Professional Documents
Culture Documents
I am dedicating this research work to my honorable teacher Sir Gulzar khan and my
respectable parents who are the source of financial and moral support to me.
Acknowledgement
I am grateful to Almighty Allah, who granted success in my worn. Due to his blessings, i
have been able to do my work successfully. I express my deep gratitude to my supervisor
Sir Gulzar khan valuable suggestions, positive criticism and proper guidance. It would
have been almost impossible for me to accomplish this task successfully without his
help.I reserve my most cherished words of gratitude for my parents whose prayer gave
me passion and courage during my whole life
OUTLINE
• Introduction
• Historical Background
• Industry Profile
• Division of Units
• Percentage of Production
• Variety of Products
• Raw Material
• Exports
• Projection
• Regression Equation
• Conclusion
INTRODUCTION
Fan is a daily use item. Its utility increases, especially in the summer season. The industry
is producing about 5 to 6 millions fans per annum and meeting successfully the local as
well as export demand. Out of the total production, approximately 30 percent fans consist
of pedestals, 7 percent consist of brackets and remaining 63 percent are ceiling fans. The
industry belongs to light engineering industry category, and is one of the industries that
existed at the time of independence. In the early 1950s it was declared as cottage industry
and its more than 50 percent units still fall in this category.
Fan industry is mainly confined to Gujranwala and Gujrat, cities of Punjab province of
Pakistan. The reason for its remaining a cottage industry is that majority of the units does
not have full facilities of production under one roof. They usually give offers to the units
having machines for different parts like fan guard, blade castings, core lamination etc.
These units have lathes, shapers, milling machines, and power pressers, die casting
machines and electroplating equipments. Therefore, most of the units are simply
assembling units. Thus, they do not give brand names to their products. Besides small
and medium units, a few units are quite large and have integrated system i.e. from motor
winding to high-pressure dies castings. These companies have reputed brands names and
the qualities of their products are of international level. The units are the main players in
export field.
The industry is producing a variety of products indifferent sizes and designs. The major
products are: Ceiling, Pedestals, Table, Table-Cum-Pedestal Fans, Circumatic Fans, Wall
Bracket, Exhaust Fans And Propellers. The industry supplies quality products to the local
markets, whether branded or unbranded, at competitive prices. About 400 units have a
production capacity of 5 to 6 million fans, on single shift basis. The production is equal to
demand, including a nominal quantity of exports. The actual production has remained
about 2.5 million fans per annum, showing a 50 percent idle capacity. The demand for
fan is continuously increasing due to increase in population and speedy migration
towards a big cities, and exports. The other factor is that during the last few years, local
demand for quality products is increasing fast as compared to low price goods. This
means people are becoming quality conscious.
Industry Profile 2005-2006
Total capital
Rs. 5 Billion Rs. 3-3.5 billion
investment
7 million Fan / 5-6 Million Fans /
Installed Capacity
year year
Current Capacity
80% 50%
utilization
5.6 million 2.5-3 Million
Total Production
Fan / year Fans/year
Direct Employment 30,000 people
25,000
Indirect Employment 40,000 people
Rs. 2.25-2.7
Annual Revenue Rs. 5.25 Billion
billion
US $16.66
Exports ( 2005-06 ) US $ 3.89 Million
Million
Imports (US $
0.16 -
Million )
GDP Contribution - Rs. 1.5 billion
DIVISION OF UNITS:
LARGE SCALE UNITS
UNITS 8
EMPLOYMENT 200-300
PRODUCTION 60,000-250,000
EMPLOYMENT 60-80
PRODUCTION 20,000-60,000
EMPLOYMENT 20-25
PRODUCTION 2,000-10,000
VENDORS
UNITS 1000
EMPLOYMENT 5-20
INTRODUCTION OF COMPANIES
Mission
To enhance its reputation its reputation for quality in all its operation, providing a better
quality product to the customers and make their satisfaction through which to maximize
the business profit.
Company profile
Wahid Industry was setup in Gujrat as a modest manufacturing unit in 1936. It started its
operation with the manufacturing of light engineering and utility goods. In 1945, for the
first time in this region, the company embarked on the manufacturing of electric fans. It
is a pioneering achievement of Mr. Abdul Wahid, the founder and lifetime chairman of
the company. He simply took it as a challenge, undeterred by the attendant initial
difficulties. His determined efforts were finally crowned with success. The project not
only tool off under his dynamic policies but also register a phase of rapid growth and
expansion, capturing a major share in the country’s markets. Thanks to the founder
Presidents dictum, “no compromise on quality”, Pak fan today is not only synonymous
with top quality fans but also an identified symbol for Wahid industries. Towards making
Wahid industries limited, a self-reliant concern a modern automatic Japanese plant was
installed in 1981. At this plant, we manufactured international quality enameled copper
wire and marked under the brand name if Pak Super. This brand has taken a major share
in local market. So the company is adopting those methods of production and quality
control, which conform to meet international standards.
The company has now its own facilities for accurate testing on the most modern and
sensitive testing equipment. Every product is subjected to the most rigid test and eaves
the factory only when it is finally “passed” by the experts. True to the company’s
progressive business philosophy. Mian Ehsanullah, the director and son of founder
president Mr. Abdul Wahid, is always on the look out for the world’s latest technologies
to adopt and assimilate in the production of Pak fan. His father motto, “no compromise
no quality” is a creed for Mian Ehsanullah, which he adheres to most strictly. To live up
to its progressive image the company keeps itself a breast of the latest technological
developments around the world and this enables the company to continually introduce
ever-new concepts in electric fans. The remote controlled and louver fans are quite recent
examples. As a result of its innovative excellence and ever evolving technological
processes, Pak fan remain the number choice- both at home and abroad, including the
Middle East. In year 1999-2000 Pak fan achieved the highest international quality award
ISO 9002 certified company. Pak fan also won the FPCCI trophy 1999-2000 and now
Pak fan is the largest exporter and manufacturer and electric fans of Pakistan. Towards its
role as a deposable corporate citizen, Wahid industries keeps on and encouraging and
contributing to social uplift programs. The company runs a modern hospital named
“Wahid Trust Hospital” equipped with the latest facilities and leading medical
practitioners.
Future Planning
PAK FAN is very eager to improve its business activities, so far more improvement of
quality assurance. In near future organization is interested in increasing its business area
and wants to capture more market that it already has but not fully captured. This is why
the management is keen to introduce the new iron under the name of Pak Iron Industry.
Five decades now MILLAT has undoubtedly been a household name when it comes to
the premier quality fans, thus making it the technology of this century. The third
generation is now relishing the superb quality of its products after the two cherished it in
their lifetime. The company came into operation in 1947 and became the pioneer
company in manufacturing of fans. Initially the company started at a small manufacturing
facility in the heart of Karachi at Lawrence Road. Due to its commitment to superior
quality and innovative designs, Millat quickly became the market leader among the breed
of brands. With increase in customer demand the company moved from Lawrence Road
to its premises in site in 1960’s. From then on the company enjoyed a healthy market
share and remained on the path of success due to its through commitment in producing
quality products. With this addition of products, HM Esmail & Co now has a variety of
electrical products to offer. The management of HM Esmail & Co has added same new
designs in the areas of ceilings, bracket and ventilation fans along with the existing range
including the everlasting ceiling, table, pedestal, wall and bracket fans and a full range of
plastic models with innovative and elegant designs.
Exports
Although fans exports have great potential, their exports are negligible. In 1992-93, only
two hundred thousand fans were exported to only two countries, Iraq and Yemen. But
now the industry is exporting fans to more than countries. The figures given in table-I
indicate that although the exports of ceiling fan increased from RS 134 thousand to 209
million rupees, the trade is fluctuating a great deal. As against ceiling fans, the increase is
pedestal fan export is quite stable i.e., continuously rising.
Pakistan has also started exporting parts of fans. During the last four years, as shown in
table II, the amount earned from export rose from RS 4.2 million to RS 107 million in
1998-01, but decreased to about fifty percent the very next year, 2001-02. However, in
spite of big fluctuations, it is believed that if some bottlenecks are removed there is a big
scope for enhancing the exports of fans.
The situation is that from very the beginning, the government has not given any
incentives to encourage fan industries., whatever progress the industry made, it has made
on its own resources, and is due to its dedicated and hard working manufacturers and
laborers. In spite of lack of proper training the industry ha innovated and uplifted the
standard to the level where its products can compete in the world markets.
The main constraints hindering the growth of industry as well as export are:
Ball bearing is an important part that ensures smooth running and noiseless working of an
electric fan. Fan manufacturers are now importing this item because of smuggled ball
bearings local units are not producing quality products. Thus, anti-smuggling measures
should be taken to save the local industry, which in turn would ensure regular supply of
ball bearing to fan industry at reasonable prices. In the meantime, the import duty on ball
bearings should be rationalized.
Like ball bearings, Electric Steel Sheet (ESS) is also a major item in fan manufacturing.
It determines the quality, performance, durability and electric consumptions of a fan.
However, due to ESS shortage and high prices, fan manufacturers are using Mild Steel
Sheet (MSS). The motors manufactured from this material are not good quality and use
more electricity.
Prices of raw material are a major constraint in export. For instance, in some cases C & F
prices of raw material in Pakistan are greater than C & F price of fans from India.
Therefore, if the government really wants sot increases export of fan, custom duties on
raw material should lowered to a reasonable level. There is an urgent need to establish a
research department for innovation and to improve designs of fans according to the
requirements of international buyers. Pakistan Standard Institute’s (PSI) procedure should
be simplified and the latest technical laboratory should be set-up to test the fans. The PSI
should establish its testing laboratory in the area where industry exists and test fans on
two standards i.e., at local and international. The test reports should be given in a specific
period. Further, an institute of labor training should immediately be established with the
help of PEFM Association. The other measures to enhance the exports include organizing
seminars, doing surveys of the foreign markets that would give the idea of how to export,
where to export and what to export.
Export of fans
Years Ceiling Pedestal
(000 RS)
1998-99 1341289
1999-00 817621826
2000-2001 1863615137
2001-2002 255232432
2002-2003 1568966370
2003-2004 5925161554
2004-2005 208963183613
2001-2002 4.2
2002-2003 16.6
2003-2004 109.7
2004-2005 67.9
60% 48%
50% 44%
40% O th e r F a n
25%
% age
30%
14% 19% 17% 16% F a n u n d e r 125 W a tt
20% 17%
10%
0%
UAE
OTHERS
SAUDI ARAB
BANGLADESH
COUNTRY SHARES
PAKISTAN 0.02%
FRANCE 2%
NETHERLAND 3%
SWEEDEN 3%
KOREA 1%
CANADA 5%
UK 4%
ITALY 9%
USA 14%
JAPAN 19%
GERMANY 33%
TAIWAN 7%
COUNTRY SHARES
PAKISTAN 0.1%
SINGAPORE 1%
UK 1%
TAIWAN 20%
CHINA 44%
THAILAND 6%
GERMANY 5%
USA 3%
ITALY 2%
SPAIN 2%
JAPAN 2%
OTHER 13%
World Vs Pakistan Export of Fans:
PAKISTAN 16 17
USA 64 46
MALAYSIA 48 30
INDIA 40 16
CHINA 38 5
70
60 64
50 48 Other Fan
46
40 40
US $
38
30 16 30 Fan under 125 Watt
20 17 16 (US $)
10
5
0
USA
MALAYSIA
INDIA
CHINA
PAKISTAN
PROJECTION:
years Installed capacity (000) Steel consumption production (000)
(000)
1970 234 543.7 123
1971 233 566.2 233
1973 243 577.33 122
1974 245 599.2 147
1975 241 588 198
1976 153 689.23 189
1977 244 683.3 233
1978 265 776.3 267
1979 277 568.9 248
1980 388 889.23 289
1981 355 992.5 288
1982 399 776.6 277
1983 389 778 345
1984 387 669.23 498
1985 243 667.34 377
1986 265 889.56 398
1987 345 998.4 478
1988 365 998.56 498
1989 345 889.45 477
1990 345 1,073.90 566
1991 456 1,048.10 567
1992 489 1,098.20 667
1993 478 1,252.70 445
1994 477 1,044.70 445
1995 566 1,002.20 668
1996 546 1,068.60 776
1997 534 1,015.80 786
1998 576 989.3 546
1999 588 1,106.50 456
2000 678 1,071.20 345
2001 889 1,042.90 665
2002 8879 1,140.20 545
2003 88889 1,180.00 765
2004 99987 1,137.20 457
2006 70000 768 765
2007 78999 1,008.80 587
Dependent Variable: P
Method: Least Squares
Date: 05/18/10 Time: 20:34
Sample(adjusted): 1970 2005
Included observations: 36 after adjusting endpoints
Variable Coefficient Std. Error t-Statistic Prob.
C 115.80201730 106.165001703 - 0.28327298
1.09077394097 6687
Y=production
A=installed capacity
B=consumption of iron
CONCLUSION:
According to my expectation both a and b are positive and significant.this shows that the
production depends upon the installed capacity and the availibity of steel and they greatly
effect the production.
REFRENCES
• www.royalfans.com
• www.gfcfans.com
• www.wahid-industries.com
• www.millatfans.com
• www.bizreport.com
• www.businesweek.com
• http://www.alibaba.com/trade/search?CatId=618&OfferType=SALE
%2CAGENT
%2CMISC&IndexArea=company_en&Country=PK&CompanyType=&Search
Text=Fan
• http://www.statpak.gov.pk/depts/fbs/statistics/manufacturing_industry/cmi
_2001.html
• www.alibaba.com/countrysearch/PK/fan.html
• www.goldenstarfans.com/
• www.gcu.edu.pk/Forms/.../Pak%20India%20Trade%20Summary.pdf
• www.digitalfans.biz/pages/brands_detail.php?pdid=8&pid...