Team Members

• Lubna Haseeb – 10800

• Salman Akhter – 12985
• Muhammad Sajid - 7956
• Muhammad Mubashir – 11241
• Muhammad Hanan Khan– 9751
• Zeeshan Latif - 6889
Company Overview: Vision:
Founder: Haji Ali Muhammad Setting trends globally in textile
industry. Responsibly delivering the
Established in: 1953 product and services to our
Listed In: 1972 partners.

Location: Karachi - Pakistan Mission:

Employees: Over 9000 To deliver values to our partners
through innovative technology and
Products Range: Fashion / Home / Apparel textile product teamwork fulfilling our social and
environmental responsibilities.

Values:
• Integrity
• Passion
• Creativity
• Teamwork
Organogram Products Range
 Fabrics
 Home Textiles
 Apparel
 Yarns
 Institutional Textiles
LONG TERM OBJECTIVES

• Be the Textile industry leader of the country

• Be the trend setter
• Be innovative in the fashion
• Maintain and make GulAhmed position stronger as the number
one local brand in Fashion, Apparel and Home textile.
• Manufacture premium product to meets the customer
requirement.
• Create new opportunities for business growth and diversification
• Maintain operational, technological and Managerial excellence.
• Be an environmental and social responsible company
• Benefit our shareholder
COMPETITIVE PROFILE MATRIX (CPM)
 Internal FACTOR Analysis

Strengths: Weakness:
• Strong image and branding. • Export dependent primarily on few major
• Competent, well-experienced and loyal staff & workers. customers.
• Edge in technology state of the art plant and machinery. • Highly labor intensive industry.
• Composite mill from Cotton to made ups. • Labor productivity is very low.
• Strong relationship base in Pakistan in the fourth largest • Higher utility requirement.
producer of cotton. • Current high debt leverage.
• Coherent quality control measures at the manufacturing • Multiple locations.
facilities.
• Well design and proper waste management system consists
of efficient water treatment plant and steam recovery
process.
Internal Factor Evaluation Matrix (IFE)
 External Factor Analysis
opportunities: Threats:
• Adding more products and range in stores • Internal and external security situation.
specially men and stitched garments. • Deteriorating economic conditions in the country
• Having existing in thickly populated middle class compounded by increasing debt burden, widening
areas and in rural areas with select range of current account detect and circular debt.
products. • Irrational taxation policies.
• Growth in exports by adding more range in • Continuous energy shortage affecting production and its
Apparel. cost.
• Less explored USA, Canada, Australia and Middle • Large number of competitors including the informal,
Eastern Markets. setups, especially in the ladies fabrics business and
• Expanding online sales. retail chains.
• Kid's apparel market has potential to be • Shortage of raw material (cotton) due to natural
explored. disasters like heavy rains, floods etc. as well as prior
year's bad experience of prices due to bad crop.
• Exchange rate parity.
External Factor Evaluation Matrix (EFE)
 PEstel Analysis
Political factor: Technological factor:

Economical factor: environmental factor:

social factor: legal factor:

development.
Vertical Space
and Matrix
horizontal
integration
Market
penetration
product
development
diversification
 BCG Matrix
High GROWTH Low

Fashion yarn

High
products
Star Question Mark
MARKET

Home products
Institutional
Low

and Apparel
products
garments

Dogs
Cash Cow
I E Matrix
Grand Matrix
 Liquidity Ratios
Liquidity ratios are some of the most widely used ratios, perhaps next to
profitability ratios. They are especially important to creditors.
These ratios measure a firm’s ability to meet its short-term obligations.

• Current ratio If we have compared 5 years so we got to know

that Gul Ahmed is in better time since their current ratio represent
a strong trend in meeting their short term obligation due to
increases trend shown in the current ratio we have seen in all
years they had more than 1 worth of current asset available to pay
off 1 Rupee of liability.
1.12
1.11
1.1
1.08 1.08
1.06 1.06
1.05 1.05
1.04
1.02
(July-17) (July-16) (July-15) (July-14) (July-13)
 Receivables turnover
The receivables turnover indicates how many times per period the company collects and
turns into cash its customers’ accounts receivable.
As compare to the previous year Gul Ahmed change its recovery policy and gives leverage to the
customers in order to in hence its sales.
Receivables Turnover = Annual Sales
Account Receivables

25

20 20.33
16.76
15 15.09
13.98 13.01
10

0
(July-17) (July-16) (July-15) (July-14) (July-13)
 Inventory turnover
A higher turnover than the industry average means that inventory is sold at a
faster rate, it’s mean inventory management effectiveness.
A decrease in inventory or an increase in cost of goods sold will increase the
ratio, it’s mean improved inventory efficiency.
Gul Ahmed inventory turn over increases or sale comparatively faster
than 2016.
Inventory turnover = cost of goods sold
Inventory
Inventory turnover
3.5 3
3
2.5 2.35 2.52
2.5
1.99
2
1.5
1
0.5
0
(July-17) (July-16) (July-15) (July-14) (July-13)
 Gross profit margin
The ratio reflects pricing decisions and product costs.
Here we can see that Gul Ahmed face problems to maintain its COGS since they had
very limited option to increase prices due to competition in the industry.
Gul Ahmed Gross profit decrease as compare to 2016.
Gross Profit Margin = Gross Profit / Revenue

Gross profit margin

25.00% 22.64%

20.00% 17.66% 18.27%

15.71%
15.00% 14.02%

10.00%
5.00%
0.00%
(July-17) (July-16) (July-15) (July-14) (July-13)
 Net profit margin
Net profit margin ratio is a most important part of the ratio analysis specially
for the Investor prospective because first and for most priority of an investor
is to check out the P & L a/c which generally reflect the true and fair picture
of companies current operation we have seen that Gul Ahmed faces issues
which reflect by the ratios that they become decrease profit from 2016 to
2017
Net profit Margin = Net Income / Revenue

Net profit margin

3.74%
4.00% 3.54%

3.00%
2.35%
2.05%
2.00% 1.81%

1.00%

0.00%
(July-17) (July-16) (July-15) (July-14) (July-13)
Profit and Loss 2,017 2,016 2,015 2,014 2,013 Status
Sales 39,904 32,275 33,355 33,013 30,243 ↑
Gross profit 7,046 7,306 6,094 5,976 4,751 ↓
Operating profit 1,686 2,245 2,118 2,659 2,120 ↓
Profit/(Loss) before tax 809 1,335 783 1,496 852 ↓
Profit/(loss) after tax 818 1,141 605 1,235 711 ↓
Cash dividend 356 555 343 81 ↓
Bonus shares 457 305

Balance Sheet
Property, plant and equipment 15,969 12,050 9,039 8,210 7,132 ↑
Intangible 78 13 11 20 23 ↓
Long-term investment, loans, advances and deposits 291 236 165 151 112 ↑
Net current assets 2,044 1,394 756 890 666 ↑
Total assets employed 18,382 13,693 9,971 9,271 7,933 ↑

Represented by:

Share capital 3,565 2,971 2,285 1,828 1,523 ↑

Reserves 7,349 5,746 4,884 4,832 3,905 ↑
Shareholders' equity 10,914 8,717 7,169 6,660 5,428 ↑
Long-term loans 7,146 4,630 2,408 2,239 2,155 ↑
Deferred liabilities 322 345 394 372 350 ↓
Total capital employed 18,382 13,692 9,971 9,271 7,933 ↑

Cash Flow Statement

Operating activities 2,116 (2,085) 670 2,090 161 ↑

Investing activities (5,320) (4,159) (1,783) (1,833) (1,068) ↓
Financing activities 4,097 2,407 108 217 210 ↑

Cash and cash equivalents at the end of the year (11,665) (12,559) (8,721) (7,715) (8,188) ↓
 INTEGRATION STRATEGIES
• Gul-Ahmed is a completely vertical textile mill
comprising of state-of-the-art spinning, weaving, yarn-
dyeing, piece-dyeing, printing (pigment and reactive on
rotary as well as flatbed), stitching, embroidery and
quilting facilities. The vertical structure gives Gul Ahmed
much better control over the quality of its products as
compared to other mills.

• Forward Integration; with over 70 Location across the

country and rapidly growing. Gulahmed endeavors to enrich
customer with an unmatched shopping experience
 INTENSIVE STRATEGIES
• Market Penetration ; Before every launch of new collection
GulAhmed communicate new offers to its target market
through,
• TV ads
• billboards
• Magazine (twice a year with a changing verity)
• Participation in Fashion shows
• Internet
• News paper
• Different celebrity endorsement are used to enhance the
effectiveness of brand
• Market Development; The company has two subsidiaries:
Gul Ahmed International Limited FZC in UAE, and GTM
(Europe) Limited located in UK.

• Product Development; To bring about new ideas,

techniques, materials or processes , R&D centre is
developed
 Focuses on Innovation and research
 Company is continuously engaged in product research and
development
 DIVERSIFICATION STRATEGIES
Related Diversification; Ideas’ is a flagship store by Gul Ahmed and is
a growing retail venture. Considering the growing trend towards the
retail industry in Pakistan, as well as the increase in cotton prices
and the need to focus more on value-added products, the company
decided to diversify into the country's retail sector in 2003. Ideas offers
a range of home textiles and furnishings forth bedroom, kitchen and
bathroom, as well as men's and women's apparel. GulAhmed diversify
in Textile auxiliaries , Chemical ( Swiss Tex ).

Un Related Diversification; The Group today has grown

into a conglomerate and includes Gul Ahmed Textile Mills,
Gul Ahmed Energy and Habib Metropolitan Bank.
 PRICING STRATEGIES
• Pricing strategy at ideas is exclusive

• It has been positioned as an exclusive brand for the consumer

• Idea has segmented its market and targeted the upper and
elite class for which high price for which high rice are fair
enough

• Charge higher prices when the demand of specific product is

very high.

• Also follow competitive pricing, The prices of Alkaram and

Khadi almost same price in each product category.

• Idea also offer the discount at the end of every season.

• The discount are given according to like “ More discount in less

demand products”
corporate social responsibility; It has taken steps to make sure
that the environment remains clean. For this the company
has installed a state of art water recycling plant to biologically
treat its processing waters and gas turbine unit to produce
energy at a low carbon emission. Some of the areas that they
focus include:
•Re-using water
•Re-using energy
•Adopting efficient ways of producing energy
•Disposing industrial water after proper filtration treatment
 H R M STRATEGIES
Gul Ahmed a Learning Organization
Gul Ahmed wants to become a Learning organization where all
employees are continually involved in the learning process and
making learning and working seamlessly intertwined.

GulAhmed Training Philosophy

“To best address our mission, GulAhmed training
philosophy has following key components that
support individuals growth within organization “

“We attract , develop and retain talented people through”

• Succession planning
• Employ benefits
• Training and development
• Managing Employ grievances
• Harassment policy (Zero Tolerance )
• Diversity