Ashraf Sugar Textile Mills
03-336-89-1
ASHRAF SILK AND GENERAL MILLS
In mid October 2002, Khawaja Fawad Kalim, Director, Ashraf Silk and General Mills
(ASGM), Gujranwala, Pakistan was faced with the difficult choice of whether or not to reemploy the two weavers who had left his company earlier. Fawad also realised that he had to take some long term measures to attract, retain and motivate weavers, to optimise the benefit from the already installed automatic looms.
COMPANY BACKGROUND
At the time of the partition of India in 1947, Khawaja Mohammed Sadiq, Fawad’s grandfather
(see Exhibit 1) emigrated from Amritsar, India, to Gujranwala, Pakistan. The newly formed
Government of Pakistan gave him some shares in the Okara Textile Mills, in lieu of his looms left at Amritsar. In 1979, because of disagreements with the other partners, Sadiq left Okara
Textile Mills. He formed Ashraf Silk and General Mills at Gujranwala, in collaboration with his son, Khawaja Mohammed Kalim, (Fawad’s father).
In 1965 ASGM had only one main competitor. ASGM produced silk- velvet cloth for products like bed-covers, prayer rugs, and suiting for men and women. The product mix changed with time to accommodate changes in demand. Sadiq or Kalim would either modify the existing looms or replace them with new ones to meet the market requirements.
Before 1974 all the looms at ASGM were manually powered (handlooms), with the operator himself pushing the shuttle through the warp. In 1974 ASGM imported four power looms from Japan and started producing ‘shaneel’ (a kind of velvet).
In 1993, Khawaja Zarar Kalim joined ASGM after completing his MBA from the University of the Punjab. Mohammed Kalim then thought about expanding his business. The existing facilities of ASGM were in a crowded part of Gujranwala, and permitted no room for expansion. Even if any of the neighbouring factories were ready to sell their space,
Mohammed Kalim did not want to expand the existing facility for fear of losing control over
ASHRAF SILK AND GENERAL MILLS
In mid October 2002, Khawaja Fawad Kalim, Director, Ashraf Silk and General Mills
(ASGM), Gujranwala, Pakistan was faced with the difficult choice of whether or not to reemploy the two weavers who had left his company earlier. Fawad also realised that he had to take some long term measures to attract, retain and motivate weavers, to optimise the benefit from the already installed automatic looms.
COMPANY BACKGROUND
At the time of the partition of India in 1947, Khawaja Mohammed Sadiq, Fawad’s grandfather
(see Exhibit 1) emigrated from Amritsar, India, to Gujranwala, Pakistan. The newly formed
Government of Pakistan gave him some shares in the Okara Textile Mills, in lieu of his looms left at Amritsar. In 1979, because of disagreements with the other partners, Sadiq left Okara
Textile Mills. He formed Ashraf Silk and General Mills at Gujranwala, in collaboration with his son, Khawaja Mohammed Kalim, (Fawad’s father).
In 1965 ASGM had only one main competitor. ASGM produced silk- velvet cloth for products like bed-covers, prayer rugs, and suiting for men and women. The product mix changed with time to accommodate changes in demand. Sadiq or Kalim would either modify the existing looms or replace them with new ones to meet the market requirements.
Before 1974 all the looms at ASGM were manually powered (handlooms), with the operator himself pushing the shuttle through the warp. In 1974 ASGM imported four power looms from Japan and started producing ‘shaneel’ (a kind of velvet).
In 1993, Khawaja Zarar Kalim joined ASGM after completing his MBA from the University of the Punjab. Mohammed Kalim then thought about expanding his business. The existing facilities of ASGM were in a crowded part of Gujranwala, and permitted no room for expansion. Even if any of the neighbouring factories were ready to sell their space,
Mohammed Kalim did not want to expand the existing facility for fear of losing control over