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Al-Hamd Textile Mills Limited.

BRIEF HISTORY AND MANAGEMENT

AL-Hamd Textile Mills Limited was once part of a group of companies led by Sheikh Imdad Ahmed (late) as its chairman and the founding force. Previously, he had conceived, established and successfully managed numerous manufacturing projects in the field of cotton ginning, textile spinning, embroidery, flour milling and oil extraction, namely:

1. Allawasaya Textile & Finishing Mills Ltd.____ a public listed company

2. Hilal Flour Mills Ltd.____ a public listed company

3. Hilal Fabrics (Pvt.) Ltd.

4. Hilal Ginning & Oil Mills (Pvt.) Ltd.

Sheikh Imdad Ahmed was a well known business figure and was elected President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) in 1977. He was also a distinguished member of the Parliament of Pakistan (Majlis-e-Shoora) between 1982 and 1985 wherein he also served as Vice Chairman for some time.

In 1979-80, due to business separation amongst his brothers/partners, Sheikh Imdad Ahmed, opted out of all the above industries. Thereafter, he along with his four sons, set up following major business concerns:

(1) Bilqees Corporation (Pvt.) Ltd.

(2) Al-Hamd Textile Mills Ltd.

(3) Membership/Brokerage at Lahore Stock Exchange.

Bilqees Corporation (Pvt.) Limited was incorporated in 1980 and only in the fourth year of its operations it became the largest exporter of hand-made carpets from Pakistan. Thereafter, the Company has been awarded the FPCCI's Best Export Performance Trophy eight times.

Al-Hamd Textile Mills Limited was incorporated in 1983 as a public limited company and was quoted on the Karachi and Lahore Stock Exchanges in 1988. It has since been voluntarily delisted from these exchanges as on 11.06.2004. As on 30.06.2004 the authorized capital of the company is Rs.200,000 million, the paid-up capital is Rs.64.078 million, the equity is Rs.627.520 million and the balance sheet footing is Rs.1,742.279 million.

Sheikh Imdad Ahmed died in 1987 and after amicable business settlement between his four sons, Sheikh Afzaal Ahmed and his immediate family exclusively own Al-Hamd Textile Mills Limited since 1998 and there is no cross shareholding or directorship. Hence, Al-Hamd Textile Mills Limited is presently an individual company without any associated concern.

Al-Hamd Textile Mills Limited has a highly qualified, efficient and experienced management team. The main sponsor and Chairman/CE, Sheikh Afzaal Ahmed is a Masters in Economics and seasoned businessman with top management experience of about 25 years. He specializes in strategic planning, project development and feasibility studies as well as contract negotiations and international marketing. He has also wide experience in international finance, banking, corporate management and legal affairs. He has travelled extensively in Europe, USA, Far East, China and Russian States for negotiations with machinery suppliers as well as for export and import development.

Sheikh Afzaal Ahmed has been the Vice President of the Federation of Pakistan Chamber of Commerce & Industry (1988) and also President of the Dera Ghazi Khan Chamber of Commerce & Industry (1988). He has participated in numerous national & international seminars/conferences/training courses in several fields including ISO 9000, corporate management & governance, quality control, etc.

Membership of Sheikh Afzaal Ahmed

1. Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCC & I), 1988.

2. President, D.G. Khan Chamber of Commerce & Industry, 1988.

3. Member, Managing Committee, FPCC & I, 1985-89.

4. Member, Executive Committee, Multan Chamber of Commerce & Industry, 2000-2003.

5. Member, Executive Committee, D.G. Khan Chamber of Commerce & Industry, 1987-88.

6. Chairman, FPCC & I's Standing Committee on Social Welfare, 1985-87.

7. Member, Advisory Council, Ministry of Commerce, Govt. of Pakistan, 1988.

8. Member, Punjab Industrial Facilities Board, Govt. of Punjab, 1988.

9. Vice Chairman, FPCC & I's official delegation to China, 1988.

10. FPCC & I's representative of Advisory Panel of Textile Machinery Corporation, 1988-89.

11. Member, Export Promotion Committee on Technical and Professional Services, Export Promotion Bureau, Govt. of Pakistan, 1988-89.

12. Member, Panel on (a) Expenditure tax and (b) Survey of small traders.

For assessing the taxable capacity, formed under the Advisory Council of the Ministry of Finance, 1989.

Mr. Bashir Ahmed Chaudhry, who joined the company in 1987, is the Executive Director and the Company Secretary. He is a Fellow Member (FCMA) of the Institute of Cost & Management Accountants having qualified in 1976 wherein he secured the top position twice during the course of ICMA. He is also an Associate Member (MBIM) of the British Institute of Management since 1985. He has vast experience of more than 26 years, including six years of foreign service, in different industries like jute, polypropylene, sugar & textile, handling the accounts as well as administration and dealing with Government Departments. He is also handling the corporate affairs of the company since 1995. He has been a member of Executive Committee of D.G. Khan Chamber of Commerce & Industry and also the Chairman of the Chamber's Sub-Committee on Import & Exports (1999-2001). He is the Vice Chairman of Multan Branch Council of the Institute of Cost & Management Accountants for the last eleven years. He has participated in numerous National & International Conferences and Seminars on Accountancy & International Accounting Standards. He is well versed in financial management and dealings with banks for obtaining credit facilities etc.

BUSINESS PLAN

In 1987, the company set up a new and most modern textile spinning unit at D.G. Khan comprising of 14,400 spindles with a rated annual capacity of 3.968 (M) kgs based on average yarn count of Ne 20/1. The main machinery from blow room to autowinders was from Italy and air-conditioning plant from Germany. This machinery was equipped with latest innovations like automatic bale plucker, electronically controlled blow room, automatic chute feed system, long/short term autolevellers, mechanical disc splicer, electronic yarn clearers, etc. The unit also had a fully equipped modern laboratory for testing and controlling the quality of the produced yarn.

The company exported its super carded yarn 20/1 to 30/1 to Japan, Turkey, South Korea and other world markets where its yarn was rated A-plus because of its high quality and consistency throughout the year. The yarn was usually within 5-25% of Uster Standards.

This project was financed by National Bank of Pakistan, BEL-led Consortium and Pak-Libya Holding Company. By the grace of Almighty, the company has repaid all its original long term loans along with due mark up in time, without a delay of even one day in any of the installments. All liabilities against subsequent term/lease finances obtained for BMR/expansion are also being repaid promptly as per the repayment schedules.

It is the company's considered opinion that in the present circumstances any spinning unit below 50,000 spindles is no longer viable in the long term. Therefore, the company embarked upon a consistent expansion program since 1998 when Sheikh Afzaal Ahmed took over the company exclusively. The prime objective of this program has not only been expansion in capacity but also value addition in yarn by producing fine counts intead of the usual course to medium counts. The machinery set-up of the company's unit was originally based on average count 20/1.

During 1998 to 2001, the company has added 27840 spindles to its capacity. Accordingly its mills then comprised of 42240 spindles and the average count 20/1 was enhanced to 14.873 (M) kgs.

For the last more than 6 years, the company is producing super fine yarn of count Ne 80/1 and Ne 72/1 from extra long staple cotton imported from the USA, Egypt and the CIS. This has resulted in a very high value addition, from cotton to yarn. Moreover, due to utilization of superior raw material and running of our ring frames at super high speeds, we have achieved production quantities upto 120% of our rated capacity. The market for our yarn is only domestic where it is rated amongst the top few brands. Hence, the company's well thought-out business plan of producing maximum quantity of superfine count at minimum possible cost of a quality acceptable in its market has proved successful and paying rich dividends. The company has successfully sustained in the production of value added yarn leading to higher profitability and better ability to withstand market down turns.
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Title Annotation:COMPANY PROFILE
Publication:Economic Review
Article Type:Company Profile
Geographic Code:9PAKI
Date:Nov 1, 2004
Words:1358
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