Page 38 - InterloopAnnualReport2020

Composition of Local vs Imported Material

Being a Hosiery manufacturer, Company’s raw materials comprise fibers, dyes & chemicals, yarn hosiery, and commercial
services. Following is the composition of raw materials purchased during the year:

Imported Local Total
Amount in PKR Amount in PKR Amount in PKR
Year Kg (000’) Kg (000’) Kg (000’)
(000’) (000’) (000’)
2020 13,990 4,742,204 55,135 14,526,036 69,125 19,268,240
2019 9,580 3,240,378 60,710 14,359,224 70,290 17,599,602

Competitive Landscape & Market Positioning

The Porter’s five forces model has been used to analyze the factors affecting the competitive landscape for Interloop Limited
and its market positioning.

Forces Description
The threat of new competition is present on account of following developments:
• New manufacturing destinations including Africa
Threat of New Entry • GSP plus status award to other manufacturing regions
• Shift to MMF (Man Made Fiber)
• Emphasis on near shore

The threat of substitution is low particularly in hosiery as it is considered an essential part of the
Threat of Substitution consumer wardrobe. During pandemic, apparel sales dropped significantly, though the bounce
back was quicker for hosiery items.

A large number of suppliers are available for cotton yarns hence there is limited bargaining
Supplier Power power. MMF yarns are also available from multiple sources, however as we shift towards
recycled materials, there are fewer options available in the market.

Buyer power is high as consumers buying patterns and preferences dictate the market and drive
Buyer Power
future product ranges and prices.

Highly competitive market with many textile producers not only in Pakistan but strong
Competitive Rivalry competition from other apparel hubs including China, Turkey, Indonesia, Bangladesh and
Vietnam.

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