Interview with Mr Muhammad Hussain Shah

Face2Face
Mr Muhammad Hussain Shah
Mr Muhammad Hussain Shah
CEO & MD
Sarhad Group (Amin Group of Industries)
Sarhad Group (Amin Group of Industries)

Amin Group of Industries, Pakistan was founded in 1960 by Mr Haji Muhammad Suleman Shah as trading business in the various fields especially in the textiles related sector. Today, Amin Group of Industries is engaged in the varied sectors like textiles, hotels & restaurants, CNG filing station/ kit manufacturing, trading and timber business. Headquartered in Lahore- Pakistan, the Group’s textile arms- Royal Textile Mills Limited (RTML), and Sarhad Textile Mills Limited (STML) are well reputed players amidst domestic and international textile industry. Royal Textile Mill Ltd. is the Group’s first textile yarn spinning mill, a public limited company established in 1991 with Authorized Share Capital of PKR 80.000 million. Sarhad Textile Mills Limited (STML) is a public limited company established in 2003 with an authorized capital of PKR 200 million. With workforce of above 1000 People, these companies cater to worldwide markets and embark total annual sales volume more than PKR 830 crores. Mr Muhammad Hussain Shah is the CEO & MD of Amin Group of Industries. He is the tycoon who started his career with this family business post his academics. He is also the Executive member of Sarhad Chamber of Commerce, Tribal Chamber of Commerce, Rotary Club, Lions Club, and Member of All Pakistan Textile Mills Association. He is founder member of Khyber Eye Foundation. He is in the industry since five decades. In a colloquy with Ms Madhu Soni, Correspondent & Editor- Face2Face, Mr Muhammed Shah voices his concerns on the issues that Pakistan textiles industry confronts currently.

Let’s begin with a note from you on Pakistan’s present day textile industry and your Groups niche in it-

Pakistan is the world’s fourth largest producer and third biggest consumer of cotton. Contribution of Pakistani textile products in total export proceeds of the country is 60% and catering 40% industrial employment of the country. Our Group’s share in the Province of Khyber Pakhtoon Khawah textile sector is 12% and in total spinning sector of Pakistan is 0.50%. We are producing all types of fibers including cotton fiber, manmade fiber and fancy fiber.

Can we request you to draw a word picture on MMF yarn industry in global terms?

Manmade fiber industry is flourishing due to shortage of cotton across the world. Cotton is short mainly due to decrease in cultivation area by almost 6.60% and decrease in yield by almost 4%. Both factors have resulted in decrease of cotton production by almost 11%. This decrease prompted the use of man made fiber.

How is natural fibres segment flourishing in Pakistan? What are current trends in consumers’ preferences?

During last decade 24% growth in spindles and 5.50% growth in rotors is registered in Pakistan spinning industry. Pakistan’s share in world trade also registered increase from 26% to 33% during last decade for cotton yarn. Productivity of spinning machinery is also enhanced and 57% increase is registered in total production of yarn during last decade. Domestic consumers’ preferences are apparent from the fact that they forced the Government to impose Regulatory Duty on export of yarn.

Cotton exports sector, especially in India, is going through times of turmoil due to frequent changes in policies. Has Pakistan’s textile industry been benefited or affected by these movements?

Due to frequent changes in policies in India, for the first time India have a larger share of China’s imports than the US. Tight US supplies are in contrast to abundant Indian supplies. World prices are now substantially above the Indian support price and its cotton is now moving freely in the world market. India’s higher support price induced more domestic production, further increasing exportable supplies. Under the scenario, Pakistan cotton sector also benefited due to higher international prices and registered tremendous increase in export.

Recently, 15 percent export duty on yarn exports is declared by the Cabinet Committee of Textile. How would you voice your concern on this?

The imposition of 15% Regulatory Duty on export of yarn is very harmful for Pakistan cotton and spinning sector. We went uncompetitive in yarn export. We are already having almost 25% surplus production of yarn for our domestic consumption and we have to curtail our production of yarn to the extent of 25%. This will create unemployment and blocked up investment.

Energy Management System (EnMs) is a buzz in Pakistan these days. Which all are the efforts by your Group in line to such Green-footprints norms?

Our group has already implemented energy management system. We have our in-house power generation facilities with the investment of PKR 200 million (US $ 2.4 million).

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Published on: 31/05/2010

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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