INTRODUCTION

This paper covers the different industries in manufacturing sector of Pakistan with respect to
feasibility for revenue generating. These industries include Bicycle Industry, Woolen Textile
Industry, Steel Re-rolling Industry, Diesel Engine Oil Industry and Flour Mill Industry of
Pakistan.
 Table of Contents

Findings and Analysis............................................................................................................3

Problem faced by Industry ....................................................................................................3
Problem faced by Industry ....................................................................................................5
Recommendation....................................................................................................................6
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Findings and Analysis

In this section, we will review all the industries in brief. A brief overview of the industries and
how they are involved in Manufacturing.

Bicycle Industry

Overview
In Pakistan bicycles are the only cheaper means of transportation for the local public. Bicycle
industry in Pakistan has a significant background in the history of Pakistan. There was no
single factory which manufactured bicycles and their spare parts at the time of independence
in Pakistan. Pakistan cycle industry ranked at the lower level if it compare with the remaining
world.. There is significant number of major players of bicycle in Pakistan but one of them has
captured the maximum number of market share and created a monopolistic environment in
the bicycle industry. Today almost 98% bicycles spare parts are being manufactured in
Pakistan or through vendors.
The capacity of the Pakistani bicycle industry is to produce 1.45 million bicycles per annum.

Problem faced by Industry

Currently, the industry has been facing many problems, some of which are:
• Pakistan Bicycle market is struggling to establish itself due to smuggled bicycles
coming from China and India,
• high raw material utility prices
• There is one major player in the market, so market structure is Monopolistic, due to
which entry is quite difficult
• The unstable political system and terrorist activities are creating hurdle for this
industry
• Presence of High level Union labours, which affects the productivity of the industry.
• Workers who are working in this industry are non engineering background.

• The level of the technology which is being used in the manufacturing of the bicycles is
basically not up to date and most of the machinery is old enough not to operate well.
• The government policies for the light engineering industry are not much familiar and
most of the time policies don’t have the incentives for the particular industry.

Steel Re-rolling Industry

The steel re-rolling facility involves the production of deformed, TOR and plain steel bars by
hot rolling process. Billets of sizes: 75-75mm, 100-100mm and 125-125mm are rolled here.
Square billets are preferred. There's no need of creating special atmosphere in the furnace.
Special atmospheres are only needed when sensitive processes like annealing or normalizing
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are carried out. There are two rolling mills: a 12" mill and an 8" mill. Final dimensions of the
bar range from 20-40mm for 12" rolling mill and 10-16mm for 8' mill.
Problems faced by the industry
The steel re-rolling industry of the country is in deep crisis, as the re-rolling mills are being run
on as low as 40 percent production capacity against the normal 80-90 percent, the sale of
steel products have plummeted.

• Old and out of date machinery of Pakistan Steel that requires renovation and
improvement.

• Main raw materials i.e. Steel scrap, fluxes, Ferro alloys and coke, MS billets,
steel ingots and other steel scrap form the main raw material for steel re-
rolling mills, obtained from Pakistan Steel Mill Karachi and other steel
smelters all over the Pakistan. Raw materials are being imported from
Canada and Australia, which are far away, involving huge freight charges.
Other major countries are South Africa, South America and Europe.
• Technology used is out of date.

• Electricity and Gas prices have risen too much, and also there is a great
crisis of both Electricity as well as Gas:
• Steel melting industries are contributing heavily to air pollution.

WOOLEN TEXTILE INDUSTRY

The Pakistan Textile Engineering Sector is underdeveloped and under utilized. Mostly it
caters in the form of spares, components for modernization and machines used in cottage or
small scale industries. On the basis of initial survey of Textile Engineering Units (Not
complete yet), approximately 500 units are engaged all over Pakistan, employing
approximately 50000 work force which is mostly skilled. Even under the present conditions
and without any support, Pakistan Textile Engineering Industry is providing import substitution
worth around one billion US dollars.
Woolen Industry
The main products manufactured by the Woolen Industry are Woolen Yarn of 6.864 M.kgs,
Acrylic yarn 6.960 M. kgs, Fabrics 3,
Wool is available is large quantity in Pakistan, but is not of high quality and as such, high
quality woolen textiles can not be made from it. Most of our wool is used in carpet industry.
The major woollen textile centres in Pakistan are at Karachi, arnai and Lawerence Pur near
Rawalpindi. Woollen yarn blankets and woollen cloth are also manufactured in mills at
Rawalpindi, Lahore, Quaidabad and Gujranwala.

Problems faced by the Textile Industry:

• The textile sector faced a decline in its growth due to severe energy crises
specifically, value added sector in the country felt the burden of 100 basis point
increase in EFS rate from 8.5% to 9.5%, besides a rise in energy tariffs.
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• Current situation of the country regarding availability of Electricity and Gas is worse
and getting more worse which has adversely affected the industry.
• Increase in Yarn Prices

• Increase in Minimum Wage from 6000 to 7000

• Double freight for Punjab & Khyber Pakhtunkhwa textile mills

• Lack of transportation facilities
• Tariffs & trade agreements

Flour Mill Industry

Wheat and flour being the essential and sensational commodities which are in use of both
rich and poor alike without any cast or creed. Currently here are 1,200 industries with the
grinding capacity of 3.6 million tonnes to 4 million tonnes annually.

Problem faced by Industry

Currently main issues faced by the Flour Mills Industry are

• Increase in the Wheat Prices
• Increase in Minimum Wage
• Electricity Crisis

• Increase in Interest Rates by banks

• Smuggling of wheat to other countries especially Afghanistan

DIESEL OIL ENGINE INDUSTRY

Diesel Oil Engine Industry has grown at a rapid pace in Pakistan during the last few years.
Pakistan is the country which is based on Agriculture. Due to inefficient management of water
system, water problem has arisen in the country. To cope up with the condition, Diesel Oil
Engines were introduced which were used to get water from the underground.

Problems faced by the Diesel Oil Engine Industry:

Like other industries in Pakistan, Diesel Oil Engine Industry is also facing many problems,
some of which are:

• Unavailability of Skilled Labour

• Lack of the state of the art technology

• High prices of the Petroleum products

• Lack of government support policies

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Recommendation

We are recommended that our diesel engine industry has rapid growth as compared to other
industries. Though the water system is very good but bas management has deteriorated the
system. Mostly famers have to use Diesel Oil engines to water the fields. Electricity has
affected the industry also, to cop up with the situation and meet the deadlines, the business
firms also have to use Diesel Oil Engines to run their units. On the other hand our other
industries like bicycle industry, steel Re rolling industry, woollen textile industry, and floor mills
industry are in great crisis due to the Electricity, Gas problem, law and order situation.

Conclusions
We conclude that our diesel engine oil industry is ideal to generate more revenue as compare
to other industry like bicycle industry, steel Re rolling industry, woollen textile industry and
floor mills industry. And business firms also have to use diesel engines to run their
businesses.

Executive summary
Bicycle industry had glorious past. But now this industry faced many problems like smuggled
bicycle from other country, high raw material prices, presence of high labour union, unskilled
worker, lack of technology has greatly affected its production and revenue.
Steel Re rolling industry faced deep crisis. Its production rate only 40% but it maximum plant
capacity 80% to 90%.
Woollen industry is undeveloping industry in Pakistan but its revenue in past play great roll in
economy sector. But now last five years this industry faced very serious crisis because rate of
cotton increase 2000 to 6600 Pak rupee. Gas and electricity crisis shut down this industry
badly. Labour rate increase but its production rate decrease that is why per unit cost increase.
Flour mills industry play very important roll in agriculture sector but now this industry faces
many problems like wheat prices increase, electricity crisis affected this industry, increase
bank interest rate and smuggled wheat other country.
But now today diesel engine oil industry generate more revenue as compare to other industry
and it plays important role in agriculture sector.
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Bibliographies & References

http://www.smeda.org/

http://www.scribd.com

www.fpcci.com.pk

www.steelmelters.com/pakistan.htm

www.aptma.org.pk

http://www.kamengine.com.pk/right.html

Economic survey of Pakistan 2009-10

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Definition of key words

1. Monopolistic
Monopoly exists when a specific individual or an enterprise has sufficient control over a
particular product or service.
2. Rolling process
In metalworking rolling is a metal forming process in which metal stock is passed through
a pair of rolls.
3. Billet
The freshly made steel, which is still in the form of a metal bar or rectangle, is called steel
billet.
4. Annealing
Annealing is a heat treatment wherein a material is altered, causing changes in its
properties such as strength and hardness
5. Normalizing
Carbon steel is heated or 1 hour; this assures the steel completely transforms to
austenite. This results in a fine paralytic structure, and a more-uniform structure.
Normalized steel has a higher strength than annealed steel; it has a relatively high
strength and ductility.
6. Ferroalloys
Refers to various alloys of iron with a high proportion of one or more other element,
manganese or silicon. It is used in the production of steels and alloys as a raw
material
7. Fluxes
A flux is a chemical cleaning agent that facilitates soldering, brazing, and welding by
removing oxidation from the metals to be joined.
8. Yarn
Yarn is a long continuous length of interlocked fibers, suitable for use in the
production of textiles, weaving and embroidery rope making.
9. Smuggling
Smuggling is the transportation of goods or persons past a point where prohibited,
such as out of a building, or across an international order, in violation of applicable
laws.
10. Freight
Freight is goods or produce transported, generally for commercial gain, by ship,
aircraft, train, van or truck.
.