Sitra Textile Industries Ltd

Sitara Group of Industries Pakistan

SITARA meaning a STAR is the title, which proved an omen for the Group, which rose
from a very modest beginning and now looms a distinguished Star on the galaxy of
industrial tycoons in the country.
The name SITARA emerged on horizon of Pakistan within a decade of its birth in the year
1947. The start was modest with limited financial and other resources being available. Hard
work and dedication combined with untiring efforts soon flourished to bear the fruits. An
honest approach in dealings at all levels within and out of the organization concerning our
valued Customers, Vendors and other related agencies, is a discernible factor to elevate the
group to the level as we see it today. Above all, our learned, capable, foresighted & devoted
management and loyal staff soon turned our humble efforts into a well-conceived and
escalated enterprise in the country. SITARA in its essence proved a practical symbol of
bright fortune and success. Now Sitara is termed as one of the top-level groups in the
Industry of Pakistan. Sitara Chemical Industries Limited is the recipient of VII
INTERNATIONAL EUROPEAN AWARD 1993, TOP 25 COMPANIES AWARD 1995,
1S09002 Certificate in 1999 from SGS Switzerland for Quality; and Sitara Textile
Industries of SECOND TEXTILE WORLD INTERNATIONAL SPECIAL AWARD 1993 in
recognition of its services for the textile industry. The origin of the group dates back to
fifties, when two brothers late Haji Ghafoor Ahmad and Haji Bashir Ahmad, (serving
chairman) gifted with the business acumen and entrepreneurial skills established an initial
set-up Sitara Textile Printing at Faisalabad, (now expanded into Sitara Textile Industries).
The vision for the future made them realize to play a pivotal role in the industrial
development and economic prosperity of the country. Always planning ahead of time with
an ambition and mission to expand their business activities on a broader spectrum and
leading their journey to the path of eminence, they succeeded to build a huge stratum of
industry, reflecting diverse industrial activities spanning over.
The professional management always lays emphasis on, initiative, drive and team spirit,
where continuous improvement and excellence is the goal. As a part of Organization
Development program, special emphasis is laid on development of Human Resources
through in-house and external training, in order to update the staff with recent technical
enhancements, to benefit new emerging technologies and supervisory skills resulting in the
development of a highly competent pool of human resources.
Investment Opportunities
Group is adding its share to the economy of the country as reflected below:
Providing jobs to 2000 employees approximately
Manufacturing Import Substitutes, thus saving substantial amount of foreign
exchange
Paying Rs. 450 million in taxes annually
Earns foreign exchange to the tune of $10 million annually
Paying Rs. 22 Million as workers participation fund annually
The name SITARA emerged on the horizon of Pakistan soon after its inception in the year
1947. Whilst our start up was modest, with only limited work space and financial resources
being available, hard work and dedication, combined with an honest approach towards our
suppliers, Customers and our loyal Staff soon turned our efforts into a most successful
business.
The name SITARA translates into a STAR, a truly wonderful name and omen for a Company
which has risen from a very modest beginning to one of the largest and most successful
commercial enterprise in Pakistan In order to become a truly integrated, self-sufficient and
reliant company, SITARA TEXTILE INDUSTRIES LTD.
Incorporated firstly Sitara Chemical Industries Ltd. and then progressively over the years:
Sitara Spinning Mills Ltd.
Sitara Chemical Industries Ltd. (Textile Division)
Yasir Spinning Mills Ltd.
Sitara Energy Ltd.
Sitara Enterprises (Pvt.) Ltd.
Super Star Garments (Pvt.) Ltd.
The largest addition of Super Star garments Company not only gives our Customers and
manufacturers and supply assurance only a fully integrated Company such as SITARA can
extend, but opens up the full spectrum of commercial possibilities for the whole group of
companies under the Sitara umbrella.
Sitara Textile Industries
Introduction
We at SITARA TEXTILE INDUSTRIES LTD. Are proud to be able to make a major
contribution to the general economic well being of the Pakistani Government and its people
by earning valuable foreign exchange for the Country and through our job creation and
training schemes. The Management and Staff of the SITARA lead by example and sincerely
hope that the established high standards, performance and integrity of our group will
inspire fellow proprietors and manufacturers within our industry to follow suit as this would
benefit all companies within our trade...and ultimately will profit our nation as a whole.
A Sitara textile is one of the largest manufacturers and government accredited exporters of
textile goods in Pakistan, specializing in home textiles, fabrics, apparel and fashion. We
export top quality products to all corners of the world. Our products grace the shelves of
retailers in global market. Over the past 40 years, by using the latest, state of art machinery
and technology, the SITARA Group of Companies has established itself as a reliable trading
partner, manufacturing and supplying products of the highest quality and appearance.
Quality Control
It is Sitara Textile answering commitment to quality that characterizes every stage of the
vertical production process. This can be demonstrated by our company usage of the most
modern and fully computerized equipment yet available in Pakistan. Our laboratory is fully
equipped to handle and conduct testing to most relevant international standards at all
stages of manufacturer from fiber to finished product. This includes testing for shrinkage
(dimensional change), pilling resistance, abrasion testing, color fastness, washing fastness,
light fastness etc. The result is that our customers benefit from a top quality end product
and Sitara Textiles reputation is further enhanced.
Product & Design
The management of SITARA TEXTILES believes that a top design in the right color is an
integral part of our product and enhances all our fabrics. SITARA TEXTILES employs its
own in house design staff, utilizing both old fashioned artistry and designer skills, combined
with the latest computer added techniques to create onto printing screens the most
fashionable colors and images for our discerning customers in order to keep our company in
the forefront of home textiles. In addition, we are able to assist our customers in choosing
designs from our extensive design library, which is one of the largest in Pakistan and ranges
from timeless floral and geometric to very intrigous contemporary designs and colors in
100% cotton and 50:50 Poly / Cotton, curtains, table cloths and ready made garments to our
customers specifications. This unit uses over 120 modern sewing machines and appropriate
attachments. With having in house facility of HP 650 Designing Computer, we can have
complete designing and Film processing. This is the latest equipment from France and is
helping us to have fast production of designs and can have very fine details of designs on it
as well. On this computer, we can develop designs from Floppies and also can send designs
to customers in Floppies for their approval.
Processing / Treatment Plant
A major contribution to Sitara Textiles marketing success has been the high standards of
dyeing and finishing equipment in our modern and sophisticated processing facility,
consisting of singeing / decizing, shearing, continuous scouring & bleaching, dyeing,
mercerizing and calendering machines, both for normal and friction applications. A new
addition of RAMAISCH wider width calender with NIPKO-L roll facility has added more
value to our normal, friction and chintz finishes.
Strike Offs
As a further services to our worldwide clientele Sitara Textiles uses the latest rotary,
Austrian made J.-Zimmer, strike off machine which can produce strike off up to 15-meter
length PRINTING The most important part of Sitara Textiles success and popularity must
be attributed to our technical progress in printing. Our print staff and design teams combine
years of practical experience in printing with our two top-of-the-range Austrian made J.-
Zimmer rotary printing machines which can produce printed fabrics up to 280cm finished
width, with a maximum of 12 colors per design.
Cutting & Sewing
A great percentage of our daily textile production is converted by Sitara Textiles from a
fabric by the meter into a ready, salable retail product. Our Cut & Sew division is actively
involved in the cutting, assembling and sewing of bed sheets and sets, quilt covers, pillow
cases, comforter shell/bags, urtains, table cloths and ready made garments to our
customers specifications. This unit uses over 120 modern sewing machines and appropriate
attachments.
Quilting Machine
It is a new DONG UN Quilting Machine in operation. Working width is 10 (280 CMs)
with one COP winder facility. We are producing quilted bedspreads and related products for
various countries at the moment.

Production process
Production process in textile industry only processes the grey cloth, and converted it into
fished product like printed cloth, bed sheets etc.
Grey Receiving
The grey cloth is received by the processing unit. Repair process is done here, after which it
is accepted or rejected.
Grey inspection
They gray cloth is inspected for quality cutting, blend, etc.
Shearing
This process is done to remove any loose threads from cloth. This is done through sharp
blades and cloth becomes fine.
Singing
To make the cloth more firms it is processed by the singing machine.
These machines separate the stench from cloth, and increase its merging power.
Kier scouring & rope Bleaching
Now the cloth is washed to remove the dust and other impurities, this is done by rope
washing machines. They have 3-local made rope washing machine. Then the cloth is
bleached by Kier machine.
Mercerizing
During this process the power of absorption of cloth is checked. They have three
mercerizing machines. After machining the cloth is sent to the dying department.
Dye department
Now the cloth comes into the Dying department. There are three methods of dying are used.
1. Jiggers
2. Jet.
3. Thermal continuos dying.
Jigger
Jigger dying function is performed normally 1500 meter cloth is dyed in one batch.
Thermal continuous dying
This is cloth is continuous dyed.
Dry Department
After the dying department cloth comes to dry department. Cloth is dryed here, after dying
the width of cloth is set, for this purpose they using 2-stantors.
Continuos Bleaching
Here cloth is continuously bleached and converted into Batches.
Printing Department
The cloth comes to the printing department. Cloth is printed here in different color one
print on cloth normally 8-12 colours. Printing department is equipped. With two rotary
printing installation from Austria.
Aging
After printing the cloth is sent for washing then sent again to stantor for drying to make the
colors strong it goes to curing this machine one also called curing machines. The
temperature is maintained up to the 150
o
C.
Wash & Dry
The clothe is again and then dryed here.
Finishing Department
Now the cloth is comes to the finishing department. The cloth is ironed and smoothed
Calender In calender the cloth is pressed on calender machine; they have calender machines.
Which are different for local and export products.
Folding
After calender cloth comes to folder, where the cloth is folded by machines.
Packing
In the stage the cloth is packed accordingly.
Process Strategies
There are three process strategies:
1. Process focus
2. Product focus
3. Repetitive focus
Sitara Textiles is following product focus process and strategy, which is characterized by
high volume, low variety, and facility is organized around the product.
And manufacturing strategies
Make to order for exports
Make to stock for local

Material management
Inventory management
Inventory management is very important, inventory management concerns short
decision about suppliers inventories, productions level, staffing pattern distribution
& schedule.
Types of inventories
1. Raw material
2. Work in process
3. Stores & spares
4. Furnished goods
Functions Of Material Management
There is different type of function of material management.
1. Supplier selection
2. Issuing Purchase Release
3. Inbound transportation
4. Work force schedule
In Sitara they have the production department commercial department. Commercial
department checks the inventory and then decides about new seller.
Supplier Selection
They ask the supplies for quotation and selected that supplier who gives the quotation
according to their specification. They have long term relation ship with their supplier. They
dont easily switch over to supplier. They follow top order regularly.
BASIC purchase item.
1. Grey cloth
2. Dyes
3. Chemical
Storage & Spin Department
1. Purchase order
2. Inward gate process
3. Inspection report pass
4. Store Receipt Note.
5. Material issue note
There Is Two-Inventory Control Method
1. Continuos CQ / review system
2. Periodic review system
Sitara is using continuos Review system. They are manufacturing inventory to reduce the
cost. They are not manufacturing anticipation inventory.
Safety Stock
There is four type of inventory of an item.
1. Cycle inventory
2. Safety stock
3. Anticipation
4. Pipeline
Sitara textile used safety stock method. Safety stock inventory protects against uncertainties
in demand lead diminution to supply.
Lead Time
Lead-time is a time which is required from I supplier for the acquisition of inventory. Sitara
textile has different lead-time for different suppliers.
Local = 2-3 day.
Karachi = 1 week
Import 120 days
Finished Goods Inventory Placement
There is two type of placement
1. Forward placement -Near to customer
2. Backward placement -Near to plant.
Sitara is using backward placement.
Forecasting
Forecasting in Sitara Textile Industries (Sfl) Following are some concepts regarding
forecasting which are being practiced by STI.
Classification
STI has classified forecasting into three main categories on the basis of time horizon. There
are:
Short Term Forecasting
It has a time span of 3 months to 1 year. It is used to plan purchases, job scheduling and
production levels.
Medium Term Forecasting
Its planning period is from 3 months to 3 years. It is used to plan sales and production.
Long Term Forecasting
It covers the time period of 3 years or more, and is used to plan capital expenditure, facility
location and expansion. While performing forecasting activities, the STI Management also
considers:
The major emphasis is given to demand forecasts to adjust the production according to
expected sales.
Forecasting Approaches
Generally, two approaches are used for forecasting activities. These approaches are:
Qualitative Approach
This approach incorporates important factors like decision makers intuition, emotions,
experience and judgement. This approach includes following techniques:
1. executive opinion
2. Sales force composite
3. Delphi method
4. Consumer market survey
5. Nave approach
Quantitative Approach
This approach employs a variety of mathematical models that use historical data or casual
variables to forecast demand.
Techniques used under this approach are:
a) Time Series Models
1. Moving averages
2. Exponential smoothing
3. Trend projection
b) Casual Model
4. Linear regression
STI uses a combination of both the qualitative and quantitative forecasting approaches
which is the most effective method to get accurate forecasts. However, their main tool for
this purpose is qualitative approach.
Forecasting of demand is based on previous data, behavior of people, change in taste of the
people, economic situation and their purchasing power.
For export products, Christmas is also an important event, which is considered while
making forecasts.
For domestic products, demand forecasts fluctuate on the basis of season (Summer and
Winter) and one events like Lid.
Capacity
Capacity is the maximum out put of a system in a given time period. The unit is capable of
producing high Quality with a capacity of 100,000 METER/DAY and currently working on
80% to 85% capacities. The production rate is adjusted on the basis capacity cushion is 10-
20%.
The production is adjusted on the basis of these
1. Demand
2. Inventory on hand.
3. Season.
Aggregate Planning
It is concerned with the quality and timing of production for intermediate future by
adjusting.
1. Production Rate
(a) Overtime
(b) Under time
(c) Subcontracting
2. Workforce level
(a) Hiring
(b) Firing
3. Inventory level
Aggregate Planning Policies
There are basically two policies for aggregate planning Reactive Policy:
It means one has to follow the demand pattern by adjusting all three factors or any and
these factors, which are:
1. Production rate
2. Workforce level
3. Inventory level
Under reactive policy, there are further two sub-categories:
a) Chase Policy
Demand is followed by adjusting production rate. No inventory is kept which avoids holding
cost.
b) Level Policy
Demand is followed through inventory level while keeping production rate constant.
When demand is high, it is met from inventory. When demand is low, it results in piling up
of inventory.
Aggressive Policy
Demand is adjusted (created) according to the capacity of facility. It is done through:
1. Marketing Mix
2. Promotional Mix
Sitara Textile Industry is using a combination of both the reactive and aggressive policies
according to situation.
Domestic Products
For domestic products like Sitara Sapna Lawn they have different policies for different
seasons.
Summer Season
As the lawn are seasonal products (for Summer), their demand is high in Summer. So STI
has to follow and produce according to the demand of the products.
Winter Season
During Winter season, the demand of the product becomes low and it cant be created
through marketing or promotion because the products are basically meant for Summer
season. So during Winter, the company only adopts reactive policy, i.e., production rate is
adjusted (decreased) according to decreased demand.
While decreasing the production rate, chase policy is followed by operating at under time. If
the decrease in production is short term, no firing of the employees is done because
company wants to retain its repute and its experienced workers. If the decrease in
production rate is going to be for longer period of time. Only then excess workers are fired.
Same is the case while they have to increase the production rate during Summer, i.e.,
production rate is increased by overtime of employees if the increase is for shorter period of
time. If production rate has to be increased for longer period or any expansion has to be
made in the facility, only then new workers are hired.
Export Products
Export products of STI include:
1. Fabrics
2. 100% Cotton products
3. Polyester products
4. Bed sheets
Here also STI is following a combination of both the reactive and aggressive policy. But in
this case, aggressive policy includes no advertisement of their products. All they depend on
is the foreign tours made by their top executives who visit different countries and participate
in exhibitions with their samples and try to convince the potential customers to buy their
products.

Material Requirement Planning
They are using the MRP for dependent items and use the BOM, INVENTORY RECORDS
AND MASTER PRODUCTION SCHEDULE
Lot Sizing
After the demand has been forecasted and inventory level has been determined, next step is
to put the appropriate order of appropriate quantity at the right time. There are four main
techniques for this purpose:
1. Lot for lot
2. Periodic order
3. Past period balancing (PPB)
4. Economic order quantity (EOQ)
STI adopts lot for lot method by considering the holding cost and setup cost. It means
whatever the requirement is, the order is placed for the total of that. This method reduces
the holding cost.

Facility Location
Sitara Textiles was established by its present owner Mr. Haji Bashir Ahmad. He started the
production unit at Maqbool Road, Faisalabad purchased old machinery and equipment
from Karachi and other cities, and started his work.
At that time, facility location was not so good important factors like labor costs,
environmental factors, site costs, transportation availability,were not much
considered.
Due to progress in their business, there was a need to expand the existing unit. For this
purpose, they selected Sargodha Road and established production unit there. This facility
was established on scientific basis by considering:
1. Labor availability
2. Labour costs
3. Site costs
4. Transportation availability
In this case, raw material, transportation and labor availability was more emphasized. They
have developed staff colonies for upper management people of labor is hired from nearby
villages. Moreover, bus service is provided to take the employees from Faisalabad to those
units.
Transportation
Sitara textile is using different type of transposition.
For export: They are using containers.
For local: They are using vans, delivery trucks, trailers etc.
They have not their own transport, they hired the transport, and all the expenses of inbound
transport are met by supplier.
Marketing department
They have two marketing departments
1. Local marketing department
2. Export marketing department
Export categories
1. European market
2. Australia
3. Far East
4. Middle east
5. South America

Quality Management
Quality Management at Sitara Textiles Sitara Textile Industrys Management is very
particular about improvement and maintenance of quality.For this purpose, they have
established a well-equipped quality control laboratory, for which separate staff and experts
have been hired.
Quality Control Process
Their process of quality control starts from the suppliers and ends at customer. As STI does
not have their own weaving unit, they have to purchase raw material (yarn) from the open
market. They start quality control right from the purchase of yarn, chemicals, dyes and
other materials. For this purpose, inspection is made to see whether the purchased material
is up to required quality standard or not. If not, it is rejected. If accepted, it is then given to
weavers who weave the cloth only for Sitara Textiles. Here also weaving process is
continuously examined to have woven cloth of required quality standard.
Inspection is also made at the arrival of woven cloth to the Sitara Textiles, i.e., whether the
cloth is woven with required specifications or not.
Dyes and chemicals are also examined for their brands, proper combinations, quality, colors
and other characteristics.
Inspection for quality standards is made throughout the step by-step manufacturing process,
especially during grey inspection for weight, width and blend ratio. During Kier Scouring
and Rope Bleaching, checking is made for whiteness and pH. During mercerizing,
absorbency is checked.
Sampling
Sitara Textiles use sample of products to check the quality and the product to be produced
in bulk. For this purpose, samples of 2 meters to 10 meters are prepared which are approved
by the top management and customer. If both the parties approve the sample for quality,
only then they produce in bulk.
After being manufactured and before delivery, finished product is once again checked for
quality standards.
Quality Standards
STI is following different quality standards for domestic and export products.
Domestic Products
Sitara textiles has its own quality standards for its domestic products. They continuously try
to maintain and improve these standards. Recently, they have hired a firm at Lahore to get
ISO 9000 certification and it is still under process.
Export Products
For export products, they have to follow the quality standards as specified by the customer.
If they are exporting to Japan, then they have to meet their requirements and if they are
exporting to Europe, then they have to follow European standards. They can make minor
adjustments in quality as required by the customers.
Statistical Quality Control
At STIL they are using Bar charts for the purpose of statistical quality control to whether
there is improvement needed and where it is needed
ISO 9000 Certification
For the time being the ISO certification is under process because there were some
discrepancies that were to be removed therefore the MANAGEMENT REPRESENTATIVE
and MANAGEMENT coordinator are working very hard to achieve this goal and they are
hoping for the quick certification of the ISO 9001 certificate.
Quality Policy
SITARA TEXTILE INDUSTRIES LTD
COMPANY QUALITY POLICY
QUALITY IS OUR FUTURE
STIL is a unique versatile organization and is dedicated to the continuous improvement in
producing different types of processed fabrics by providing excellent services through
motivated employees who are dynamic team of people we ensure that the products are
produced according to the customer requirement and expectation. STIL is renowned in the
local and international market for its excellent services, timely delivery of quality finished
products to their valued customers. STILs philosophy of continuous improvement relies on
an intensive training programs, regular meeting discussions, which emphasize the
employees direct involvement our aim is to respond the customers ever changing needs in
the most efficient way.
Computerization
Every type of record from payrolls to the purchased items is being handled efficiently on the
computer system that is using UNIX , FOXPRO, FOXPLUS there is a networking between
all the departments these all records are of a controlled nature.
And are made available to the persons concerned and they are able to analyze those records
like financial summaries, export data, cost data etc.