Diagnostic Study Furniture Cluster Chiniot

DIAGNOSTIC STUDY
WOOD WORKING CLUSTER CHINIOT – PAKISTAN
Conducted By
Mr. Khurram Zia – CDA PSIC Chiniot
Supervised By
Mr. Aftab Ahmad Ashraf – Project Manager, CDP PSIC
June 2006
Developed under Joint UNIDO, SMEDA & PSIC Cluster Development

Programme Pakistan
Partner Agencies
Focal Point UNIDO:
Mr. Anjum Fayyaz – NPC UNIDO
Mr. Sarwar O. H. Hobohm - Team Leader CDP UNIDO Vienna
All rights reserved. No part of this document may be reproduced or transmitted, in any forms or
by any means, without prior written permission from SMEDA, PSIC & UNIDO
Table of Contents
1. Objectives of UNIDO Cluster Development Programme in Pakistan 2

2. Description of the Cluster 2
2.1. Defining The Products 2
2.2. Geographical Location 5
2.3. Preparation of Products 6
2.4. Current Output 7
2.5. Core Cluster Actors 11
2.6. Other Cluster Actors 11
2.7. Current Institutional Matrix 15
2.8. Cluster Map 20
3. Social Dynamics of the Cluster 22
4. Value Chain Analysis 23
5. Problems Identified 24
6. SWOT / Sampling 25
7. Porter’s Framework for the Cluster 27
8. Cluster Vision 28
9. Strategy of Achieve Vision 28
10. Future Cluster Map 30
11. Action Plan 32
Annexure
1. List of government departments working at Chiniot 35
2. Questionnaire for Small & Medium Enterprises 36
3. Costing For Manufacturing Bed Set & Dinning Table with Chairs 41
4. The Philippine Furniture Industry 43
5. World Furniture Outlook 2005/2006 Summary 47
6. The Furniture Industry in the Middle East 51
7. The Saudi Furniture Market 52
8. List of the Members of Furniture Association 55
9. List of Timber Merchants 56
10. List of Top Five Furniture Exporters of the Cluster 57
1
2. DESCRIPTION OF THE CLUSTER
2.1 Definition of the Product
Furniture was named in two ways: After its use or after its maker or manufacturer.
Knowing that will help you in purchasing older pieces that may have names that seem
strange to you today, for over time many furniture names have changed through use
and have become part of the vernacular of English.
For instance, Lambert Hitchcock of Hitchcocksville, Connecticut, created the first
mass-produced chair which today bears his name. The Boston rocker originated in a
cabinetmaker’s shop in Boston. The davenport, a small desk with a hinged lid that
opens out for writing, was originally made by William Davenport. Later, a large sofa
which sometimes converted into a bed also became known as a davenport.
In colonial days, a bed meant a featherbed or mattress. The frame was known as a
bedstead. Mirrors were known as looking glasses. A chest with four or more drawers
was known as a high-daddy.
One of the oddest pieces of furniture is the commode. Initially a French chest of
drawers on legs, later called a chiffonier and moved to refer to a movable washstand,
with basin, waste pipe, etc. to a piece of furniture containing a chamber pot. Finally,
the name became a pseudo-intellectual name for the common toilet.
Sofa, couch, love seat, or divan–all refer to the same type of seating. Or do they? A
couch was actually a bed, from coucher, the French word meaning to lie down. A
settee was an elongated armchair that accommodated two or more people. Developed
in the 17th century, it was often upholstered.
A love seat was and still is a long seat consisting of two seating cushions and
intended to accommodate two people. Anything with more than two cushions was
called a sofa.
The sofa’s origins appear to stem from the French day-bed, referring to any type of
elongated seating, including the chaise longue, or “long chair,” designed for resting
rather than sleeping. It usually had a raised end. While most early sofas were
upholstered, springs weren’t used in them until the early 19th century.
An ottoman was an upholstered footstool or low bench without arms or back, named
after the Turkish influence of the early 18th century.
Case furniture, that is furniture used for storage, came in all sorts of forms. The trendy
armoire was originally a large mobile cupboard or wardrobe featuring doors and
shelves for clothes storage. A German variation was known as a kas. A more modern
version, also containing drawers, came to be called a wardrobe.
Chests also came in many varieties. Originally a piece of squared furniture with
drawers, it became known as a commode to the French. A variation used a desk,
featuring a fall-front, a cylinder front or a tambour (roll-top) was called a bureau. A low
English chest of drawers on long legs was known as a lowboy and later as a dressing
table. By mounting a chest of drawers on top of it, it became a highboy, from the
French haut bois which means "high wood."
Dining rooms had a sideboard, a table with a wide drawer at the center flanked by
drawers or cupboards on the sides and made to be used against a dining room wall
for storing and serving food. Sideboards began as credenzas, a serving table with a
cupboard below the surface, in the 15th Century. In the 16th Century, an upper,
recessed tier was added. This was also known as a “dresser,” where dishes were
2
dressed before serving. Today, this piece of furniture is commonly called a buffet,
based on its use as a vehicle for self-serve dinners.
Today’s china closet was originally called a vitrine, a cabinet with a glass door. The
sides and top were often also of glass, and it was designed to store and display china
and curios.
Lastly, to keep milk and freshly-baked pies protected from flies, simple cupboards,
known as pie and milk safes, with doors fitted with decorative, pierced tin panels to let
the air circulate through them, were popular from the 1820's to after the Civil War.
Source: http://www.theantiquesalmanac.com/furniturecalled.htm
Furniture carries a significant value in everyone’s life as it is one of the items that are
used daily in every household, institution and organization. Cluster is famous to
produce house hold furniture. House hold furniture includes following items:
Bed Room Furniture

Dinning Room Furniture
Kitchen Furniture
Wooden furniture has the largest share in total international furniture trade. The
percentage share of each category is as follows:
Wooden furniture 73%

Metal Furniture 21%
Plastic Furniture 6%
SOURCE: UN Statistics (PC - TAS) for 2002
SHARE OF EACH CATEGORIES

Plastic
Furniture,
Metal 6%
Furniture,
21%
Wooden
Furniture,
73%
Products Range:
Wooden furniture main products/items are;
Bed room furniture

Dining room furniture
Living room furniture
3
Drawing room
Dressing room furniture
Bed Room Furniture

Bed set
Bed room chairs with table
Console table
Study table
Day bed
Floor mirror
Dining Room Furniture

Dining table with chairs
Glass cupboard (show case)
Living Room Furniture

Media cabinet (TV cabinet)
Benches & stools
Sofa & chairs
Settees & love seats
Chaise lounges (Dewan)
Drawing Room
Sofa set
Centre table set
Wooden swing
Floor clock
Floor screen
Ottoman (stool)
Console table
Dressing Room Furniture

Jewelry boxes
Dressing table
Wardrobe
Dressing stools
Bed sets & dinning tables are the major items manufactured in Chiniot.
Product Mixed Offered
Bed set
This includes bed, side tables, dressing table, and dressing stool
Sofa Set
This includes standard sofa set of three seats, two seats, and one seat.
4
Dinning table
This includes glass top dinning table with six/eight chairs
Superior Quality
Superior quality bed set and dinning set were made of supreme quality pure wood
furniture with elegant hand carved design. Superior quality had extra carving with
complex and elegant design and extra fine polishing and finishing. While superior
quality sofa set was manufactured form best available upholstery material for elegant
design & extra comfort.
Fine Quality
Fine quality bed set and dinning set were made of fine quality pure wood. Simple and
appealing hand carving was done with fine quality polishing. While fine quality sofa set
had a quality upholstered material & elegant design.
Normal Quality
Normal quality bed set and dinning set were made of a mixture of pure wood and
substitute material Lasani, Medium Density Fiber (MDF) and win board, etc). Lasani
gave fine and even surface for finishing and paint. Smooth surface gave eye-catching
effect. This finish of bed set & dinning set were assumed to be of paint due to the
extra fine surface. The normal quality sofa set a simple design sofa set with good
quality fabric material.
2.2 Geographical Location
The basic raw material used for hand carved furniture in Chiniot is Sheesham wood.
Chiniot cluster engaged in the furniture manufacturing. It is the only hand carved
wooden furniture manufacturing cluster. The finishing of the products i.e. polishing and
finishing is done by the retailers according to their buyers requirement. However
majority of the furniture manufactured in this sector is semi-finished (locally called
“Kora”). Finishing and polishing is done later on by the retailers to their customer’s
demand.
5
2.3 Preparation of Product
It is also called process mapping, the objective here is to clearly define how the
process functions: who does what when. The environment in which managers operate
their businesses is hardly stable and predictable. Processes vary within a company
due to a variety of factors: different people with different skills operating under different
managers with different suppliers. Variation in the inputs frequently yields variation in
the output.
There are three types of processes:
Core Process: The primary activity that produces the output that customers
purchase.
Technical Support Process: Includes the activities that influence the core process
performance.
Social Support Process: The activities that influence the workforce's performance.
Support process is just like the foundation of a building; they tend to operate behind
the scenes. They literally support the core work that generates the product or service
the customer is willing to pay for, but they are generally considered overhead, non-
proprietary, are frequently neglected and often outsourced. Examples of support
process include: accounting, human resources, information systems and
maintenance. They are essential to the success of the organization, but the customer
does not identify them or their outputs as part of their specifications. No matter how
well designed and maintained the core process is, a poorly built and maintained
support system will eventually collapse taking down the core process with it.
2.3.1 Production Process Flow (Wooden Furniture Manufacturing Unit)
PURCHASE OF CUTTING OF SEASONING/DRY

WOOD WOOD ING
MOLDING CUTTING INTO DESIGN

SLICES SELECTION
HAND CARVING ASSEMBLY/ FINISHING

FITTING
POLISHING/PAINT
6
Purchase of wood
Wood was purchased after quality inspection. In determining quality following points
are considered.
1. Age of wood (Old wood conceder comparatively batter)

2. Dryness of wood (Natural or artificial seasoned)
3. Its surface, which should be plane without holes, bug etc.
Cutting of wood
When purchased, wood of natural form, this wood after purchase was cut into different
sizes of blocks, planks and slices.
Seasoning of wood
Season wood was higher in price than the fresh wood, also if the wood purchased was
not properly dried wood then these blocks/slices are seasoned through different
processes,
1. Condensation
2. Boiler System
3. Vacuum System
4. Seasoning through putting the wood slices/planks under normal environment
temperature for considerable duration.
Presently forth number practice was famous for wood seasoning by the manufacturers
before furniture making.
Selection of design
Desired design selected before start of manufacturing of any furniture product.

Selection of elegant design was important to ensure attractive finish item.
Cutting into slices
The seasoned/unseasoned wood blocks are cut into desired shape and slices
according to the requirement of design.
Molding
Wood moldings are divided into products produced in hardwood such as oak or maple
and softwood products such as pine. The slices of wood are molded into desired
shape according to the design.
Carving
Carving means different elegant pattern carved in the wood. Quality of carving
depends on the skills of the carver.
7
Assembly/Fitting
Once different pieces are carved & molded than these parts/pieces were assembled
or fixed together to give the shape to the final product.
Finishing
Assembled product was grind to make the surface smooth. Once the surface was
smooth, finishing material was applied to make the surface ready for paint or polish.
After the base was prepared final finishing was applied depending upon on
requirement in term of paint/polish. Upholstery of fabric/leather was carried out
according requirement of design.
2.4 Current Output
The annual production of woodworking cluster was estimated at 288 bed sets, 250
dinning table sets and 250 sofa sets at full capacity, i.e. 4,000 units (approx) working
200 days. Value of the wooden products was estimated at Rs. 15.9 million. This was
also based on an assumption.
3000-4000 units in this sector
Average 50 c.ft wood using per unit per month
Total working units 3,000 numbers

Using wood per month x 50 c.ft
------------
Total wood consuming 150,000 c.ft
per month. =======
Similarly wood turning 150,000 c.ft

Per year x 12
-------------------
1,800,000 c.ft
===========
2.4.1 Weekly Production Capacity:
Workshops having 6-7 numbers of workers had ability to make 2-4 bed sets (bed set,
side tables, dressing table & dressing stool) in a week. Similarly the workshops with
same capacity of work force had ability to make 2-3 dinning sets (dinning table with
chairs) in a week.
2.4.2 Value Addition Breakup
Value Addition Breakup of an Un-finished Bed Set
Bed Set (7 pieces)

8
1. Bed
2. Side tables
3. Dressing table & mirror frame
4. Dressing stool
Wood Wood Designer Carver Fitter Finisher

Raw Material Seasoning Designing Carving Fitting Finishing
Rs. 20,700 Rs.1, 000 Charges Charges Charges Charges
Rs. 1,500 Rs. 4,000 Rs. 4,000 Rs.500
Total cost of un-finished Bed Set was RS.31, 700
Raw material Wood Rs 20,700

Wood Seasoning Rs 1,000
Cost after value addition Rs 21,700
Designing Charges Rs. 1,500
Cost after value addition Rs. 23,200
Carving charges Rs. 4,000
Fitting Charges Rs. 4,000
Finishing charges Rs. 500
Value Addition Breakup of a Finished Bed Set

Rs. 20,700 Rs.1, 000 Charges Charges Charges Charges
Rs. 1,500 Rs. 4,000 Rs. 4,000 RSs.500
Polish
Charges
Rs. 4,000
Total Cost of finished Bed Set was RS.35, 700/- approximately
Value addition breakup of a finished bed
Raw material Wood Rs. 20,700

Seasoning Rs. 1,000
9
Designing Charges Rs. 1,500
Carving charges Rs. 4,000
Fitting Charges Rs. 4,000
Finishing charges Rs. 500
Polish charges Rs 4,000
Value Addition Breakup of an Un-Finished Dinning Table

Rs. 4,550 Rs. 250 Charges Charges Charges Charges
Rs. 500 Rs. 800 Rs. 500 Rs.300
Total cost of dinning table was RS. 6,650
Value Addition Breakup of a Finished Dinning Table
Total cost of dinning table was RS. 7,650
Value Addition Breakup of 6 Un-Finished Dinning Chairs

Rs. 500 Rs. 1,000 Rs. 500 Rs.300
Total cost of un-finished dinning chairs RS. 6,000 approximately
Value Addition Breakup of 6 Finished Dinning Chairs
10
Rs. 500 Rs. 1,000 Rs. 500 Rs.300
Cousin Polish
Charges Charges
Rs. 1,500 Rs. 1, 500
Total cost of finished dinning chairs RS. 9,000 approximately
See Annexure III for more detail
2.5 Core Cluster Actors
The Core Cluster actors can be divided into two categories
2.5.1 Craftsmen
Craftsmen are furniture/handicraft manufacturer, designers, carvers, fitters,

wood/brass inlay workers, molders & polishers.
2.6 Other Cluster Actors
The Other Cluster actors can be divided into following categories;
2.6.1 Raw Material Suppliers
The wooden furniture manufacturing cluster Chiniot is famous for hand carved
furniture. The basic raw material used for hand carved furniture is Sheesham wood.
Medium Density Fiber (MDF) was also used in furniture manufacturing. Sheesham
wood which is basic raw material was short in supply due to the time to time ban on
cutting of trees imposed by the forestry department on the cutting of trees. Ban on
cutting of trees caused a price hike. There was no schedule rate of wood in the
cluster.
Kinds of woods available in the cluster;
Kind of Woods Retail Price (In Rs) Per Cubic Foot

Deyodar 600 - 1200
Sheesham 500 - 600
Pertal 500 - 550
Chilgoza 200 - 250
Popular 200 - 250
11
There were 30-35 timber merchants present in the cluster. Mostly raw material
suppliers were directly approach the Government contractors in different areas of the
country where stock of trees was available. Total purchase of wood per month per
timber store was 5 thousand /c.ft approximately.
Source: Mr. Tanveer Hayder,

Burhan Timber Merchant, Faisalabad road, Chiniot, Ph: 0476- 334932
Cell # 032-4891701
Some famous markets of Sheesham wood are;
Southern Punjab
Toba Tek Singh

Multan
Lodehran
Khan gharr
Muzaffer ghar
Wood Purchase and Supply Process
Forest officers Contractor Timber Merchant Craftsmen
Timber merchant bears/incurs following cost for the purchase of timber:

a) Carriage charges
b) Loading charges
c) Unloading charges
d) Toll Tax at different places
After buying timber a merchant get;

a) Work order
b) Embossed stamp put on the timbers logs by the forest officers according to the
record.
c) Pass (with the detail of timber purchased slip)
Transport use for carry timber and their capacity;

a) Small Truck can carry 2 ½ c. ft
b) Half body Truck can carry 4 ½ c. ft ‘
c) Full body Truck can carry 800 c. ft ‘ (They charged Rs: 30-40 per c. ft) ‘
Sale of timber in the cluster depend on cash base & credit base (50 % each)
Wood consumption in this cluster;
12
Total estimate wood consumption of cluster per month was 150,000 cubic feet.
Total timber merchants in cluster 30-35 approx
Every timber store buying 5000 c. ft wood per month approx.
Total wood buying per month 5,000 c. ft
Total number of units x 30
---- --------
Total wood buying per month 150,000 c. ft
Source: Raw Material Suppliers.
See Annexure IX for more detail
2.6.2 Forest Department
These forest officers were government employees. They made contact with the
contractors at the time of auction of timber. Interested contractors form different places
approach at the place of auction.
2.6.3 Contractors
These were the businessmen who directly purchased wood from the forest officers
and sold to the timber merchants.
2.6.4 Local Machinery/ Local Tools Suppliers
Chiniot wooden furniture is famous for different types of work like cut work, brass
inlay, and wood inlay etc. Machinery for this specific cut work is called jig saw which
was being manufactured in Chiniot. There were 10-15 manufacturer of machinery in
this cluster.
The specific tools which carvers used for hand carving are called tools for carving
(locally called Chappo). They were available in different sizes & shapes. The set of
hand carving tools consisted of 36 industrial tools. 8-10 manufacturers of these tools
were present in the cluster.
2.6.5 Designers
15-20 designers were available in the cluster. Most of the designs were being
repeated in the furniture products for quite some years now. New designs were only
copies out of different brochures and catalogues. These products did not have
conference quality. They lack innovation and exhibit poor quality.
No software like Auto-CAD & I MOS (computer aided design and software) were being
used for the enhancement or development of new designs and detail drawings.
2.6.6 Wood/brass Inlay craftsmen
Wood and brass inlay craftsmen (2,000 each) were present in the cluster. Furniture
13
manufacturers some times used to perform wood/brass inlay work by their self. Some
times they outsource these services too.
2.6.7 Wood/Brass Material Manufacturers & Hardware Items Suppliers
Brass material which was used in brass inlays work manufacturing in this cluster. This
material is made by brass sheets. Manufacturers of these material used dyes for the
manufacturing of this material. These manufacturers were 4-5 in numbers in this
cluster.
Similarly material used for wood inlay work also manufacturing in this cluster too.
Manufacturers of this type of material used jig saw (locally called chabakka machine)
for the manufacturing of these material. These manufacturers were 50-60 in this
cluster.
There were 20-25 hardware shops available in this cluster.
2.6.8 Woodworking Machinery Suppliers
Suppliers of woodworking machinery were not available in the cluster. Lahore,

Gujranwala & Faisalabad were famous for woodworking machinery. So furniture
manufacturers had to approach these cities to buy required machinery.
2.6.9 Local Retailers & Showroom owners
Local retailers were 200 to 250 in numbers. Some were manufacturers cum showroom
owners. These retailers directly buy furniture from the manufacturers.
Some retailers were also exporters but they were very low in numbers. Only 4-5
retailers were exporting furniture & handicraft with 2-3 exporting on regular bases.
Small Scale Furniture Association (SSFA)
Role of trade bodies was very important for the development of the industry. Profile of
existing furniture manufacturer association is as under.
There was only one (active) association in the cluster named Small Scale Furniture
Association (SSFA). Existing furniture manufacturer association was not selected as
well as not elected by the craftsmen community. The current president of the furniture
manufacturer association has also recently again been elected as “Nazam” of the
cluster. The President & other members were of Small Scale Furniture Association
(SSFA) were furniture manufacturers and has their own showrooms. Almost five years
back some people or group (furniture manufacturers & retailers) selected President,
General Secretary, Secretary and Executive body members of their own with out any
election. They selected the persons whose business was established and who had
good influence. Some craftsmen & manufacturers came to resolve their problems like
raw material related issues, social security related issues, & different types of taxes
related issues etc.
14
The local representative body namely the Small Scale Furniture Association (SSFA)
did not have any developmental agenda and served the purpose of wage negotiation
and resolving of any major crisis. See Annexure XIII for more detail
2.7 Current Institutional Matrix
The cluster had hardly any active support / service institutions to guide it in the right
direction.
The following institutions supported the cluster in the past but presently out of these
only Punjab Small Industries Corporation (PSIC) has continued its support
Institutions linked with the cluster
Punjab Small Industries Corporation (PSIC)

Small & Medium Enterprises Development Authority (SMEDA)
Faisalabad/Jhang Chamber of Commerce and Industry
Commercial Banks
Government College of Technical Education, Faisalabad
2.7.1 Punjab Small Industries Corporation (PSIC)
Punjab Small Industries Corporation was established in the year 1961 and since then
has been a sound contributor to small industrial development in the province through
its various loaning schemes
The corporation is focusing both forward-looking urbanized small entrepreneurs and

un-educated rural oriented backward but traditionally skilled enthusiast looking for an
opportunity to establish his cottage industrial unit.
To promote small and cottage industries through market driven industrial and credit
support, contributing to employment generation and socio-economic uplift of the
province.PSIC has been disbursed loan to some needful manufacturers of the cluster.
Recognizing the importance of SME sectors as an engine of growth in the economy

and its lingering weaknesses, Punjab Small Industries Corporation (PSIC), furthering
its mission;
“To promote sustained industrial development through the provision of

efficient, market driven credit & infrastructure support, contributing to
employment generation and socio-economic uplift of the province”
Wood Seasoning Facility Centre (PSIC) Chiniot
Only unseasoned wood was available in the market, In general only natural seasoned
wood was available. The natural seasoning process used to take several months.
However, a wood seasoning plant used to take 10-15 days (approx) for wood
seasoning (depends on the thickness of the planks/blocks)
15
“Wood Seasoning Facility Centre” on Oct 14, 2005 to provided the facility of wood
seasoning to the craftsmen of Chiniot cluster for the manufacturing of quality furniture.
There were two kilns available at this centre each with 600 c.ft capacity. Each kiln was
equipped with electric source heaters and condensers installed for creating heat to
reduce the moisture of wood. It used to take 10-12 days to reduce the moisture of
wood from more than 60% down to 10 %. To manufacturer good furniture 7% to 12 %
moisture is required, but it varies area to area.
2.7.2 The Small and Medium Enterprise Development Authority - SMEDA
SMEDA was established in October 1998 to take on the challenge of developing Small
& Medium Enterprises (SMEs) in Pakistan. SMEDA is relatively a new organization
with a futuristic structure and focus on providing business development services to
small and medium enterprises. SMEDA is not only an SME policy-advisory body for
the government of Pakistan but also acts as a one-stop-shop for its SME clients.
SMEDA has conducted time to time seminars/workshops in the cluster. During visit of
SMEDA team the stakeholder highlighted different issues concerning industry. In the
light of the problems identified during these visits a workshop was held in Chiniot
cluster, whose purpose was to assess the shortcoming and drawbacks of the cluster
and according propose recommendations for its development.
2.7.3 Faisalabad/Jhang Chamber of Commerce and Industry
A Sole proprietorship firm or any other company or a concern shall be eligible for the
membership of the Faisalabad Chamber provided that such a firm or company has its
head office, registered office, branch office or manufacturing plant located in the
territorial jurisdiction of the Chamber.
2.7.4 Commercial Banks
As per information provided by the banks, some craftsmen had availed loans facility
from these banks previously, directly as well as under various government schemes
floated by these banks. However, the default rate of mark-up of these banks was
substantially high, and almost all of them were willful defaulters. With the result, now
the banks hesitate in providing further loans to these craftsmen.
Following banks has branches in the cluster that were providing services;
National Bank
Muslim Commercial Bank
Allied Bank
Habib Bank
United Bank
Bank Alfalah
Zaraei Trakiyati Bank
16
Punjab Provincial Cooperative Bank
See Annexure I for the list of government departments working at Tehsil level Chiniot
2.8.5 Government College of Technical Education, Faisalabad
As apex institution set up by the Government College of Technical Education,

Faisalabad looks after the promotion of craftsmanship and works for the uplift of their
socio-economic status and aims at integrated programming for the development and
promotion of craftsmanship.
United Nations Industrial Development Organization (UNIDO)
The United Nations Industrial Development Organization (UNIDO) is a specialized

agency of the United Nations that focuses its efforts on relieving poverty by fostering
productivity growth. It helps developing countries and countries with economies in
transition in their fight against marginalization in today's globalize world. It mobilizes
knowledge, skills, information and technology to promote productive employment, a
competitive economy and a sound environment.
s
Transaction Cost Analysis Matrix
Agency Training Technology Design & Market Credit

(R & D, Product Facilitation Facilitation
testing, etc) Development
PSIC - Low - - Low
SMEDA Low - - - -
FCCI - - - Low -
Banks - - - - Low
EPB - - - Low -
2.8 Cluster Maps
Total Number of Units 3,500- 4,000 (approx)

15 % units has 10-15 employees SMALL 600 (approx)
85 % units has 3-7 employees MICRO 3,400 (approx)
Out of 4,000 units (approx) more than 150 small & micro level units and 50 numbers of
have been visited by CDA to filling of questionnaires.
An unfilled sample of questionnaire for Small & Medium Enterprises Wood Working
Cluster, Chiniot is available at Annexure II
2.8.1 Existing Cluster Map
Forward linkages Back Word Linkages
17
C. Banks (6-8) JCCI WSFC PSIC FCCI
SSFA APFE R.M Suppliers (30-35)
L. M.SUPPLIERS (8-10)
M.SUPPLIERS (Woodworking)
G.WALA, LHR, F.ABAD
Direct Exporter
Finished (4-5)
Carvers (12,000)
SMALL UNITS
End Consumer (500-600) Fitter (12,000)
Polisher (1,000)
Local Retailers
Semi-Finished/Finished
(250-300) Jig Saw Craftsmen (4,000)
Brass inlay Craftsmen (2,000)

End Consumer
MICRO UNITS
(3,000-3,400) Wood inlay Craftsmen (2,000)
National Market Exp
Retailers/Expo Finished
Lhr, Gujarat, Karachi, etc Hardware Shops (20-25)
End Consumer Molders (100-150)
Brass Inlay Material

Manufacturers (4-5)
Wood Inlay Material

Manufacturers (50-60)
SMEDA PSIC EPB
SMEDA……... Small & Medium Enterprises Development Authority

EPB….. …….. Export Promotion Bureau
PSIC …………. Punjab Small Industries Corporation
18
WSFC………... Wood Seasoning Facility Centre
FCCI…………. Faisalabad chamber of commerce
JCCI………….. Jhung chamber of commerce
GCT…………. Government College of Technology Faisalabad
CFA…………. Chiniot Furniture Association
APFEA……… All Pakistan Furniture Export Association
R.M……….. Raw Material Suppliers
M.S……….. Machinery Supplier
LHR………. Lahore
G/WALA…. Gujranwala
F/ABAD…. Faisalabad
L.M.S………. Local Machinery Suppliers
R.M.S………….. Raw Material Suppliers
S.S.F.A……….. Small Scale Furniture Association
A.P.F.E.……… All Pakistan Furniture Export Association
19
3. Social Dynamics of the Cluster
The present configuration of the cluster is a reflection of the occupational changes and
adjustments that have taken place, the manner in which the woodworking
relationships have developed and the spread of the craft has taken place from Chiniot
to some other areas in the Pakistan.
Most of the workforce was uneducated. Wooden furniture manufacturers made an

item on the demand of local/country wide retailer. Some times they made a wooden
item as per their self and supply to the retailer. Retailers and manufacturers both were
not concentrating on the quality of the products. This was the main reason that they
were far behind in export.
The industry was facing a continuous decline in the number of both skilled and
educated workforce, which had resulted in the lack of expertise in handling of
technical aspects of product designing and arising of the limitations of repetition of
traditional designs.
Currently Sheesham wood was under an attack of unknown decease, which had
resulted bad quality products after manufacturing. Instead the wood seasoning plant
facility available in the cluster the furniture manufacturers not approach due to the
high rate which low quality products were being manufactured. Use of primitive and
obsolete machinery further deteriorated the manufacturing quality of these products.
Sale of these semi-finished items was limited to only major cities across Pakistan due
to the lack of practicing marketing techniques.
20
4. Value Chain
MACHINERY
SEEDS WATER
FORESTRY
CONTRACTOR
MACHINERY TIMBER MERCHANT

DESIGNERS
CARVERS
SEASONING
MACHINERY FITTERS
M ANUFACTURER WOOD INLAY

MANUFACTURER/RETAILER/EXPORTER CRAFTSMEN
PAINTER /
POLISHER
JIG SAW
CRAFTSMEN
SEMI – FINISHED OR BRASS INLAY

FINISHED FURNITURE CRAFTSMEN
MOLDERS
RETAILER EXPORTER
PAINTER / POLISHER
END CONSUMER
21
5. Problems Identified
The problems being faced by the cluster were as follows:
5.1 Unorganized Nature
Over the number of meetings that were held with the various craftsmen & retailers
they had expressed the feelings that they were not organized properly in one way or
the other. They were aware of the problems but were unable to find any solution for
them.
5.2 Technology Issues
Lack of modern & efficient wood processing & hand carving tools/equipments,
This industry was faced with the issue of traditional tools & equipment for wood
working and wood carving. There was no concept of latest and modern computer
numeric control (CNC) machinery in the cluster. Mostly craftsmen in the cluster were
poor; they had no capacity to buy such costly machinery.
5.3 Marketing Issues
Unawares of international trade trend, markets due to poor marketing skills

Stakeholders were unaware of any quality control and standards
Unawares of international certifications and non-tariff barriers
Currently most of the units supply furniture products to local markets in unpolished
(kora) form. There were only 4-5 manufacturers in Chiniot who exported directly.
Some manufacturers used to supply wooden products to the exporters of Karachi,
Lahore and Gujarat. Manufacturers/traders of Chiniot had no facility of any advisory
cell for consultancy in various areas such as international trade trends, export
procedures, quality standards and coordination with furniture exporters.
5.4 Human Resource Issues
Lack of educated, certified and professionally trained/skilled work force

No training of skills development centre/institute facilities
There was shortage of certified/skilled manpower in furniture cluster. Most of the

craftsmen were uneducated. All the labor force and craftsmanship had been
developed through the inherited system of “Ustad and Chhota” There was no proper
vocational training institute to train these workers about latest designs & trends and
latest techniques to manufacturer furniture products as per local as well as export
market requirements.
5.5 Financial Issues
Inaccessibility to obtain formal financial support resulting in loan credits from

informal sector at higher cost of capital
22
Majority of the SMEs in cluster required finance for working capital and
machinery/equipments. Most of the banks were reluctant in financing these SMEs
because they did not have proper documentations as required. This was the actual
reason in loan credits from informal sectors at high cost of capital.
5.6 Recommendations
Establishment of Raw Material Bank that will ensure consistent supply of ready
to use raw material
Provision of trade, marketing and business development services
Establishment of training institution that will provide skilled & professional
manpower
Networking and linkages of stakeholders.
Financial institutions to provide and devise loaning schemes to facilitate and to
meet financial requirements of the cluster.
Capacity building of private/public institutions and associations
Make the existing unregistered association a register association
Identify the willing entrepreneurs for opening show rooms in cities like Lahore,
Islamabad, Karachi etc
5.7 SWOT (Strengths, Weaknesses, Opportunities & Threats)
5.7.1 Strengths
Wood seasoning facility centre was available in the cluster. Craftsmen could
get facility of wood seasoning to pay Rs. 48 per c.ft in 10-12 days.
Suppliers of raw material were available in the cluster.
Local tools called (jig saw) manufacturers were available in the cluster.
Motor way was just passing 35 km away from the cluster. Due to motor way
wood working business of this cluster enhanced. Customers from other cities
felt comfortable to approach Chiniot through motor way to buy furniture.
3,000-4,000 furniture manufacturing units present in the cluster
35,000-40,000 people (approx) are directly and indirectly attached with this
occupation
Strong historical background of some craftsmen
5.7.2 Weaknesses:
High cost of production due to high rate of raw material, operational losses,
inefficiency losses, wastage costs, etc.
Lack of educated, certified and professionally trained work force. There was
shortage of certified/skilled manpower in furniture cluster. Most of the craftsmen
were uneducated. All the labor force and craftsmanship had been developed
through the inherited system of “Ustad and Chhota”
No availability of VTI (Vocational Training Institute). There was no proper
vocational training institute to train these workers about latest designs & trends
and latest techniques to manufacturer furniture products as per local as well as
export market requirements.
Unawareness of Social compliance and Environmental issues
Unawares of any quality control and standards
23
Unawares of international certification and non-tariff barriers
Inability to penetrate export market with weak furniture designs based on
repeated, non standard copies from catalogs/broachers
Unawareness of international trade trends, markets due to poor marketing
skills
Lack of knowledge about seasoned wood
Unavailability of ready-to use seasoned wood
Lack of knowledge about latest technologies & modern designing trends
Inaccessibility to obtain formal financial support resulting in loan credits from
informal sector at higher cost of capital
Absence of networking & linkages amongst stakeholders
Poor infrastructural facilities like:
1. Roads network in the city was very bad
2. Poor power supply
5.7.3 Opportunities:
Technical up gradation. Modernization or technical up gradation of workshops.

International furniture exhibitions. Identify international manufacturers seeking to
expand their business network.
Combine manufacturers/retailers International warehouses.
Networking & linkages of cluster players/stakeholders.
Development of consortiums with specified objectives.
To raise the reputation, competitiveness and profitability of small and medium-sized

businesses through improving their social, environmental and community impact
For more detail see Annexure XII
5.7.4 Threats:
Migration of trained work forces from the cluster because less profit margin
especially for manufacturers to the big cities like Lahore, Karachi, Gujrat etc
Raw material cost increased (Due to shortage in the stock of Sheesham wood
at any stage because no further plantation as required)
China and India’s low price articles
7. Porters Framework for Woodworking
Porter’s Determinants Score Remarks and Status

Factor conditions:
1. Raw material availability 4 Sheesham wood available throughout the
2. Quality of raw material 2 year
3. Human resource and skill Quality of raw material inconsistent
availability 4 Human resource present in abundance &
skills are traditionally inherited traditional
4. Knowledge of the activity 3 bases of artisans for whom carpentry is a
5. Capital availability 2 family trade
6. Availability of 2 The artisan’s requirement are minimal but lack

infrastructure of working capital for woodworking craftsmen
24
Poor road connectivity inside the city, lack of
communication, inconsistent power supply &
space
Demand condition:
1. Size of domestic market 3 Sold allover the country but limited consumer
segment
2. Number of buyers 4 No of buyers increasing, due to dowry
3. Growth rate of domestic 3 Growth rate is stable since last 2-3 years due
demand to quality
4. Sophistication of buyers 2 Customers has low quality orientation and
cannot distinguish a copy from an original
5. Presence of inter-regional 3
buyers
Size and structure of firms:

1. Number of firms 4 Large number of household into woodworking
activity
2. Size / efficiently of the 3 Home-based units, efficiency limited by space,
firm technology & capital
3. Existence of rivalry 3 Customary rivalry among the firms

(among firms)
4. Formation of new firms 3 New trade is feasible
5. Congruence b/w sub 4 Craftsmen more bothered about immediate
sector firms goals gains
Related and supporting
industries:
Design / product 2 Design development by managing, product
development development is infrequent
Marketing network 2 Trader ship is unfair, No market research
Market research 2
Advertising 2 No promotional efforts
Training 2 No proper training institutions
Research & development 2 Need for R & D department
Machinery/components 2
suppliers
Existence of promotional 1 Govt College Of Technical Education,
institutions Faisalabad is need to be linked
Existence of promotional 2 Association has no action plan for the
association development
Code: (1- highly unfavorable, 2- unfavorable, 3- neutral, 4- favorable, 5- high

favorable)
8. Cluster Vision. (For vision please check the latest version of the DS which I
have submitted in the last after so many corrections)
“By streamlining the value chain the cluster will reduce the manufacturing cost
and give the best value of money to its customers & planning to organize trade
25
mission and commercial intelligence trips (exposure visits) to assist in
enhancing local manufacturer’s capacity (capacity building) with in the period
of three years”.
9. Strategy to Achieve the Vision
Establishment of different consortiums, in order to address the issue of raw

material and wood seasoning costs. These consortiums/networks will perform
joint purchase of raw material & joint wood seasoning in order to achieve
economies of scale with better bargaining power.
Develop linkages between stakeholders & financial institutions (PSIC) for easy
accessibility to obtain formal financial support to improve their businesses.
Roll of trade bodies are very important for the development/uplift of the
industry. So strengthen of association (to convince an unregistered association
to become a register association) is very important to fell the significance of the
body among all cluster players.
There is great need for vocational training to upgrade the skills of the workers
and to induce innovative ideas for designing. Courses in the following areas will
be conducted with the support of technical institutions.
1. Designing & products standardization

2. Manufacturing & process flow
3. Finishing & quality control
Manufacturers will be encouraged to participate in the national & international

exhibitions. They will be provided with opportunities in participating in
international furniture exhibitions. In this regards delegation should be sent to
countries like Italy for exposure to latest designs, trends and techniques.
Manufacturers/traders of Chiniot will be provided consultancy in various areas

such as international trade trends, export procedures, quality standards and
coordination with furniture exporters. In this regards training workshops should
be conducted for Chiniot furniture industry.
Capacity building of association (exposure visits, joint participation in

national/international trade fairs) and commercial intelligence trips to assist and
enhancing the local manufacturer’s capacity.
Training programmes for artisans for skill up gradation will organized. ...
See Philippine’s Furniture Industry as a benchmark at annexure IV
26
10. Future Cluster Map
Total Number of Units 4, 400 (approx)

15 % units has 10-15 employees SMALL 800 (approx)
85 % units has 3-7 employees MICRO 3, 600 (approx)
Forward Linkages Back Word Linkages
27
Banks (10-12) JCCI WSFC & CDC PSIC FCCI
SSFA APFE R.M Suppliers (40-45)
L. M.SUPPLIERS (15-20)
M.SUPPLIERS (Woodworking)
G.WALA, LHR, F.ABAD
Direct Exporter
Finished (10-15)
Carvers (12,500)
SMALL UNITS
End Consumer (700-800) Fitter (12,500)
Polisher (1,200)
Local Retailers
Semi-Finished/Finished
(300-400) Jig Saw Craftsmen (4,500)
Brass inlay Craftsmen (2,200)

End Consumer
MICRO UNITS
(3,500-3,600) Wood inlay Craftsmen (2,200)
National Market Exp
Retailers/Expo Finished
Lhr, Gujarat, Karachi, etc Hardware Shops (25-30)
End Consumer Molders (150-200)
Brass Inlay Material

Wood Inlay Material

SMEDA PSIC EPB
SMEDA……... Small & Medium Enterprises Development Authority

EPB….. …….. Export Promotion Bureau
PSIC …………. Punjab Small Industries Corporation
WSFC………... Wood Seasoning Facility Centre
FCCI…………. Faisalabad chamber of commerce
JCCI………….. Jhung chamber of commerce
GCT…………. Government College of Technology Faisalabad
28
CFA…………. Chiniot Furniture Association
APFEA……… All Pakistan Furniture Export Association
R.M……….. Raw Material Suppliers
M.S……….. Machinery Supplier
LHR………. Lahore
G/WALA…. Gujranwala
F/ABAD…. Faisalabad
L.M.S………. Local Machinery Suppliers
R.M.S………….. Raw Material Suppliers
C.D.C………….. Cluster Development Centre
S.S.F.A……….. Small Scale Furniture Association
A.P.F.E.……… All Pakistan Furniture Export Association
29
11. Action Plan
FUNDS
Sr. ACTIVITY OBJECTIVE Associ- Stake- Other Total RESPONSIBLE DATE OUTCOME
# ation holders Organizati Rs: STAKEHOLDERS
on
1 Networking Raw material / 1,000 Up to Efficient
Wood 31 Supply of
seasoning Oct Raw
Consortiums * * 2005 Material
(Short term 1,000 Stakeholders
activity)
2 Workshop Promote EPB EPB Up to Show rooms
Export 5,000 20,000 15 Owners &
Culture, PSIC & Nov manufacturer
& Certificatio Certification 2005 s
Awareness * n Body (40-50)
ISO Body 5,000 Participants
Certification
(Short term PSIC 35,000
activity) 5,000
3 Linkages Strengthen Best-line Furniture Up to Export quality
Linkages with Consortium 15 Regular order
other cluster’s & Nov
network * * * * Greenways 2005
(Medium term Wazirabad
activity) Network
4 Linkages Strengthen Stakeholder Up to Regular
Linkages with 5,000 & 31 Order
PHS Lahore * * 5,000 PSIC Shops Dec
(Short term 2005
activity)
30
5 Workshop Awareness 5,000 PSIC Association Up to Least
PSIC Lending 5,000 10,000 31 1 Million
Schemes MCB PSIC Jan Disbursement
& 5,000 2006
Awareness &
Training Govt.
(Auto CAD College Commercial
Designing) Of Tech Bank (MCB)
(Short term Faisalabad 35,000
activity)
10,000
6 Registration Organized & Association Up to Registered
Of Strengthen 50,000 28 Association
Association Body * * Feb
(Medium term 2006
activity) 50,000
7 Participation Exposure 200,00 EPB Association Up to 2

In To 0 * 40,000 & 31 Major orders
Trade fair Export EPB Jun
fair Market 240,00 2006
(Long term 0
activity)
8 Develop Upgrade the Govt Association
Diploma Designers College & Up to HRD
Certificate Skills & * * Of Govt 20
Conduct Technolog Coll Of Tec 31 TOTs
Training y F.Abad Jun (Training of
courses Faisalabad 2006 trainers)
(Designing & 50,000
product 50,000
standardization,
31
Manufacturing
& process
flow, Finishing
& quality
control
(Long term
activity)
32
Annexure I
List of Government Departments Working At Tehsil Level Chiniot;
S.NO NAME OF DEPARTMENT

01 Chief Project Officer (Wood Seasoning Facility Centre) PSIC, Chiniot
02 Deputy District Officer Roads Department, Chiniot
03 Deputy District Officer Building Department, Chiniot
04 Deputy District Officer Building Department, Chiniot
05 Deputy District Officer Community Development, Chiniot
06 Deputy District Officer Community Development, Chiniot
07 Deputy District Officer Education Department (Female), Chiniot
08 Deputy District Officer Excise & Taxation Department, Chiniot
09 Deputy District Officer Revenue Department, Chiniot
10 Deputy District Officer Cooperative Department, Chiniot
11 Tehsil Municipal Administration, Chiniot
Tehsil municipal administration, Chiniot is also working with the following

agencies;
S.NO NAME OF DONORS AGENCY

1 Punjab Municipal Development Fund Company (PMDFC) Lahore
2 Punjab Rural Support Programme (PRSP), Lahore
3 Decentralization Support Programme (DSP), Lahore
4 World Bank
Source: TMO (Tehsil Municipal Officer), Chiniot
List of Commercial Banks Working At Tehsil, (Chiniot);
S.NO NAME OF BANKS NUMBER OF

BRANCHES
01 National Bank 2
02 Muslaim Commercial Bank 2
03 Allied Bank 1
04 Habib Bank 2
05 United Bank 1
06 Bank Alfalah 1
07 Zaraei Trakiyati Bank (ZTB) 1
08 Punjab Provincial Cooperative Bank 1
Source: Mr. Hamid Ali, Manager (Muslim Commercial Bank Madina Sugar Mill
Branch) Ph: 0466-332280
33
Annexure II
Questionnaire for Small & Medium Enterprises

Wood Working Cluster, Chiniot
1. Basic Information
Date/Day of visit:
Name of
Enterprises:
Name of Owner:
Name /Position Of
Respondent:
Location:
Phone: Ptc: Cell:
Fax:
E-mail
Main Product (s)
Form of Sole proprietorship, Partnership,
Organization: Family enterprise,
Limited company, Etc:

Established in:
2. Other Businesses
What is the type of your business?

Furniture manufacturer Furniture importer Furniture retailer
Furniture exporters Furniture whole seller Timber merchant
How many employees work for you?

1-8 9-20 21-99 More than 100
What is the type of your business?

Furniture designer Furniture manufacturer Designer and manufacturer
Furniture showroom owner
3. Markets and Marketing
Who are the major buyers of the wooden furniture manufacturing industry?
(Locally, In the country or Export Market)
Who are the enterprise’s main competitors?

(Other SME’s in the cluster, other Enterprises within the country)
What are the enterprise’s main problems in the marketing?
34
(Design/quality/information/control price of raw material/marketing intelligence
etc)
What is the main product features used to attract the customers?

(Product special design/quality/rapid delivery/advertisement/price, etc
What are the main marketing channels/procedures used? Is the pattern of

marketing channels changing significantly, and if so how?
(Directly to the public or to the other enterprises)
4. Premises
Are the premises of the enterprise rented or owned? If rented, from a public or
private landlord?
Are the premises of the enterprise formal or informal?

(Ramshackle, Temporary, etc)
5. Production, Technology, Training, Labour
What is the source of most machines?
Whose advice did the enterprise take in selecting them?
What are the principal sources of machinery parts, servicing & repairs?
(Including self-servicing by the enterprises it self)
Are these sources within or close the cluster?
What are the main problems with the production equipment or with the
35
processes of production?
What are the off season business months?
Where did the owners and employees receive their basic useful training?
(On jobs/from public or pvt training institute)
Does the enterprise specialize (in whole or part)? Does it rely for supplies on
others SMEs?
Is workforce easily available in the area?

Yes No
Do you know about PSIC wood seasoning facility centre?

Yes No
If yes, do you approach WSFC for wood seasoning before furniture

manufacturing?
Yes No
If No, what are the reasons?

1.
2.
3.
6. Raw Materials and Intermediate Goods
What are the sources to provide main raw materials used by your enterprise?
Are many of these raw material providers within or close to the cluster?
Yes No
Does your enterprise have any substantial problems with its raw material
36
suppliers?
On which base your enterprise is buying raw material?

Cash Credit
If on credit, do the raw material suppliers charge different rate?

Yes No
Is your enterprise getting the same quality of raw material (wood), if it buys on
cash base or credit base?
Has your enterprise obtain effective help or advice/suggestion in solving these

problems?
7. Finance
How was the enterprise funded?

Owner Saving Profit of the owners
Other enterprises Family members Inherited
What is financial condition of your enterprise?
Has your enterprise got/received other external loan?

Yes No
If so, when? From whom? If yes, Interest rate?

(Bank, financial company etc)?
What are your enterprise main problems with sources & terms of credit finance?
Do you feel your enterprise needs more external loan to enhance your business?
Yes No
What is position of your business during last five year?

Up Stable Down
37
8. Infrastructure, Policies, Regulations, Etc.
What are the principal customary sources for the main infrastructural facilities
and services used by your enterprise?
Electricity Telecommunication Water Gas
Transport facilities Waste disposal Effluent treatment
Good road network with in the city
Do you have any idea about WTO? If yes, do you prepare your self for that?
Yes No
Is your enterprise ISO certified?

Yes No
If no, do you want to get ISO certification for your enterprise?

Yes No
Does your enterprise have any problems with laws & regulations?
9. Associations
Is your enterprise a member of any business associations? If yes, since when?

Chamber of commerce & industry
All Pakistan furniture export association (APFEA)
Local furniture manufacturer association
What effective help or services has your enterprise received? Explain.
10. Recapitulation / Summary of Main Problems and Strategy of the

enterprise.
What are the major problems facing by the enterprise?
38
Annexure III
Costing For Manufacturing a Bed Set
Bed Set (7 pieces)
1. Bed
2. Side tables
3. Dressing table & mirror frame
4. Dressing stool
Raw Material & Labor Charges
Wood (Sheesham) 25-30 sq.ft @ Rs: 500-600 Rs:18,000

Wood (Kekar or popular) 05-06 sq.ft @ Rs: 250-275 Rs: 1,500
MDF (Lasani) 8x4” sheet @ Rs: 500 Rs: 500
Hard board 1½ @ Rs: 125 Rs: 200
Hard ware goods (Screws, nails, locks, glue, etc) Rs: 500
Designing charges (Rs: 1,000-2,000) Rs: 1,500

Carving charges (Rs: 2,000-3,000) Rs: 3,000
Fitting charges (Rs:3,500-4,000) Rs: 4,000
Finishing charges (Rs:400-500) Rs: 500
Electricity charges (Rs: 800-1,000) Rs: 1,000
Rs: 30,700
Total cost of an un-finished bed set is Rs: 30,000 (approx)
Polish charges (Rs: 2,000-6,000) Rs: 3,000

Looking mirror (Rs: 800-1,000) Rs: 1,000
Total (Finished) Rs: 34,700
Total cost of a finished bed set is Rs: 35,000 (approx)
Costing For Manufacturing a Dining Table with Chairs:
Dining Table (9 pieces)
1. Table Top 1 Number

2. Table pillars 2 Numbers
3. Chairs 6 Numbers
Wood (Sheesham) 6-7 sq.ft @ Rs: 400-500 Rs: 3,500

(Kekar or popular) Rs: 100-150 Rs: 150
Win board 1 sheet @ Rs: 700 Rs: 700
Hard ware goods (Screws, nails, locks, glue, araldite, etc) Rs: 200
Designing charges (Table & chairs) (Rs: 500) Rs: 500

Carving charges (Rs: 600-800) Rs: 800
39
Fitting charges (Rs: 500) Rs: 500
Finishing charges (Rs: 100) Rs: 100
Electricity charges (Rs: 100-200) Rs: 200
Rs: 6,650
Total cost of un-finished dining table is Rs: 6,500 (approx)
Polish charges (Rs: 1,000-2,000) Rs: 1,000

Rs: 7,650
Total cost of finished dining table is Rs: 7,500 (approx)
Dining Chairs (6 pieces)
Wood (Sheesham) 6-7 sq.ft @ Rs: 400-500 Rs: 3,000

Hard ware goods (Screws, nails, locks, glue, araldite, etc) Rs: 300
Designing charges (Rs: 500) Rs: 500

Carving charges (Rs: 1,000-1,500) Rs: 1,000
Fitting charges (Rs: 300-500) Rs: 500
Finishing charges (Rs: 200) Rs: 200
Electricity charges (Rs: 300-400) Rs: 400
Rs: 5,900
Total cost of un-finished dining chairs is Rs: 6,000 (approx)
Polish/cousin charges, each chair (Rs: 400-500) Rs: 3,000

Rs: 9,000
Total cost of finished dining chairs is Rs: 9,000 (approx)
40
Annexure IV
The Philippine Furniture Industry;
The furniture industry has metamorphosed into a highly diversified manufacturing

sector. This is evident in the broad product pallet seen in both domestic and
international markets today such as leg items consisting of chairs, tables, beds,
headboards and settees. Also offered are case goods like cabinets, desks, wardrobe
cases, chests, dressers and kitchen storage units.
Background
Furniture craft came to the Philippines through the Galleon trade in the 16th century.
Its evolution is reflective of the diverse influences that have enriched the country’s
heritage, the wide variety of locally available materials and the existence of native
artisans with deft hands and a flair for design. A culture of adaptation best describes
the history of the industry. These, plus the Filipinos entrepreneurial spirit are the
reasons for the industry’s growth and the wide acceptability of its products.
The furniture industry is currently composed of 15,000 establishments with 481,500

direct workers and 300,000 others indirectly employed as subcontractors. It is
dominated by small and medium-sized firms. Ninety percent of the industry employs
less than 30 workers. Single proprietorships and family corporations are common.
Product coverage
While wooden furniture manufacturers previously exported only sanded items and
parts, they have now penetrated the global market with finished products that
showcase local skills in carving, marquetry and inlaying. Philippine-made wooden
pieces were previously reproduction or period pieces. However, several firms are now
producing modern and contemporary style furniture. Others have ventured into the
use of particle boards and medium density fiberboards for panel furniture.
Metal furniture, on the other hand, combines wrought iron with wicker, wood, seagrass
and other indigenous materials while stonecraft pieces are made with wooden
carcasses and laminated with pieces of fossilized stones. These stones vary in color
from white to beige, to gray, coral, green and black. Tabletops are the main items
produced using fossilized stones.
Major producers
These are three major furniture making areas in the country: Cebu, Metro Manila and
Pampanga. The largest-sized rattan, stonecraft and metal furniture manufacturers are
located in Cebu. Lately, however, several rattan factories have shifted to wood
furniture production, thus, making Cebu a major destination for buyers of such
products. A large number of rattan, wood and metal furniture companies may also
found in Manila. Pampanga is known for fine bone inlay work.
Furniture companies have expanded their capabilities to include the production of

contract furniture. They have been recognized as preferred sources of furniture for
hotels, restaurants, offices and other public institutions. Contractors and interior
design offices have also become important clients since the industry tapped the
contract furniture segment.
41
There are about 15,000 furniture manufacturers as of the end of 1997, many of whom
are small and medium enterprises with less than 30 regular workers. They are spread
in three major furniture-producing areas in the country: Cebu, Metro Manila and
Pampanga.
Production facilities and equipment

Wooden furniture producers are currently giving special attention to the retooling and
modernization of their facilities. The Furniture Production Center has been set-up in
Pampanga to improve the sector’s productivity and to enable the industry to develop
its manpower resources.
Information gathered reveals that the average age of machines used for rattan and
wood furniture production is 5 to 10 years. Rattan companies are well-equipped with
the machines necessary for efficient production while semi-mechanized production is
the norm in wood furniture manufacturing. Aware of the growing need to improve their
productivity, majority of wood furniture firms are investing in modern woodworking
machines and increasing the application of specialized technology to streamline their
production.
Raw Materials
The industry has branched out from utilizing rattan, wicker and buri to using wood,
metal, stonecraft, bamboo and plastic in production. New forms have also emerged
with the combination of two or more of these conventional materials, and their
combination with other items such as grasses, shells, coconut lumber and leather.
Rattan poles, mainly those with a diameter of two centimeters or more, are either
sourced locally or imported. Rattan furniture includes chairs, tables, headboards and
casegoods constructed with rattan frames and combined with natural or colored
wicker woven in myriad patterns. Items may also be made with wooden carcasses
laminated with rattan splits and wicker. Styles vary from traditional and Victorian to
contemporary.
While lumber is available in the domestic market, manufacturers have started using
imported species. Lauan and tanguile are the commonly used types of wood that are
locally-sourced. On the other hand, Honduras and Brazilian mahogany, pine, oak,
beech, cherry and maple are imported by some manufacturers. Malaysia, Brazil and
the USA are the largest suppliers of imported lumber.
Manufacturers have broadened their product range to include pieces using plantation
species. Rubberwood and gmelina are being utilized at the moment. A priority concern
of the industry is the development of tree plantations. The use of particle boards and
medium density fiberboard’s for panel and office furniture and the manufacture of
upholstered items are also gaining popularity among manufacturing firms.
“We tried to create opportunities out of the government’s total log ban policy,” said
Emmanuel Padiernos, president of the Chamber of Furniture Industries of the
Philippines (CFIP). “Since the ban is discouraging the export of rattan and timber, we
see a growing use for wrought iron, metals and even wooden furniture. Timber, after
all, can be easily imported whether in raw or processed form.”
42
The problem in sourcing rattan, a major industry raw material, has also strengthened
the use of mixed media, he added.
The CFIP is urging its members to develop tree plantations to help preserve the
environment and assure continued material supply within the country.
Bureau of Domestic Trade Promotion (BDTP) survey on regional resources

Among the highlights of the survey conducted by the BDTP in 1996 are the following:
Of all the regions surveyed. Region 2 ranks highest in terms of number of

producers with 18 percent shared followed with 11 percent each. This may be
attributed to the abundant supply of raw materials, particularly narra, which is
plentiful in Region 2. Region 9 on the other hand, has a wide variety of raw
materials such as lauan, mahogany and gmelina which is necessary in the
manufacture of furniture. Although it is common knowledge that Region 7
specifically, Cebu and the National Capital Region have a thriving furniture
industry, survey results did not validate this as far as the number of suppliers
and producers are concerned.
In Region 2, Cagayan and Isabela rank have the largest number of producers
with Cagayan accounting for 38.5 percent and Isabela, 27 percent. Of the four
provinces surveyed in this region, Cagayan and Isabela also have the widest
range of product lines. In Region 9, Zamboanga City accounted for almost 50
percent of the total number of producers in Region 3. In Region 8, Northern
Samar and Eastern Samar contributed the biggest percentage share of
producers with 26.2 percent and 25.2 percent respectively.
Raw materials used in the production of furniture range from various woods
such as bamboo, narra, tanguile and wicker to such media as wrought iron.
Material such as pinewood is only available in Baguio, Bontoc and Mt. Province
while gmelina can only be sourced from the Mindanao areas. Although narra
can be found in some parts of Mindanao and the Bicol region, its major source
is Region 2 which area is in fact the top producer of narra furniture. Buri, on the
other hand, is produced in Ilocos Sur, Pangasinan and Southern Leyte.
Skills utilized in the production of furniture include carpentry, carving, dyeing,
sanding, varnishing and welding, among others. Region 3, 2 and 8 employ the
most number of workers with 4,196, 2,193 and 1,568 permanent and temporary
workers and subcontractors, respectively.
Prices of furniture are determined by their sizes, their quality, cost of materials and the
areas where they are acquired.
Technology
Wooden furniture producers are currently giving special attention to the retooling and
modernization of their facilities. The Philippine Furniture Training Center (PFTC) has
been set up to improve the sector’s productivity and enable the industry as a whole to
develop its manpower resources through various training programs.
The PFTC’s training curricula was a result of a study conducted in the country by the
Skive Technical Institute of Denmark. It is the most comprehensive, one of its kind
training schools in the Philippines that can approximate the level of those given in
specialized schools in Europe.
43
Rattan companies are well-equipped with the machines necessary for efficient
production while semi-mechaniz is the norm in wood furniture making.
“Within the next two years, we plan to organize trade missions and commercial
intelligence trips to assist in enhancing our local manufacturers’ capacity and
technology,” said Emmanuel Padiernos, president of the Chamber of Furniture
Industries of the Philippines (CFIP). “One of the international shows we will be visiting
in Europe features suppliers and furniture manufacturers.”
Good designs, craftsmanship

“The Philippines still enjoys the advantage of having skilled craftsmen. This is why we
are called the Milan of Asia,” he added.
A priority project of the CFIP is the conduct of an annual design consultancy program
in line with the holding of the Philippine International Furniture Show (PIFS). This year,
the association was able to obtain a grant from Canada to subsidize the cost of
participating in this program.
“We always urge our manufacturers, especially our exhibitors to come up with new
products and designs at least twice a year. This will make the show more exciting and
their company more interesting for buyers,” noted Padiernos.
Companies normally employ at least an in-house artist/designer to handle product

development.
“The United States is still our biggest buyer and it goes for classic bulky pieces of
furniture, while Europe and Japan prefer clean-looking, simple and classic designs in
light colors,” he said. Busy, complicated designs seem to be losing popularity, he
added.
His company, Pacific Arts and Décor, Inc., has been promoting its brandname
Sofamatic both in the domestic and export markets.
“While we encourage the development of brandnames, we cannot force our buyers to

use them. Normally, they give us their specs and use their brandnames,” said
Padiernos.
Export Statistics
The industry, considered one of the country’s export winners, is aiming to generate
$500 million by the end of 2000.
Padiernos, however, is not confident about achieving the target.
“While the market has indeed grown because of globalization, globalization has also
offered more stiff competition. To reach our goal, we will need government support in
providing the necessary infrastructure and policy environment that will help us be
more productive. We also need investments and sources of funding to help us in our
modernization program,” said Padiernos.
Padiernos does not see any sharp price increases at least in the first six months of the
year. Instead, the peso devaluation has influenced a five to 15 percent decrease in
44
FOB prices in general, he said. He projected that prices will continue to stabilize due
to the improving economic condition in the country and the stable exchange rate.
(Please see www.tradelinephil.dti.gov.ph/betp for more statistics.)
Philippine International Furniture Show (PIFS) 2004
Two distinct yet adjacent halls will house furniture pieces for the living room, dining
room, bedroom, kitchen, bathroom, garden, and office. Occasional furniture, tables,
and chairs; reproduction and period furniture; upholstered furniture; avant-garde
furniture; and other items of furniture can also be sourced from this show. Lamps and
lighting fixtures; decorative accessories; gazebos and trellises; artificial plants,
planters, jars, and pots; antique reproductions; and other home accessories will also
be highlighted to provide a wide array of complementary products that will complete
an entire interior design project.
With the theme Obra 2004, the show exemplifies the aspiration of globalizing
Philippine culture through furniture design. It is a celebration of the global Filipino’s
tradition of craftsmanship in furniture making and design.
"Obra" is a word of Spanish origin that means work or body of works, as in obra
maestra (masterpiece). In Filipino, it is a verb
that has taken a new meaning that explicitly suggests: can be, can be done, or
possible -- "u-obra."
PIFS 2004 will be a showcase of body of works… a showcase of furniture… in infinite

design possibilities.
The show will present a new thematic structure under the sub-themes LIKHA
(Creation) and KALAGAYAN (State of Being).
Under the sub-theme Likha (Creation) are the processes and tools of creative
expressions like Ukit (Carving), Kulay (Color), Habi (Weaving), and Panday
(Metallurgy); which represent the Filipino manufacturers.
The sub-theme Kalagayan (State of Being) is a condition that will be concretized by

the buyers or visitors, as a consequence of function and purpose of Filipino-designed
furniture, which enables them to experience new heights of sensory pleasure and a
higher degree of satisfaction. Under this are affirmative outlooks that are fundamental
to how the end-users will feel about the products. These are Halaga (Value), Liwanag
(Brightness), Ginhawa (Comfort), and Lasa (Taste).
A visit to PIFS 2004 will surely be a totally different experience because it will not only
offer finely-crafted furniture pieces. It will also offer its buyers and visitors a treatment
that is only fit for a king or a queen with its new Buyers’ Incentives Program.
45
Annexure V
World Furniture Outlook 2005/2006
Summary:
There is an increasing degree of openness in the furniture sector world-wide. The

growth in world furniture trade has two determinants: the increasing openness of the
markets and the growth in world consumption, which has also affected the developing
countries since the mid-80's, with the emergence of hundreds of millions of consumers
with levels of spending similar to western ones. Developing countries are therefore
potential customers for middle and upper-middle range furniture produced in industrial
countries.
Market shares of the major furniture exporters are provided by geographical region
and developed countries / emerging countries. The analysis of the opening of furniture
markets covers the past eight years, with data on trade balance, imports/consumption
and exports/production ratio.
Statistics and outlook data are also available in a country format: origin of furniture
imports, destination of furniture exports, historical series on furniture production,
consumption and trade, country rankings to place all statistics in a broad worldwide
context.
The report provides a picture of opportunities for furniture exporters arising from the
increasing openness of markets and a rich collection of key country-data, allowing
comparisons among specific interest areas.
The sixty country tables have been expanded to include three additional items:
a. Total household consumption expenditure (in billions of US$)

b. Total GNP at purchasing power parity (in billions of US$)
c. Per capita GNP at purchasing power parity (in US $)
Countries covered: Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, Canada,

Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland,
France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel,
Italy, Japan, Kuwait, Latvia, Lebanon, Lithuania, Malaysia, Malta, Mexico,
Netherlands, New Zealand, Norway, Philippines, Poland, Portugal, Romania, Russia,
Saudi Arabia, Serbia Montenegro, Singapore, Slovakia, Slovenia, South Africa, South
Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, Ukraine, United Arab
Emirates, United Kingdom, United States, Vietnam.
According to the information provided by furniture exporters (Mr. Javed Iqbal)

Diamond Furnitures of wood working cluster, Chiniot it is recommended to target the
Middle East market, for export because there is huge potential.
It will be in our favor to target this area because;
46
Mostly Muslim states prefer Pakistan for trade, if we able to provide them
according to their requirements which can be
1. Good quality products
2. In time supply
Middle East countries are rich countries & have not their own raw material
(wood)
Style of furniture are same which is under the usage of these countries
Carved furniture is popular in Middle East countries
Royal families use carved home furniture
In TV news or information reports (In the back ground) we mostly see that the
furniture which these countries are using is carved style
Saudi Arab is very found in carved furniture
Easy to penetrate in these markets comparatively Europe or America
These countries accepted that Pakistan is a good market & they can afford the
expensive furniture of Pakistan
EU & US do not afford Pakistani furniture due to high prices
Marketing is easy in Middle East countries
Dubai is hub of Europe ,Africa & Asia
Saudi Arab has not its own wood, so we should target Dubai & Saudi
Carved living furniture is very famous in the royal & common families of Middle
East countries
Target all Islamic countries for furniture export
China, Korea & Japan has different style in furniture
These countries can be our good buyers, we need marketing through internet,
exhibitions and establish our own ware houses
47
The Middle East Countries
Algeria Bahrain Egypt Iran Iraq
United Arab
Jordan Kuwait Lebanon Libya
Emirates
Morocco Oman Palestine Qatar Saudi Arabia
Sudan Syria Tunisia Turkey Yemen
48
Annexure VI
The Furniture Industry in the Middle East 2003
This report offers a comprehensive picture of the furniture sector in the Middle East,
providing trends in furniture production, consumption, imports and exports.
Countries covered in the report include:
Turkey, Egypt, Saudi Arabia , Kuwait and United Arab Emirates
Factors determining the demand for furniture are examined, as well as distribution
channels and prices. For each country the furniture supply structure is analyzed,
with data on companies and employment. Imports and exports are broken down by
country and product.
The Furniture Industry in the Middle East
Countries covered: Turkey, Israel, Egypt, Saudi Arabia, Kuwait, and United Arab
Emirates.
This report offers a comprehensive picture of the furniture sector in the Middle East,
providing trends in furniture production, furniture consumption, furniture imports and
exports in Turkey, Israel, Egypt, Saudi Arabia, Kuwait, United Arab Emirates (UAE).
Factors determining the demand for furniture are examined, as well as furniture
distribution channels and furniture prices.
For each country the furniture supply structure is analyzed, with data on furniture
companies and employment. Short profiles of the main furniture manufacturers, with
production facilities, employees and product mix, are provided.
Furniture imports and exports are broken down by country and product (office
furniture, kitchen furniture, upholstered furniture, non-upholstered seats, bedroom
furniture, seats parts and parts of furniture).
The wood and forestry sector is also considered: production, imports, exports and
consumption data are provided for the main semi-finished wood products (sawn wood;
wood-based panels: plywood, veneer sheets, particle board panels, fiber board
panels, MDF). Data on woodworking machinery imports are available for some of the
considered countries.
Among the covered products: wooden furniture, metal furniture, plastic furniture,
contract furniture, office furniture, home furniture (household furniture), kitchen
furniture, upholstered furniture (sofas and armchairs), non-upholstered seats (chairs),
bedroom furniture, beds, tables, wardrobes, seats parts, parts of furniture, sawn wood,
wood-based panels, plywood, veneer sheets, particle board panels, fiber board
panels, MDF (medium density fiber board), woodworking machinery.
49
Annexure VII
The Saudi Furniture Market
In 2001-02, Saudi Arabia imported $162.3 million worth of household and office
furniture. The value of U.S. exports was $24.05 million and had a market share of
14.8%. The major competitor was Italy with exports valued at $35.1 million and a
market share of 21.6%. Due to tough competition in the Saudi market, many large
furniture manufacturing facilities are in a difficult financial position and have already
stopped production and started to import furniture from abroad and market it. Good
opportunities in tens of millions of U.S. dollars exist for U.S. manufacturers/exporters
of household and office furniture in Saudi Arabia.
It has been reported that due to strong competition in the Saudi market, a number of
local manufacturers of household furniture have changed their activities from
manufacturing furniture into importing and marketing furniture. Some of the
manufacturers, who have taken this step, believe that it is better than stopping their
business, closing their facilities and/or offering them for sale.
The real problem is that the workforce in this sector depends 100% on imported
labor and is operated by non-Saudis. In addition to that, raw materials such as wood,
fabric and hardware are not produced locally. So, instead of buying or importing the
required raw materials to manufacture and market furniture, it would be more
profitable to import furniture and sell it.
Investors based in the Eastern Province of Saudi Arabia have said that a good
number of furniture manufacturing facilities is presently in a difficult financial position
due to low sales and a decline in demand. Quality products of local big
manufacturing facilities and/or of well-known foreign furniture companies are
imitated by small carpentry shops and are sold at a much lesser price. This is
despite the fact that some local manufacturing facilities have launched a marketing
campaign underlining the importance of buying national products, which enjoy high
quality and offering a warrantee for 20 years. They added that a large number of
Saudis prefer nowadays to buy furniture imported from Italy, US, Indonesia and
Malaysia because of competitive prices and higher quality. Some Saudis place direct
orders with foreign furniture manufacturers or travel abroad to buy it and ship it.
Statistics:
Total of imports in 2001-02 $162.3 million
Total of imports from the US $024.05 million Market Share: 14.8%
Total of imports from Italy $035.1 million Market Share: 21.6%
For additional information regarding market research specific to your products and
services, ask about our Flexible Market Research and Customized Market Analysis
programs by contacting us at 1-800-USA-TRAD(E) or www.export.gov or
www.buyusa.com. Both reports provide timely, customized, reliable answers to your
inquiries about a market and its receptivity to your products and services.
50
To the best of our knowledge, the information contained in this report is accurate as of
the date published. However, The Department of Commerce does not take
responsibility for actions readers may take based on the information contained herein.
Readers should always conduct their own due diligence before entering into business
ventures or other commercial arrangements. The Department of Commerce can assist
companies in these endeavors
The Saudi furniture market is the largest in the Middle East and is projected
to remain so for the next three years. The Size of the Saudi market is
estimated at $600 million, 60% for household furniture and 35% for office
furniture. The United States share is estimated and 16% of the whole market for
the year 2001 and is expected to grow at a rate of 8% for the coming 3 to 4
years. Europe, mainly the Italy and the France, as well as South East Asia are
the major competitors for the US in the Saudi furniture market.
The import market is declining as a result of local production and the changed
spending habits. Even though the market is declining, US furniture is very much
in demand in this region. Saudis like American furniture because of the good
quality, design, and durability, even though it is considered a bit expensive
compared to the Far Eastern or European furniture. So the prospect for US
furniture exports to Saudi Arabia remains good especially for wooden furniture,
bedroom sets with closets, living room sets, dinning rooms and kitchens.
Market Value
Market value is estimated at $600 million. Household furniture accounts for

about 60%, office furniture for about 35% and 5% for furniture not elsewhere
classified. Seventy percent is imported while 30% is made locally. The US
market share was estimated at 16% in 2001. The US exported about $71,379
million worth of furniture to the Kingdom, an increase in value about 10% from
2000.
Saudis like American living rooms, dining rooms, kitchens and family rooms.
American bedrooms are not that popular because usually they do not come with
closets. To solve this problem, furniture stores try to make or import
matching closets. Keep in mind that homes in Saudi Arabia don’t have built-in
closets like US homes. Wooden furniture is particularly popular and American or
Canadian wooden furniture is preferred.
Demand for American furniture high among upper and middle class families and by
young Saudis who have lived or studied in the US. The average Saudi family
spends early income on furniture. The average monthly income is about $1,600 or
about $20 thousand dollars yearly.
Italy controlled the market in 1995 with a market share of 45%. Since then
because the demand for US furniture has grown, Italy's share has fallen to 22%.
The US share is estimated at 16% and expected to grow 8% annually for the
coming 4 years. The Far East producers are also doing well due to their
competitive prices and good designs. Many US manufacturers have established
factories in the Far East. As a result Saudi retailers are buying from US
companies based in the Far East because they have lower prices.
51
Another factor contributing to market growth are the young and fast growing
population. The average family in Saudi consists of 5.86 people in it. More
than 50% of the population is under 21. By 2010 the Saudi population is
expected to rise to 30 million. The creation of millions of new households
will continue to fuel furniture demand.
Finally the Saudi government is trying to promote tourism. More hotels,

resorts, and recreation facilities are being built to accommodate the tourists.
All of them will need furniture.
Market..Trends
There are many American furniture importers in Saudi. The largest are American
Homes, Elegant Home and Habitat. About 80% of these stores products are
imported from the US.
There are about 156 furniture factories in Saudi. A few make wooden furniture.
Many make metal furniture and the rest upholster furniture. Some of the local
factories import the wooden frame from the US and Far East and then upholster
the chair or sofa locally. Usually these factories are small. They can not
cover all local market demand. The factories also do not have the specialized
equipment to make new designs.
Many furniture imports are re-exported to other Gulf countries. This is because
of the wide selection of choice available in Saudi Arabia. Re-exports are
particularly noticeable during the Hajj when foreign pilgrims buy furniture
and household accessories.
Import Market
Seventy percent of furniture is imported. Thirty percent is made locally. Italy

has the largest share in the market with about 22%. The Far East has about 7%.
France has a 6% share and Spain about 5% . The US has a share of about 16% and
14% is split between Syria, Egypt, and the Scandinavian countries.
Market Size Table (Million US Dollars)
1999, 2000, 2001 Annual Growth Rate – Next 2 years

Import Market 379 399 420 5%
Local Production 162 171 180 8%
Exports 6.3 6.6 6.9 5%
Total Market 552 576 600 4%
Imports from US 86 64 71 10% increase from last year
Sources:
1. Ministry of Planning, Central Department of statistics.

2. US Department of Commerce, the US Treasury and the US International Trade
Commission.
52
Annexure VIII
List of the Members of Furniture Association
1.
Malik Khalil Ahmed
President
Small Scale Furniture Association
Nazam UC-38 Chiniot
Exporter of wooden furniture & handicraft
Tehsil Road Chiniot, Pakistan
E-mail: qasimcop@fsdnet.com.pk
Showroom: 0466-333020, Workshop: 0466-331680, Fax: 0466-331481
Res: 331201,331481, Mob: 0320-4465101, 0300-7709201
2.
Haji Adrees Ahmed Saharan
Joint Secretary
Super Wood Handy Craft
Exporter Quality Manufacturers & General Order Supplier
Near Library Park Tehsil Road, Chiniot, Pakistan
Showroom: 0092-0466-334467
Res: 0092-0466-331467
Fax: 0092-0466-332910
Mob: 0320-4892043, 0320-4891344
3.
Atta-Ur-Rehman Tahir
Vice President
Glaxy Furnishers
Shahrah-E-Quaid-Azam Chiniot, Pakistan
Workshop: 0466-332213
Res: 0466-333213
Mob: 0320-4891113
4.
Sh.Shahzada Alam
Executive Member
Hi-Light Furnishers
Shahrah-E-Quaid-E-Azam, Chiniot
Show Room: 0466-332690
Res: 0466-335090 Mob: 0320-4890090
5.
Mian Mohammad Rauf
Executive Member
Rauf Furnitures
Mob: 0333-6702755
53
Annexure IX
List of Timber Merchants
1. Tanveer Hayder
Burhan Timber Merchant,
Faisalabad Road, Chiniot
Ph: 0466-334932
Cell # 032-4891701
2. Chohdry Mehmood Ahmed

Chohdry Timber Merchants
Rajoya Chok, Thana City Road, Chiniot
Ph: 0466-330414
Res: 0466-331769
Cell# 0320-4890569
3. Iftikhar Khan / Rana Abass

Rana Shahbaz Timber Merchant
Jhang Road, Chiniot
Tel: 0476-335061
Cell # 0300-7709250 / 0300-7713139
4. Mohammad Shah
Iqbal Khan Timber Store
Jhang Road, Chiniot
Tel: 0466-224694
0466-330216
5. Malik Allah Dita

Chiniot Timber Store
Moazzam Shah Road, Chiniot
Tel: 092-466-332505 / 0467-000550
Res: 092-466-331100
Fax: 092-466-333100
Cell # 0303-6742100
6. Haji Malik Ghulam Yaseen

Haji Timber Merchant
Jhang Road, Near Pso Filling Station
Tel: 0466-333285
Cell # 0300-7703032
54
Annexure X
List of Top Five Furniture Exporters of the Cluster

1. Chiniot Art Centre
Malik Khalil Ahmed
Nazam UC-38 Chiniot
Showroom: 0466-333020, Workshop: 0466-331680, Fax: 0466-331481
Res: 331201,331481, Mob: 0320-4465101, 0300-7709201
2. Wood Pecker Art Furnishers

Sh. Anis javed
Fakhri Plaza, Tehsil Road,
Chiniot
Tel:0092-446-332946, FAX: 0092-466-330209
Cell#0320-4890698
3. Hi-Light Furnishers
Sh.Shahzada Alam
Show Room: 0466-332690
Res: 0466-335090
Mob: 0320-4890090
4. Diamond Furniture Centre

Mr. Javed iqbal
Tel: 047-6331380, FAX: 047-6331680
Cell# 0300-7709281
5. Mohammad Afzal
Afzal Furnitures
Showroom: 0466-332531
Source: Sh.Shahzada Alam, Hi-Light Furnishers, Quaid –E-Azam Road, Chiniot
55
List of Furniture Manufacturers, Exporters and Show Room’s Proprietors
(I have visited more than one hundred fifty stakeholders, some are listed as follows)
1. Sh. Anis Javaid

Wood Pecker Art Furnitures
Manufacturer and exporters of hand carved furniture and brass inlaid, handy crafts.
Fakhri plaza, tehsil road, chiniot, distt: jhang, pakistan.
tel: 0092-466-332946, fax: 0092-466-330209, res: 0092-46-331346
Cell# 0320-4890689, 0300-7700489.
E-mail: shanisjd@yahoo.com, woodpekr@fsd.paknet.com.pk
2. Mr.S.Asif Ali
Rose Wood Collection
Manufacturer and export quality furniture and handy crafts.
Shahrah-e-quaid-e-azam, chiniot, pakistan.
Tel:0092-466-333805 fax:92-466-335842
E-mail: rwcollection@hotmail.com
3. Mohammad Abid, Haji Mohammad Abdulah

Rajpoot brothers
Workshop wooden furniture.
Mohalla terkhana, chiniot, pakistan.
Tel: 0092-466-333219
4. Mian Ehsan Elahi

Artism Furnitures
Show room and workshop of wooden furniture
Khan plaza, shop no.1, Shahra-E-Quaid-E-Azam, Chiniot, Pakistan
Tel:092-0466-332968, 0922-0466-332877, fax: 0466-332865
5. Mr.Mohammad Tayyab
Workshop of Wooden Furniture
Mohalla Terkhana, Chiniot, Pakistan
Tel:
Cell#
6. Mohammad Naeem Tamimi

Furniture and Handicraft
Muslim Plaza, Tehsil Road, Chiniot, Pakistan
Tel: 092-0466-335253
Cell#
7. Malik Noor Sultan

Manufacturer and General Order Suppliers
Shahrah-e-quaid-e-azam, Chiniot, Pakistan.
tel: 092-0466-334409,
cell# 0320-4891312
56
8. Mr. Tanveer Ahmed
Mohalla/chok Terkhana, Chiniot, Pakistan
Manufacturer wooden furniture (workshop)
Cell# 0300-7701839
9. Mr.Rasheed Ahmed
Manufacturer Of Wooden Furniture (Workshop)
Mohalla Terkhana, Chiniot, Pakistan
Tel Res:0466-335958
10. Mr. Ali mehboob

Nobal Furnitures (Show Room)
Tehsil Chok, Malik Centre, Faisalabad Road, Chiniot, Pakistan
Tel: 0466-336493
Cell# 0300-6621834
11. Mr. Mohammad saleem.

Small Wooden Furniture And Door Maker Workshop
asif and brothers wood work
Jhumra Chok, Jhang Road, Chiniot, Pakistan
Cell# 0300-7701246
12. Malik Umar Darraz.

Wooden Furniture Manufacturers
Shahra-E-Quaid-E-Azam Road, Chiniot, Pakistan
Tel: 092-0466-6334409, 092-0466-334409
Cell# 0300-9747011
13. MR. SHAHID DASTEGEER.

Dastegheer Furniture Manufacturer (Workshop)
Mohallah terkhana, cjiniot, pakistan
Tel:
Cell#
14. MR. MOHAMMAD ALI.

Home Décor.
Furniture Manufacturers and Showroom
Shahrah-E_Quaid-E-Azam, Chiniot, Pakistan.
Tel: 092-0466-335842
Cell# 0333-6703253
15. Ch. Jamshaid Ali

Jamshaid furnitures
Manufacturer, Supplier and Exporter Wood Handicraft and furniture
Shahrah_E_Quaid-E-Azam, Chiniot, Pakistan
Tel:
16. Mr. S. Tayyab Imam.

Home Decor, Wooden Furniture Manufacturer And Show Room Proprietors.
Shahrah_E_Quaid-E-Azam, Chiniot, Pakistan.
Tel: 092-0466-333805, Fax: 092-0466-335842
57
17. Mr Mohammad Aslam.
Wooden Furniture Workahop.
Mohalla Thatti,Garbi Chah, Hamayyon Road, Chiniot, Pakistan.
Tel: 092-0466-333496
Cell#
18. Mr. Samiullah Pirjah

Wood Reflections
Khan Plaza, Shahreh-E-Quaid-E-Azam
Chiniot, Pakistan.
Display Centre 092-0476-666796
Cell# 0300-7716796
19. Malik Alamgir Iqbal

Chiniot Handicrafts Corp
Moazzam Shah Road, Chiniot, Pakistan
Res: 092-466-661100, 0476-000550
Mob: 0303-6742100
20. Mr. Javid Iqbal

Diamond Furniture Centre
Shahrah_E_Quaid-E-Azam, Chiniot, Pakistan.
Show Room: 047-6331380,
Mob: 0300-7709281
21. Mr. Shahid Bhatti

Furniture Manufacturer & Timber Merchant
Jhang Road, Near Sh. Manzoor Filling Station
Tel: 0476-330990, 0476-000756
Cell# 0300-7719011
22. Mr. Hamid Ali

Manager (MCB)
Dr. Aziz Ali Road, Main Branch Chiniot, Pakistan
Tel; 0466-332280
Fax: 0466-334697
23. Mr. Mohammad Tahir Akhtar

Chief Manager (ABL)
M/B Chiniot, Pakistan
Tel: 0466-332851
Cell# 0300-8705564
58
List of Handicraft & Furniture Manufacturers
1. Chiniot Art Centre

Malik Khalil Ahmed
Nazam uc-38 chiniot
Showroom: 0466-333020, workshop: 0466-331680, fax: 0466-331481
Res: 331201,331481, mob: 0320-4465101, 0300-7709201
2. Ch. Ilam Din

Wood Valley Handicrafts
Fakhri plaza, Shahra-e-Quaid-e-Azam
Chiniot, Pakistan
Tel: 0466-333198 / fax: 0466-333897
Res: 0466-330560
Cell# 0320-4891470
E-mail: woodvalley555@hotmail.com, woodvalley555@yahoo.com
3. Muhammad Aalam / Muhammad Aamir

Aamir Handicraft & Furniture Manufacturers
Tehsil Chok, Fakhri Plaza, Chiniot
Tel: pp-0466-333640, 330651
Res: 0466-332524
4. Muhammad Naeem Tamimi

Tamimi Ha Handicraft & Furniture Manufacturers
Muslim Plaza, Tehsil Road, Chiniot
Tel: 0466-335253
5. Naseer Ahmad Bhatti

Naseer Wood Gift Handicrafts
Shahra-E-Quaid-E-Azam, Chiuniot
Tel: 047-6333715
Cell # 0300-7715722
59
List of Free Hand Designers
1. Mr. Ijaz Ahmad Rehman

Near Mama Hotel, Eid Gah Road, Chiniot.
Tel: 0467-6331515
2. Akhtar Pirjah
Mohalla Rorean Wali, Chiniot
Cell # 0300-7707840
3. Samiullah Pirjah
Khan Plaza, Shahrah-E-Quaid-E-Azam
Chiniot, Pakistan. Tel: 092-47-6336796, Cell# 0300-7716796
60

Diagnostic Study Furniture Cluster Chiniot

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Diagnostic Study Furniture Cluster Chiniot

Uploaded by

Copyright:

Available Formats

DIAGNOSTIC STUDY

WOOD WORKING CLUSTER CHINIOT – PAKISTAN

Developed under Joint UNIDO, SMEDA & PSIC Cluster Development

Focal Point UNIDO:

Mr. Anjum Fayyaz – NPC UNIDO

Mr. Sarwar O. H. Hobohm - Team Leader CDP UNIDO Vienna

1. Objectives of UNIDO Cluster Development Programme in Pakistan 2

1. List of government departments working at Chiniot 35

2. Questionnaire for Small & Medium Enterprises 36

4. The Philippine Furniture Industry 43

5. World Furniture Outlook 2005/2006 Summary 47

6. The Furniture Industry in the Middle East 51

7. The Saudi Furniture Market 52

8. List of the Members of Furniture Association 55

9. List of Timber Merchants 56

10. List of Top Five Furniture Exporters of the Cluster 57

2.1 Definition of the Product

 Bed Room Furniture

Wooden furniture 73%

SOURCE: UN Statistics (PC - TAS) for 2002

SHARE OF EACH CATEGORIES

Wooden furniture main products/items are;

Bed room furniture

Bed Room Furniture

Dining Room Furniture

Living Room Furniture

Dressing Room Furniture

Product Mixed Offered

This includes glass top dinning table with six/eight chairs

2.2 Geographical Location

There are three types of processes:

2.3.1 Production Process Flow (Wooden Furniture Manufacturing Unit)

PURCHASE OF CUTTING OF SEASONING/DRY

MOLDING CUTTING INTO DESIGN

HAND CARVING ASSEMBLY/ FINISHING

1. Age of wood (Old wood conceder comparatively batter)

Desired design selected before start of manufacturing of any furniture product.

Cutting into slices

2.4 Current Output

3000-4000 units in this sector

Average 50 c.ft wood using per unit per month

Total working units 3,000 numbers

Similarly wood turning 150,000 c.ft

2.4.1 Weekly Production Capacity:

2.4.2 Value Addition Breakup

Value Addition Breakup of an Un-finished Bed Set

Bed Set (7 pieces)

Wood Wood Designer Carver Fitter Finisher

Total cost of un-finished Bed Set was RS.31, 700

Raw material Wood Rs 20,700

Value Addition Breakup of a Finished Bed Set

Wood Wood Designer Carver Fitter Finisher

Total Cost of finished Bed Set was RS.35, 700/- approximately

Value addition breakup of a finished bed

Raw material Wood Rs. 20,700

Value Addition Breakup of an Un-Finished Dinning Table

Wood Wood Designer Carver Fitter Finisher

Total cost of dinning table was RS. 6,650

Value Addition Breakup of a Finished Dinning Table

Total cost of dinning table was RS. 7,650

Value Addition Breakup of 6 Un-Finished Dinning Chairs

Wood Wood Designer Carver Fitter Finisher

Total cost of un-finished dinning chairs RS. 6,000 approximately

Value Addition Breakup of 6 Finished Dinning Chairs

Bed Room Furniture

Toba Tek Singh

Punjab Small Industries Corporation (PSIC)

Unawares of international trade trend, markets due to poor marketing skills

Lack of educated, certified and professionally trained/skilled work force

Inaccessibility to obtain formal financial support resulting in loan credits from