Internship Report on NAN&F Enterprises, Sambrial Road

Internship Report On NAN&F Enterprises, Sambrial Road, Sialkot

Internship report submitted to the Faculty of Management & Administrative sciences in partial Fulfillment of the Requirements for the degree of Bachelors of Business Administration.

BY Ali Raza Naveed Roll Number 08021220-048 B.B.A 7th (SEM) Session 2008-2012

UNIVERSITY OF GUJRAT

Date of Submission ______

Name of Program Coordinator ______

Signature of Program Coordinator______NAN & F® Enterprises

Acknowledgement By name of Allah: The most Beneficent and Merciful. All praises to His Glory by which all good things are accomplished. Thanks to Him, Who best owed on me the potential, ability and an opportunity to work on this intellectual work. I am really grateful to my respected HOD, Dr Muhammed Usman, Coordinator, Maam Sadia binat e Raza and all the faculty of FMAS, whose supervision lead me towards completion of this work. Indeed, without their kind guidance I may not be able to even start this work. May ALLAH give them the reward which they truly deserves. I am also grateful to all those members who are related to NAN&F Enterprises. Despite of the most hectic schedule, Mr. Asim Nayyer and Mr. Hannan Nayer helped out so much. I'm really grateful to both of them for clarifying my concepts and making me learn from their experience. Whatever I have learned from NAN&F Enterprise will definitely help me in my upcoming study and the professional life ahead. At the end, I would like to dedicate this report to my parents whose love and affection guided me at every step of my life and to all of those people who helped me to accomplish this task.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Table of C ontents Serial No. Title Page No. 1. Executive Summary 5 1.0 Introduction with Business Sector and Cluster 7 1.1 Definition of Leather 7 1.2 Forms of Leather 8 1.3 History of Leather Cluster in Sialkot 8 1.4 Trade Bodies 9 1.5 National Scenario oh the Sector 9 2.0 Overview of the Organization 10 2.1 Brief History of NAN&F Enterprises 10 2.2 Nature of the Organization 11 2.2.1 Mission 11 2.2.2 Vision 11 2.2.3 Introduction of the Enterprise 12 2.3 Company Profile 12 2.4 Success Stories & Milestones 13 2.5 Product Line 15 2.6 Industry Analysis or PEST Analysis 22 3.0 Organizational Structure 24 3.1 Organizational Hierarchy Chart 24 3.2 Number of Employees 25 3.3 Main Office 25 3.4 Introduction to All Departments 25 3.4.1 Purchase Department 25 3.4.2 Store Department 25 3.4.3 Finance & Account Department 25 3.4.4 Quality Control Department 25 3.4.5 Production Department 25 3.5 Comments on the Organizational Structure 27 Serial No. Title Page No. 4.0 Internee’s Work 28 4.1 Brief Introduction of Internee’s Branch 28 4.2 Details of Supervisors 28

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

4.3 Weekly Time Tables 29 4.4 Detailed Description of Departments 29 4.4.1 Purchase Department 29 4.4.1.1 Raw Materials 30 4.4.2 Finance & Accounts Department 30 4.4.3 Store & Ware Housing 30 4.4.4 Production Department 30 4.4.4.1 Operations Performed by Production Department: 30 4.4.4.2 Pattern Making 31 4.4.4.3 Cutting 31 4.4.4.4 Stitching 31 4.4.4.5 Sundry Operations 32 4.4.5 Quality Control Department 34 4.4.5.1 Quality Control Process 34 4.4.5.2 Quality Assurance in Manufacturing Process 35 4.5 Description of Work Performed 37 4.6 Summary of Learning 45 5.0 Conclusions & Recommendations 46 5.1 Contingency & Backup Plan in case of Failure 48 5.2 SWOT Analysis of the Enterprise 48 5.2.1 Strengths 48 5.2.2 Weaknesses 49 5.2.3 Opportunities 50 5.2.4 Threats 50 6.0 References 52 7.0 Appendices 53

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Executive summary The purpose of writing this report is to fulfill the requirement of Higher Education Commission, Pakistan to get the degree of BBA Hons. As an Internee, I joined NANF enterprises. Along with the book knowledge, practical know how of different things is also very crucial part of learning. The difference between success and a failure can be the difference between formation and information. During this time period, I have learned and experienced many new things in a new, practical and challenging environment. Either there are always some exceptions but, the system, the processes and the employee commitment along with quality work was really an example at NANF Enterprises. I selected this industry & organization for internship because in future, I am quite interested of utilizing my concepts related to entrepreneurship learned in the tenure of the degree and to start my own business rather than doing job in an organization. Furthermore the basic thing which motivates me towards entrepreneurial activities is having my degree of BBA (Bachelor of Business Administration), rather than BJA (Bachelor of Job Administration). The future of leather industry is quite bright in Sialkot as the region is specialized and famous for having the technical specialties of the industry. Major firms provide sub contractors to the small firms. Labor market of Sialkot is highly specialized and equipped with the relevant skills required for this industry. The labor rates of the labor market of Sialkot are also quite lower and other technical requirements for this industry are readily available in the city. During the internship period, many new things were discovered. This report briefly covers those experiences, knowledge and practical know how that has been learned. Along with the overview of the organization, the business area in which organization works is described. The history of leather cluster is also briefly described. In the introduction of organization, the brief history, culture of the organization, business volume, and evolution of the firm is described along with different experiences which were faced by the company. The main product offer and PESTL analysis in also given. The vital role of organization in the national growth and nation's economy is also analysed. The section of organizational structure deals with the organizational hierarchy, work place and number of employees. The description and brief critical scrutiny is also given in that portion. Description of branches with which work was done, details of supervisors, weekly internship schedule, detailed description of departments and their activities is described. The details of supervisors, observations, conclusions, tasks are also included in the report. Along with all that, a SWOT analysis of the organization, critical analysis of the sector, recommendations and the

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

overall business volume of the industry in Pakistan is mentioned in appendix with all of the supportive material. Detailed references of sources from where important required data is taken are mentioned clearly along with the report.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

1.0 Introduction with Business Sector and Leather Cluster The NANF enterprise is situated under the cluster of sports, leather and surgical industry in Sialkot. In Sialkot, there is a very high competition of above industries at domestic level as well as international level to grab the customers and fulfill the production orders. To provide a firm base and to maintain an equality in the industry, several associations, trade bodies and organization are playing there role in the field. Different programs are initiated by these organizations with the help of provincial and federal government. In all over the world, the development of industrial clusters helped to promote the industries by providing them a healthy and competitive environment which results in the betterment and economic growth of not only the particular industry but also of the national economy. Therefore, Federal Government decided to establish five industrial clusters in Sialkot under the supervision of TDAP. Federal Minister Amin Faheem announced this in his trade policy speech of 2008-09 on the floor of National Assembly. Those five clusters were following: • Surgical Instruments, Sialkot • Gloves and Personal Protective Equipment, Sialkot • Sports Wear, Sialkot • Leather & Leather Products, Sialkot • Sports Goods, Sialkot A business cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters are considered to increase the productivity with which companies can compete, nationally and globally. (Source: Wikipedia) Internationally, governments often try to use the cluster effect to promote a particular place as good for a certain type of business or industry. For example, the city of Bangalore, India has been utilized to use the cluster effect in order to convince a number of high-tech companies to setup shop there. 1.1. Definition of leather According to the Oxford Dictionary, leather is defined as the material which is obtained from the skin of an animal by tanning or any identical process. The process of tanning converts the skin of the animal into a flexible, durable, long lasting and smooth material identical to cloth which can be later used in different processes.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Tanning is the process which converts the protein of the raw hide or skin into a stable material which will not putrefy and is suitable for a wide variety of end applications. 1.2 Forms of Leather Normally the hides and skin of different animals is used as a raw material in the preparation of leather suits and jackets. The skin and hides of animals are tanned in order to prevent it from decomposition and bacterial attack. Some commonly used hives that are in use in the industry of Pakistan are given as followed: • Goat Skin • Sheep Skin • Cow Hides • Camel Leather • Horse and Donkey Leather The leather of the above given animals are commonly used in Pakistan for being Halal in nature. Apart from the above listed, the skin of several other animals are also in use in different countries around the world which include crocodile, kangaroo and pig. Etc. Several leather products are made with the hides of these animals which include leather jackets, gloves, motorbike suits, belts, bags, punishing instruments, industrial conveyor belts, hats .etc. 1.3. History of Leather cluster in Sialkot For the production of leather goods and several leather products, Sialkot is famous all around the world. In the mid 80's. The business of exports in the field of leather industry was started in Sialkot and the cluster started to shape itself. 6 Juki machines were imported in 1980 and Master Bashir started his production unit in Sialkot and got orders for the production of standardized products at national and international level. Exporters got orders from London till 1995, as London was the export hub for most of the leather goods at that time. The peak period of Sialkot leather export industry was from 1985 to 2000 as the manufacturing on international level was not very much diversified at that time. Pakistan, Germany and Scandinavia were the vital manufacturers for the international importers that time. Sialkot leather cluster was the only leather cluster that was manufacturing motor bike suits that time and till date, it is said that the manufactures of Sialkot are manufacturing 90% of the motorbike suits all around the world. Till the year 2000, Pakistan was exporting its leather

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

products to China but after 2000, China decreased its leather imports as it was expensive for China. In Sialkot, most of the production units were established in late 80's. These production units are situated mostly at Bonkon Maur, Daska, Pasrur Road, Sambrial, Factory Area, Head Marala Road and Sahuwala. Majority of the labor that works in these units come from the urban populated areas of Sialkot like Fateh Garh Agency, Gondal, Said Pur, Maraki wal, Gunnah and Noll Maur. etc. 1.4 Trade Bodies Different trade bodies, associations and unions are trying for the development of leather industry and leather exports of the sector. These associations are monitored not only by provincial and federal government but also by the makers and exporters of leather industry as they have the practical and real time information of the industry. By their aid in decision making and policy making, they are contributing towards the growth and development of the national economy as well. Some of those trade bodies are named as:  Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA)  Sialkot Chamber of Commerce and Industry (SCCI)  Trade Development Authority Pakistan (TDAP)  Vocational Training Institute Sialkot (VTIS)  Small and Medium Enterprise Development Authority (SMEDA)  Punjab Small Industries Corporation (PSIC)  Pakistan Tanners Association (PTA) 1.5 National Scenario of the Sector In Pakistan, leather industry is the second largest industry. Among the exporting countries of the rest of the world, Pakistan is the 5th largest country that exports leather products to other countries. In the last years, from July 2009 to June 2010, the total value of leather products which were exported was above 867.5 Million $ which includes different leather products. Among this leather, exported in 2009 to 2010, 39% was the tanned leather and 39 % were leather apparels and clothing. The countries of EU are the largest importers of Pakistani leather. There share in the international market is 48%.( Source: Pakistan Tanners Association).

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

2.0 Overview of the Organization 2.1 Brief History of NAN &F Enterprises The story of NAN&F is the story of survival and a story to strive. In 2005, both the owners of the firm were working in their uncle’s leather manufacturing concern in Sialkot. These two members of the Nayyer family were an asset for that firm and were dedicated to their work but due to some family issues, they had to leave that firm. Both the brothers had acquired an experience of five years & three years of the leather industry. To earn a living, both the brothers started to work as a small subcontractor for different leather firms of Sialkot at their own home with an initial capital of Nine Lac Rupees. They started the services of cutting and pattern making manually by having three pattern makers and eight cutters at that time. Most of the work was obtained was because of their good will in the industry as their goodwill, their experience and their references in the market was the major intangible asset they had at that time. After a year, upon the advice of a friend, Mr. Asim Nayyer decided to start up his own concerns of leather products and registered his firm under Sialkot Chamber of Commerce in 2006. At that time, the good will of Mr. Asim in the market helped him a lot and he successfully received an order of producing a batch of producing two hundred leather jackets from Silver Star Inc., another firm of Sialkot. Mr. Asim lended a building on rent in Sialkot and purchased the required raw material and three stitching machines on credit because of his good will in the market and completed the assignment in a short period of only one month. By the profit from 2005 to till and adding up the personal savings, both the brothers prepared some samples and arranged to participate into a leather trade expo that was going to held in Germany by Mipel group. There, they arranged their stall and received four international orders of saddle bags and motor bike jackets. After returning from the tour, both the partners sold out their land near Sialkot International Airport to arrange for the required capital to accomplish those foreign assignments and started work upon their first foreign assignment with a capital of five Million Rupees. After completing required formalities, the enterprise had shipped their first international assignment and from then along, the show began. After passing several millstones of success, the enterprise had established a building of its own, furnished with a luxurious guest hall, conference hall, relevant offices for each department and the production unit. At the start of the year 2011, the enterprise shifted all of its operations into the new building where it is operating right now. Currently the enterprise is serving a small portion of domestic market. The main focus of the company is to serve the international market by exporting the leather suits, gloves, saddle bags, jackets and biking protective gears and other leather products in foreign countries like USA, Europe (France, Italy, Germany, U.K, and Russia.etc), 10

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Brazil, Ukraine, South America and Chili with annual sales of about 150 Million in the last year. 2.2 Nature of the Organization & Mission and Vision The enterprise is working upon totally centralized approach of management. Different operational and production functions are performed by different departments of the enterprise but the decision making authority regarding these operations rests upon the higher management of the enterprise to ensure the chain of command, clear reporting structure and span of control at the enterprise. The mission and mission statement, according to which the enterprise governs its operations is described as followed. 2.2.1 Mission: To create a value for all stake holders by blending the inherited skills with state of the art technology and to meet the professional and aesthetic demands of the customer to sustain Biker’s honor, Buyer’s reputation and Our pride by maintaining the quality standards. 2.2.2 Vision: NAN & F is an exquisite combination of the spirit of creativeness and the energy of youth. Its existence and continuation is the outcome of the passion and vision of a team of youngsters, who have inherited the proverbial artisanship of Sialkot. Blending the inherited skill with the state-of-the-art technology, they have grown into an organization manufacturing and exporting Motorbike Racing suits, Garments and Accessories the world over. Within a short span of a few years, it has earned the trust of business partners and customers worldwide. Now the enterprise is striving to fulfill demands of the existing customers along with exploring new horizons of the business world wide. The long term planning of the company include establishment of a hospital and an educational institution for the development of the society.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

2.2.3 Introduction of the Enterprise NANF Enterprises are one of the manufacturers and exporters of leather products and sportswear from Sialkot. According to the international standards and regulations, the organization is molded in to a 100% manufacturing enterprise to perform the operations which are carried out by professional and experienced employees and workers under the supervision of skilled supervisors. The organization commits with its customers to provide them the well qualitative finished products which fulfills the market demand and customer needs. Providing customer confidence, customer satisfaction and right services at the right time and right place for appropriate profit are the main aims of the organization. The firm is trying to develop and increase its services, processes and volume through continuous involvement of all the stake holders of the business in different countries around the world. All the routine functions of the company are up to dated and developed by continuous involvement of computer and modernized technology in the business. The real aim behind working with this organization was to get practical know how of the production concern and to understand the processes of a manufacturing firm. 2.3 Company Profile Organization Name: Nan & F Enterprises. Nature of Business: Manufacturing Concern Products: Leather Products Formation: In the year 2006, In Sialkot. Brand Name: ATROX Nature of Ownership: The enterprise is operating upon partnership basis, under the ownership of Mr. Asim Nayyer, who is working as the C.E.O of the company and Mr. Khurram Nayer, who is working as the production manager of the company. Both the owners had a degree of Bachelors in Arts with an experience of 5 years and 3 years respectively in the relevant field at the time of start up. Location: Main Sambrial Road, Sialkot Postal Address: P.O. Box # 2671, 10-km, Main Sambrial Road, 51310, Sialkot, Pakistan Contact Numbers: +92-52-6523488, 6523399, 6523377 Fax Number: +92-65-6523648 Skype Login Id: asim.nayyer, hanan.nayyer 12

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Email: [email protected] , [email protected] Web Address: www.nanf.pk Production Unit: Currently, the organization is having one production unit in the building of the enterprise having stitching and cutting machines of Singer & Gemey brand while the function of pattern making is performed manually by the experienced and skilled labor of the enterprise under the super vision of experienced supervisors. Target Market: Currently, the enterprise is serving a small portion of domestic market. The main focus of the company is to serve the international market by exporting the leather suits, gloves, saddle bags, jackets and biking protective gears and other leather products in foreign countries like USA, Europe (France, Italy, Germany, U.K, and Russia.etc), Brazil, Ukraine, South America and Chili. Location Advantage To Company: The Company is located at Main Sambrial Road. The company office is located in the main building of the firm along with the production unit which makes it easier for the company to complete the foreign assignments and ship through the Sialkot International Airport and Sambrial Dry Port which are 2 to 3 kilometres away from the firm’s building. Competitors: The Company is operating in a major exporting field of the region due to which it have to face a great pressure of rivalry from the competitors. As the company have successfully passed through its creation, now it have to compete with its major competitors who have earned a competitive edge in the region upon the basis of their years of experience, adaptation of advanced technology and provision of huge capital. The main competitors of the firm in the region are as followed: Leather Field .Inc Silver Star Co. Omega Industries V-Star Rider VIP Wears Private Limited Venus Enterprises Silver Star & Co

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

2.4 Success Stories & Milestones Under the supervision of higher management, high quality raw material and with the efforts of qualified employees and skilled labour, the organization is striving continuously for the excellence. In this journey of excellence, the company had passed following milestones while serving the requirements of their customers. • 2006: Formation of the company on partnership basis. • 2006: Obtained company name from Security and Exchange Commission of Pakistan & Registered the enterprise from Firm Registration Office, Sialkot. • 2006: Registration of the firm with Sialkot Chamber of Commerce. • 2006: Got NTN (National Taxation Number). • 2006: Registration with the Punjab Employees Social Security Institution (PESSI) and Employees Old Age Benefits Institution and registration under the West Pakistan Shops and Establishment Ordinance 1969 with the Labour Department district Sialkot. • 21-24 September, 2006: Participation in the Mipel Bag Show in Germany. • 2008: Approval of AZO Certification, ensuring the absence of any dangerous fabrication and chemicals in the products that are hazardous for human skin. • 2008: Approval of CE Marking for exporting and placing products in the European market. • October 6-10, 2010, participated in International, Motorcycle and Scooter Bicycle fair in Cologne, Germany. • 2011: Participated in EICMA Moto Show in Italy. • February 18-20, 2011: Participated in the Dealer Expo of USA in Indianapolis.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

2.5 Product Line At NAN&F Enterprises, different products are offered to different customers depending upon their need. The enterprise has also got their own brand by the name of ATROX. The product line of NAN&F is very much lenient and expanded to give a wide range to the customers and importers. A benefit of having such a broad product line is that if in case the potential customer is not interested in accepting one offer or he have any objection regarding the characteristics and specifications of one product (as customer preferences and physic differs and is a subject to change), then he may be persuaded towards another product offered in the product line. Such expansion in product line also help to improve the profit by increasing overall market share of the company. The different products offered in the product catalogue of NAN&F can be viewed from the web site (www.nanf.pk) of the company. Along with the products, a brief specification of every product is also given upon the web site. The customers from other countries can view the products from the web site. The company is also thinking about initializing the Ecommerce type of business through this site by which customers from distant areas can place their orders of delivering one or few pieces through web. A brief product line of the company is described below in which some of the products are described along with the snap shots of each. 2.5.1 Bikers Suits: These biker’s suits are made with leather for the professional racers and other bike riders. This product is available in one piece set and two piece set. At NANF enterprises, there is a complete range of these suits. Different bikers suits manufactured at NANF are given below along with snap shots, model numbers and brief specifications. Colors: The product is available in different color range including white, yellow, gray, green, red, black, blue and light gray. Sizes: This product is available in small, medium and large size depending upon the need of the customer.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

NF-8001 NF-8003

NF-8005 NF-8007

NF-8008

Features: • “A-grade” 1.3-1.4mm cowhide “matte” leather with full mesh “soft touch” inner lining. • Micro fabric inside of collar for softness and reflective strapping for added night time safety. • Removable plastic protective armors in the shoulders, elbows, back, thighs & knees. • Double adjustment waist bands and stretch material inlays. • Jacket and pant can be worn zipped together or separately in the 2 piece style. • Zippers: All original “YKK”. • Plastic removable knee sliders and hump on back for more safety purpose.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

2.5.2 Leather Jackets: Another product of the company NANF is the leather jackets. These leather jackets just do not gives a fashion look to the customer but also very useful to provide a warm protection to and feeling of comfort to the person who wears them in winter and cold seasons. Along with simple leather jackets, the company is also specialized in producing motor biker’s jackets that are used by bike riders. Colors: The leather jackets are available in different colors which include black, red and navy blue. Jackets having different color combinations in them are also manufactured on demand. These jackets are available only according to the standard size as per customer demand. NF-8100 NF-8124

NF-8151 NF-8171

Sizes: This product is available only in the standard size. NF-8190 Features: • “A-grade” 1.2-1.3mm cowhide “matte” leather and removable thermal quilted full lining.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

• Neoprene inside of collar for softness and double adjustment waist bands. • Two external & two internal zippered pockets along with lower internal rear zipper to attach the pants Zippers. 2.5.3 Protective Gears: Special protective gears are manufactured at the company to provide extra safety for the bikers. These protective gears are specially made for the professional bike racers and for those riders who are much conscious about their safety. These gears are used under the biker’s suits to assure the safety of chest, rib cage, shoulders, ankles and other internal vital organs. Sizes: These protective gears are manufactured in small, medium and large size. Colors: These are available in black color. NF-2100 NF-2101 NF-2271

NF-2270 NF-2207

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Features: • Poly Air meshes with mold plastic protection and hard protectors with foam padding. • Extra removable panel on shoulders and waist belt with double strap fastening. • Elastic adjustable sleeves. Soft and easy when used along with firm body protection. 2.5.4 Leather Racing Gloves: Leather gloves for professional bike riders and racers are manufactured at NANF Enterprises. These gloves provide safety to the rider and prevent the hands and palms of the biker from blisters and give him a soft feeling and firm gripe upon the handle of the bike. Sizes: Theses gloves are manufactured in small, medium, large and extra large sizes. Colors: This product is manufactured in black, red, blue and silver color and in several designs and patterns. NF-3801 NF-3802 NF-3807

. NF-3808 NF-3818

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Features: • Premium A-Grade Aniline Leather with Carbon molded protection knuckles & fingers • Double layer anti-slip palm protection with Velcro & elastic wrist closure 2.5.5 Motor Bike and Moto Cross boots: Motor bike boots for heavy bikes and Moto Cross are manufactured. Sizes: The boots manufactured here are categorized into small, medium and large size. Color: This article is mostly manufactured in Black and Red color. NF-5500 NF-5510 NF-4455

NF-4402 NF-4417

Features: • Grade ‘A’ water repellent leather with mold Karbon protection on shin. • Double layer anti-slip for lever.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

• Reflex strapping for night vision. • Stitched non-slip rubber sole. 2.5.6 Leather Saddle Bag: Special stitched leather bags for the bikers are also manufactured in which small equipment is easy to place and can be carried to anywhere. These saddle bags can easily be placed and fixed upon the bike if needed. Sizes: These leather bags are manufactured in different size range which includes small, medium and large sized bags. Color: The bags are only available in black color. NF-9050 NF-9052 NF-9055

NF=9066 NF=9068

Features: • Size range starts from 15”x6”x11.5” to 16”x6”x11”. • Decorated with Studs, Braids, Beads and Conchos to have an appealing look.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

2.6 Industry Analysis or PEST Analysis: The industry analysis of the leather manufacturing concern is divided as under into 4 categories and often referred as PEST Analysis. I.e. Political, Economical, Social ant Technological and each is summarized as followed. Political: The leather industry of Pakistan is continuously growing day by day. Pakistan is recognized as the hub for the production of tanned leather and leather products in the world and currently, about 800 tanneries are operating in the country to produce high quality and standardized leather. As far as political impact upon the industry are concerned, two trade bodies PTA and PLGMEA are currently working for the collaboration of the industry with the political and legal system. The collaboration of the leather industry of Pakistan is nearly about 5 % and nearly about 50,000 people are striving in only the tanneries of Pakistan directly. Government of Pakistan is trying to preserve this industry to increase its exports. Upon the political basis, the government is trying to preserve this industry by launching different programs and initiatives for the industry through different trade bodies. The current political stability of the country is badly affecting the leather manufacturing industry of the country. Energy crisis and power loss is the main hot issue for the industry and increasing the operating expenses by installation of generators. Exporters of raw leather products should be allowed to export the duty free samples to meet the commitments of their export. From last few years, government is encouraging the trade policies at a higher level to facilitate the industry for trade of benefits. The leather industry should be subsidise and should be exempt from load shutting. There are no major hurdles in exporting the leather products outside the country any dealer can export his cargo through sea and air by paying a certain fee and by fulfilling certain legal formalities. Economic: During past few years, the economic conditions and inflation pressures have caused a vital impact upon this perfectly competitive industry. The increased prices of raw material and higher energy prices have increased the manufacturing and operating expense of this industry resulting higher rates of finished goods. Due to this factor, many importers have switched their intentions towards importing tanned leather and leather goods from China but still, Pakistan had exported leather and leather products of 867.5 Million $ during July 2009 to June 2010 out of which, 48 % was exported to Western European countries. Other detailed economical data and statistics are attached in the appendix. The increasing inflationary pressures have also decreased the rate of Qurbani in Pakistan, which is a major event upon which most of the animal skins are arranged and processed annually and then take form as the most major component of raw material for this industry. The industry is contributing a lot toward the economy by arranging job posts for the qualified persons and by arranging work for the labour force. Apart 22

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

from the employees and labour of the company, the bigger firms also help small sub contactors to grow by giving sub contracts to them Social: The demand of leather and leather products in increasing not only on domestic level but also on international level due to increase in population and the industry is striving to fulfil this market demand. But this attempt to serve the market and earn a profit has negative aspects upon the society. Some of the firms of the industry are deviating from the child labour laws and law of minimum wage in order to decrease their expenses and increase the profits. Most of the leather concerns do not bother about waste management and hence throw their garbage, slid waste, chemicals and contaminated water in drains and rivers which have a very hazardous effect upon marine life and human life. This waste includes copper, zinc, cadmium and lead. Some NGOs and concerned citizens are working to develop awareness regarding this. It would be appropriate for these firms to have the waste management systems and treatment plants in order to preserve them from the threat of environmental and social rivalry. Technical: New technologies are emerging in the sector and capital is required to buy these technologies in order to get the competitive advantage in the perfectly competitive market. To run such technologies, training of employees to operate these machines is also mandatory resulting in an increase in their skill set. The process of tanning includes multi steps in which 130 different chemicals are applied upon the skins of animal and then dried. For the cutting and sewing purposes, new machines are developing. Many companies are trying to maintain and manage their operations by integrating them with IT and the modern technologies such as internet, account keeping and data base softwares.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

3.0 Organizational Structure: The enterprise is working upon totally centralized approach of management. Different operational and production functions are performed by different departments of the enterprise but the decision making authority regarding these operations rests upon the higher management of the enterprise to ensure the chain of command, clear reporting structure and span of control at the enterprise 3.1 Organizational Hierarchy Chart: The organizational structure of the company is designed upon the following hierarchal basis.

C.E.O

Purchase Production Store Finance & Quality Departme Departme Dept. Accounts Control nt nt

Store Procureme Accountan Quality Incharge nt Head t Incharge

Store Super Assistant Assistant Keeper Visors Accountant

Quality Clerk Inspection

Stitchin Packin Pattern/ Cutting Lining Sealing g g Design Beads/ Section Button Leathe s Work Fabric r Sundr Operation Leathe Fabric y s r

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

As the enterprise is a newly established concern and has recently shifted their operations into the new building so currently, there is no separate department for other support activities like marketing, MIS, HRM.etc. Moreover, as the nature of operating is manufacturing, so the intense focus of the firm is upon production and quality assurance functions. The senior management of the firm has plans to develop separate departments for each business operation along with support activities in future. 3.2 Number of Employees: Currently, 200 employees are working at NAN&F Enterprises out which 50 are permanent working employees and 150 of them are temporary working on daily wages and are included in the labor force of the company. 3.3 Main Office: The Company is located at Main Sambrial Road. The company have only one main office that is located in the main building of the firm along with the production unit which makes it easier for the company to complete the foreign assignments and ship through the Sialkot International Airport and Sambrial Dry Port which are hardly located 3 to 3 kilometres away from the firm’s building. 3.4 Introduction to all Departments At NAN&F several departments are working with each other’s collaboration to lead the enterprise towards professional excellence by consumption and utilization of high quality raw material and efforts of competitive employees and skilled work force. As the enterprise is a manufacturing firm, most of the departments that are operating in the enterprise are of production natured. A brief description of all those departments is described below. 3.4.1 Purchase Department: At Nan&F, Purchase department is headed by Mr. Khurram Nayer. Mr. Khurram Nayyer is also one of the partners of the firm. The main responsibility of this department is to arrange and purchase raw materials from local market and international market that is used in the manufacturing process. The raw material is mostly purchased from local market of Sialkot on credit basis but in as per customer requirement, raw material is also imported from china and Korea by paying the vendors in advance. Along with performing other major activities of the job, Mr Khurram Nayyer is also fulfilling the duties of this department efficiently along with his assistant Mr. Abdul Basit. 3.4.2 Store department: The Store Department is working under his Incharge Mr. Shafi and his two store keepers Mr. Ashraf and Mr Moin. The responsibility of store department is to receive raw materials, spares and other equipments from purchase department and keep it stored in the store room and make it available for different production sub functions when required. The record of this department is maintained in a computer system in form of 25

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

excel sheets to ensure the availability of raw materials above minimal level of stock for the permanent operations of the production functions. 3.4.3 Finance & Accounts Department: The finance and accounts department at NAN&F Enterprises is working hard under the supervision of Chief Accountant Mr. Muhammed Shehzad along with his team. The team is composed of four members. The main responsibility of this department is to prepare vouchers, maintain cash flows, keeping the record of bills received or paid, maintaining daybooks, payrolls and cash books and to tally the bank statements of the firm. 3.4.4 Quality Control Department: Mr. Muneer is the incharge of this department. His team consists of experienced supervisors and inspection persons who supervise each piece during its work in process from beginning to end. The samples of raw material purchased by purchase department from different vendors are also checked by this department to ensure the quality and to maintain the factor of reliability between the findings of quality control department and the purchasing department. Every unit is carefully examined by the inspection persons of this department for the assurance of quality before final packing by comparing the completed unit with the sample unit. That sample unit serves as a pre agreed standard between the enterprise and the customer according to which the finished product is compared. 3.4.5 Production Department: This is the core department of the enterprise from the manufacturing point of view. The department is managed by Mr. Sajjad Butt for the successful completion of the assignments of this department. This Department is further sub divided into different sub sections, depending upon the level of work performed. The major sub functions of the production department are as followed:  Design or Pattern Department  Cutting Department  Stitching Department.  Sundry Operations: Sundry department is further sub divided into four sub section on the nature of the work they perform. These sub sections are • Lining Wok: Lining refers to internal stitching of a jacket or biker’s suit by stitching it with a fabric sheet. Ten stitching machines are placed in the lining department. • Sealing Work: Sealing of stitches to make them water proof. Two sealing machines are present in this section to do this work.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

• Button/Beads Work: Two manual machines are working in this section for the fixation of button and beads. • Packing Work: Manual packing in polythene bags and boxes of card board with hangers. 3.5 Comments on the Organizational Structure As the enterprise is manufacturing in nature, the intense focus of the management of the organization is upon establishing the production department as the core department of the enterprise. Along with this, further other departments are developed to perform the supportive activities that are mandatory to the firm. As the organization is in its growing phase, there are no separate departments for some other major supportive activities of the business. For instance, the Human Resource department and marketing department are not placed separately in the organization. The C.E.O of the firm, Mr Asim Nayyer, with his twelve years of experience in the industry, supervises these functions such as marketing and administration along with his office staff which consists of his two assistants, one clerk and an office boy. The marketing functions and important decisions regarding those functions, such as product planning, advertising, packaging and forwarding, are governed by C.E.O himself. He also supervises the cargo decisions that from where and through which means, shipments will be placed to the customers. Apart from this, all the decisions are finalized and made by Mr. Asim by the suggestions of the departmental heads. For the discussion and decision making, a conference hall is placed next to the office of C.E.O. Mr. Asim also make regular video calls with the customers on Skype and discuss deal with them in case of customer specifications. He also represents the enterprise in international trade fairs that are organised at various locations around the world. The relevant issues of human force are also settled by C.E.O. The decisions of new hiring are made by him upon departmental requisitions. He also decide how and when to make payments to labour on per piece rate with relevance to the market rates. The suggestions to provide facilities to employees and labour force by different departmental heads is also listened by him and necessary decisions are made. At NAN&F, the permanent employees are paid monthly while the wages of labour is paid after every two months depending upon work performed by them. Although, the manufacturing enterprise is quite a new one and striving very hard with excellence towards growth, still there is a need to place separate department for other support activities. In this way, chain of command and flow of work will become smooth and easier, responsibilities will be clear, proper attention to each activity will be provided by that particular department and it would be easier to avoid work overload.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

4.0 Internee’s Work : 4.1 Brief Introduction of Internee’s Branch: I did my internship in the main building of NAN&F Enterprises as a internee. The company is situated at Main Sambrial Road. The companies production unit as well as its office located in its main building, so after completing foreign assignments its very easy for the firm to ship through the Sialkot International Airport and Sambrial Dry Port which are located at the distance of 2 to 3 kilometres from the building. The office of the building is furnished with state of the art office facilities, furniture, computers, a reception and other facilities. There is conference hall for important meetings near the office of C.E.O’s. The firm also has a separate guest house well-furnished and full of comfort for honourable guests. I started my internship from 25th July, 2011 and ended upon 4th September, 2011. 4.2 Details of Supervisors: The supervisors which directed me and helped me a lot to observe and clear my concerns about the enterprise their detail is given below: Sr# Name of Supervisor Designation 1. Mr. Asim Nayyer Chief Operating Officer 2. Mr. Khurram Nayyer Head of Purchase Department 3. Mr. Muhammed Shehzad Chief Accountant 4. Mr. Shafi Store Incharge 5. Mr. Ashraf Store Keeper 6. Mr. Muneer ul Din Head of Quality Control Department 7. Mr. Abdul Basit Assistant Manager Purchase Dept. 8. Mr. Sajjad Butt Production Manager 9. Ms. Naila Shafi Receptionist 10. Mr. Zafar Iqbal Assistant Production Manager 11. Hafiz Ali Mujtaba Supervisor Production Section

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

4.3 Weekly Time Tables: My tenure of internship was of Six weeks while working and observing in different departments. I managed and split my time of six weeks as followed. • 1st Week: Purchase Department. • 2nd Week: Store Section and Quality Assurance. • 3rd Week: Production Department. • 4th Week: Production Department & Quality Control Department. • 5th Week: Accounts Department & Reception. • 6th Week: C.E.O’s Office & Reception.

4.4 Detailed Description of Departments: The detailed description of departments in which I did my work during my internship is described below along with their processes. 4.4.1 Purchase Department: At Nan&F, Purchase department is under control of Mr. Khurram Nayer. The main duty of this department is to arrange and purchase raw materials then selection of suppliers from local market and international market. The raw material is mostly purchased from local market of Sialkot on credit basis but in as per customer requirement, raw material is also imported from china and Korea by paying the vendors in advance. Along with performing other major activities of the job, Mr Khurram Nayyer is also fulfilling the duties of this department efficiently along with his assistant Mr. Abdul Basit. The process according to which this department works is described below.

Purchase Process

Purchase Material

Sample Received for If Low Quality, Return to Inspection Suppliers

Receiving Inspection If Rework, Return to Suppliers 100% by Quality Assurance Staff

Forwarded to Production Department 29

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

4.4.1.1 Raw Materials: At NAN&F, Raw material is purchased from local market as well as from international market. From local market, raw material is purchased both upon credit basis and on cash basis from different suppliers. While from international market, raw material like protectors, polymer sheets, fabrication are imported. The major suppliers of enterprise in international market are from China and Korea. It is the duty of procurement cell to arrange and purchase the necessary raw material and place it in storage cell to be further used in the production process. The foreign suppliers of the company are quality suppliers and trust worthy and are paid in advance for the supplies. The main raw material that is commonly used by the production department consists of Threads, Buttons, Zips, Embossing, Rubber Logos, Beads & Stud Work, Protectors, Polythene sheets, Beads, Hangers. Etc. 4.4.2 Store and Ware Housing: The Store Department is working under his Incharge Mr. Shafi and his two store keepers Mr. Ashraf and Mr Moin. The responsibility of store department is to receive raw materials, spares and other equipments from purchase department and keep it stored in the store room and make it available for different production sub functions when required. The record of this department is maintained in a computer system in form of excel sheets to ensure the availability of raw materials above minimal level of stock for the permanent operations of the production functions. 4.4.3 Finance & Accounts Department: The finance and accounts department at NAN&F Enterprises is working hard under the supervision of Chief Accountant Mr. Muhammed Shehzad along with his team. The team is composed of four members. The main responsibility of this department is to prepare vouchers, maintain cash flows, keeping the record of bills received or paid, maintaining daybooks, payrolls and cash books and to tally the bank statements of the firm. 4.4.4 Production Department: The production department of the company is headed by Mr. Sajjad Butt. Under his supervision, the production department is also referred as the Import/Export Department. The main function of this department is to produce the high standard products according to the demands of the targeted market. At NAN&F, the products are manufactured according to the orders which are placed in the enterprise by the trading parties. 4.4.4.1 Operations Performed by Production Department: In order to manufacture a leather product, either small or big, jacket or glove some certain operations are performed by the production department. All these main functions, along with some sundries add up to give a final finished good. The main functions performed by the production department are as followed.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

4.4.4.2 Pattern Making: Pattern making refers to the design or lay out of a product that is demanded by the customer. As there are many technical machines available in the global market to perform this operation by use of computers and plotters but like many of the firms of the cluster, the work of pattern making is performed manually at NAN&F. The enterprise has twenty skilled employees who perform this work for the company on piece rate. The piece rate of making a pattern is Rs 25 per piece and those patterns makers usually make twenty to twenty five patterns daily on average. This work is performed by those patter makers by Sciecers, Scales, Measuring Meters, card boards and chalks. The correct patterns are forwarded next for further work and wrong patterns are amended or are used for making other products to reduce the wastage. The patterns for leather and fabrication are made in the design/pattern department. 4.4.4.3 Cutting: This is the most important which work performed by production department after pattern making, as it is mandatory to cut each piece of leather according to the pattern as per customer demand. This function can be performed totally by hand with the use of blades and cutters but at enterprise, two cutting machines are present to perform this faction in order to minimise the human errors and to save time. These machines have a cutting capacity of cutting 20 sheets of leather and 50 sheets of fabric at one time. These machines are of Gemmy brand and are imported from Italy. The cutting function gives actual shape to the work of the pattern makers. In the cutting section of the enterprise, cutting work is performed for leather as well as for fabrics. 4.4.4.4 Stitching: Stitching process consists of summing up of different small parts to complete a product. Different parts of a jacket are cutted separately as per pattern and then are stitched to give finished shape to a product. Usually this work done is upon stitching machines. At NAN&F, currently, 120 stitching machines of Singer Company are placed for leather and fabrication stitching. Two different sections are operating in the stitching section. One section performs stitching of leather and has 70 stitching machines while other section performs stitching of fabrics and consists 40 stitching machines. Those machines were imported from China. In the leather industry, all the firms are performing the stitching process by these stitching machines. Usually, a stitcher costs more than a pattern maker. In most of the factories of Sialkot, one stitcher usually stitches one product, but at NAN&F, stitching is done differently. There is a separate value chain system at the enterprise to ensure the maintenance of quality and performance of right work. One person who stitches shoulders is restricted to stitch shoulders only. The stitching worker of each stitcher is fixed which delivers his expertise in stitching of that only part. 31

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Those stitched pieces are then jointly stitched at the end to be shaped as the finished product. The stitching is broadly categorised into three types upon the basis of stitches. These three types are Kinaray ki Salai (Open Stitch), Cheeray ki Silai (Double Stitch) and Kachi ki Salai (Raw edge). 4.4.4.5 Sundry Operations: These are usually the smaller operations that are performed to give final touch to the product. These operations are sometimes performed within the enterprise and are sometimes performed by sub contractors of the company dependent upon work load on piece rates. It includes Button Taking, Rubber Logos, Embossing, Embroidery, Sealing, Packaging and Beads & Stud Works. Value Chain of a Leather Jacket

Raw Pattern Cutting: Overheads Leather: Making: 60 Rs. Fusing Rs 13 3000 Rs. 25 Rs. average Solution Rs 15 Kiwi Checking: Stitching: Checking Thread Rs5 40 Rs Rs 400 : Rs.50 (Sunbeam) average average average Electricity Rs25 Hanger Rs 5 Lining: 40 Sundries: Final Rs 100 Rs Checkin Buttons Rs15 average g: Rs Logos Rs10* 30 Embroider Rs 10* Final Shiping: Rs Packging: Rs Needle Rs30 300 average by 40 Machine air or by sea Printing Rs10* Ink Division of a Leather Jacket: Poly thane Rs5 The division of leather that is used in producing a leather jacket is Bag done as followed: Packing Rs8 Shoulders: 12 Feet Box Front: 10 Feet Lining: 3 feet Back: 10 feet Weight of a sheep’s leather made jacket: 2.0 kg Weight ofValue a cow’s Chain leather of amade Motor jacket: Bike 2.5 Suit kg Overheads * Presents those costs that may rise in case of customer specifications.Raw Pattern Cutting:32 50 Leather: Making: 50 Rs. Ali Raza Naveed 6000 Rs. Rs 08021220-048 FMAS NAN & F® Enterprises

Fusing 25 Solution 30 Making Threads 15 Electricity 60 Checking:40 Stitching: Checking:50 Hanger 15 Rs. 800 Rs. Logos 15-50* Protectors 240 at Elbows & Thighs Lining: 80 Sundries: Final Zipping 28* 150 Rs Checking: Rs. 60 Quilting 89 Embroidery 10-40* Shipping: 300 by Packeging: Rs Needle 30 sea or air. 50 Machine Printing 20* Poly thane 20 Division of a Motor Bike Suit: Bag The division of leather that is used in producing a Motor Packing 20 Bike Suit is as followed: Box Shoulders: 12 feet Front: 10 Feet Lining: 3 feet Back: 10 feet Leather Pent: 35 feet The Leather Motor Bike suit is prepared only by cow’s leather. The weight of a suit usually ranges from 4.5 to 4.7 kg. Cost of zipping, embroidery and logos may go up to 2000 in case when special orders are received as per customer’s demand. * Presents those costs that may rise in case of customer specifications. 4.4.5 Quality Control Department: Mr. Muneer is the incharge of this +department. His team consists of experienced supervisors and inspection persons who supervise each piece during its work in process from beginning to end. The samples of raw material purchased by purchase department from 33

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

different vendors are also checked by this department to ensure the quality and to maintain the factor of reliability between the findings of quality control department and the purchasing department. Every unit is carefully examined by the inspection persons of this department for the assurance of quality before final packing by comparing the completed unit with the sample unit. That sample unit serves as a pre agreed standard between the enterprise and the customer according to which the finished product is compared. 4.4.5.1 Quality Control process: To insure the quality in the manufacturing of the products, company strictly implements the quality control process to ensure the quality of products according to a standard. At NAN&F, all the departments of the firm are involved for the betterment of the products and ensure the quality the whole manufacturing process by accomplishing the duties assigned to them. Proper checking and inspection by experienced supervisors is ensured for this. The Integrated flow process of whole the operations are described below along with the codified inspection standards and instants at which those inspections are performed. This table also reflects that which operation should be performed by which department to ensure the efficiency in supplies, reduction of wastage, and quality in manufacturing operations. Sr # Process Inspection Responsible Person/ Dept 1. Purchase Material Purchasing Dept. 2. Receiving Sample Inspection P-1 Quality Control Department 3. Receive 100% Mat. Inspection P-2 Quality Control Department 4. Cutting Production Dept. 5. Die Pressing Production Dept. 6. Stitching 35 % Inspection P-3 Production Department 7. Stitching 100 % Inspection P-4 Production Department 8. Cleaning & Sundry Operations Production Dept. 9. In Progress 100 % Inspection P-5 Quality Control Department 10. Lamination Packing Dept. 11. Final Inspection P-6 Quality Control Dept 12. Storage Store Manager 13. Shipment/Distribution Export Department 4.4.5.2 Quality Assurance in Manufacturing Process During the manufacturing process of the production of finished goods, the following flow chart is followed in order to assure the quality standard in the manufacturing process. Manufacturing Process 34

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Purchase Material

s Sample Received If Low Quality, Return to Inspection Suppliers

Receiving Inspection 100% by If Rework, Return to Suppliers QC Staff

Material Cutting in Required Style/Design

100% In Process Inspection by Production Staff If Rework, Return to Cutting

Stitching

Sundry Operations

If Rework, Return to 100% In Process Inspection by Sundry/Stitching Production Staff

Lamination

If Rework, Return to Final Inspection 100% by QC Production Staff

Storage

Distribution/ Shipment

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

At very first, the purchasing department find materials and ask the suppliers to send sample for inspection. The sample are analysed by the supervisors and are returned to the suppliers if is of poor quality. An order for the suppliers is placed and advanced payment is made to the suppliers in case of if samples meet the quality standards of the enterprise. After receiving of the supplies, the supplies are once again examined to ensure the quality and are returned to suppliers if not of promised quality but it does not happen often in reality as the suppliers are trust worthy. This step is just performed to ensure the quality and to eliminate the chances of being using low quality raw material. The supplies are then forwarded to the patternmaking and cutting process to be processed and are examined time to time by the supervisors. The patterns and cutting pieces are sent back time to time to pattern making and cutting section if are not designed and cutted according to the standards. The passing units are then forwarded to the stitching unit and same process of inspection is repeated to ensure the standards. After stitching, the lamination, packing, bead work, logo work and embroidery work is performed upon the goods in work in process to obtain the finished product. The finished product is finally examined once again to ensure the quality and returned to the concern section in case if standards are not meet. The finalised passing finished goods are handed over to the store manager and are placed in the storing section. From the store, the finished goods are then distributed or shipped as per customer demands. At NAN&F, the piece per rate is adopted in most of the manufacturing processes. I.e. Cutting, Stitching, Pattern, Making. In case of failure in meeting the standard, the good is returned to the concerned section and the concerned worker is asked to make important amendments and corrections. The wage of a worker is determined by the successful pieces he makes in a day. The piece made by worker is not considered as a piece upon which to be paid unless he makes a correct piece or make corrections in an incorrect piece according to the standards. At NAN&F, it is a there is another practice to sustain quality especially for foreign customers. Before placement of the final order, two identical samples are made from which one is sent to the customer and one is placed in the enterprise with reference to customer’s profile. The customer takes sample piece to perform certain quality tests upon the sample. After approval from the customer, the final order is placed. Both those identical pieces, with refer to each other, act as a standard for the customer and for the enterprise to which the quality should be maintained.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

4.5 Description of work performed: During the tenure of the internship, several things were observed and different works were performed as per requirements of the supervisors. A Brief snap short of work done as internee is describes here in this section. Week 1; Day 1: Supervisor: Mr. Khurram Nayyer. Activity: General Introduction. On the very first day of my internship, I along with my co- internee Mr. Sikander Mirza reached at the company’s site. At the reception Miss Naila Shafi, the receptionist, welcomed us and guide us to visit the purchase department to meet the supervisor. The same day we met Mr. Khurram Nayer who share his experience in the company and inquired the purpose of doing internship. He gave briefing of the enterprise and shared general knowledge knowledge of the relevant industry. Mr. Khurram Nayyer advised his assistant, Mr. Abdul Basit to assist and entertain us during our tenure in the department. Week 1; Day 2: Supervisor: Mr. Abdul Basit Department: Purchase Department Activity: General Information of the Department. That day, our supervisor told introduced us with the department and told us about the basics of the department. He told us that from where raw materials are purchased and what is the payment procedure for the purchase of raw material. He told us about different markets for the purchase of raw material. He also showed us about different kinds of raw material that is used in the concern. Week 1; Day 3: Supervisor: Mr. Abdul Basit Department: Purchase Department. Activity: Sample Checking In purchase department we have an exposure of different samples of raw material and our supervisor told us about the whole procedure that is adopted by the department to check the quality of the raw material. He mentioned different vendors of the raw material by presenting some documents.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Week 1; Day 4&5 : Supervisor: Mr. Abdul Basit Department: Purchase Department. Activity: Woking as a S.E.O Our supervisor gave us a task to search different raw material providers around the world along with their web sites and contact details by acting as a search engine optimiser. We accomplished the task by searching the required details about forty five small and large vendors like Delta Leather Industries, Leather Field & Cologne group of Germany from local and international market through web and submitted the details to our supervisor. Week 1; Day 6: Supervisor: Mr. Abdul Basit Department: Purchase Department. Activity: No work to do. Our supervisor was somewhat busy in his departmental work, so no one is there for us that day. We spent the whole day by sitting idle as nothing is assigned to us. Week 2; Day 1: Supervisor: Mr. Shafi Department: Store Section Activity: General introduction of the Section. In this very section Mr. Shafi, the store in charge met and gave us brief introduction of the store section. There were two store keepers with him in this section. To protect the inventory from sunlight and rain, which can affect the quality of the raw material, the store of the enterprise is underground. The store room covered an area of 100 square meters to store required material like tanned leather sheets, beads, protective gears, threads, spare parts and accessories of machines etc. Week 2; Day 2: Supervisor: Mr. Ashraf Department: Store Section Activity: Understanding the computer based system of the store. Mr. Shafi advised his storekeeper; Mr Ashraf to show the computerized system of store. For accuracy, the record of stored inventory in the store section is maintained in the excel spread sheets. Each new entry is added in

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

the previous stock when ever new supplies entered the store area and are counted manually time to time for reliability and accuracy. At time of out sourcing of raw material, the amount of raw material outsourced is subtracted from the inventory in hand to found remaining materials in hand and data is saved. To ensure the safety of data, every day, data of those spread sheets are saved in two separate USBs according to date and day that can be used as a backup source of data retrieval in case of data loss. Week 2; Day 3: Supervisor: Mr. Ashraf Department: Store Section Activity: Data entry and counting. On this day, some new purchases were entered into the store room which were counted and entered by us on excel sheets for maintenance of data. On this very day, another requisite of protective gears was received by the production department and was supplied and entries were updated in the database. Week 2; Day 4: I was absent that day. Week 2; Day 5: I was absent that day. Week 2; Day 6: Super Visor: Mr. Khurram Nayyer Mr. Khurram Nayyer met us that day and some follow up discussions were made for the functions which we already observed. Upon our request, he gave demo of measuring quality of leather by using different ways.. Week 3; Day 1: Department: Production Department Supervisor: MR. Amjad Butt Activity: General introduction with department On first day at production department, Mr. Amjad Butt, gave us a brief introduction of the department and told us about different functions performed in this department. He shared about that the production facilities available in the department and machinery used for the successful operations in the department.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Week3; Day2: Department: Production Section: Pattern Making Supervisor: Mr. Zafar Iqbal Activity: Visit to Pattern Section On this day we visited the pattern making department with our supervisor and he told us the functions of this section. There we observed the manual pattern making of the card board patterns with manual tools like scales, chalks, measuring meters and cutters. The pattern section of enterprise makes departments that are used both for leather appraisal and fabric appraisal. Every pattern made is checked by the supervisors in terms of measurements and shapes in this department. These patterns are used throughout in the process of cutting and stitching also. That day, we observed the working of pattern makers. Week3; Day3: Department: Production Department Section: Cutting Department Supervisor: Hafiz Ali Mujtaba Activity: Visit to Cutting Section Our supervisor took us to the cutting section of leather ware and fabrics and showed the operations of this section. There we observed the work and asked queries. This function was totally performed by hand with the use of blades and cutters but at enterprise, two cutting machines are present to perform this faction in order to minimize the personal errors and to save time. These machines have a cutting capacity of cutting 20 sheets of leather and 50 sheets of fabric at a time. These machines are of Gemmy brand and are imported from Italy. The cutting function gives actual shape to the work of the pattern makers. In the cutting section of the enterprise, cutting work is performed on leather as well as on fabric. Week3; Day4: Department: Production Department Section: Stitching Department Supervisor: Hafiz Ali Mujtaba Activity: Visit to Stitching Section We visited the stitching section that day. At NAN&F, currently, 120 stitching machines of Singer Company are placed for leather and fabrication stitching.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Two different sections are operating in the stitching section. One section performs stitching of leather and has 70 stitching machines while other section stitches fabrics and consists of 40 stitching machines. Those machines were imported from China. Our supervisor told us the basic difference between a fabric stitching machine and a leather stitching machine and also told us about different threads and needles used for each. He demonstrated different types of stitches that are stitched while sewing a product. And also throws light on different safety measures in case of any injury or problem. Week3; Day5: Department: Production Department Supervisor: Mr Sajjad Butt Activity: Follow up discussions This day, production manager met us and asked about our concerns and experiences. We discussed those safety measures in stitching section and requested him to arrange a short presentation session for the employees to remind them about the safety measures. Week3; Day6: Department: Production Department Supervisor: No Supervisor Activity: Safety Presentation We prepared ourselves for presentation and discussed several things which should be addressed in that presentation. We delivered a presentation to labor in which we remind them about risks associated with working under such job context. We told them to avoid eatables, avoid ‘’kurtaaz”, to be clean, be on time, avoid gossips, be focused and alert while doing work on stitching machines and cutting machines. We remind them that the enterprise is concerned about them and cares about their employees and for this very purpose this session was arranged. At the end of the session, a follow up question answer session was furnished in which workers told the production manager about their concerns.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Week4; Day1: Department: Production Department Supervisor: Mr. Zafar Iqbal Activity: Supervision of workers with their supervisor. That day, we visited the cutting and stitching time to time with the shift supervisor and observed the work of the workers. The supervisor told us about different possible defects that can be faced in the work in process of cutting and stitching. These errors and defects can be of measurements, edge cuttings, out of pattern cuttings, alignment in stitching, possibility of wrong type of stitching at wrong piece of part. The supervisor also demonstrated the placement of protective gears in the leather suits of bikers. Week4; Day2: Department: Production Department Section: Sundry operations Supervisor: Mr Sajjad Butt Activity: Visit of Sundry operations Section Mr. Sajjad Butt took us on a visit to the sundry operations sections where we observed different types of final touches which are given to the products, as per customer requirement. He told us that even some of the customers send their own sundry item along with placement of orders. There, we observed the functions of packaging, beads work, lining and stitch sealing. The sundry worked is performed at the enterprise with several manual machines. Week4; Day3: Department: Quality Control Department Supervisor: Mr. Muneer ul Din Activity: Visit to Quality Control Department Mr. Bashir ud din working in the industry from 16 years gave us an overview of the quality control department and told us that how the department of quality controls is integrated with every single process of manufacturing from raw material to the finished good. He told us that at quality control department, it is ensured that every single step performed in the manufacturing process of a product should be according to the pre determined and standardized sample that is fixed between the customer and the enterprise. Every single piece manufactured is a subject to check and compare with the sample approved by the customer in terms of measurements, stitch work, cutting, design, shapes, cleanliness, shine. Etc.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Week4; Day4: Supervisor: No Supervisor Activity: All the management of the firm was busy in scheduling and preparing for the monthly meeting so we had nothing to do. We decided to visit every department to observe the work of labor and to reunite our concepts and ideas. Week4; Day5: Supervisor: No Supervisor As every employee was busy in the daily work, we studied the vendor’s lists and import export files from the office of the department. Week4; Day6: My colleague was absent and no supervisor was there to guide me due to their busy schedule. So I passed the whole day by sitting and wondering about the hectic routine of the employees. Week5; Day1: I was absent that day. Week5; Day2: Department: Accounts Department Supervisor: Mr. Muhammed Shehzad Activity: General Introduction with Accounts department. Almost all major financial decisions are taken and rectified by the owners of the firm and guidelines are communicated to the concerned departments regarding those issues. NAN&F Enterprises is following up the Double Entry system for accounting right now. Double entry system is very much helping for accounts department because they have dual affect and the errors can be identified easily. Convenience for the Accounts department is in keeping record of their accounts both manually on Hard copies like Voucher, ledger, and control accounts in the register and on soft copy on computer. Accounts department also include the record of following department like Debtors, creditors, Sales and purchase fill the voucher and keep them in files after checking by authorized person then they submit the transactions on computers.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Week5; Day3: Department: Accounts Department Supervisor: Mr Mohammed Shehzad Activity: Understanding the Work of department Mr Muhammed shehzad told us about different vouchers that are user ant ledgers that are maintained in the accounts department of the enterprise. He assigned us the work to match different vouchers with ledgers and data entry in the computer on spread sheets of Ms Excel, which was successfully done by us. Week5; Day4: Departments: Accounts Department Supervisor: Mr Muhammed Shehzad Activity: Same work as was done on the past day. Week5; Day5: Section: Reception Supervisor: Miss Naila Activity: To observe the job of a receptionist. On that day, we were going to observe the job activities of a receptionist. On that day, production manager approached us and seeked our help to make the flow chart of purchase department and manufacturing department as required by the C.E.O Mr. Asim Nayyer for internal record keeping. Upon his request, we discussed the possible flow chart and developed flow charts for different processes of the organization. Those flow charts were rectified by the C.E.O and were placed in the internal record of the enterprise. These flow charts were made by us and are also included in this internship report. Week5; Day6: Supervisor: No Supervisor Activity: Helped to make the catalogue of the enterprise, that is reviewed and updated semi annually. That was the only work that was done by most of the staff of NAN&F on that day. Week5; Day6: Section: C.E.O’s Office At the final week of the tenure, we had a meeting with C.E.O of the firm in which he inquired about our work experience within the enterprise. In that discussion, he shared his experiences and observations with us and asked us

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

for suggestions. We suggested that there must be separate departments for Human Resource Management, Marketing and R&D to be more effective towards excellence with having pre-determined responsibilities and functions to perform. Upon the request of C.E.O, we prepared an English Speaking Manual for him in the remaining week and gave presentation to him and his receptionist to be efficient and fluent in Spoken English. That manual consists of some movie clips, slides and other helpful data and information that can be listened, read and practiced to be an effective communicator and an efficient direct marketer. 4.6 Summary of Learning The main things which were learned by the internship program are briefly highlighted in this portion. The total tenure of the program was of 6 weeks and during this tenure, different business practices of a real time corporate environment were observed. The program helped a lot to link the theoretical book readings with those business practices along with enhancement of current skills set. During the internship, the practices of management of different departments and collaboration of operations with each other to give the company a competitive advantage were observed. The program also helped a lot to enhance the entrepreneurial skills, communication and interpersonal skills along with the skills of customer handling and customer dealing. The program helped a lot to increase the qualifications to understand different concepts of business management in the real life business environment. It was also a great chance to work with different business professionals and experienced persons in an environment of team working and to get learned by their experiences. The tenure of internship had helped a lot to understand the book knowledge in a practical and challenging environment. The responsibilities that were undertaken as an internee are precisely described in this report. As a keen observer of different things, ideas and processes, certain questions were asked and answered in the organization by the supervisors for the clearing of concepts. The course of internship was a great chance in deed to develop an overlap point in between the book knowledge and practical knowledge. This internship has helped me a lot to learn soft skills and behavioral skills that are demanded by every organization, no matter of what size or region. Those skills will further help to develop ideas in the long run. As the main purpose of the internship is to observe this thing that how actually the work is performed in practical life but an internship program can be considered as an job experience also. This internship will help me to develop my resume and will serve as a basic element of the practical knowledge. Such programs give a student an opportunity to groom and increase his set of knowledge, skills, abilities and competencies. This program 45

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

has helped me to keep my focus and to keep my attention upon work over a span of time along with building a relationship with the employees of the enterprise. Apart from this, an attempt to learn things from technical point of view is done for the grooming of technical skills. The history of establishment of the firm was very much possessive and reflected the true passion of an entrepreneur. This internship can also help the enterprise as a recruitment source and an internee may get a good offer from the firm. Furthermore, this internship will also help a lot in future while shaping my carrier paths. As a graduate in the job market, the internship and its experiences will help a lot to make my place. Through having this opportunity, I had got a chance to see senior corporate executives of a firm. The report document, which is prepared after accomplishment of the internship will serve as an intellectual asset in the future. Currently, the company is doing business at domestic, national and at international level by satisfying the needs of the potential customers. An effort is made to describe all the learning which was made about the leather industry and organizational processes of producing an efficient valuable leather product during the period of internship at NANF Enterprise. I have made it possible to write each and every thing that I have learnt there. I have put all my practical efforts in the form of this manuscript that is the asset for my future career. To provide a proper worth and personal touch to this work, personal suggestion, observations, conclusions and recommendations are also included where needed. 5.0 Conclusions & Recommendations Upon the basis of 6 weeks tenure of internship, certain processes were observed and certain things were concluded as an internee. Those conclusions and recommendations are covered in this portion of the report. Currently, the organization is operating in a perfectly competitive environment with a cluster of competitors around. The competitors of NAN & F have their competitive advantage upon the basis of their expertise, goodwill in the market, higher investments and technical advancements. As the company hardly composed up of few years in the field, so it should have to strive for the professional excellence and to maintain the quality standard in their production processes. As the current economic conditions are giving a tough time to the company, so company should have to reduce their expenses regarding wastages in order to be price efficient. This price efficiency of the company should be shared with the potential customers in shape of lower rates to grab the market share. Currently, the organization is focusing intensively upon their abroad customers and is not giving proper attention upon the local and domestic market of the region which has a greater potential. This market should also be addressed properly in order to increase the sales volume. For the operations of production department, company 46

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

should have to be more efficient towards procurement activities and should have adopt better local marketing policies to access better markets for raw material. In order to create the customers aware of the company and its products, company should have to participate in the exhibitions and trade fairs on international level and cost reduction seminars on national level. Currently, the organization is using electronic data and IT services for marketing activities. I.e. using Skype and web based promotion. There is a need to use the IT services for the decision making process also. Currently the decision making process of firm is based upon top to bottom natured decision making and executive review judgments in nature upon the basis of past experiences. There is a need of that thing that those decision makings should be upon the basis of proper statistical involvement which is currently not present in the organization. Sialkot is a city of having talented and skilled labor market at lower prices. It is the need of the company from my view is to retain that work force. The company should have to provide them on the job facilities and services in order to enhance their motivation level, resulting increased organizational commitment and improved performance. The company should have to provide at least two bonuses annually on the occasion of “Eidain” to have easy buyins of the labor. Along with all this, the government of Pakistan is trying to preserve the sector monitoring and financing the SMEs. The firm should have to avail these easy terms based financing plans as per needed in order to generate funding for their enterprise. Power crisis and load shutting is a major threat for the company. The organization should have to make ensure to face this challenge by investing their funds in a heavy power generator. Along with that, organization should have to provide recreational activities for the employees in case of temporary power trips to save their labor from getting irritated from the situation. There should be a research and development cell in the company at least at the internal organizational level for the continuous attempt to know about employee’s perception about their job and organization. Appropriate decisions should be made in the light of that information in order to motivate skilled labor and employees and to retain them. Apart from this, it is also observed during the internship tenure that most of the firms operating in this field are causing a great harm to natural inhabitants. NAN & F should have to place a waste management plan and a water treatment plant to preserve the natural environment. Because of the increasing global awareness about the concept of green marketing and green production, many of the foreign parties give priorities to deal with the enterprises that are running the practices of green production and green marketing over others. NAN & F should have to get the 47

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

attention of such parties by promoting such activities in the organization. All these actions, while aligned with the strategies and organizational goals, may help the organization to be more effective and efficient. 5.1 Contingency & Backup Plans in Case of Loss: As far as contingency plans are concerned, the enterprise may adopt choose to switch their operations towards leather tanning from manufacturing concern in case of inefficiency, loss or failure in achievement of the goals. Many of the firms of Sialkot have adopted this way to keep continuing. Leather Field Inc. and Silver Star are one of those enterprises. By adopting this business nature, the company will transfer as a raw material provider, rather than manufacturer for domestic as well as international market. To achieve this, the relevant information is already preserved in the company and declared as confidential and the ownership of the enterprise already also have certain basic know how of that nature of business. 5.2 SWOT Analysis of the Company: Upon the observations that were made during the internship period, the following SWOT Analysis is made, while the strengths and weaknesses of the enterprise are because of internal environment and Opportunities and Threats are because of the external factors of the organization. 5.2.1Strengths: Different strengths that can be identified with respect to internal environment for the company are highlighted under the following points.  The company is striving to maintain its differentiation strategy in the industry by producing differentiated products on the basis of style and elegance to achieve the competitive edge from the competitors.  The labor force currently working at the firm is experienced and company regularly make arrangements of different training sessions with the collaboration of SMEDA & SCCI.  Enforcement of minimum wage law and law against child labor. Both these laws are not implemented in reality by most of the Enterprises operating in Sialkot.  At Nan & F, it is ensured that the law of minimum wage and law against child labor are strictly implemented for the accomplishment of ‘corporate social responsibility’ of the company towards society. These two laws are not implemented in most of the manufacturing concerns that are currently operating in Sialkot.  The company’s building, offices and manufacturing plant is located at Sialkot-Sambrial road which makes it easy to access to the dry port and air port. 48

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

 Right now, the company is striving to run its marketing programs by using different IT and internet services. (Skype, Social Networking, Internet.etc.)  The company regularly takes part in the national and international exhibitions and trade expos to communicate the potential and interested parties about the company. ( EICMA Moto Show, Italy in November 2011; Dealer Expo, USA in February 2011; INTERMOT, Germany in October 2010  Apart from the catalogues of the company, the company also accommodate any customer advised modifications and specifications.  Company regularly updates its web catalogue after a time period of every six months.  Goodwill and expertise of the owners in the market was the main asset of the enterprise at the time of startup. The company is trying to sustain and reflect this image towards the stake holders through its operations of excellence. 5.2.2 Weaknesses: Different weaknesses of the company with respect to the internal environment of the company are described below.  Currently, the company is facing a lack of ware housing facility for the preservation and drying process of the leather.  International price fluctuations are becoming difficult to manage with the strategic goals of the company.  The operation of the company is having a very bad impact upon the environment of the local surroundings.  Use of different chemicals can be hazardous and employees may get harm in case of any negligence with cutting and stitching machines.  Due to increased economic pressures, it is becoming difficult for the company to provide relational rewards and more facilities for the labor. There is no mess or medical services for employees at NAN &F where as other big competitors such as Leather Field, Silver Star and White Green are providing such facilities to labor.  Currently, the company is having expertise and focusing mainly in making products that are related to bikers only but in the future, it may become difficult for them to maintain and operate if they switch towards fashion ware, dependent upon customer demands.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

 Currently, the company is putting intense focus upon customers and importers abroad and is not properly serving the local market which has much potential. 5.2.3 Opportunities: Different opportunities with respect to external environment of the company are described as followed  The business developmental services, seminars and other such programs under the supervision of SCCI, SMEDA, TDAP and other governing bodies can provide many opportunities for the business to be efficient.  The trade expos and international exhibitions can serve as a platform where company can communicate and promote the potential importers and customers.  The company has an open opportunity to develop and enter new markets, both at domestic and international level.  Different training programs running under supervision of SMEDA and TDAP can be helpful for the company to produce skilled labor. Furthermore, the company has an opportunity to send their skilled labor to Vocational Training Institute Sialkot on order to enhance their skills set.  Company can take help from SMEDA to build their strategy for the establishment of their greater market share at domestic level.  Firm can get financing services at quite flexible and smooth terms from SME Bank and PSIC.  Use of E-commerce and other IT services can help a lot to run and manage the marketing and sales plans of the company at even a higher level.  The growing but changing fashion perceptions and global consciousness throughout the world can serve as a major business opportunity for a leather manufacturing concern. 5.2.4 Threats: Different threats that can be faced by the company with respect to external environment can be pointed as followed.  There is no waste management system working at the company which can act as a major threat for the business in future due to increased awareness of green marketing and environmental preservation issues.  The poor conditions of law and order have degraded most of the business activities in the country.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

 The day by day increasing energy crisis is a major threat to the manufacturing concerns and other economical and business activities of whole of the country.  Yet the business of leather products manufacturing is quite bright in Pakistan, but many of the importers are moving to other countries such as China because of the cheaper rates.  The infrastructure facilities are woefully inadequate in the Sialkot city as like many other parts of the country and hence definitely have a negative impact upon the business of the company.  In these aspects there is intense rivalry among competitor because many companies are trying to chase same customers which can be a major threat for the company in future in case if customers switch.  The increasing inflationary pressures have also decreased the rate of Qurbani in Pakistan, which is a major event upon which most of the animal skins are arranged and processed annually and then take form as the most major component of raw material for this industry.

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

6.0 Web References:  http://www.plgmea.pk/  http://en.wikipedia.org/wiki/Business_cluster  http://www.tdap.gov.pk/pdf/trade_policy_2008_09_speech.pdf  http://www.nanf.pk/  http://oxforddictionaries.com/definition/leather  http://www.scci.com.pk/  http://www.smeda.org/SMEDA-introduction_1.html  http://psic.gov.pk/index.php? option=com_content&view=article&id=80&Itemid=80  http://www.pakistantanners.org/industrial_statistics.html Individuals:

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

7.0 Appendix1 Important Abbreviations Used APLF Asia Pacific Leather Fair CE Conformité Européenne, meaning "European Conformity" CRO Companies Registration office EU European Union EOBI Employees Old Age Benefits Institution. EPBP Export Promotion Bureau Pakistan IT Information Technology NANF Nan and Family PESSI Punjab Employees Social Security Institution PLGMEA Pakistan Leather Garments Manufacturers Exporters Association PSIC Punjab Small Industries Corporation PTA Pakistan Tanners Association PSIC Punjab Small Industries Corporation. SCCI Sialkot Chamber of Commerce and Industry SDPT Sialkot Dry Port Trust SECP Securities and Exchange Commission Pakistan. SIAP Sialkot International Air Port SME Small and Medium Enterprises SMEDA Small and Medium Enterprise Development Authority TDAP Trade Development Authority Pakistan VTIS Vocational Training Institute Sialkot

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Appendix 2

Figure 1

Figure 2

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

Figure3

Ali Raza Naveed 08021220-048 FMAS NAN & F® Enterprises

PAKISTAN TANNERS ASSOCIATION (CENTRAL OFFICE)

FIVE YEARS EXPORT FIGURES FOR LEATHER & LEATHER PRODUCTS (2006-07 TO 2009-10) Value in '000' US Dollar S/n Commodities Unit July-June 2006- July-June 2007- July-June 2008- July-June 2009-2010 o Qty 2007 2008 2009 Qty Val Qty Val Qty Val Qty Val

01. Leather ‘000’ 19,225 356,88 24,257 415,263 19,532 299,494 24,335 341,800 Tanned 4 SQ M 17.12 15.33 14.05 A.U.P per Sq.M 18.56 02. Apparel & ‘000’ 10,176 388,11 13,452 528,154 10,596 392,536 10,620 342,659 Clothing of 5 Pcs. Leather A.U.P per Pcs. 36.26 37.05 32.27 38.14 03. Leather Gloves ‘000’ 23,604 132,58 25,548 161,169 25,980 152,258 20,976 101,893 9 Pair s A.U.P per Pairs 6.31 5.86 4.86 5.62 04. Leather ‘000’ 9,979 97,089 9,809 105,358 9,584 102,884 6,405 67,072 Footwear Pair A.U.P per Pairs s 9.73 10.74 10.73 10.47 05. Leather ‘000’ 1,360 33,477 521 10,177 576 11,974 703 14,080 Manufacturers Kgs N.S. A.U.P per Kg 24.62 19.53 20.79 20.03 Total : 1,008, 959,146 867,504 154

Source: Federal Bureau of Statistics

Ali Raza Naveed 08021220-048 FMAS