Masood's Presentation (Rs) R2
Transcript of Masood's Presentation (Rs) R2
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Pakistan - Cotton TextilesPakistan - Cotton Textiles
4th largest Cotton producer: 9.5 % of the worlds total production4th largest Cotton producer: 9.5 % of the worlds total production
Largest cotton yarn supplier in the world with 38% shareLargest cotton yarn supplier in the world with 38% share
Pakistani yarns in 10s to 30s counts are worlds best due to staplePakistani yarns in 10s to 30s counts are worlds best due to staple
lengthlength
Spinning: Spindles increased from 8.33m to12.82m during 1999-2005Spinning: Spindles increased from 8.33m to12.82m during 1999-2005
$5.0 billion investments in textile machinery in 1999-2005$5.0 billion investments in textile machinery in 1999-2005
750 knitting & 450 medium to large size sewing units with over750 knitting & 450 medium to large size sewing units with over
300,000 stitching machines300,000 stitching machines
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150m population with low SAM cost150m population with low SAM cost
Generates over 62 % of countrys total ExportsGenerates over 62 % of countrys total Exports
Constitutes 46 % of the Manufacturing IndustryConstitutes 46 % of the Manufacturing Industry
Employs 38 % of countrys working populationEmploys 38 % of countrys working population
Contributes 8.5% to the total GDPContributes 8.5% to the total GDP
Pakistan - Cotton TextilesPakistan - Cotton Textiles
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SWITZERLAND
BELGIUM
GERMANY
AUSTRIA
FRANCE
UK
ITALY
JAPAN
CANADA
IRELAND
AUSTRALIA
USA
SPAIN
GREECE
MALTAISRAEL
TAIWAN
S. KOREA
PORTUGAL
HONGKONG
CZECHREP.
S. AFRICA
POLAND
SLOWAKIA
ESTONIA
TURKEY
ARGENTINA
VENEZUELA
BRAZIL
MOROCCO
MEXICO
OMAN
TUNISIACOLOMBIA
PERU
MAURITIUS
BULGARIA
THAILAND
MALAYSIA
EGYPT
CHINACOASTAL
KENYA
INDIA
INDONESIA
CHINAINLAND
SRI LANKA
PAKISTAN
VIETNAM
BANGLADESH
0,00 10,00 20,00 30,00 40,00
US$PEROPERATORHOUR
LABORCOSTINTHETEXTILEINDUSTRYWINTER2004/05
Major Driver is LABOUR COST
&
Pakistan is the 3rd lowest wage country
Labor Cost in Textile IndustryLabor Cost in Textile Industry
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Masood IntroductionMasood Introduction
The company was incorporated on the 3rd ofThe company was incorporated on the 3rd of
October, 1984 as a Public company and was listedOctober, 1984 as a Public company and was listed
on Karachi and Lahore Stock Exchanges during theon Karachi and Lahore Stock Exchanges during the
financial year 1988 and now listed on all Stockfinancial year 1988 and now listed on all Stock
Exchanges in Pakistan. The company is engaged inExchanges in Pakistan. The company is engaged in
the following manufacturing activities;the following manufacturing activities;
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Vertically Integrated Operations
Fabric Knitting
Fabric Processing
Apparel Manufacturing
Yarn Manufacturing
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Textile PlantTextile Plant Sewing PlantSewing Plant
Masood Textile Mills LtdMasood Textile Mills Ltd
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Spinning Division of Masood Textilesis capable of producing 22,000 lbs.of carded and 8,000 lbs. of combedRing spun yarn every day (based on20/s count). The division, equippedwith most modern machinery from
Japan, England and Switzerland,produces a vast range of yarn countsfrom 10/s to 40/s. To ensureconsistent quality, spinninglaboratory has been equipped withlatest and most modern testingequipment. 40% of yarn production is
exported to Hong Kong, Japan,Korea, Malaysia and Thailand. Therest of capacity is used for in-houseproduction of fabric, convertedsubsequently into apparel.
SpinningSpinning
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Knitting Department machinescapable of making Jersey, Pique,Fleece, Interlock and Rib in additionto the mini jacquard designs of singleknit jersey. The gauge ranges from 9to 28 for single knit, 18 to 24 forInterlock and 15 for Rib machines.
Most of the machines are equippedwith Lycra attachment. Masood hasadded striper machines forproducing feed, auto and engineeredstripe jersey, PQ fabrics.Moreover, it has flat bed machinesfor non-roll collar and armband
making. 100% production isinspected and only A grade fabric istransferred to the subsequentoperations. Masood has a dailyknitting capacity of 60,000 kg, with atotal of 290 Machines.
KnittingKnitting
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The Processing Department has an installed capacity of dyeing 400 Tons per week. Equippedwith These dyeing machines from Germany, it is capable of dyeing both cotton and Poly-cottonblended fabrics. The machine size selection provides flexibility in dye lot size ranging from 100Kg's to 1,000 Kgs. Processing is equipped with Santex finishing lines from Switzerland includinghydro extractors, dryers and compactors for tubular as well as open width fabrics. Moreoverstate of the art sue ding equipment with Nylon Brushing Technology makes Masood capable ofproducing emasculate and delicate knit fabrics. German Technology Monfort stenter and Corinoslitting machines are the latest addition to processing department.
Dyeing/FinishingDyeing/Finishing
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With over 2,500 stitching machines,manned with the most skilled andexpert operators, Masood is capableof producing about 400,000 dozensper month versatile garments rangingfrom basic to high fashion, mens,
womens and kids with maximumflexibility in size and colorassortments. All the garments are cuton fully automated Gerber cutters.The Quality control and QualityAssurance departments are in placeto make sure the companys objectiveof zero defect. Computerized Barcoding and Back Track systemsprovide Masood 100% predictabilityand tracking performance.
GarmentsGarments
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YEAR RUPEES
2002 90.000
2003 477.000
2004 601.000
2005
(9 Months)
298.000
2006 741.373
2007
(6 Months)
310.342
Fixed AssetsRs in Millions
0
100
200
300
400
500
600
700
800
2002 2003 2004 2005 2006 2007
InvestmentsInvestments
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Total AssetsTotal Assets
YEARYEAR RUPEESRUPEES
2002 1,833.191
2003 3,587.810
2004 4,370.972
2005 5,859.090
2006 6,519.292
2007 7,351.811
Rs in Millions
0
1000
2000
3000
4000
5000
6000
7000
8000
2002 2003 2004 2005 2006 2007
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YEAR RUPEES
2002 1,569.000
2003 2,950.000
2004 3,212.000
2005(9 Months)
3,086.000
4,115.000
2006 4,782.000
2007(9 Months)
4,173.000
5,564.000
ExportsRs in Millions
0
1000
2000
3000
4000
5000
6000
2002 2003 2004 2005 2006 2007
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YEAR $ M
2002 26.15
2003 49.17
2004 53.53
2005(9 Months)
51.43
68.58
2006 79.70
2007(9 Months)
69.55
94.78
Exports$ in Millions
0
20
40
60
80
100
2002 2003 2004 2005 2006 2007
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2126
35
4953.53
68.58
79.7
94.78
132
158
196
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Growth TargetGrowth Target
TurnoverUS $ in Millions`
9-11
Projections
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YEAR RUPEES
2002 405.011
2003 592.392
2004 626.322
2005 762.720
2006 889.9862007 1,009.200
ProfitRs in Millions
0
200
400
600
800
1,000
1,200
2002 2003 2004 2005 2006 2007
Nine months data for year 2005 and 2007 annualizedNine months data for year 2005 and 2007 annualized
Gross ProfitGross Profit
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EmployeesIn Number
35203950
8057
8775
10180
12225
2001 2002 2003 2004 2005 2006
Employment GeneratedEmployment Generated
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Key CustomersKey Customers
http://www.nautica.com/ -
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Quality & Performance AwardsQuality & Performance Awards
Our performance and quality standards are evident from the achievement offollowing awards:
Outstanding Partnership Award for the Year 2001-2002 - JCPenney
Quality Recognition Award for the Year 2001 Russell Corp
Best Supplier of the Region for the Year 2001-2002 - JCPenney
Operational Excellence Award for the Year 2002 - JCPenney
Best Quality Award for the Year 2002 - JCPenney
Operational Excellence Award for the Year 2004 - JCPenney
Best Supplier Award for the Year 2005 JCPenney
Divisional Quality Award for the Year 2005 - JCPenneyBest Start Up Supplier for Year 2005 - Fruit of the Loom
Accuracy in Communication, Coordination and Execution Award for Year 2006 - Fruit of the Loom
Best Compliance Award for the Year 2006 - Fruit of the Loom
Supplier of the Year 2006 - JCPenney
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JC PenneysJC Penneys
"Operational Excellence Award for 2002"."Operational Excellence Award for 2002".
GLOBAL EXCELLENCE AWARDSGLOBAL EXCELLENCE AWARDS
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JC Penneys "The best supplier of the region award 2001-2002".JC Penneys "The best supplier of the region award 2001-2002".
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JCPenney s "Best Quality Award for 2002"JCPenney s "Best Quality Award for 2002"
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Fruit of the Loom s "Best Start up Supplier Award for 2005"Fruit of the Loom s "Best Start up Supplier Award for 2005"
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JC Penneys "Operational Excellence Award for 2004".JC Penneys "Operational Excellence Award for 2004".
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Best Compliance Supplier - 2006Best Compliance Supplier - 2006
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Accuracy of Information Communication and Execution - 2006Accuracy of Information Communication and Execution - 2006
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MTM "Purchasing Partnership Award JC PenneyMTM "Purchasing Partnership Award JC Penney
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YEAR Break-upValue
Market Value
2002 10.94 8.50
2003 21.54 22.05
2004 24.20 22.90
2005 27.22 37.75
2006 30.55 24.65
2007 31.07 24.40
Rs Per Share
0
5
10
15
20
25
30
35
40
2002 2003 2004 2005 2006 2007
Market Price Break-up Value
Share PricesShare Prices
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Financial ResultsFinancial Results
Following table shows excellent growth in turnover, improving gross profit,Following table shows excellent growth in turnover, improving gross profit,
operating profit and net profit of the company. This achievement has been madeoperating profit and net profit of the company. This achievement has been made
due to managements strategy to move towards value addition, injection of fundsdue to managements strategy to move towards value addition, injection of funds
by the sponsors for BMR, marketing efforts to bring top class companies intoby the sponsors for BMR, marketing efforts to bring top class companies into
Pakistan.Pakistan.
Description 2002 2003 2004 2005 (9Months)
2006 2007
(9 Months)
Sales 1,642.469 3,008.333 3.354.442 3,163.252 4,899.190 4,172.272
Goss Profit 405.011 592.392 626.322 572.058 889.986 756.907
Administrative/sellingexpenses
212.639 352.779 355.677 281.952 383.500 285.339
Operating Profit 194.192 241.882 273.121 291.923 509.264 473.838
Financial Charges 87.680 125.238 161.634 161.763 335.266 309.631
Net profit before taxation 106.512 116.644 111.487 130.160 173.998 164.207
(Rupees in Million)