nepal and pashmina
Post on 06-Mar-2015
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DESCRIPTIONit is a case study performed on one of the biggest pashmina clothings manufacturer nepal
REPORT ON: SECTOR ANALYSIS: PASHMINA NEPAL
EMERGING SECTOR PASHMINA: A COMPREHENSIVE STUDY[CASE STUDY: INDUSTRIAL ANALYSIS EVEREST PASHMINA KNITTING AND WEAVING INDUSTRY]
11Prepared by: ASHISH GHIMIRE DEPARTMENT OF INDUSTRIAL AND PRODUCTION ENGINEERING SHAHJALAL UNIVERSITY OF SCIENCE AND TECHNOLOGY, BANGLADESH, SYLHET-3114 firstname.lastname@example.org
EMERGING SECTOR PASMINA, A COMPREHENSIVE STUDY NEPAL ABSTRACT: Until opportunity is grabbed it never knocks again and again, Nepal ishighly potential country for the production of goat fibers that is used for making garments and decorative house hold, and in spite of this all we hardly hear the name of Nepali export in world market. In reality Nepal only covers below .3% of total world market, Because of other various obstacles. Nepali industries are hardly surviving with their products. If all responsible factors would be managed well, pashmina sector of Nepal would be pinnacle of Nepali business. This paper includes a comprehensive study on this sector..
CONTENTSINTRODUCTION.1PASHMINA AND OTHER YARNS..1.1 MANUFACTURING OF PASHMINA CLOTHINGS..1.2
WORLD MARKET..2 NEPAL.3PASHMINA SECTOR IN GENERAL.3.1 POTENTIAL FOR PRODUCTION OF RAW MATERIAL.3.2
CONSTRAINTS..4 SOLUTION.5 INDUSTRIAL SENERIO: EVEREST PASHMINA KNITTING AND WEAVING INDUSTRY6INDUSTRIAL PROFILE.6.1 INTRODUCTION.6.1.1 LOCATION6.1.2 PLANT CAPACITY..6.1.3 PRODUCTION OVERVIEW6.2 SOURCING.6.2.1 PRODUCTION PROCESS,FLOW CHART6.2.2 SHIPPING6.2.3 OBSTACLES OF INDUSTRIES6.3.1 MANAGEMENT OF OBSTACLES.6.3.2 COMPARATIVE STUDY GOYO CASHEMERE AND E.P.K.W PASHMINA .6.3.3 PHILOSHOPY AND MANAGEMENT EPKW6.4 INTRODUCTION.6.4.1 QUALITY POLICIES6.4.2 ADAPTION OF CHANGES FOR GOOD.6.4.3 SCOPES6.5 CONCLUSION.6.6
1. INTRODUCTION:According to the oxford English dictionary pash comes from the Persian word for "wool", refers to fur of certain Tibetan animals, particularly goats. In contrast, pashmina, as we see it on the Internet and in fashion magazines, is a textile blend of silk and cashmere . Pashmina is not the esteemed blend of silk and cashmere; as a matter of fact cashmere itself is not a synonym to pashmina. Pashmina is the higher grade of cashmere. Pashmina comes from the inner coat of the underbelly and the neck of the animal (goat), which are softest in the animal's anatomy (where the fiber is longer and denser), where as cashmere comes from the other parts and are coarser compared to pashmina . In its raw form pashmina is softer than cotton and as a fabric it is warmer than wool and smoother than silk, thus makes it one of the most desirable fabrics. Pashmina has been used by highland communities like the Thakalis and Gurungs for daily wear since the time unknown. Only in the last two decades the international fashion discovered pashmina .
OBJECTIVE OF STUDY: To gather the information on pasmina sector in world market. To identify potentials of production of own raw material. To identify obstacles and challenges of pashmina sector. To identify possibilities of managing obstacles. To identify current industrial position in Nepal and its production system. To identify possibilities of replacing traditional plants with modern plants. STUDY PROCEDUREFirstly basic ideas have been collected on sector and study has been performed by all published official and unofficial papers and special promotional videos of different industries. Based on management, designing system, quality and process technology, questionnaires were made and industry was visited. Mostly all industrial facts were gathered through direct observation of production and all the data were collected from already published study paper performed by INTERNATIONAL TRADE CENTERE.
1.1 PASMINA AND OTHER YARNS: The accepted international standard for cashmere includes anything less then 19 micron thickness, at a minimum of 30 mm in length. No standards are set for a maximum length . TABLE1.1 (USA STANDARD FOR PASHMINA FIBER) Thickness Length of the fibers Shape of the diameter Structure of the fibers varies from 11 to 19 micron that varies from 25 mm to 50 mm Cashmere is round shaped and wool is oval shaped Cashmere has regular smooth scale like outer structure Of the fibers, while wool has a very irregular scale like outer structure Cashmere will not be felt while wool can be felt.
Felting of the fibers
1.2 MANUFACTURING OF PASMINA CLOTHINGS: Fiber is collected either by shearing or combing the animal during the molting season. The goats molt during the spring season for few weeks. In China and Mongolia, the down fiber is removed by hand with a coarse comb, while in Iran, Afghanistan, New Zealand and Australia animals are sheared. Hand sorting is followed for coarse hairs that is molted after which the fiber is washed to remove dirt and grease gathered in the collection process. The scoured material undergoes a process called the dehairing, which removes the coarse outer guard hair. At the end of this process, the pashmina is ready to be spun into yarns for weaving and knitting purposes .
2. WORLD MARKET:U.S.A, Canada, U.K, EU and Asia are the markets where pashmina products are targeted for. On the demand side the market prospects are not as unfavorable as feared earlier because of unfair competition from others suppliers. International demand for comfortable lightweight knitted as well as woven garments and accessories is consistently strong. In 2005, Nepals exports of Pashmina products added up to US$ 21.4 million . Following figure illustrates consumption of cashmere (pashmina) pullovers by major importers, chart below shows increasing trend of demand and supply.
3. NEPAL3.1 PASHMINA SECTOR IN GENERAL: In 1997 alone Nepal exported Rs 3 million worth of the fabric, and by 2000 the figure had risen to more than Rs 5.6 billion. The industry employed over 50,000 people and made up at least 82 percent of all handicraft exports from Nepal in 2000-2001 with manufacturers producing everything from scarves, shawls, blankets and mufflers to dressing gowns . In 2006/07 exports plummeted to below one-fourth of the peak records in early 2000. The main reasons cited for this sudden decrease are the unhealthy competition from neighboring and other countries .
For production, private sector entrepreneurs have gradually become more quality conscious and invested heavily in the process of modernization of weaving and introduction of knitting mechanisms. Well-trained semi-skilled and skilled labors, supportive and logistic services are still available in the country. Instead of this, the countrys production capacities are heavily underutilized. The Chyangra cashmere and silk mixed products produced in Nepal include shawls, stoles, scarves, mufflers, blankets, pullovers, etc. Some of these items are embroidered, shaded, beaded, printed, and painted to enhance sheen, shine, value and fashion. Production of these items demands annually about 400 MT of Chyangra cashmere yarns and 200 MT of silk yarns in Nepal. Unfortunately, more than 95 % of the industrial yarn requirements are being imported from China, Mongolia and India. In light of the countrys needs, Nepals existing domestic production of about 40 MT of Chyangra fibers and 4 MT of silk yarns are considered negligible. Figure 3.1 USA market for pullovers made up of pashmina.2005
Fig USA import of pashmina pullovers form different country.
Manufacturing firms in Nepal working for production of pashmina have created good scope for collection of revenues and for socioeconomic development of Nepal. Production and supply of pashmina garments from Nepal to international market is negligible, figure above illustrates that bellow .3%of market share of Nepali pashmina garments in USA market (2005).
3.2 POTENTIALS FOR PRODUCTION OF RAW MATERIAL:The average potential production for pashmina fibers amount to some 200 grams per year per adult animal with average productive age of eight (2 to 9 years). According to a recent estimation of 2007, 200,000 adult Chyangra goats and some 60,000 baby goats exist in Nepal. This means a production potential of some 40,000 kilos raw fiber per year. At the price per kilo for raw fiber paid by Chinese traders of US$ 30, this would come down to US $ 1,200,000. The potential turnover per year after washing and de-haring of the fibers, however, is about three times of this amount. Global market prices for washed and de-haired cashmere fibers in July 2007: TABLE 3.2 GLOBAL MARKET PRICE FOR FINE PASHMINA FIBER TYPE Chinese White Tibetan Brown Mongolian Brown
Selling price ($)100 per kilo 97 per kilo 85 per kilo.
4. CONSTRAINTSSpiral down trend of export for pashmina based products from Nepal to world market is not only a result of carelessness of exporters alone nor it is because of technology. For development of better production system and for boost in pasmina sector, short coming on different level should be considered and a firm should allocate every resource in efficient manner. Farmer level shortcoming: Remoteness of the area where chyangra goats are raised had created a vast gap of farmers with their buyers. Genetically deteriorating size of Chyangra. Lack of knowledge, unfamiliarity with technology. Company level shortcoming: Inconsistency in the quality of production of pashmina goods. Problem in vendor selection Problem in sourcing of raw yarn, either because of financial reason or because of poor management system. Lacking of strategy in meeting the demand. (unable to meet the demand every time) Inadequate market promotion program. Rigidity in technology and limitation in research, development and creation. Governmental level constraint: Tax regulation and procedure is not export oriented. Power sector are underdeveloped, pool of energy crisis Ill transportation and communication services.