Essay: Din Textile Mills Limited – SWOT analysis

Strengths
Advanced and Technological Equipment
Din Textile Mills limited have invested huge amount of money in their imported machinery. In fact, each year they spend a huge proportion of their cash in the maintenance of their machinery. Their machinery comprises of equipment used in spinning and weaving. Din textile mills weaving mills feature more than 500 air-jet weaving machines from European countries. Therefore, their products are capable of meeting international standards of weaving, dyeing and printing, for example using dyes that do not annoy the skin of a person. This can also be seen from the fact that most of their goods are exported abroad. This is being done to get a competitive edge over rival firms so that when the WTO promulgates free economy in the whole world, DTML will have no problem in competing with international competitors.
Diversified Products
Din Textile has built a reputation for manufacturing high quality and diverse products and this is displayed in their product line. They have high-end products with great quality like sheets, cases for pillow, cloth, curtains, and worn in fashion which are exported only, as well as average products for clothing such as organic cotton, linen cotton which cater to the men and women’s preferences respectively for design and fashion.
Cheap Labour available
Just like in all industries in Pakistan, Din textiles have availability of cheap labor at their disposal. Although workers at Din textile mills are paid higher than other employees in the similar industry, their salary rate is still quite lower than what workers get globally. This, joined with their up to date and high technological machinery, gives them the aggressive edge over rival firms in the global marketplace.
Access to high quality cotton
Din Textiles produces yarn for its fabrics, as it has a merged spinning unit, for its medium-end products it uses the short staple cotton. Staple cotton for a short term period is a category of cotton which is readily available in Pakistan and which is of a very high quality. High and big companies can use this category of cotton in its textiles for use in the composite plant for processing.
Weaknesses
Weak Research and Development facilities
Not much focus and attention is paid in Pakistan on Research and Development in any sector or industry. There is hardly any investment in research and development in the Din Textiles, or indeed in any other Pakistani industry, which puts Pakistani textile companies at a significant disadvantage in the world forum. Pakistan’s main competitors, India and China, on the other hand have been investing heavily in BMR for a longer period of time and so have infrastructure already in place to exploit the situation that is expected to arise in 2005 with the abolishment of quotas.
Weak HR department
Modern technology in the textile sector requires educated and trained technicians. Similarly, modern management techniques are a major need, particularly in areas of advertising, promotion, Finance and Human Resource Management. Although, HR is being developed in Pakistan through major multinational companies, it is still not that common in textile companies, and Din textile mills are no exception.
Central decision making
The decisions are made by the upper management which is weakness of the DTML because they have no proper idea about the situation and their decision can be not fruitful for the company. The work culture in DTML textiles is like that of a traditional ‘Seth’ owned company. This culture causes a lot of hindrance in the development of the company as a whole.
Small market share globally
Although Din textile mills has pretty decent market share in the country, it has small market share in the global textile industry due to the sound competitors like china, and Bangladesh etc. Pakistan as a whole has a very low share and companies like Din textile can increase that share in the future.
Weak Brand Name
Din Textile Mills still don’t have established big name for themselves in the textiles and garments industry. They are not commonly known to the general people and companies in the country and globally. Their brand name is not very strong in the Pakistani mass and industrial market as well as in the international market.
Opportunities
Expansion of product lines
Din Textile Mills is not dealing in knitwear. They can expand their product line by producing knitwear and other related products which are commonly sold in Pakistan. They can also expand their product line to other product bases which are more commonly sold in the international market. They have plants available and the extra cost for the production will be low, and they also have better market repute.
Capture of untapped market segments from around the world
The company has the opportunity to capture the untapped market segment like all other firm in the industry is having the same opportunity. The local and international untapped segments have much potential for the company to exploit them.
Reduction of cost by proper utilization of resources
If the cost of different matters which is not being utilized properly is controlled by the management of Din Textile Mills, they can reduce this cost by efficiently utilizing the resource that are not utilized properly and by introducing the improved inventory management standards.
Big opportunities in the local low-end market
The lower scale market is very much rewarding and worthwhile for the company to capture it as much of the textile companies are not producing products for that segment of market.
Threats
Political & Economic instability
Political & economic instability effects in Pakistan are common and this affects Din Textile Mills because the exports are dependent on the socio-economic conditions of the country. If the country is not performing well company can suffer loses and due to the quota system the company can be restricted by the government to export.
Globally Economic instability
Similar to the above mentioned point, global economic instability is also a concern in the country. Because of the global economic instability the export of Pakistan textile sector have gone down which also have affected DTML in worse possible way. Dumping system which is rising on daily basis in the world can create many problems for the company and any uncertainty in the world like 9/11 may affect also the overall export.
Tough international and national competitors
Textile industry in Pakistan is quite competitive and there are big brand names in the country due to which the competition in the country is quite competitive. Apart from this, the Asian market for textile is also competitive and dominant and competition from China, India and Bangladesh provide tough competition for Din textile mills.
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