The strategy for survival has been envisioned to rest on the following principle objectives.
The following review presents the current trends that are present in the market and also an effort has been made to anticipate the future trends that are bound to develop in the current socio-economic scenario. We intend to establish the industry in the Gujrat Pakistan, the reasons for which have been explained and the current investment scenario has also been explored.
a. Review Of the Current Domestic Industry. .
Fans have been manufactured in Pakistan since its inception in 1947 and all of the fan manufacturing is in the private sector. The fan industry is mainly clustered in the four major cities namely, Gujrat, Gujranwala, Lahore and Karachi. This cluster meets the entire need of the country producing fans with extended product types, models, designs, and colors. The product line includes ceiling, pedestal, table bracket or circomatric, exhaust, and louver fans. Sales are also fairly concentrated with five large firms in Gujrat and two in Gujranwala, accounting for 40% of total industry sales. The present conditions of Fan industry in Pakistan are:.
1. Total Capital Investment Rs 3-3.5 billion.
2. Contribution to GDP Rs 1.5 billion.
3. Installed Capacity 5-6 Million Fans per year.
4. Current Capacity Utilization 50%.
5. Total Production of Industry 2.5-3 Million Fans per year .
6. Size of Market in Country Rs 2.25-2.7 billion.
7. Total Exports US $ 3.89 Million (2000-01).
8. Total Employment 25,000.
The industry can be classified into four segments on the basis of revenue generation. The large industry (high sales segment) comprises of 8 firms, with Rs. 250-350 million investments in each firm, providing employment to 250 people on average. Medium sales segment comprises of 50 firms. Each firm has an investment level of Rs. 5-10 million and is providing employment to 100-250 people.