Fan Industry

Prepared by: Arman YousafMBA – Corporate Management

Vision

Pakistan Electric Fan Industry

To penetrate the global fan market with a

diversified product base by making the

domestic fan industry internationally competitive.

Agenda Overview Key Characteristics Key stakeholders Value Chain of cluster

Upstream Downstream

Purpose of cluster development Soft intervention Hard intervention

Quantitative data Strategy for Pak economic

development

The fan industry is mainly clustered in Gujrat and Gujranwala with a number of 153 operating units having around 500Mio PKR investment

Besides small and medium units, a few units are quite large and have integrated system i.e. from motor winding to high-pressure dies casting.

Sales are fairly concentrated with five large firms in Gujrat and two in Gujranwala, accounting for 40% of total industry sales.

Fan Industry has some more than 500 units in the sector, yet the registered number of units with PEFMA in Pakistan is only 206.

Overview of Cluster

Industry Profile 2011Total capital investment Rs. 500 MioInstalled Capacity 10 million Fan / year Current Capacity utilization 85% Total Production 5.6 million Fan / year Direct Employment 35-40K Indirect Employment 140-150K Annual Revenue Rs. 5.25 Billion Exports ( 2005-06 ) US $35Mio (0.2%)Vendors/Suppliers 150 aroundGDP Contribution 0.27%

The industry is producing a variety of products in different sizes and designs, these are: Ceiling Pedestal Table Table-cum-pedestal fans Circumatic fans Wall bracket Exhaust fans Propellers

Variety of Products

Major Electric Fan Companies

BRAND NAME COMPANY

PAK FAN M/S Wahid Industries Limited, G.T. Road, Gujarat

G.F.C. FAN M /s General Fan Company(Pvt) Ltd, G.T. Road, Gujarat

YUNUS FAN

M/s Younas Metal Works , G.T.Road, Gujarat

ROYAL FAN

M/s Rafiq Engineering Industries (Pvt) Ltd, , G.T. Road, Gujarat

MATRO FAN

M/s Hi Tech Industries (Pvt) Ltd, , G.T. Road, Gujarat

Major exporters of fans include: Germany China Japan USA Taiwanexporting nearly 70% of the total

international market of fans industry. These fans consisted of Industrial fans &

Domestic Fans.

World’s Export of Fan

Key Stakeholders

Machinery suppliers Raw material supplier Financial institutions Labor force Regulatory authorities Environmental authorities Developing authorities Govt utilities institutions SMEDA TEVTA

Key Characteristics Creation of skilled work force pool Production at comparatively lower cost Self Sufficient Greater Cooperation/Networking More competitive environment Variety of products at one window Resource Mobilization Healthy rivalry Knowledge sharing Decreased transport & better Supply chain

Process flow – Fan manufacturing

Value Chain -Downstream

Value Chain -UpstreamManufacturers have developed contacts with the distributors in all over the country and place their product on the market through these outlets. The distribution channel moves goods from producer to consumer.

Cluster Development PlanSoft Intervention Trainings – A study tour to china on cost sharing basis Certifications – to get certifications from US & Chinese companies Capacity Building – get assistance from experts Market Linkages – Policy Advocacy Provide technical training to existing manpower and new entrants in

the field of fan industry. Also provide technical support in production management, material

control, management and marketing Diploma courses in Elec & Mechanical Diploma courses in marketing & management

Cluster Development PlanHard Intervention Common Facility Centre

Quality testing labs of finished products Material testing support to manufacturers

Industrial Estate – A sectoral hub Infrastructure Support Display Centre facility to introduce latest types of fans in

international markets for the local entrepreneur to match their products

Problems in the industry Non-availability of skilled labour in the fields

of: Dies and mould making. Designing and production of gauges and their

calibrations. Machine operators in the fields of injection

moulding, die casting, painting and heat treatment. CNC machine operators.

Industry focus on metal based manufacturing. Weak R&D and Design capabilities. Technologically weak vendor segment.

Recommendations To establish common facility centres in Gujrat

and Gujranwala: Plastics Decorative fans Efficient electric motors Moulds and dies Calibrations and designing of gauges Painting Packing

Facilitate relocation of major Global Manufacturers in Pakistan with domestic manufacturers.

Recommendations (cont) Certification

Government should subsidize the costs of various certifications UL, SASO, CE, etc (as in case of ISO 9000)

FDI should certify the quality of fans being exported on voluntary basis.

TEVTA to proactively develop human resource in following fields in Gujrat and Gujranwala District: Plastic technologies Moulds and Die making Painting, printing and surface finishing Sheet metal stamping, motor winding Heat treatment

Recommendations (cont) International marketing support through

appointment of consultants to develop marketing strategies of at least five leading players to enable them to enter in the N. American, L. American, European and Japanese market.

Accelerate rural electrification in Pakistan. Construction Industry be assisted to attain a

growth rate of above 5% Standardization of common parts Application of best international practices Capacity enhancement efforts

Thank You…

Any Question…