FAN INDUSTRY

PRESENTED BY

Suleman Sikander

Afnan Javed

1

Introduction

Fan is a daily use item. Industry has a capacity of 7 million fans but

producing about 4 to 5 million fans p.a. In free trade era, export of fans will increase to $ 20

million which will enable industry not only to utilize its idle capacity but to expand it.

Fan industry has emerged as one of the fastest growing industry.

Fans export was restricted to Saudi Arabia, Dubai and other Middle East countries,Srilanka and Bangladesh.

2

Contd..

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.

There are 300 units; Gujrat 75 units, Gujranwala 210 units and other 15 units.

3

History

Fans have been manufactured in Pakistan since its inception in 1947 and all of the fan manufacturing is in the private sector.

1939 establishment of NATIONAL METAL WORKS in Gujrat.

Sheikh and Mughal families of Gujrat and Gujranwala have played dominant role in the development of the industry.

In 1950s declared as cottage industry and its more than 50%units are still fall in the category.

4

Contd..

Fan industry has been developed without the element of foreign collaboration or any active support of government.

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Classification of Segments The industry can be classified into four segments on

the basis of revenue generation. 1. 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.

2. Medium sales segment comprises of 50 firms. Each firm has an investment level of Rs. 5-10 million and providing employment to 100-250 people.

3. Low sales segment also requires an investment level of Rs. 5-10 million. 100 firms come under this segment providing employment to 30-50 people on average.

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Contd..4. The vendor segment provides employment to 5-20

people per firm and requires an investment of Rs. 0.45 -1 million. Currently 1500 firms are operating within this segment.

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Raw Materials Electric Steel Sheets Aluminum Enameled Copper Wire Ball Bearing Steel Rod

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Products

9

Ceiling fans

Pedestal Fans

Products

Table fans

Wall bracket fans

Products

Exhaust fans

Propellers

AVERAGE PRICES OF FAN

Name of Products Average price in Rs.

Ahad Fans

Pak Fans

Royal Fans

Younas Fans

Parvaz fans

GFC Fans

Super Asia fans

1830

1900

1800

1850

1700

1750

1850

Quality Standard

PSI (Pakistan Standard Institute) SASO (Saudi Arabia Standard Organization) ISO 9000 (International Quality Standard

Organization)

13

PSI

The Pakistan standard specifications for performance and safety requirements for ceiling, table, bracket, pedestal fans and regulators are well defined by the PSI, However these standards are not a mandatory requirement for export.

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SASO

For the purpose of export, the Saudi Arabian Standards Organization (SASO) standards are being followed by Pakistani Fan Manufacturer for their exports to Saudi Arabia and other Middle East countries.

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ISO 9000

ISO 9000 is international recognized quality standard.

7 big units of Pakistan are using it, few of them are GFC, Millat fans, Yunas fans and etc.

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EXPORTS & IMPORTS

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Pakistan Exports

Pakistan exported two lack fans in 1992-93 to only two countries, Iraq and Yemen.

In 1994 the export was only $ 0.68 million. In 1999 the export was $ 1.09 million. In 2000-01, $ 3.89 million. In 2005, $ 19 million In 2006, $ 23 million In 2007, $ 14 million (provisional) In 2008, Pakistan was exporting more than 50 countries.

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Exports of Fans

Fans Export of Pakistan – value $ 000 (FBS)        

  1995-96 1996-971997-

981998-

991999-

002000-

01

WORLD 478 577 724 1,431 2,163 3,913

Growth % age   21% 26% 98% 51% 81%

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Variety wise Exports

   

Pakistan Exports Domestic Fans

  2000-01

CEILING FAN 67554

PADESTAL FAN 174311

TABLE FAN 0

EXHAUST FAN 134

OTHER FANS NS 6441

Pakistan Exports Industrial Fans

Countries SITC

FANS,BLOWERS 7434301

OTHER FANS,NS 7434309

2000-01

12

92

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Facts & FiguresTotal capital Investment Rs 5 billion

Installed capacity 7 Million fans per year

Total fan Production

5.6 million fans per year

GDP contribution Rs 1.5 billion

Volume of exports $4 Million

Employment 30,000 Workers.

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World Exports   

Major Exporters Domestic Fans

Countries 1999 $million

CHINA 634

THAILAND 94

GERMANY 73

USA 40

SPAIN 36

JAPAN 26

ITALY 25

SINGAPORE 21

MEXICO 9

Others 121

   

Major Exporters Industrial Fans

Countries1999 ($

million)

GERMANY 746

JAPAN 436

USA,PR,USVI 331

ITALY 209

CANADA 126

UNTD KINGDOM 104

SWEDEN 70

NETHERLANDS 59

KOREA REP. 28

Others 443

22

Importers

USA Hong Kong Sharjah France Canada United Kingdom Singapore Italy Germany Spain

Saudi Arabia UAE Mexico Bangladesh Yemen Jordan Syria South America Netherlands Srilanka

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Exporters from Pakistan 1 AMIN INDUSTRIAL CORPORATION Amin Fans

2 ANWAR HI-TECH (PVT) LTD. Breeze Fans

3 ANWAR INDUSTRIES (PVT) LTD. Asia Fans

4 BRIGHT CORPORATION Bright Fans

5 CECO ELECTRIC INDUSTRIES CECO Fans

6 CLIMAX ENGINEERING CO. (PVT) LTD. Climax Fans

7 GENERAL FAN COMPANY (PVT) LTD. GFC Fans

8 MELTEX CORPORATION Millat Fans

9 NAZIR INDUSTRIESPak Punjab

Fans

10PARWAZ ENGINEERING CO. (PVT.)

LTD. Parwaz Fans

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Contd..11 QAZI INDUSTRIES Qazi Fans

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RAFIQ ENGINEERING INDUSTRIES (PVT) LTD.Royal Fans

13 SARFRAZ IFTIKHAR ELECTRIC INDUSTRIES Ehsan Fans

14 SHEIKH ELECTRIC INDUSTRIES Al-Sheikh Fans

15 SUPER ASIA MUHAMMAD DIN & SONS Super Asia Fans

16 SUPER INDUS ELECTRICAL INDUSTRIES Super Indus Fans

17 SUPER LIFE ELECTRICAL INDUSTRY Super Life Fans

18 SYED ENGINEERING CO. Popular Fans

19 UNIS INDUSTRIES (PVT) LTD. Metro Fans

20 WAHID INDUSTRIES (PVT) LTD. Pak Fans

21 YADGAR ELECTRIC CONCERN Yadgar Fans

22 YUNAS METAL WORKS (PVT) LTD. Yunas Fans

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WTO Impact

From the time of independence fan industry is developing without any government support.

WTO impact will be positive as free trade era has provided Pakistani fan manufactures to enter international market with less amount of taxes.

Secondly there is a cluster development program.

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Problems

Smuggled ball bearings, local units are not producing quality products.

Electric Steel Sheet (ESS) shortage and high prices, fan manufacturers are using Mild Steel Sheet (MSS). The motors manufactured from this material are not of good quality and use more electricity.

Prices of raw materials are also a major constraint in export.

Low quality products. Shortage of electricity supply. Un skilled labor.

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Remedies

Anti smuggling measures should be taken to save the local industry which in turn would ensure regular supply of ball bearing to fan industry at reasonable prices.

Custom duty on raw material should be lowered. Research and development department should be

established. Human Resource Development training and awareness on

ISO 9000 QMS. Stable supply of electricity to enhance the production

capacity. Ministry of science and technology with cluster council

project and FDI to provide technical extensive facilities for the local industries community.

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SWOT Analysis

STRENGHTS Having low cost of

production we produce fans of International Standards.

WEAKNESS This is the most neglected

sector, there is not any policy from government.

We have to pay high prices for imported raw materials, which we have been Able to produce within the country in past.

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OPPORTUNITIES If government reduces

excise duties on imported raw material, we can reduce prices of our fancy fans And as well as of Regular fans

Increase in population and global warming will increase the demand of fans.

THREATS Unavailability of ESS will

decrease international demand.

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Conclusion

Fan industry has a great export potential but need recognition from government.

Need to implement ISO 9000 in all fan manufacturing companies.

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