process of flow of work in these sections of export departments is same, so I have explained
generally the process and functions of export department.The export department is situated within
the finance department. There are a lot of workers, which perform different functions.
Following are the main functions of export sales marketing:
Getting orders from aboard
Costing
Making contracts
Order completion one per sample
Delivery of goods
25. 21
Process
Work in export is divided into four sections geographically for proper distribution and handling of
work. Following is the brief process for all sections of export sale marketing department.
I) Finding Of Customers
General manager marketing and manager marketing of CTM makes contact with the potential buyers
through e-mail, telephone, faxes to get orders. Similarly marketing manager along with the Chief
Executive attend different international trades fairs and present their products to get the buyer
attention and order.
II) Making Contracts
Marketing department of CTM takes following steps to make a contract with the buyer:
III) Inquiry
Customer’s inquiries are received via telex, letters, e-mails or during meeting with the customers.
Inquiry documents are directly sent to CEO for review and comments; if any absence of CEO, the
inquiry documents are send to the GMM for review. After CEO review, these are sent to the
department incharge who after reviewing distributes these documents to the relevant staff looking
concerned market segments.
Feasibility and Availability Of Goods
Concerned sectional incharge reviews the customer’s requirements completely before quoting price
to customers and ensure that:
The requirements are adequately defined
Mill has capability to meet the customers desire or requirements.
Conformation of raw material in house / from outside.
IV) Costing The Approvals
After conformation inside / outside, sectional incharge prepare costing sheet of department incharge
review and approval of CEO / GMM.CEO / GMM gives acceptable price or may suggest new price
on costing sheet.
V) Quote Price Offer To The Customer
After getting the approval of costing and review of customer requirements, price is quoted to the
customer for confirmation.
VI) Customer Approval
Customer accepts offer or may reject, if reject then the costing sheet again repaired and the approval
procedure repeated.
VII) Contract Review And Issue
After reviewing the confirmation or purchase order, concern staff issues contract after complete
review and note it in export order register.
VIII) Amendment To Contract
Once the contract is established for quality, quantity, price and delivery. Any request from the
customer for change in assortment of design or increase / decrease in quantity resets, i/c terms, price
and delivery.
Customer may ask for any of the following changes.
L/C terms
Quality increase / decrease
Assortment of design
Color ways
Shipment schedule
IX) Review Activity
After receiving the amendments by customers, possibility of amendments is reviewed of it is not
possible then regret with the customer. Other wise impact of changes in price, delivery
communicated to the customer and its copy is retained in the file for future references. The
26. 22
amendments copy with regards to quality assortments, shipping or packing instructions and shipment
schedule is send to the department for implementation and follows ups.
X) Checking Artwork
After finalizing the contract and making entry in export order register, now concerns A.M receives
art work for the customer for processing the clothes per customer’s desire.CEO / GMM gives
acceptable price or may suggest new price on costing sheet. In absence of CEO / GMM gives
acceptance. if both are not available then the department incharge is authorized too.
XI) Making Strike Off
When A.M receives artwork then he gives instructions to the concerned production staff to prepare
strike off (sample) as per artwork send by customer.After completion of strike off, these are checked
by concerned A.M and are delivered to the customer after the final approval, so the production on
large scale can be started. If the customer approves the sample the export staff start order of large
production. Other wise they only receive the cost incurred on the preparation of the strike off.
XII) Instructions To All Concerned Areas
Now the concerned assistant manager of export sales department send instruction to all the
concerned areas through proper documents, e-mails and all the available sources for the completion
and delivery of orders.
These functional areas are following:
PPC (production,planning and control)
ES (export sales)
Production department (spinning, weaving, processing and folding)
S&D (shipment and documentation)
EF (export finance)
Production, Planning& Control
Functions:
Stock update
Arrangement of fabric and yarn
Follow-ups for order completion
Checking and update the stock
When export department gives instructions for large productions for all functional areas
including PPC.
Now the duty of PPC is to check the surplus stock available in godown. If the gray cloth or
yarn required for the completion of order is present, then PPC gives instructions and supply
material to the concerned department to complete the period with in specified period and after
providing material stock is updated in the daily stock reports.
Instructions to Grey procurement department
If the yarn or Grey cloth is not available in the godown then PPC has the duty to inform
export sales department to arrange Grey cloth for the completion of order within specified
period through e-mail and proper documentation. One copy of that is kept for the future
references.
Maintain record of machines
PPC also maintain report that shows daily record or orders, which are being processed on all
available machines in spinning, weaving, garments department and also records of machines
which are busy and which need orders.
XIII) Follows-up and order completion
The PPC department is responsible to get orders completed from the concerned production
department with in specified time, so they make continuous follow ups in the production department
to get order accomplished and after ward they inform the export department about the completion of
orders.
27. 23
B. Description of Assigned Tasks (The Task I Performed)
During my internship period at Crestex I worked in Business Development Zone where I have to do
the fabric costing and check the record of performed orders. I do analysis of Sample Order Request
(SOR), Assortment Sheet, Lab Dips, Strike Offs, Fabric Costing and Made-ups Costing.
They assigned me to visit the spinning unit and to see how the cotton is converted into yarn.
On the other end they also assigned me to analyse the working that how the Grey fabric can be
converted into the white fabric.
After that the activity assigned to me is to check that how the white fabric can be delivered to the
customer and on the other end how the white fabric is converted into the products demand by the
customers after dying, printing and finishing depends on the customer requirements.
For getting the knowledge and details about the products, the department assigned me the activity to
visit the Home Textiles and to check that how the fabric can be converted into the finished goods or
made ups, in Home Textiles I visit the cutting,stitching and packing departments and after this the
made ups are ready according to the demands of the customers.
After the made ups the final step is that the made ups are moved towards the inventory department
and for that I visited the inventory department where the final products are stored and ready for the
export.
I assigned to visit the Shipping and Documentation department to get knowledge about the payment
terms which are used in the Crescent Textile Mill for the purpose of successful shipping and delivery
purposes.
I assigned to keep focus on North South American Clients ( NSA ) during which I noticed some
differences regarding other area clients like
Difference in Region and Culture
Different Mindset due to which conversation style with clients is different.
Difference in Product Requirement
Product Category
Product Making
Product Sizes
Customer Taste is Different like USA customers order Light Designs
Some Brands are USA Based not found in Europe
Different Thread Quality
Difference in Products
3 Piece Sheet Set ordered by USA But Europe Not
Comforters ordered by USA Clients But Europe Not
Duvets and Top of Bed TOB ordered by Europe Clients But USA Not
Clients are More Aggressive regarding Time line ( Need Short Time Shipment ) on the other
hand Europe clients are less aggressive (Polite)
Further :
Fabric Costing and check the record of performed orders
Check the emails how to communicate with customers
I do analysis of Sample Order Request (SOR)
Making Lab Dips file
Making Strike Offs
I have to print the whole documents/sheets and make the customer order file
They assigned me to visit the spinning unit and to see how the cotton is converted into yarn
They Assigned me to check how to pack local sale orders
29. 25
6. Structure of your concerned specialization department
A. Hierarchy of Marketing Department
Executive Director
Business
Development
Assistant Vise
President
Senior Manager
Management Trainee
Officer
Deputy Manager
Officer
Manager
Assistant Manager
30. 26
Department Structure
AVP = Assistant Vice President
SM = Senior Manager
MGR = Manager
DM = Deputy Manager
AM = Assistant Manager
MTO = Management Trainee Officer
B. Number of Working Employees
In the Business Development Zone, currently the employees working in the office is 32. From these
32 employees, 8 employees are working in the sub department performing there duties in dealing the
local yarn market customers.
C. sub-department under Business Development
Other Departments of BD are:
1. Yarn & Grey
2. Exports
3. Research & Innovation(R&I)
Yarn & Gray (Local):
Yarn & Grey Deals with the Exports of the yarn and Gray Fabrics to their customers in local and
international markets and this section plays important role in the initial production stage exports.
Following is the Flow Chart for Working of Yarn and Grey:
1. Inquiry
2. Rate Quotations
3. Purchase Order
4. PPC
5. Plan to the Prescribed Zone/Department
31. 27
6. Customer’s Inspection
7. Payments Received
8. Delivery
9. Customer’s End Checking
NOTE: If Problem Occurs then Replacement/Claim
Yarn & Gray (Export):
The flow for the Export is as follows:
1. Inquiry
2. Rate Quotations
3. Purchase Order
4. PPC
5. Plan to the Prescribed Zone/Department
6. Customer’s Inspection
7. Bank Terms & Polices Documents
8. Bank LC(Sight/USANSE)
9. Delivery
10. Payments Received
11. Customer’s End Checking
12. Order Closed
Export:
The Export Department Deals with Exports/Sales of the Finished Products/Made ups to the
international Customers.
The Export Section is Divided into Five Regions
1. OAA (New Zealand, Australia) Hotels and Hospitals (H & H)
2. United Kingdom
3. Europe (Spain, Germany, Norway etc.)
4. NSA (North South America)
The Makeups includes:
1. Curtains
2. Caution Covers
3. Pillow Covers
4. Flat Bed Sheet
5. Duvet Covers
6. Hospital Items
7. Hotel Items Etc.
The flow process is same as that of the Yarn Export process
Research & Innovation (R&I):
The R&I department provides creative services.
1. Provide creative & technical support to BD & customers
2. Support all business visits & visitors and shows/promotion
Techniques to Customer Approach are as Follows
1. Via E-Mail 2. International Conferences 3. International Visits
4. Exhibitions 5. Direct
32. 28
7. Marketing Functions
The company exports are the major portion of both its yarn as well as cloth production. In the local
market yarn is sold directly to brokers who in turn sell it to other mills for further processing. Grey
fabric is sold on cash basis.
Managing marketing information
Marketing consist of people, equipment and procedures to get, sort, analyze, evaluate and distribute
needed timely and accurate information.
Internal record systems:
The basic information system used by marketing managers is the internal record system. It includes
order to payment cycle, sales reporting system prices, inventory level etc. By receiving these in
formations, managers can spot important opportunities and problems. The Crescent Textile Mills is
maintaining its internal records by keeping order to payment cycle. In this system marketing
department keep order up-date total order quantity, balance quantity etc. excise dept. Prepared
invoice under the instruction of sales dept and goods are sent to their respective orders by special
delivery. Every firm has maintain its marketing intelligence system for the feed back from customers
and agents etc that what has been happening in the market.
Marketing intelligence system is a set of procedures and sources used by managers to obtain their
every day information about pertinent development on the marketing environment. The production
staffs of Crescent Textile Mills visit the end users for gathering information about their product
results and they visit to end-user to solve their problems.
Marketing research systems
Every manager is required to conduct marketing research, formal research on specific problems and
opportunities; they conduct a market survey and product preference test and a sales forecast.
Market demand
Sales representative/agent collect data of total yarn demand. Specific demands of particular count are
determined and calculate the number of users of said product is calculated. Then total demand is
calculated and Crescent Textile Mills plans to get maximum share from the market demand.
Marketing Mix
Marketing mix is the marketing task that the firms are to be required its objective in the target market.
The marketing mix consists of every thing the firm can do to influence the demand for its product.
The many possibilities can be collected into four groups of variables known as the “4p’s”.
1- Product
2- Price
3- Distribution Channel
4- Promotion
A. Products and Services Offered
Crescent textile mill produces yarn, gray cloth and high quality fabric. Their products play an
important role in the building the goodwill of the CTM. CTM exports more than 80% of its products
and remaining they sell in the local market. Main products of CTM are yarn; Gray-cloth, bed sheet
and fabric etc. All the products are produce according to the requirement of the customer orders. The
main products of CTM are as follow:
Yarn products
Fabric products
33. 29
YARN PRODUCTS
Two types of yarn products
Cotton Yarn
Poly-cotton Yarn
Cotton Yarn
20/1 also called 20 single
24/1
30/1
40/1
Some of them are carded and some of them combed.
Poly-cotton Yarn
21/1 blended ratio 76:24
30/1 blended ratio 68:32
FABRIC PRODUCTS
They can also be distinguished under two heads:
Gray Fabric or Cora
Other Fabric (processed)
Gray Fabric or Cora
20*20/60*60
30*30/76*68
40*40/100*80
12*10/60*60
22*22/60*60
24*24/68*63
Other Fabric (processed)
Printed Fabric
Dyed Fabric
Bleached fabric or white
Stitched Items/Made ups
Other finished products of CTM are as follow:
Bed Leering
Home Furnished Products
Bed Sheets
Quilt Set
Kitchen Knap Kin
Kitchen Towel
Kitchen Apron
Blanket Cover
Duvet Cover
Curtain
B. Pricing Strategies
Pricing is the amount of money that customer have to pay to obtain the product. The price policy of
the company should be in such a way that it should produce a reasonable profit for the company and
satisfy the customer.
There are two types of costs:
Fixed cost
Variable cost
34. 30
I) Fixed cost
Fixed cost is the costs, which remain always same whether, are produce large quantity. Therefore,
companies always try to use there full capacity of production because with increase in production the
fixed cost decreases.
II) Variable cost
Per unit variable cost rises as the quantity produced decreases. Following factors are included in
variable cost:
Dyes and Chemicals
Transportation
Cost of material
Strategies In Price Fixing
There are two types of price fixing strategies
Directly to customer
Indirectly to customer
I) Directly to customer
If they sell their product directly to the customer then they fix price in such a way:
Fixed cost + Variable cost + Desired profit
II) Indirectly to customer
If company sells their products indirectly then they fix price in such a way
Fixed cost+ Variable cost + Desired profit + Middle man’s commission
In this case the profit margin depends upon the quality and condition of the market. If the market is
new then the price will be new to attract the customers and compete the existing competitors.
Pricing Procedures
I) Pricing Procedure For The Local or National Market
CTM sells more then 80% of its products in the foreign market. They sell only extra quality left from
the foreign order or defected product in the local market. They call the tenders when they want to sell
the product in the local market. They sell to that person whose tender price will be high. Sometimes
CTM sells on its products at cut-price. Because, when some extra quantity is from the foreign order
they sell at cut price because, they have already charged their cost from the foreign customer.
II) Pricing Procedure For The International Market
Pricing procedure of CTM for export is different from the local procedure. They keep in mind certain
factors before changing the price in foreign market. When any customer wants to purchase the
products, after negotiation they fix the price. Because, there are certain other factors are also
included with fixed cost. The important factors are quality of:
III) Pricing procedure for export
Crescent Textile Mills has following procedure for exports Inquiry:
Customer inquiries are received from telex, fax and letter. They are directly sent for approval to
Chief Executive and after approval sent to concerned department.
Costing:
Costing sheets are prepared upon the approval of Chief Executive. In the absence of CE, department
in charge approves price. If both are not available then section in charge is allowed to quote the price.
Approval:
CE gives the approval or may give other price to be offered.
Contract review & check sheet:
Section in charge takes following steps before issuing a contract:
Prepare contract review check sheet:
The requirements are adequately defined and involvement’s of production areas. In house/out side
have the capability to meet the order requirements. After getting approval of costing and review of
customer requirements, prices are quoted to customer for confirmation. After confirmation of prices
35. 31
by customer, sales contract is issued to the customer with complete detail of construction, width/size,
price, quantity, delivery, payment terms etc. and the cloth order is sent to relevant department.
Purchase order:
Purchase indent folder are received from customer pertaining to different contract booked sectional
in charge check and see any discrepancy of the contract if any is found, then it is come to the
knowledge of the customers for amendment.
Grey demand:
Grey demand placed to the following department:
To export sales section for new order or revision.
To Planning Production and Control (PPC) they have coordination between export and
processing department.
The stock management for updating stock position.
Inspection Grey cloth for issuance of Grey to processing.
Strike off preparation & approval:
Customer sends their designs either as on art paper; as paper sketch or fabric cutting. From these
cuttings the strike off is made.
Assortment:
Once customer is satisfied with strike off, the order quantity is assorted with design.
Letter of credit:
L/C is established and after receipt of L/C these are checked with regard of ordered goods by the
sectional in charge and discrepancies in L/C are noted and the customer is informed for amendment.
Dispatch of goods:
Dispatch able goods detail along with samples received from folding department. Each section
verifies quantity of goods to be dispatched, they intimate to S &D section to dispatch goods.
Shipment:
Shipment & dispatch is responsible for all documentation and shipment of goods by air and sea.
Customer complaints:
After receiving the goods if customer found any defect, he complaints the same to the concerned
department in charge. Sometimes sent the defective sample for review.
C. Distribution Channels
CTM exports more then 80% of its products. They are using two types of channels of distribution in
export their products.
Direct Channel (CTM Customer)
Indirect Channel (CTM Middle man (agent) Customers)
As most of the products of CTM are exported, so they use the different modes of transportation to
transfer the product from CTM to the customer country.Mostly CTM exports its products through
ships. There are other modes of transport also being use:
Trucking Companies
Airlines Companies
Shipping Companies
CTM exports its products to all over the world in the major countries are as follows:
U.K
U.S.A
Canada
Australia
Germany
Holland
U.A.E
Egypt
36. 32
Malaysia
D. Promotion
The CTM has not any promotion point its products. Because the demand of their products in the
world is very high. We can easily judge them from their work. Our export figure is varying high as
compare to any individual company.
Sources Of Communication
CTM uses following sources of communication:
Textile exhibition
Personal visit to the customer
Customer visit to the CTM
Fax, Telephone, Mail, e-mail etc
37. 33
8. Human Resource Management
HR is responsible for human capital and its development in Crestex. The department has further
four sub zones i.e. Human resource facilitation and security (HR-F and S), Human resource
recruitment and employ branding & Organizational development (OD). HRF & S is responsible
for administration, housekeeping, horticulture, plantation, guest handling, maintenance and
security in the premises of Crestex. OD is responsible for setting of goals and evaluation of
employees working in Crestex. Evaluation is done according to grading and employees get
promotion in accordance with the evaluation. The section aims at developing the skills to the
employees and increasing retention factor is the goal of OD as well. Human resource recruitment
and employee branding performs the activities related to hiring of employees in the organization
a) Recruitment and selection
The personal department helps the upper level management in selecting employees. Vacancies are
filled on the basis o experience, competency and capacity.
Sources of recruitment
Internal sources
If some vacancies are vacant and some junior person fulfills the condition then he is promoted to that
seat.
External source
There are following methods of external sources:
Employee referrals
Some jobs are fulfilled through the reference of the employees already working in the Crescent
Textile Mills.
Unsolicited application
Some times vacancies are filled by choosing among the persons who have send the applications for
the job.
Advertising
If there is any vacancy, an add is placed in the newspaper for that job.
Office working hours
8.30 A.M TO 1 PM
1 PM TO 2.30 Lunch Break
2.30 PM TO 5 PM
HOLIDAY: SUNDAY
LABOUR TIMING
7 AM TO 12 PM
12 PM TO 12.30 PM Lunch Break
12.30 PM TO 4 PM
38. 34
Retirement age
The employee is retired at the age of 58
b) Training and development
Training is mean through which a man learns how to do work and how one can increase one’s
efficiency. In Crescent Textile Mills training opportunities are available.
A. Job rotation
There is job rotation system in Crescent Textile Mills. In this way employees are able to learn more
about the system and procedure of the organization
B. Health and safety
Health facilities are available in Crescent Textile Mills for the employee whose salary is below
RS.3000
However following health and safety measures are taken in at the factory
Fire extinguishers have been hanged on the walls to be more prominent.
Incase of industrial injury, first aid is provided to the injured at the spot.
The cotton is stocked in godown to prevent from fire moisture etc.
No much woodwork has been carried inside the factory building
c) Benefits and facilities
Medical facility
All employees enjoy medical facilities
Workers participation fund
All the permanent employees are entitled to become a member. The company contributes every year
some amount of profit for permanent employees.
Leaves
32 leaves per annum are allowed under different categories like sick leave, causal leaves etc.
Conveyance allowance
The top management is provided with fully maintained cars. Conveyance allowance is provided to
employees.
Traveling allowance
T.A is paid to the employees if they travel for the purpose of the business
Housing facilities
Crescent Textile Mills has set up its own housing colony where the residences are provided to
employees.
39. 35
Further Information
1. Performance management & Development Plan
• Objective Setting (May-Jun)
• Mid-Year Review (Dec-Jan)
• Annual Review (May-Jun)
2. Talent Acquisition/Recruitment & Employer Branding
• Making talent pool available for future needs.
• Recruiting desired Talent.
• Conducting Recruitment surveys
3. Compensation & Benefits
• Increments/Promotions/Salary Surveys/Perks, etc.
4. Training & Development
• Identifying Training needs of Crestex
• Making Development Plan
• Providing career pathway
40. 36
9. Financial Analysis
Ratio Analysis
2021 2020 2019
A. PROFITABILITY RATIOS
Gross profit ratio % 13.77 11.68 11.74
Net profit to sales % 2.89 0.25 1.71
Return on equity % 5.22 0.39 3.02
Return on capital employed % 3.08 0.21 1.53
B. LIQUIDITY RATIOS
Current ratio Times 0.97 0.83 0.80
Quick ratio Times 0.55 0.46 0.50
Cash to current liabilities % 3.60 0.43 0.05
Cash flow from operations to sales % 3.80 7.45 11.08
C. ACTIVITY / TURNOVER RATIOS
Inventory turnover Times 4 4 5
Number of days in inventory Days 82 85 72
Debtors turnover Times 7 5 6
Number of days in receivables Days 52 70 65
Creditors turnover Times 8 6 8
Number of days in payables Days 46 64 47
Total assets turnover Times 0.88 0.71 0.80
Property, plant and equipment turnover Times 2.42 1.79 2.07
D. INVESTMENT / MARKET RATIO
Basic and diluted earning per share Rs 6.45 0.42 2.98
Price earning ratio Times 4 50 7
Dividend Yield ratio 1 % - - 2.76
Cash dividend ** % - - 6.00
Market value per share
Break up value Rs 118.05 108.00 98.83
E. CAPITAL STRUCTURE RATIOS
Financial leverage ratio Times 0.77 0.86 0.93
Weighted average cost of debt % 6.04 6.53 6.82
Long term debt to Equity ratio % 9.77 12.97 14.17
Interest Cover ratio Times 2.79 1.37 1.78
Ratio Analysis
Current Ratio = current assets/current liabilities
= 9051337/9379445 = 0.97:1
Net Profit Ratio = net profit/sales*100
= 515650/17817252 * 100 = 2.90%
Debt to Asset Ratio = total debts/total assets
= 10389925/20264471 = 0.52:1
Quick Ratio = current assets-stock/current liabilities
= 9051337-3711478 = 5339859
= 5339859/9379445 = 0.57:1
Equity Ratio = equity/total assets
= 9874546/20264471 = 0.49:1
Debt to Equity Ratio = total debts/equity
= 1039925/9874546 = 0.10:1
41. 37
10.Critical Analysis
A. Analysis of Micro environment
The micro environment relates to the immediate periphery of an organization and directly influences
the organization on a regular basis. Hence, it is also known as the task environment. It is important
for an organization to monitor and analyse all the elements of its micro environment like company,
suppliers, customers and competitors etc.
Crescent Textile Mills (Crestex) was founded in 1950. Its a vertically integrated composite textile
unit and engaged in supreme quality manufacturing of Yarn, Greige/Processed Fabrics, Home
Textile. Crescent Textile Mills has four independent complete units of spinning,weaving, processing
and stitching. Crescent Textile Mills has one of the largest textile-processing units with a capacity of
2.5 million meters fabric monthly.
Company purchases important materials for all zones of Crestex from major local suppliers like
product accessories, machinary equipments/accessories, raw materials, chemicals and raw cotton etc.
Some of the important local suppliers are Color Club, Zafar Habib, RS Printer and General
Chemicals etc.
The major competitors are in the country as well as in the foreign markets, while concerning with the
countrywide competitors, there are major competitors like Nishat Textile Mills Limited, Kohinoor,
Gul Ahmed,M.Farooq, Chenab textile mills limited, A.M textile mills limited along with major
competitors in European market.
The customers of the Crestex is usually from the foreign countries because Crestex is working as an
exporter and they directly sell the products to that specific customers stock rooms.The customers are
emphasizing on quality over all other thing and can easily search the most cost-effective supplier
anywhere in the world. Keeping this in mind, Crescent Textile Mill’s focus has been on meeting its
customer’s demands and requirements, improving its competitiveness, increasing productivity, and
enhancing its existing quality control systems.
B. Analysis of Macro Environment
A macro environment refers to the set of conditions that exist in the economy as a whole, rather than
in a particular sector or region. So for the analysis of the macro environment of Crestex we have to
look the policies adopted by the Crestex.
Policies
CTM has adopted the following policies:
Provide consistent quality products and services with on time delivery to achieve and enhance
customer satisfaction level.
Provide safe & conductive working environment to employees and encourage their involvement
in the never ending effort to improve quality of our products and services.
Minimize environmental impact through prevention of pollution, solid & liquid waste
management and conversation of natural resources.
Promoting awareness and importance of Quality & Environment among employees, community
and suppliers.
Ensure continual improvement and compliance with customer & relevant environmental
legislation & regulations.
Demographic Factors
As we know that Crestex is working as a exporter and it has to focus on the demographic factors of
the countries in which basically the products are delivered and usually in the demographic factors the
company have to focus on the:
42. 38
Population size,growth,density
Urban and rural distribution
Climate and weather variations of those countries
Shipping distances
Physical distribution and communication networks
Natural resources of those countries
Cultural Factors
While export the company have to focus on the cultural factors of the countries to which the products
are delivered, basically in simple the culture is nothing but values of an individual or the customer.
Usually CTM focuses on the cultural behaviour of the customer and tries to deliver the products
according to the customer expectations by keeping in mind the cultural behaviour of the customer as
well.
C. For-casting Analysis
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D. Industry analysis
A market assessment tool used by businesses and analysts to understand the competitive dynamics of
an industry.CTM industry is engaged in the business of textile manufacturing comprising of spinning,
combing, weaving, dyeing, bleaching, printing, stitching, buying, selling and otherwise dealing in
yarn, cloth and other goods and fabrics made from raw cotton and synthetic fibers and to generate,
accumulate, distribute,supply and sale of electricity. So the Crescent Textile Mills has the power of
these sources as compared to other textile industries.
43. 39
• The textile industry is one of the most important sectors of Pakistan. It contributes significantly to
the country’s GDP, exports as well as employment. It is, in fact, the backbone of the Pakistani
economy.
• The textile industry of Pakistan has a total established spinning capacity of 1550 million kgs of
yarn, weaving capacity of 4368 million square metres of fabric and finishing capacity of 4000
million square metres.
• The industry has a production capacity of 670 million units of garments, 400 million units of
knitwear and 53 million kgs of towels.
• The industry has a total of 1221 units engaged in ginning and 442 units engaged in spinning. There
are around 124 large units that undertake weaving and 425 small units.
Industry Outlook
• The world demand for textiles is rising at around 2.5%, due to which there is a greater opportunity
for rise in exports from Pakistan.
Contribution to Exports
According to recent figures:
• the Pakistan textile industry contributes more than 60% to the country’s total exports, which
amounts to around 5.2 billion US dollars.
• The contribution of this industry to the total GDP is 8.5%. It provides employment to 38% of the
work force in the country, which amounts to a figure of 15 million. However, the proportion of
skilled labor is very less as compared to that of unskilled labor.
• The industry contributes around 46% to the total output produced in the country.
• In Asia, Pakistan is the 8th largest exporter of textile products.
E. Customer analysis
In simple words Customer analysis is a critical section of a company’s business plane or marketing
plane. It identifies target customers, ascertains the needs of these customers, and then specifies how
the products satisfies these needs.
As we know that Crescent textiles is working as a export and for that regards the company have to
target the customers that what type of customers they have to make, usually focuses on the customers
that assure them that they will stay with them for the future time span and then analyse the demand
of the customers and have to get complete knowledge about the needs of the customers, they have to
analyse that what the customer wants(white fabric,dyed fabric,printed fabric or any made up/
finished goods like bed sheets,duvet covers etc), after delivering them the products according to the
customers demand the company ascertains that rather the customer is satisfied with the delivered
products because if the customer is happy from the products, the company make the good relation
with the international customers and sometimes also got referrals from the customers.
44. 40
F. Competitors
Analysis
Crescent Textile
Mills
Crescent is a manufacturer of
textiles.
Style Textile
Style Textile is a company
that manufactures textile
and apparel.
Lupo
Lupo is a
manufacturer of
underwear
products.
Nishat
Mills
Nishat Mills is a
textile company.
Banswara
Syntex
Banswara Syntex
is a textile
company that
specializes in the
production of
yarn, fabric, and
readymade
garments.
Founding Date 1950 1993 1921 1951 1976
Type Private Private Private Public Public
Tags Manufacturing &
Industrialtextiles
Manufacturing &
Industrialtextiles
Manufacturing
&
Industrialtextiles
Manufacturing
&
Industrialtextiles
Manufacturing
&
Industrialtextiles
Locations Faisalabad, PK HQ
Faisalabad, PK
لہور, PK HQ
BR HQ
Lahore, Mumbai,
45. 41
PK HQ
Faisalabad, PK
Faisalabad, PK
Feroze, PK
Karachi, PK
Lahore, PK
Lahore, PK
see more
IN HQ
Banswara, IN
Kadaiya, IN
New Delhi, IN
Surat, IN
Employees 3821% increase
1,6501% increase
1,656 1,777 13,5515%
decrease
Twitter followers 18 66 16.3 k N/A 4
Alexa Website
Rank
324972 429470 361079 393363 378972
Employee Rating N/A 3.6 4.4 4 N/A
46. 42
G. Marketing Strategies of CTM
Although it may be the duty of the government to ensure availability of cotton at a reasonable price,
it is the exclusive responsibility of Crescent Textile Mills to implement the total quality management
concept. If units are able to minimize wastage, optimize cost of production, improve quality
standards, ensure product diversification and learn to market the finished products, no country can
compete with Pakistan.
Taiwan, Hong Kong, Korea, Japan, Bangladesh are the large manufacturers and exporters of value
added textile products, but are dependent on Pakistan and other countries for their requirements of
cotton, cotton yarn and fabric. Their edge is in finishing good quality fabric; producing attractively
designed garments maintaining quality standards and abide by delivery commitments. These
countries also follow different marketing strategies, while the Pakistani manufacturers first produce a
product and then try to locate a customer; other countries produce what the importers demand. Not
only this, buyers are often willing to pay a premium for odd specifications, short delivery time or
immediate commencement of shipments of small lots, extra care in meeting specification and better
quality standards, using better quality package which may not cost as much as the premium offered.
47. 43
11.SWOT Analysis
A) Strength
Crescent Textile Mills is using imported machinery
It has a strong market image.
The customer is aware of the name of the company.
It has high financial resources.
It has competent staff working for the progress of the company.
It has automated system of production.
Organization has friendly environment.
It has certificate of ISO 9002.
It has a wide range of products.
It always sets new standards for quality.
Its design studio is equipped with latest technology.
It has given a large quota for exports in USA and Europe.
B) Weaknesses
Crescent Textile Mills has ignored than local market
Transit time for international market is comparatively long as compared to India and China.
There is lack of proper training programs especially for workers. They learn through experience
and from seniors that's the reason o f high rate of wastage during production.
Wastage is very high especially in spinning sector
Crescent Textile Mills has no proper sale system for cotton waste and yarn waste.
Some time delivery lates due to lack of production planning
Middle level management is de motivated due to low salary package and promotions are held
after a long period
There is no job commitment among the employees.
There is no proper criteria for performance appraisal that's why staff in not motivated
No measures has been taken to motivate the employees
C) Opportunities
As Crescent Textile Mills is ISO-9002 certified company so it has a chance to increase &
expand business all over the world.
The demand of its products is high in international market
Govt is providing rebate facility
Long term loans are easily available
Company can expand its operations easily
Anti dumping duties in European market are overdrawn, so the chance is to increase the export
as compared to last years.
Devaluation of rupee made Pakistani export more acceptable to the foreign buyers. There is a
chance to compete better now.
Govt's pre import-export policy for cotton is also in favor of Crescent Textile Mills.
D) Threats
Foreign investment in textile sector in Sri Lanka, Bangladesh and India is a danger in future for
Crescent Textile Mills
It has been seen that many other groups in Pakistan have entered in competition with Crescent
Textile Mills. If they will not be competed well, there is a chance that they can get share of
export from foreign buyers.
South Africa is thinking about to impose the anti-dumping duties on Pakistan textile exports. If it
is imposed, a reasonable export share and big market may be lost.
48. 44
There is no proper attention towards Russian market. Crescent Textile Mills can get big orders
from Russia. If attention will not be given towards this side there is a chance that any other
competitor can introduce its products in Russia and this market can be lost.
High inflation rates hinder in competing the Indian yarn at international level.
Fluctuating prices of dollar also affect the purchase of cotton in off-season.
Due to economic crises of eastern countries, so many sales lost during last few years, but now
these countries are again on the road of progress. If the previous customers are not properly
attended, they may be last forever.
Brief on Opportunities
Impacts of removal of anti dumping on textile industry of Pakistan Textile is one of the most heavily
protected sector in developed countries. A new form of trade restriction. Protectionism is still
common place in textiles, tariffs remain high and progress in eliminating import quotas has been
slow. In fact, protectionism is on the rise in a new guise: anti-dumping cases against Asian countries
are multiplying in the US, EU and around the world. Pakistani textiles (yarn, unbleached grey cotton
fabric and bed-linen) exports are being increasingly subjected to the initiation of antidumping
investigations, which creates uncertainty and depresses business sentiment.
Investigation periods are quite lengthy and the legal costs of defending against these cases are
enormous. These result in a great loss of time that could be better spent in a productive manner. This
phenomenon is a matter of great concern because it has created a damaging impact on the normal
growth of trade. In fact, by merely initiating an anti-dumping case against exporting country's
manufacturers, or even just threatening to do so, developed countries producers can cause extensive
disruption to the market for an extended period of time. At the end of the day, whether dumping and
injury are proven may no longer matter for some Asian manufacturers, who could be driven out of
the market simply as a result of the case being initiated.
Anti-dumping measures are not only legal, they are also very flexible. Only some firms in an
industry need complain for an investigation to be launched. It can be directed at specific firms and
countries, and they can be hit with differing duties. The most important aspect about ADD is that
these duties can be presented not as protection but as compensation against "unfair" competition. In
theory, anti-dumping measures are intended to restore fairness to the market by ensuring that
foreign-made goods are sold at a fair price. In practice, however, they can undermine all competition
from a particular country, without regard to whether specific manufacturers are dumping their goods.
The likely replacement of quota with anti-dumping actions to protect US and EU textiles industries
will have significant implications for Pakistani textile exporters and manufacturers. Anti-dumping
actions means anti-dumping duties, which must be paid in addition to regular duties. Also,
participating in a complex anti-dumping investigation is a considerably expensive and time-
consuming undertaking. Pakistani textiles manufacturers and exporters whose products are being
targeted have to collect and organize an enormous amount of data related to their domestic costs,
sales and prepare for a complicated review process.
49. 45
12.Conclusions
We got a lot of experience from Crescent Textile Mills. During our internship we came to know that
how the different activities take place, what are the procedures. The Crescent Textile Mills is on the
way of progress. It has been earning profit for the last five years. The management is professionally
qualified and experienced.
The Crescent Textile Mills should motivate their employees by providing different incentives. Their
salary package is also not attractive. The performance of the Human Resource department is also not
satisfactory.
Crescent Textile Mill’s product (yarn & cloth) is of high quality. The demand of Crescent Textile
Mill’s products is increasing with the passage of time. The company should expand its capacity as
soon as possible to satisfy the demands of their customers.
13.Recommendations
A proper training should be given to the employees and the workers to enhance their skills to
increase their productivity and same of the company.
The management members should make market survey time to time to get the latest information
about the market factors like the price, demand and current consumer trends etc.
As the world has become a global village, the management should have the latest knowledge and
information,s about the world because now a little change in any corner of the world can effect
the business.
The top management should give the autonomy and the flexibility to every manage to make
decisions according to the situation at any time and in the absence of the top managers.
All the duties and responsibilities of the employees and the workers should be clearly defined.
The computer technology should also be used in decision making as well as in storing and
feeding the data.
Crestex should adopt an efficient appraisal system and give rewards to the employees who have
done well.
The management should recruit right person for the right job.
The management should be able to assess the problems before it’s occurring so that they are able
to find the ways of their solution.
The management should hire multi-skilled workers to get economy of scale.
The company should emphasize on its personnel department immediately on emergency basis.
Long-term solvency is good but time interest ratio should also be improved.
There should be decentralized in decision also be improved.
There effective relationship and coordination between the departments must be there.
It should be realized to be very clear about the advantages and disadvantages of each strategy to
take effective decision about its continuity to make an effective strategy implementation.
Crescent Textile Mills should also introduce its brands in local markets.
Company should give proper attention to deal with dead fabric and made ups.
50. 46
14.References/Sources
List of all sources I used:
https://www.crescenttextile.com
https://www.academia.edu
https://www.scribd.com
https://www.crescenttextile.com/company-profile/
15.Annexes
5 Years Company's Share Value Chart 2017-22
Statement of Financial Position / Balance Sheet 2021-2020
Statement of Profit or Loss / Income Statement