Page 42 - InterloopAnnualReport2020

CORPORATE STRATEGY

To strengthen our position as a leading apparel manufacturer, capturing greater share in the existing Hosiery market and
expanding business in new markets. Use our deep relationships with global brands & retailers and our manufacturing
expertise to diversify into adjacent apparel categories, offering a one-stop solution to our customers.

Management Objectives, Strategies & Resource Allocation

Increase Drive Improve
Objectives Profitable Operational Quality
Turnover Efficiency

Grow sales by onboarding new Efficiently managing our cost base by Improve our quality management
customers in Hosiery and diversifying focusing on improving productivity, processes and systems driving
into adjacent product categories reducing input costs, improving efficiency through standardization
Strategy
including Denim, Seamless and equipment efficiency, reducing and automation, using preventive
Knitwear wastage and improving our energy and ultimately predictive solutions to
efficiency achieve 100% pass rates

Nature Medium-Long Term Short-Medium Term Medium Term

Priority High Medium High
Financial Capital (investment in Human Capital (deploying teams Human Capital (deploying trained
new manufacturing plants and new on transformation projects and teams on process improvement, gate
categories) onboarding SMEs on continuous controls and team member training
Human and Intellectual Capital improvement projects) to prevent occurrence and flow
(deploying experienced leadership Financial Capital (investing in teams’ prevention)
teams to new ventures as well as learning & development on lean tools Manufactured Capital (installing
Resources acquiring subject matter expertise and manufacturing excellence) automation tools to prevent machine
Allocated
from national and global talent pool) defects at source and automate
Manufactured Capital (investment
Social and Relationship Capital in efficient and modern equipment quality control through real time data
collection and monitoring)
(international apparel associations, requiring less workforce and energy
presence at global seminars/ as well as automation tools including
conferences and other marketing Robotic Process Automation, Block
campaigns) Chain, etc.)
KPIs Sales in USD/ROE Net Margin/COGS/OEE/Wastage Quality Index (Defects Rate)
Global apparel manufacturing is Cost pressures continue to impact Pakistan continues to be strong in
shifting with increased focus on manufacturers around the world. cotton-based products. However,
untapped sourcing regions including With new countries of origin, coming cotton from regions like Turkey
Pakistan. Pakistan’s access to GSP+ up in Africa and elsewhere, offering offers quality and cost advantage
is a source of competitive advantage, a cost advantage, it is important to to competition. Also, shift in global
however, withdrawal in the status or invest in maintaining our operational consumption pattern to more MMF/
allocation of GSP+ status to other efficiency and rationalize our workforce synthetic fibers and non-availability
manufacturing regions could pose a requirements through automation of such yarns in Pakistan continues
threat. Recent upheaval in the demand to pose challenge from a quality
Opportunities and supply markets due to COVID-19 perspective
/ Threats
poses a risk to short-medium term as
well as long-term demand patterns.
Cotton yarn manufacturing provides
an advantage to the export market,
however lack of competitive MMF
availability in Pakistan is becoming
increasingly challenging with shift in
consumer consumption patterns

40