Subject Title:

Corporate Global Strategy

Assignment Topic:
The ChenOne Stores Project of Chenab Group
Presented To:
Maam Hadia
Presented By:
M. Nisar Raza

8235

Muhammad Iltaf

8256

MBA 6th (Morning)

Department of Banking & Finance

Govt. College University, Faisalabad.

Company Profile:
Chenab is regarded as one of the leading manufacturers and exporters of
quality

home

textiles

products

and

apparels

worldwide.

Operational

since

1975, Chenab is a vertically integrated unit, equipped with the latest and
sophisticated machinery. Housing one of the largest textile processing facilities in
the country, Chenab can meet varied requirements of its customers in any part of
the world with in-house facilities of growing highest grade cotton, ginning and
spinning it into high quality yarn, weaving it into quality fabrics in 100% cotton and
various mixed blends and stitching and export of top quality made ups & apparels.
Its existing paid up capital is Rs.1950 million comprising Rs.1150 million for ordinary
shares and Rs.800 million against preference shares. The both of these shares are
listed on the Karachi Stock Exchange. Its annual turnover at present is more than 7
billion. Chenab today is capable of processing and converting into made ups and
garments more than 85 million meters of fabric per annum.
Chenab is part of the Chenab Group (Group), which began its business in
1975 under the name of Chenab Textiles Industries Faisalabad as a fabrics
processing unit. The Sponsors belong to a well-respected family hailing from Toba
Tek Singh, who has been engaged in the growing & ginning business since the
inception of Pakistan.

RODUCT RANGE
Chenab offers a wide range of coordinated concepts in bed linen, bedspreads,
curtains, table linen and kitchen accessories. In addition it also produces formal and
casual garments for men, women and children that feature exclusive fabrics and
designs in line with global trends.

Production Facilities
The Companys production facilities have been sourced from the worlds
renowned textile machinery manufacturers
of Germany, Japan, Italy, Switzerland, Austria and the UK and are of diversified
make.
The following is a brief description of the production facilities: -

Ginning Unit
Chenab has associated modern ginning facilities with a capacity of ginning
200 bales of cotton per day.

Spinning Unit
Chenabs spinning unit comprises of 19,200 spindles of Japanese & European
origin along with requisite back process machinery capable of producing 100%
cotton yarn in counts of 10, 16, 20, 22, 24, 30, and 40. All these counts are spun in
carded as well as combed versions.

Weaving Units
The air jet weaving looms project includes the latest sizing, warping, and
sectional warping machines capable of producing the finest quality of plain and
design fabric. The project also has auto looms.

Processing Unit
The Companys processing units are made up of fabric printing, dyeing and
finishing units, capable of processing over 250,000 meters fabric per day.

Printing & Dyeing Facility

The printing & dyeing facility comprises of 4 of the latest 72 to 124 width
and 12 to 24 colors rotary printing machines. Chenab houses a comprehensive
dyeing facility where all sorts of reactive, pigments, disperse/reactive, VAT,
disperse/VAT dyeing are carried out while maintaining the highest quality standards.
The dyeing facility comprises of 110 to 126 width Thermosole and Pad Steam
dyeing machines. It also has special finishing facilities including Ramish
Calendering, Chintz Finishing, Glazed Finishing, Raising, Emerising, Mercerizing and
Sanforising, etc.
The Company uses the best branded dyes as per specifications in technical
consultation with reputed companies like Swiss Specialty, Clariant, DyStar and BASF.
The latest Color Kitchen equipment and Design Studio with a Wax Jet Exposing
machine have also been installed at the project. Laser Engraving, Digital Printing,
Fabric Coating, and additional fabric washing facilities are also in place.

Made Up Stitching Unit

This unit is capable of stitching all sorts of Textile Made Ups equivalent to 165,000
meters of fabrics per day with advanced facilities including: Fourteen computerized quilting machines, with automatic filling of polyester
into quilted articles. It is also capable of handling unlimited design options

catering to single line, cording, and twin line-emboss patterns. The facility is
capable of creating countless patterns both for dimension and profile;
Six advanced computerized embroidery machines that are capable of
handling any design up to 9 colors in one go. The large 1x6m frame allows
the creation of design on a large scale;
Complete polyester wadding plant;
Advanced panel cutters;
Computerized Eton stitching system;
Complete switch track system; and

Garment Stitching Unit

This unit is also capable of stitching all sorts of casual/fashion garments equivalent
to 45,000 meters of fabrics daily equipped with advanced and computerized
mechanical systems such as:

Gerber technology with computer aided manufacturing;

Equipment for accurately cutting articles;
Advanced panel fabric cutters;
Switch Track stitching system;
Advanced stitching machines with an automatic trimming mechanism; and
Computerized embroidery machines.

In-house Power Generation

Chenab has set up a 15.6 MW natural gas-based power generation facility,
with heat exchanger and waste heat steam boilers for its processing, weaving and
spinning operations through which it has made major saving in power costs. With
the installation of theses gas based generators Chenab is able to meet all of its
electricity requirements. The necessary infrastructure and equipment for a Water
Treatment plant and Reverse Osmosis process have also been added. Following is a
summary of the key facilities, their location, capacity, and origin.

Vision
To be a competitive and customer focused organization with continuing
commitment to excellence and standards.

Mission Statement

To be the business house of first choice for customers.

To be a change leader.
To produce innovative, relevant and cost effective products.
Setting and maintaining high standards.
To earn profits by achieving optimum level of production by using state of the
art technologies.

 To provide ideal working conditions to employees and to take care in their

career planning and reward them according to their skill and responsibility.
To meet social and cultural obligations towards the society being a patriotic
and conscientious corporate citizen.

The ChenOne Stores Project of Chenab Group

As the millennium takes a turn, the free flow of information, resulting from
the internet and satellite has resulted in a sweeping change in the fashion trends
throughout the globe. Responding promptly to the market need, Mian Muhammad
Latif, Chief Executive of Chenab Group, visualized a brand catering to such market
requirements. ChenOne is a subsidiary of Chenab Limited, formally Chenab Fabrics
and Processing Mills Limited. The Group is one of the largest exporters of home
textile products from Pakistan.
In 1997, ChenOne opened its first branch in Jinnah Super, Islamabad. This
was the first store of its kind in Pakistan offering the complete range of Fashion
clothing & foot wear, Bed Linen, Kitchen Accessories and Furniture. The tremendous
success and acceptance of the idea reflected the maturity of our customers on one
hand, and on the other hand, prompted ChenOne to open branches nationally &
internationally, so nationally in Rahim Yar Khan & Islamabad (1997), Lahore
(Gulberg) and Faisalabad (1998), Karachi Park Tower (1999), Rawalpindi (2001),
Peshawar(2002), Abbottabad and Lahore (defence) in 2004, Multan (2005), Sialkot &
Gujrat in 2006, Karachi Tariq Road (2007) , Sargodha & Bahawalpur in 2009. Plus
Internationally ChenOne opened its branches in Dubai (Jumeriah), Abu Dhabi
(Marina Mall), Ajman (New Sanaya), Al-Ain (Bawadi Mall), KSA (Al-Thiyafa Mall
Makkah and Ollaya Street Riyyadh) and simultaneously during this period. Outlets in
Gujranwala, Hyderabad, Kuwait and Musqat are our near future destinations. With
the target of opening 50 stores in Pakistan by 2015, ChenOne will maintain its
status of being the largest chain of stores in Pakistan.

Sales through Franchised Outlets

The Companys franchised ChenOne outlets have been a great success.

Chenab Limited through its various group companies and associates has set up
these outlets in Pakistan, the UAE, Saudi Arabia and Bahrain. This initiative has been
very encouraging and ChenOne outlets continue to operate as the marketing arm of
the Company. Plans are currently being made to expand the number of franchised
outlets in Pakistan and in other regional markets. The Company is also planning to
set up store-in-stores outlets in major departmental stores in the EU, USA and
other countries. The most important milestones covered under these initiatives are
the training of manpower, implementation of sophisticated floor and supply chain
management systems and customer services.

Direct Marketing
Management has also taken another initiative by making direct sales to
leading chain stores operating in the UAE and other Gulf countries through a
Sharjah-based sister concern named CGI. CGI has also established strategic market
alliances in the following markets: Australia, the EU, and the USA.
The company plans to create similar strategic alliances in the Central Asian and
African markets for the marketing of its own brand (ChenOne) and other leading
global brands.
These initiatives have proven quite successful and direct contacts have been
established with leading chain stores operating in these markets. It is expected that
franchised and direct sales volumes would increase substantially in future, not only
in Pakistan but in overseas markets as well.

Future Outlooks
It seems possible that the future changes in the textile and clothing sectors
will bring more risks and challenges than new opportunities. Comprehensive
preparation is a must to manage these risks and take action to secure existing or
additional markets.

At Chenab, the management has developed a strategic approach to tackle the WTO
challenges. At the macro level, the Company has worked to develop a partnership
between private and public sector players that is critical to developing effective
responses. This is based on the top management philosophy that while the
government needs to set up an enabling environment, the business sector needs to
develop the supply response to market requirements. Together, they need to
develop a monitoring system for trade in textiles and clothing that is attuned to the
changing economy.