Consumer Behavior

Final Project

Sitara Textile (pvt) LTD

Group #04
Submitted to:
Miss: Sobia Wajahat
Submitted by:
Nadia
Reg #08-HITEC-MBA-
Sheikh Salman Ejaz
Reg #08-HITEC-MBA-16
Usman Saeed Qureshi
Reg #08-HITEC-MBA-22
Umar Farooq
Reg #08-HITEC-MBA-19
MBA # 02

Department of Business Administration

Faculty of Management Sciences

1
 HITEC University Taxila Cantt

Table of Contents
Part 1:
Acknowledgement
Introduction of Textile
Textile sector of Pakistan
Static’s of Textile sector of Pakistan
Part 2
Sitara group introduction
Sitara Textile
History
Vision of company
Specialization
Part 3
Products (Exports)
Sitara Brands

Part 4
Processing
Spinning
Weaving
Designing
Part 5
Costumers
Supply chain management
Corporate social responsibility
Marketing Activities
Customer Approach

2
Part 6
Competitive Analysis
SWOT Analysis

Acknowledgement

First of all we are thankful to ALMIGHTY ALLAH for

His blessings upon us in the completion of this task. We are
highly thankful to our honorable teacher Miss.Sobia
Wajahat particularly for his able guidance and support.

3
 In the end our gratitude goes to our family members who
spare time for us and keeping on moral appreciation in
completion of this project.

Executive Summery

Textile is a process through which cotton is given as input and after

processing yarn/fabric is taken as an output.
Textile industry of Pakistan contributes 60% to total Exports of
Pakistan.

Sitara Textile a business unit of Sitara group of industries was

established in1956, is a complete Textile mill in which processing
is done from yarn making to till last stage of stitching.
Sitara Textile has over 10 brands those being Exported to Europe,
South Africa and different countries.
Sitara Textile contributes 17% in total Exports of Textile industry
of Pakistan

Sitara Textile does not perform marketing activity for its products
if it plans to do marketing number of Exports could be raised.
Sitar Textile has updated technology, quality Human Resource;
own stitching department with the capacity of 400,000 sets P/M.

Sitara Textile industry could be market leader in coming near

future.

4
 Textile
A Latin word, originated from texere, it means "to weave". A
Textile was originally a woven fabric, but the terms Textile and the
plural Textiles are now also applied to fibers, filaments and yarns.
Natural and manufactured, and most products for which these are a
principal raw material .Textile also refers to the yarns, threads and
wools that can be spun, woven, tufted, tied and otherwise used to
manufacture cloth. The production of Textiles is an ancient art,
whose speed and scale of production has been altered almost
beyond recognition by mass-production and the introduction of
modern manufacturing techniques. An ancient roman weaver
would have no problem recognizing a plain weave, twill, or satin.
Descriptive of Textiles as defined above and of the raw materials,
processes, machinery, the manufacture, of Textile products are
components of Textile industry.

Textile industry of 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 $. The industry contributes around
46% total out put produced in country. In Asia, Pakistan is the 8th
largest Exporter of Textile products.

Contribution to GDP & Employment

5
The contribution to Textile industry to the total GDP is 8.5%. It
provides employment to 38% of the work force in the country.
However, the proportion of skilled labor is very less as compared
to that of unskilled labor.
Organizations in the Textile industry

All Pakistan Textile mills association is the chief organization that

determines the rules and regulations in Pakistan Textile industry

Opportunities available

According to world industrial market research, the world demand

for Textile is rising at around 2.5%, due to which there is a greater
opportunity to rise in Exports from Pakistan.

Investment in Textile sector

Textile industry has made an investment for about 6.0 billion $

during last six years. This investment includes both investments
through bank loans as well as own sources.

Sect oral shares in total investment in the sector

1. Spinning 46%
2. Weaving 24%
3. Textile processing 12%
4. Knitwear & garments 5%
5. Made – ups 8%
6. Synthetic Textile 5%

6
 These investments resulted in following capacity improvements

Unit 1999-00 2004-05 %Change

Capacity (spindles) 000 8,477 11,300 33%
Consumption /Raw Martial 000Kg 1,970,356 3171,123 61%
Cotton 000Kg 1,566,348 2,680,900 71%
MMF 000Kg 404,008 490,223 21%
Production of Cotton Bales 9,745,447 14,339,852 47%
Production of Yarn 000Kg 1,678,536 2,063,565 23%
Production of Clothes Mill sq Mtr 4,987 6,833 37%
Textile Exports 000US$ 5,156,572 9,030,153 75%

Total Units of Textile in Pakistan

Ginning 1221
Spinning 442
Weaving: -
Large 124
Small 425
Power looms 20600
Finishing: -
Large 10
Small 625
Garments: -
Large 50
Small 2500

7
Head office:
6KM Sargodha road faislabad Pakistan
Ph# 92-41-747801-4, 785389
Fax# 92-41-785867
URL: www.sitaraTextile.com

Dubai office:

P.O.Box 4696 New Industrial Area Ajman UAE

Ph# 971-67433205
Fax# 97-67433215
URL: www.sitaraTextile.com

Introduction

8
Sitara Textile industries LTD is the business unit of Sitara group of
companies which is most strong business group of Pakistan. Sitara
group entered into Pakistani business market in 1956 by entering
Textile weaving of Pakistan. This group was founded by two
brothers Abdul Ghafoor (Late) and Haji Bashir Ahmed.
Sitara group of companies has got several business projects:

Commercial projects
• Sitara Textiles Industries Ltd.
• Sitara Chemicals Industries Ltd,
• Sitara Energy Ltd,
• Sitara Fabrics
• Sitara Chemical(Spinning Units 1&2)
• Sitara Peroxide Ltd.

History
Sitara Textile came into being in 1959 with limited financial
resources available. At the moment Sitara Group is the leading
industrial group in Pakistan, owning assets more than US $4
billion. The Sitara Group of Industries deals in Textile, Chemicals,
and Energy, health and education sectors.

Vision
An honest approach in dealing, within the organization and with
Customers, Vendors and related agencies.

Company’s specializations

9
Sitara Textile specializes in producing high class Fabric products
made of superior quality materials & possesses state-of-the-art
production facilities in made-ups and fabrics for various consumer
needs. The company makes use of the latest technology &
equipment to make sure that each product is original in style and
shows exquisite craftsmanship. Sitara is a company that believes in
originality as character & quality as foundation. The
entrepreneurial spirit of the company assiduously seeks constant
development, steady progress & outstanding performance.

Port folio of products

Sitara Textile has several products which are being Exported and
as well as being supplied in Pakistan.

Company products include two categories one Export quality and

second product which are to be supplied in Pakistan.

Fabrics
At Sitara Textile industry (STI) produce up to 3200mm wide fabric
in 100% Cotton, Poly / Cotton, Viscose, Poly / Viscose with plain
and different weaves like Twills, Drills, Satins, Dobbins, and
Jacquards etc. All these qualities are available in Bleach, Dyed and
Printed Fabric (Pigment & Reactive).

Firstly we will discuss products which are being Exported.

Exported products

10
Sitara Textile’s over 50% products are being Exported to different
countries. And it contributes almost 17% in total Textile Exports of
country.

Bed sheets & value added products

Aim of Sitara Textile is to provide comfort in style to its
costumers. Its specialty is fine quality higher thread count beddings
comes to costumers in an excellent variety ranging from T130 to
T600 threads. Sitara’s major products include Sheet Sets (Cuffed,
Hemstitch styles, embroidered), Bed Skirts (ruffled and pleated),
Quilt Covers, Sham, Comforters, Neck Rolls and Decorative
Cushions. The entire product range is designed in terms of colors,
sizes, designs and quality according to the costumer’s requirement.

Table covers

Sitara Textile provides exclusive range of table cloth in Bigger

Repeat Panel prints, napkins, Place mats, table runners and
potholders etc to costumers so that their dinning could look
allegiant. These products are also customized.

Curtains/ Valances

11
Sitara Textile Industry provides a complete range of home used
items which are Exported to several countries in the world. One of
those products is curtains. Sitara provides big range of Wide range
of curtains and valances in different styles, designs and sizes.
These styles include drapery styles e. g rod pocket, header tape,
and tab top, tie up, balloon shade etc. Fabrication weather can be
stain, dobbies in different designs and styles.

Dress Material/Fabrics
Sitara also offers an impressive variety of fashion and functional
fabrics for shirting & dress material such as voile, cambric, linen
and poplins .Which are Exported and as well as being supplied to
the Pakistani market. It also has a wide range of structured fabrics
such as cotton, viscose and blends.

Sitara Brand
Sitara Textile being a leading Textile unit and Exporter of Pakistan
does not only produce home used items but also has its own brands
for men & women seasonal suiting. These brands are available in
different range of designs, colors, and styles.

Some of brands of Sitara are enlisted below:

Women's Range
Cotton/Linen/Cambric

12
 • Sitara Sapna Lawn
• Sitara Supreme Lawn
• Mughal-e-Azam Summer Collection
• Sitara Supreme Linen
• Sapna Linen
• Mughal-e-Azam Winter Collection

Men's Range:
100% Cotton
• Sitara Mughal-e-Azam Latha
• Sitara Universal Latha
• Sitara Swiss Gold Latha
• Sitara Sapna Latha,
• Sapna Cambric
• KT2000
• Sitara Popline

Processing procedure:
Sitara Textile has complete processing facility within the mill.
That means that from yarn making to till final product Sitara is
capable of making by its own machinery and human resource.

Processing at Sitara includes:

Spinning

13
Sitara Textile started its spinning department in 1988 to produce
quality yarn & fabric. Spinning department of Sitara has become of
mark of success because Sitara is using very latest and modified
Japan’s technology. . Working strength of 35,984 spindles is
supported by OTHORI TRUTCHZILER BLOW ROOM of the
very latest model

At the moment it is producing all type of yarn to fulfill local and

Export requirement.

Weaving
Sitara has facility of weaving all kinds of fabrics. it can weave
multiple weaves from 1/1 plain to jacquard damask fabric in width
ranging from a minimum of 36 to 153 inches with a maximum
thread count of 1000 threads per square inch.

Printing
Sitara Textile’s major strength is the best quality of processing
machines. It also has best printing machines which can print 16
colors on fabric up to a width of 3200mm, and are called ZIMMER
Printing Machines.

Designing studio
Sitara's Design Department is a quintessence of pure brilliance.
The department is run by a team of highly professional, artistic and
innovative Textile designers. This department is equipped with
latest CAD/CAM designing hardware and software.

International costumers

14
As being an Exporter for around 17% of Textile products, Sitara
Textile has several countries which import the products of Sitara.
List includes USA, Canada, Australia, New Zealand, Europe,
South Africa, Scandinavia and South America.

• Company strictly follows the American style of management

or we can say the company is centralized. A clear chain of
authority exits in the company.

Supply chain management

Supply chain management includes
• Plan
• Source
• Make
• Deliver

For

Plan for raw Local

martial market of
Pakistan

Delivery to Products by
costumers company

Sitara Textile:

15
Corporate social responsibility (CSR)

Sitara Textile is a corporate social company and understands the

social responsibility of it.
There are several educational and health institutions which are
working under the Sitara trust.

• SITARA TEXTILE COLLEGE AND MANAGEMENT

INSTITUTE
Phone # (92-21)4574040
URL: www.sitara.edu.pk

• Aziz Fatima Girls High School

• Ghafoor Bashir Children Hospital

P.O. Box # 223, West Canal Road, Faisalabad Pakistan
Ph# 092-41-753523, 754522 - Fax: 092-41-762131

• Aziz Fatima Trust Hospital

Raja Road, Gulistan Colony Faisalabad Pakistan
Ph# 92-41-50346, 780910, 780815 Fax: 92-41- 629210,
618436

Marketing Activities

16
 Company performs its marketing from different sources for
its products. Basically company focuses on costumer
orientation approach and gives great value to costumers and
their satisfaction.
As being a larger group of Pakistan Company does not use
marketing for its product as much where as marketing helps
organization to build strong, favorable image in the minds of
costumers.

Marketing system of Textile is as follow:

CMMUNICATION

GOODS
INDUSTRY MARKET

REVENUE

FEED BACK

Tools that company uses for its small marketing are:

• TV Adverts
Company uses this tool of marketing as main tool for it
and provides adverts in different TV channels for its ready to
wear brands of cotton/fabric for men& women.

• Fashion magazines

17
 Sitara Textile also gives information about its product in
different fashion magazines to attract the costumers.

• Free sampling
Company uses one very good technique for its
international costumers that it sends the free samples of
different product to costumers so that they could check the
quality of the product.

• Fashion shows
Company also organizes fashion shows in which its
products are consumed and people come to know about them.

As it has been mentioned that company performs its marketing

activities at very small scale but the mediums which company
uses at very recent time are very effective and less costly.
But being the oldest group of Pakistan Sitara Textile must
increase the number of marketing activities and should brought
different tools of marketing into practices.

Possible mediums for Sitara Textile could be:

• Company could use its website as its marketing tool by

providing online costumer service, by taking applications for
free sample online through its website.

• Vertical integration (backward/forward) does not exist in the

company, if company plans to have vertical integration so it
can give a competitive edge over competitors.

• Company should start mass production so that every type of

orders could be completed.

18
 • Company should participate in different trade exhibitions
around the glob.

Costumers Approach
Sitara Textile Industry is a complete textile mill that not only
produces the textile products but also has proper plan & strategies
to design their product, identify their customers and fulfill their
needs & wants. Department of marketing and designing are
engaged in these activity.
Sitar textile has classified their customers in two categories,
• Business Customers
• Domestic customers
Business customers are the corporate client of the products of
Sitara Textile Industry and they require the products for their
customers according to requirement to their customers STI
produces the products those arte called customized products.
These business customers include both national & international
customers.
For the domestic customers STI has different approach, it has the
research department that studies the requirement of the potential
customers, trend in the market and as well as the purchasing power
of the customers and after that this information is transferred to
product designing that designs the product.
For making it further effective STI has divided its customers in
different segmentation on different basis so as to satisfy them
properly and maximize the revenue.

19
STI produces the different products for different segments
according to their proper needs and wants.
STI has different segments of customers on the basis of:
• Quality
• Price
• Use based
• Product oriented
• Brand oriented
STI has different products & different price level for these all
customers & fulfills their demands well & has earned the trust of
customers.
Analysis of Strengths, Weaknesses, Opportunities and Threats
(SWOT) for Sitara Textile:

Competition

In Textile industry there is huge competition. Sitara Textile

industry’s potential rival includes local and international
businesses that are producing finished and un-finished products
for both national and international market.
In international market Sitara Textile will compete with China
and India from south Asia who is producing products with large
engineering scale but Sitara Textile industry has the advantage
of using Pakistani cotton which is ranked number 1 in
international market.
Other competitors include in international market from Pakistan
for Sitara Textile industry are Koh-Noor Textile, Deewan Textile
and indirect competitor Pak Dynm which only produces Dynm
and several more, but Sitara Textile has several edge over its
competitors like

• Quality of product
• Advance technology
• Wide range of designs

20
 • Trust of costumers from over 40yrs

Strengths
First of all, the thing that strengthens Sitara Textile is relationship
marketing. Sitara Textile makes very good relation with its
consumers, costumers and suppliers. This is the reason that they
proud to being associated STI.

STI has been awarded several times for ISO quality awards

• ISO 9001-2000
• ISO 14000

This thing also shows the strength of STI (Sitara Textile Industry)

Textile industry needs to remain competitive by adopting advances

in technology and STI has understood it very well and have
adopting all new technology needed to remain competitive.

21
STI prefer customization and manufacture its products according
to the costumer’s needs and wants.

STI has fast delivery procedure of products

STI owns very competitive and quality human resource

Commitment to excellence in costumer service

STI shows zero compromises of quality at all levels and has

complete products of quality checking which is called quality
control and involves inspections, spinning labs, dying lab.

STI has established its own Stitching department which stitches the
product according to the standards with the capacity of 400,000
sets p/m.

Weaknesses

Sitara Textile does not have vertical integration at any level which
could affect STI’s Profitability as compared to those who have
vertical integration.

Sitara Textile is not doing proper marketing of its products, it more

relay on permanent costumer rather then going for new costumers
as well.

STI is facing shortage of supply where as demand has increased its

capacity.

Sitara Textile industry does not consider training its employee.

22
Opportunities

Sitara Textile has several opportunities waiting for them in terms

of more Profitability.
If STI increase the capacity of its plants it can have more
international costumers who will increase the profitability.

Forward Vertical integration can also help STI to have more

national costumers.

Backward integration means that company produces its own raw-

material, if STI does so the cost of raw-material will be less and
the cost of final product would also be less that means that
company could have more profit and costumers.

Company could provide online costumer services and online

ordering system.

Threats

The company has biggest threat of very cheap price of the products
by China.

There are several other threats for STI are available, as STI is
operating from Pakistan so the situation of Pakistan can benefit or
could harm STI.

Unstable political system of Pakistan stops invertors to invest in

new business units and also rules and regulations and tax policy
could be changed.

Crises of energy have increased the cost of goods and have brought
the profit margin at very low level.

23
In Pakistan with out favoring someone doing business is very
difficult because personal fevers and clout are the culture.

Tariff barriers and quota system for Exporters is a big threat that
they cannot Export products according to demand but according to
assigned quota.

Instability of Pakistani economy and especially Pakistan’s rupee is

treating the organizations.
Conclusion

Pakistan Textile industry is the major sector to help the Pakistan

economy and also for better future prospect’s.
Sitar Textile industry is one of the major Exporters of Textile in
other world and contributes around 17% to total Exports of the
country. It has several products those are being Exported and
supplied in local market. It has centralized management.
Sitara Textile has very new technology installed in mill in all
departments (spinning, weaving, dying, and designing).
Sitara Textile focuses on quality very much and it is their plus
point. By improving some areas like marketing, online customer
care, and capacity of their plants it could become one of the top
Exporters of Pakistan.

References:

These references were used to collect data.

http://indonetwork.co.id/SitaraTextile/profile
www.sitara.edu.pk
http://www.sitaraTextile.com/buyer.htm
http://www.sitaraTextile.com/ex_pr.htm
http://www.sitaraTextile.com/Export.htm

24
http://goliath.ecnext.com/coms2/product-compint-0000499526-
page.html
http://indonetwork.co.id/SitaraTextile/profile
http://www.aptma.org.pk/Pak_Textile_Statistics/sdcotton.asp
www.sitaraTextile.com/Export.htm
www.sitaraterxtile.com/history.htm
www.sitaragroup.com.pk
Thank you

25