2DISCLAIMERThe present information package (the "Information Package") is being furnished for use by recipient in considering a transaction in relation to the Business. Distribution of this document should be limited to specific qualified persons within recipient’s organization who will further discuss the package with Kohinoor.By accepting this Information Package, the recipient agrees to keep confidential, the information contained herein or made available in connection with any investigation of the Company. Without limiting the foregoing, the recipient acknowledges and agrees that:Kohinoor will not be subject to any liability based on the information contained in the Information Package, errors therein or omissions there from,the recipient will not copy, reproduce or distribute to any third party this Information Package, in whole or in part, other than in accordance with the written permission obtained by the recipient from the Kohinoorif either the recipient or Kohinoor elects not to pursue this matter, the recipient will return to Kohinoor this Information Package and any other material relating to the Kohinoor Business that the recipient may have received from the Company, without retaining any copies thereof;the recipient undertakes to keep secret the planned transaction and the fact that he is or has been involved, or is no longer involved in reviewing information concerning the Business; andany proposed actions by the recipient which are inconsistent in any manner with the foregoing will require the prior written consent of Kohinoor.
3TABLE OF CONTENTS DIVISIONAL PROFILE PAKISTAN ADVANTAGE KOHINOOR WEAVINGKOHINOOR DYEINGKOHINOOR APPARELKOHINOOR GENERTEKPAKISTAN ADVANTAGECOTTONPAKISTAN AS A TEXTILE EXPORTERPAKISTAN AS A TEXTILE EXPORTER TO USTEXTILE IS A MAJOR INDUSTRY OF PAKISTANKOHINOOR SRENGTHABOUT KOHINOORWE WORK WITHKOHINOOR MANFACTURING OPREATIONSKOHINOOR STRENGTHINFRA STRUCTUREMACHINERY & EQUIPMENTPROFESSIONAL MANAGEMENTHRM & COMPLIANCEQUALITY MANAGEMENT SYSTEMSERP SYSTEMS
4PAKISTAN ADVANTAGE COTTON Pakistan is one of the ancient homes of cultivated cotton, and a leading exporter of yarn in the world.Cotton is not only an export-earning crop but also provides raw material to local textile industry. A huge investment in the form of over 1000 ginning factories, over 400 textile mills heavily depends upon cotton.Pakistani coarse count cotton yarns are most competitively priced and are being exported world wide including China.Coarser count yarn is the primary raw material for sports socks, apparel fabric & garments making the final product from Pakistan very competitive.
5PAKISTAN ADVANTAGE PAKISTAN AS A TEXTILE EXPORTER Fourth largest producer of Cotton in the world.Sixth largest exporter of category 347 (Cotton Trousers) to US with a market share of 5% of quantity shipped valuing US $ 206 million till NovNinth largest exporter of category 12 (Cotton Fabric) to US with a market share of 3% of quantity shipped valuing US $ 150 million till NovEighth largest exporter of total textile products to US with exports of US$ 2,940 million till Nov(Source:
6PAKISTAN ADVANTAGE PAKISTAN AS A TEXTILE EXPORTER TO US: CATEGORYDESCRIPTIONVALUE MILLION $ USTILL Nov-2007VALUE BASED RATINGVOLUME BASED RATINGVOLUME BASED MARKET SHARE%361COTTON SHEETS376.322136%32COTTON NON-APPAREL PRODUCT138.9327%347MEN'S & BOYS COTTON TROUSERS/SHORTS205.6465%11YARN EXPORTS57.0486%12COTTON FABRIC150.901093%Pakistan is the fourth largest producer of Cotton in the world.(Source:
7PAKISTAN ADVANTAGE TEXTILE IS MAJOR INDUSTRY OF PAKISTAN: it imparts 46% share in the manufacturing sector;contributes 66% of total exports;provides 38% of total employment;and have 30% share in GDP.The availability of one of the top quality cotton in Pakistan, a cheap & efficient workforce and investment in the sector over the past few years, will give Pakistan competitive edge in the new trade regime, despite strong competition from China and India.Pakistan’s textile sector has been steadily gearing up, with over $5 billion invested since year 2000 under its Balancing, Modernization & Replacement program.Recent appreciation of the Indian Rupee & Chinese Yuan against the US Dollar coupled with slight devaluation of Pak Rupee will give our Export sector a competitive edge over India & China.The reduction of export rebates & significant increase in wages have made the Chinese products more expensive. Consequently some brands have reduced their business volumes in China & are sourcing now from Pakistan.(Source:
8ABOUT KOHINOOR Kohinoor is involved in Textile business since 1949. Publicly listed on all stock exchanges of Pakistan.Leading business organization.Textile operations include socks manufacturing, weaving, fabric dyeing and apparel production.Annual Sales around US$ 130 million.Employing over 4,300 work force.
11Satisfied Business Goals KOHINOOR STRENGTHInputsConversion ProcessOutputsSatisfied Business GoalsExcellentInfrastructureState ofthe ArtEquipmentShort-TermProfitLong-TermIncreasedMarketShareProduct andServicesProfessionalManagementCapabilitiesCompetitiveAdvantageHRMComplianceValueQMSERP Systems
12KOHINOOR STRENGTH EXCELLENT INFRASTRUCTURE: Kohinoor has planned infrastructure and buildings available which have been designed to take the current capacity to the next levels.LANDACREOCCUPIED IN FACTORY BUILDINGS, RESIDENTIAL BUILDING, ROADS AND GREEN BELTS62UNOCCUPIED AVAILABLE FOR FUTURE EXPANSION48TOTAL LAND110BUILDINGSFACTORY BUILDINGSQFTRESIDENTIAL BUILDINGTOTALHOSIERY301,665189,090490,755WEAVING285,606140,339425,945DYEING244,54330,642275,185APPAREL146,808-GENERTEK71,56013,98285,542TOTAL AREA1,050,182374,0531,424,235
13KOHINOOR STRENGTH STATE OF THE ART EQUIPMENT: Kohinoor has modern machinery and equipment. We can expand capacity on the need of our strategic business partners, within a reasonable period of time.The detail of machinery and equipment is given later in the presentation.
14CHIEF EXECUTIVE OFFICER KOHINOOR STRENGTHPROFESSIONAL MANAGEMENT:CHIEF EXECUTIVE OFFICERMANAGINGDIRECTORHOSIERYGENERALMANAGERWEAVINGDYEINGMANGERAPPARELGENERTEKCHIEFFINANCIALOFFICERGENERAL MANAGERHUMAN RESOURCEINFORMATIONTECHNOLOGYINTERNALAUDITORKohinoor has professional staff as well as trained labor which are successfully running the current operations and can also take this to the next level.
15KOHINOOR WEAVING ORGANOGRAM : GENERAL MANAGER WEAVING HUMAN RESOURCE INFORMATIONTECHNOLOGYFINANCEMARKETINGPROCUREMENTQUALITYASSURANCEENGINEERINGPRODUCTIONPRODUCTDEVELOPMENTPRODUCTIONPLANNING &CONTROLWARPINGSIZINGWEAVINGINSPECTIONFOLDINGPACKINGFINISHEDGOODS
16KOHINOOR DYEING ORGANOGRAM : MANAGING DIRECTOR DYEING HUMAN RESOURCE INFORMATIONTECHNOLOGYFINANCEGENERAL MANAGEROPERATIONSGENERAL MANAGERPRODUCTIONPROCUREMENTQUALITYASSURANCEBLEACHINGDYEINGMARKETINGPRODUCTIONPLANNING &CONTROLFINISHINGDYEING QCLABPRODUCTDEVELOPMENTENGINEERING
17KOHINOOR APPAREL ORGANOGRAM: GENERAL MANAGER APPAREL HUMAN RESOURCE INFORMATIONTECHNOLOGYFINANCEMARKETINGPROCUREMENTQUALITYASSURANCEENGINEERINGPRODUCTIONPRODUCTDEVELOPMENTPRODUCTIONPLANNING &CONTROLSPREADINGCUTTINGSEWINGWASHINGCHECKINGPACKINGFINISHEDGOODS
18KOHINOOR GENERTEK ORGANOGRAM: MANAGING DIRECTOR GENERTEK HUMAN RESOURCEINFORMATIONTECHNOLOGYFINANCEGENERAL MANAGEROPERATIONSPROCUREMENTMECHANICALELECTRICALBOILER
19KOHINOOR MAN POWER HOSIERY 1 3 5 35 77 1855 1977 WEAVING 7 53 695 793 DIVISIONMDGMDGMMANAGEREXECUTIVESUPERVISORWORKERSTOTALHOSIERY135357718551977WEAVING753695793DYEING2105256575696APPAREL16792852GENERTEK124970POOL618298113883816126240474526
20KOHINOOR STRENGTH KOHINOOR HRM PHILOSOPHY Our people are our most valuable asset.We view Human Resources as a competitive advantage.To ensure business goals are realized through people while meeting their own personal aspirations.To ensure only motivated and professionally qualified people are employed.Kohinoor is an equal opportunity employer with policies to ensure there is no discrimination on the basis of caste, creed, sex, religion etc.
21KOHINOOR STRENGTH SAFETY, HEALTH & ENVIRONMENT (SHE): The principles by which we operate:All work related injuries and illnesses are preventable.Compliance with local regulations are a priority.Line management are accountable for continuous improvement in Safety, Health & Environment performance.Energy, water and other resources, both natural and man-made, will be utilized efficiently to minimize waste.EMPLOYEE TRAINING AND DEVELOPMENT:Management supports training and development programs to ensure motivated and professionally competent people are available within the organization. This is an essential responsibility of every manager and is a part of their key result area and objectives.A corporate training department which apart from assessing individual training needs also provides extensive in-house training and consultancy for the development of employees.Each division has its own training facility are continuously train the work force.
22KOHINOOR STRENGTH CERTIFICATIONS & COMPLIANCES HOSIERYSA 8000ISO 14000(IN PROCESS)WRAPWAL MARTTARGETSEARS/KMARTFOLTESCOOEKO TEXWEAVINGFAIR TRADEORGANICWPHSPRINGDYEINGLIZ CLAIBORNEHAGGERPVHLEVI’SNEXTITSAPPARELKOHLSCHFJCPENNEYWALMARTLI & FUNGSocial Responsibility is one of the central values & we believe in Socially responsible trading.
23KOHINOOR STRENGTH INDUSTRIAL RELATIONS We comply with all applicable labour laws;Company Profits Act, 1968 (Workers’ Participation)Act regarding participation of workers in company profits.Employee Old Age Benefits Act, 1976Act relating to old age pension.Employment of Children Act, 1991Act to prohibit child labourFactories Act, 1934Law regulating labour in factories.Provincial Employees Social Security Ordinance, 1965Scheme providing health benefits to employees or their dependents.Industrial Relation Ordinance, 2002Law relating to trade unions & regulations of relation between employer & worker.West Pakistan Industrial and Commercial Employment Ordinance, 1968Law relating to industrial and commercial employmentWorkers’ Compensation Act, 1923Act provide for the payment by employers to workmen for compensation relating to injury by accident.
24KOHINOOR STRENGTH COMPENSATION BENEFITS & FACILITIES Over Time: At double than the normal rateContributory Provident 10%Workers Participation in ProfitProfit BonusAnnual IncrementCanteenSubsidized & self service facilityLeaves8 sick, 10 casual & 14 earned leaves annuallyColonyFree accommodation with canteen facility.Free Transport FacilitySocial SecurityGroup Health InsuranceGroup Life InsuranceOld Age PensionFree UniformEfficiency AwardMan of the MonthCash award plus commendation certificate
25KOHINOOR STRENGTH QUALITY MANAGEMENT SYSTEM Complete tracking of product on production floor through barcode scanning system.Product traceability is available from finished product back to raw material & machine operator.Online stocks positions at each level of production.Defects and fault analysis reports at each stage of production ensuring best quality standards.Performance appraisal of workers.
26KOHINOOR STRENGTH WELL EQUIPPED LAB AT EACH DIVISION WEAVINGDYEINGTESTING IS CARRIED OUT ON ISO, AATCC, ASTM, STANDARDS
27ERP SOLUTIONS PROVIDED BY ORACLE KOHINOOR STRENGTHINTEGRATED IT SYSTEMS COMPANY WIDEPRODUCTION MONITORED BY DATA COLLECTION NETWORK SYSTEMSEach machine is connected with central server;Real time information from all machines;Online efficiency, production, rejection and faults;Integrated with Product Traceability systems .ERP SOLUTIONS PROVIDED BY ORACLEWith Oracle E-Business Suite, Kohinoor has moved from optimizing pieces of its business to optimizing the entire enterprise.Integrated with product traceability systems and data collection systems.
28KOHINOOR STRENGTH CUSTOMER SERVICE PORTAL Online order and shipment statusProjected shipmentsOnline inquiryCCTV NETWORKWeb enabled cctv networkReal time videos of workspaceAccessible from anywhere in the world through internetCamera control through internet
31TEXTILE–WEAVING 270 air-jet Looms produce 36 million meters/annum. Flexibility to produce fabrics up to 143”.Weave greige fabric for Home Textile and Apparel with dobby and jacquard capability.Quick style article changes in < 1 hour.Off loom batching allowing larger rolls.
333.6 MILLION METERS PER MONTH WARPING & SIZINGMACHINE TYPEQtyBENTRONICE-38001BENNINGER ZELL ZCR-1800ZB 24 TKD DIA 1016 MM2TKD-TKD CT 4/4/4 UBCAPACITY PER MONTH3.6 MILLION METERS PER MONTH
343.3 Million Meters PER MONTH WEAVINGMACHINE TYPEQtyTSUDAKOMA 75”72TSUDAKOMA 110”24TOYODA EUROTECH 75”56TOYODA EUROTECH 83”28TOYODA DOBBY 83”14PICANOL OMNI PLUS DOBBY 134”12PICANOL OMNI PLUS CAM 150”48PICANOL OMNI +WITH STAUBLI JACQUARDS 75”8PICANOL OMNI +WITH STAUBLI JACQUARDS 134”TOTAL270CAPACITY3.3 Million Meters PER MONTH
36GREIGE WAREHOUSEFabric warehouse has the capacity to store in excess of 3 million meters fabric, equivalent to almost one month production.
37WEAVING LEAD TIME SAMPLING LEAD TIME Days PRODUCTION LEAD TIME Days Greige Weaving07Weaving with dyed yarn14PRODUCTION LEAD TIMEDaysGreige Weaving30Weaving with dyed yarn45
38PRODUCTSTwillsYarn dyesPoplin / canvasesBroken twillsSateenHerring boneJacquardsBfcDobbiesRipstopCUSTOMERSA significant portion of our weaving capacity is consumed in house by our dyeing division. We also supply greige fabric to dyeing facilities in Europe, Asia and Australia.
40TEXTILE – DYEING Capacity – 30 million meters/annum. Started production in June 2002.One of the most modern, automated plant in Pakistan.Specialized in apparel dyeing.Machines controlled & monitored through PLC’s.Automated Recipe storage/recall.Automated chemical dozing.
42RAW MATERIAL WAREHOUSE Greige Store with a storage capacity of 3 million meters, equivalent to one month of production.Dyes , Chemicals & Packing material ware house with a capacity to store materials of more than one month production.42
43SINGEING, DESIZING MACHINE TYPE Qty CAPACITY PRE-TREATMENT RANGE (SING AND DESIZE) VP99/H, GERMANY1CAPACITY3,000,000 METERS PER MONTH43
44BLEACHING MACHINE TYPE Qty CAPACITY 3,800,000 METERS PER MONTH TWO STAGE PRE-TREATMENT RANGE (BLEACHING RANGE) BRUGMAN, HOLLAND1WASHING RANGE JIANGSU SAGA / CHINACAPACITY3,800,000 METERS PER MONTH44
45MERCERIZING MACHINE TYPE QTY CAPACITY 3,000,000 METERS PER MONTH MERCERIZING RANGE BRUGMAN, HOLLAND1CAPACITY3,000,000 METERS PER MONTH45
46DYEING MACHINE TYPE Qty CAPACITY 2,400,000 METERS PER MONTH CONTINUOUS PAD-STEAM DYEING RANGE BWT 104 , HOLLAND1CONTINUOUS DYEING RANGE THERMAX / GERMANYPAD STEAM MACHINE TA / GERMANYCAPACITY2,400,000 METERS PER MONTH46
47FINISHING MACHINE TYPE Qty CAPACITY 3,000,000 METERS PER MONTH STENTER FRAME RANGES MONTEX 5000-TCF ½ E.V.A KOMBI / GERMANY2SHRINKING RANGE MODEL MONFORTEX RECKMAN / GERMANY1EMERISING MACHINE SF-4C / HOLLANDLAFER MICROSAND SUEDING MACHINE LAFER / ITALY4CAPACITY3,000,000 METERS PER MONTH47
48FINISHES Lubricants Silicon/soft finish Soil release Fire retardant Organic finish/anti microbialNano/cool comfortPre-cure/post cure (wrinkle free/crease resistant)Stiff /industrial finishWater repellant/stain defender (teflon, 3m)Micro-sand/heavy sand/aqua sand/peach skin/brushingAnti-static finishAll finishes meet the requirements of green dyeing as well as OEKO-TEX standards.
49CURING MACHINE TYPE Qty CAPACITY 2,200,000 METERS PER MONTH CURING RANGE MODEL THERMEX-KTB E.V.A KOMBI / GERMANY1CAPACITY2,200,000 METERS PER MONTH49
50FINISHED FABRIC WAREHOUSE Storage capacity of 1.5 million meters equivalent to 15 days of production in warehouse.50
51DYEING LEAD TIME SAMPLING LEAD TIME Days PRODUCTION LEAD TIME Days We can develop the Lab dips based on the Spectrometer readings3-4Salesman sampling.14PRODUCTION LEAD TIMEDaysDyeing from Greige available in stock14Dyeing from Greige to be woven45Replenishment of program based ordersThe above stated times depend on in time order from buyer.3rd party Inspection add days / Fabric Testing (As required)
52GEOGRAPHIC LOCATIONStrategically located for Sourcing of Apparel fabrics into World’s main Textiles garmenting hubs.
53SAILING TIME TO TEXTILE GARMENTING HUBS INDIADAYS03-04TUTICORIN12-14CHENNAISRILANKACOLOMBOBANGLADESH10-16MONGLAU.A.E02-03DUBAIPAKISTANKML APPAREL UNIT
54PRODUCTSReactive, Disperse, VAT, Sulpher and Pigment dyed fabrics for bottom wear in;100% CottonPoly cotton blendsStretch fabricsCUSTOMERSKohinoor Dyeing has a diversified customer base in USA, Europe, Asia and Australia. We work with brands and labels such as: LEVI’S, Banana Republic, GAP, Collins, Vf, Liz Claiborne, Next, Mango, Zara, and retailers like: Wal-Mart, Target, C&A, BHS, Tema Carrefour directly or through their nominated cutters.
56TEXTILE – APPAREL Production capacity of 300,000 pieces per month. Production management system from ETON.Auto spreading from GERBER.
57APPAREL PROCESS FLOW Fabric Testing & Inspection Marker Making Fabric SuppliesCuttingSewingWashingButtons/RivetsAttachmentTrimmingPressingChecking &Packing57
58RAW MATERIAL WAREHOUSE Fabric Storage Capacity 500,000 meters, sufficient for 35 days production.58
59SPREADING AND CUTTING MACHINE TYPE Qty CAPACITY SPREADING SPREADER GERBER SY251 - SWEDEN1CUTTING MACHINE EASTMAN 629X15CAPACITYSPREADING600,000 PIECES PER MONTHCUTTING300,000 PIECES PER MONTH59
60SEWING MACHINE TYPE Qty CAPACITY 300,000 PIECES PER MONTH TOTAL 370 JUKI SINGLE NEEDLE DDL WB/SV500/CP150219BROTHER FEED OF ARM20JUKI DOUBLE NEEDLE LH-3168SF FIX BAR15JUKI 5 THREAD OVER LOCKBROTHER BARTAK MACHINEBROTHER EYE LET MACHINE04SINGLE NEEDLE LOCK COMPUTERIZED JOKI-850010BLIND STITCH BS-101H/TMC-10KANSAI SPECIAL DFB-1404PMD ¼”KANSAI SPECIAL DFB-1412PTV ¼”VIVI-MACK BACK POKET SETTER06REECE AUTO VELTTOTAL370CAPACITY300,000 PIECES PER MONTH60
61WASHING MACHINE TYPE Qty CAPACITY 300,000 PIECES PER MONTH CUBO TEX PMT ITALY2POLY CRAFT PAKISTAN12CAPACITY300,000 PIECES PER MONTHWASHING TYPESSTONE WASHBLEACH WASHENZYME WASHENZYME SILICON WASHGARMENT WASHGARMENT DYEACID WASHDISTRESS & SAND BLASTING61
63APPAREL WAREHOUSEFinished warehouse has the capacity to store 300,000 pieces, equivalent to one month production.
64VERTICAL INTEGRATIONAdvantage of vertical integration with in-house weaving & dyeingWEAVINGIn house facility for weaving twills, drills, sateen, dobby and jacquard fabrics.Capability to weave cotton and blended fabrics for trousers, shirting and outer wear.DYEINGModern dyeing and finishing plant.Expertise in creating, special processing and finishing of apparel fabrics for world class brands like Levi’s, GAP, next, Vf & ZARA.APPARELExceptionally short turn around time due to in house weaving and dyeing capability with the benefit of quality under one roof.To facilitate customers in terms of lead time and prompt service from yarn to fashion.
65APPAREL LEAD TIMEKohinoor has certain lead time advantages of vertical integration with in-house weaving, dyeing and Apparel manufacturing explained below.SAMPLING LEAD TIMEKOHINOORFabric Weaving07Dyeing ProcessApparel Development05Total Time (Days)19PRODUCTION LEAD TIME21Transportation- Greige fabric to Dye House14Transportation- Dyed fabric to apparel manufacturingApparel manufacturing2560
66PRODUCTS CUSTOMERS MEN’S WEAR YOUNG MENS LADIES WEAR WORK WEAR Chino’s, Basic 5 pockets, regular, relaxed.Special finishes such as: Pre cure, Teflon, Dual action,YOUNG MENSShorts, Cargos, Multi Pockets.Special Finishes such as: Scrapping, Grinding, knotting and Heavy enzyme affects.LADIES WEARPants, Skirts, Caprice.WORK WEARTrousers, Shorts, Overalls, Coveralls.Special finishes such as: Resin, Fire retardant, Water repellent, Stain resistant, Wickable soil release.CUSTOMERSKohinoor Apparel is geared up to service re-known brands and private label for retailers in USA, Europe, and Asia.Kohinoor is already a nominated fabric supplier for brands like LEVI’S, GAP, VF, Next, Collins and is now offering complete garments to them.
68KOHINOOR GENERTEK OWN POWER GENERATION: Kohinoor has its own power generation which gives the unit access to dependable and un interrupted power supply. Kohinoor currently have installed power generation capacity of 31 mega watts.Gas Fired turbine and engines generate 13 MW electricity and 18 tons of steam per hour.Furnace oil/Gas fired engines provides a backup of 18 MW power during no gas period.Uninterrupted power supply to manufacturing units.
74CO-GENERATIONGenertek plant is classified as co-generation plant and we are generating both electricity & steam from it.Co-generation plants are 80% efficient as compared to simple captive plants which are about 35% efficient as far as gas consumption is concerned.We are using this steam in our Hosiery, Weaving, Processing & Apparel divisions.EQUIPMENTQTYCAPACITY TON/HRWASTE HEAT RECOVERY BOILER – GAS TURBINE114.0WASTE HEAT RECOVERY BOILER – CAT ENGINES24.2WASTE HEAT RECOVERY BOILER – NIIGATA ENGINES35.3TOTAL623.5
75RAW MATERIAL STORAGEGenertek have 2 Main HFO Storage tanks which have the capacity to store HFO about 2000 Tons each which is equivalent to 75 days of electricity generation if 100% generation made from HFO.We have sufficient gas load to add more power & steam generation capacity for future expansions.Genertek have 1 Main HSD Storage tank which have the capacity to store HSD about 275,000 Liters.75