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.
5
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.
6
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.
7
Raw Materials
ElectricSteel Sheets
Aluminum
Enameled Copper Wire
Ball Bearing
Steel Rod
8
Products
Ceiling fans
Pedestal Fans
9
Products
Table fans
Wall bracket fans
Products
Exhaust fans
Propellers
AVERAGE PRICES OF FAN
Name of Products Average price in Rs.
Ahad Fans 1830
Pak Fans 1900
Royal Fans 1800
Younas Fans 1850
Parvaz fans 1700
GFC Fans 1750
Super Asia fans 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.
14
SASO
Forthe 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.
15
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.
16
EXPORTS &
IMPORTS
17
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 1996-97 1997-98 1998-99 1999-00 2000-01
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
Industrial Fans
Pakistan Exports
Domestic Fans 2000-01
2000-01
Countries SITC
CEILING FAN 67554
12
PADESTAL FAN 174311
FANS,BLOWERS 7434301
TABLE FAN 0
92
EXHAUST FAN 134 OTHER FANS,NS 7434309
OTHER FANS NS 6441
20
Facts & Figures
Total 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.
21
World Exports
Major Exporters Domestic Major Exporters Industrial
Fans Fans
Countries 1999 $million Countries 1999 ($ million)
CHINA 634 GERMANY 746
THAILAND 94 JAPAN 436
GERMANY 73 USA,PR,USVI 331
USA 40 ITALY 209
SPAIN 36 CANADA 126
JAPAN 26 UNTD KINGDOM 104
ITALY 25 SWEDEN 70
SINGAPORE 21 NETHERLANDS 59
MEXICO 9 KOREA REP. 28
Others 121 Others 443
22
Importers
USA Saudi Arabia
Hong Kong UAE
Mexico
Sharjah
Bangladesh
France Yemen
Canada Jordan
United Kingdom Syria
Singapore South America
Italy Netherlands
Srilanka
Germany
Spain
23
Exporters from Pakistan
1AMIN INDUSTRIAL CORPORATION Amin Fans
2ANWAR HI-TECH (PVT) LTD. Breeze Fans
3ANWAR INDUSTRIES (PVT) LTD. Asia Fans
4BRIGHT CORPORATION Bright Fans
5CECO ELECTRIC INDUSTRIES CECO Fans
6CLIMAX ENGINEERING CO. (PVT) LTD. Climax Fans
7GENERAL FAN COMPANY (PVT) LTD. GFC Fans
8MELTEX CORPORATION Millat Fans
9 Pak Punjab Fans
NAZIR INDUSTRIES
10PARWAZ ENGINEERING CO. (PVT.) LTD. Parwaz Fans
24
Contd..
11QAZI INDUSTRIES Qazi Fans
12RAFIQ ENGINEERING INDUSTRIES (PVT) LTD.
Royal Fans
13SARFRAZ IFTIKHAR ELECTRIC INDUSTRIES Ehsan Fans
14SHEIKH ELECTRIC INDUSTRIES Al-Sheikh Fans
15SUPER ASIA MUHAMMAD DIN & SONS Super Asia Fans
16SUPER INDUS ELECTRICAL INDUSTRIES Super Indus Fans
17SUPER LIFE ELECTRICAL INDUSTRY Super Life Fans
18SYED ENGINEERING CO. Popular Fans
19UNIS INDUSTRIES (PVT) LTD. Metro Fans
20WAHID INDUSTRIES (PVT) LTD. Pak Fans
21YADGAR ELECTRIC CONCERN Yadgar Fans
22YUNAS METAL WORKS (PVT) LTD. Yunas Fans
25
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.
26
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.
27
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.
28
SWOT Analysis
STRENGHTS WEAKNESS
Having low cost of This is the most neglected
production we produce sector, there is not any
fans of International policy from government.
Standards. 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 THREATS
If government reduces Unavailability of ESS will
excise duties on imported decrease international
raw material, we can demand.
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.
30
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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