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Presented By;
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


 Vntroduction
 Historical Background
 Figurative overview
 Variety Of Products
 Division Of Units
 Raw materials
 Manufacturing Process
 Major Companies
 Average Prices
 Exports
 Pakistan¶s Share in world
Exports
 Regulatory Body &
institutions
 Linkages
 Vmportance of fans
 Vncreasing demand
 Manufacturers viewpoint
 Government¶s roles
 SWOT analysis
 Problems
 Recommendations
   
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 A fan is a device used to agitate or move air or gas;
it can be categorized into four distinct types:
 Centrifugal
 Propeller
 Axial Flow
 Mixed Flow

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 The fan industry is mainly clustered in the

four major cities namely, Gujrat, Gujranwala,
Lahore and Karachi.

 The industry belongs to the light engineering

industry category, and is one of the industries
that existed at the time of independence.




 Around 40% of the total sales are five large

firms in Gujrat and two in Gujranwala.

 Fan industry is producing about seven 7

million fans per annum. Out of the total
production, approximately 30% fans consist
of pedestals, 7 % brackets and the remaining
63% are ceiling fans.
d
   


 Electric Fan was invented in 1886 by Schulyer Wheeler.

 Before partition in 1944, fan manufacturing was started by a 


 in Gujrat.

 Vn 1950s, it was declared as cottage industry and its more than

50% units still fall in this category.

 Vn 1992-93, only 200,000 fans were exported to Vraq and Yemen.

 Vn 1999, 3 million fans were produced from which 50,000 were

exported.
|  



A
 A 


Vnstalled capacity 5-6 million fan / year 7 million fan / year

Capacity utilization 50% 80%

Total production 2.5-3 million fan/year 5.6 million fan / year

Direct Employment 30,000 people

25000 people
Vndirect Employment 40,000 people

Annual Revenue Rs. 2.25-2.7 billion Rs. 5.25 billion

Exports US $3.89 million US $16.66 million

Vmports - US $160,000

GDP Contribution Rs. 1.5 billion -

Capital investment - Rs. 5 billion

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 ! Units 1000

 
 "  Project Cost Rs. 0.45-1 million

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Body Plate of Rotor Stator
Aluminum

Tooling &
Grinding
Tooling & Aluminum
Turning Blades
Axle Fitting

Pressing By
Drilling Winding Dies

Fitting of Rotor
Stator in Body Fitting of
& Nakka Blade Carrier

Checking Painting

Painting Fitting &

Assembling
Packing &
Store
Checking


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Millat Fans Rs. 1625 Rs. 1850 Rs. 1900
Pak Fans Rs. 1470 Rs. 1750 Rs. 2050
Royal Fans Rs. 1563 Rs. 1650 Rs. 1850
Younas Fans Rs. 1512 Rs. 1600 Rs. 1825
Parwaz Fans Rs. 1391 Rs. 1600 Rs. 1850
G.F.C Fans Rs. 1282 Rs. 1600 Rs. 1850
     



Year Exports (US À

$ Million) 
À

2003-2004 11.8 À ÀÀÀ
 ÀÀÀ
À ÀÀ À
2004-2005 14.2


À

2005-2006 16.66 À

 
 
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|
 Pakistan Electric Fans Manufacturers Association.
 PEFMA was incorporated under the companies ordinance 1984
on 12th December, 1989.
 The area of operation covers the whole of Pakistan including
Azad Jammu & Kashmir.
 There are about 148 registered members

 PEFMA was providing the following facilities to its members.

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 FDV was established in Gujrat in 2001 by the

joint efforts of Trade Development Authority
of Pakistan (TDAP) and the Ministry of
Science & Technology (MOST).

 The institute possesses the role of µTraining

Centre¶ for the fan industry and also fulfils the
laboratory testing requirements of the
industry.
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 Chamber of Commerce & Vndustry, Gujrat (GtCCV)

 Banks /Financial Vnstitutions
 Small and Medium Enterprise Development
Authority (SMEDA)
 Trade Development Authority of Pakistan (TDAP)
 Technical Educational and Vocational Training
Authority (TEVTA)
 Punjab Small Vndustries Corporation (PSVC)
 Pakistan Council for Scientific & Vndustrial Research
(PCSVR)
 Pakistan Standard Vnstitution (PSV)
r



 Backward Linkages  Forward Linkages

 Steel industry  Machine manufacturing
 Wire manufacturing  Construction industry
 Ball Bearing  Air conditions
 Paint industry  Exports
 Plastic industry  Banks & financial
 Transportation institutions
 Labor




|

 Made life comfortable
 Avoid mosquitoes
 Vmprovement in hygiene
 Enhance the energy
 Vmprovement in educational environment
 Used in cars for cooling
 Ventilation
 Cheaper product
 Consumes low energy
 More use in rural areas; (60% are used in rural areas)
 Air condition is expensive
 Used in different industries



Œ



 Due to increase in population

 Migration of people towards big cities
 Vncrease in exports
 Local demand for quality product is
increasing
 Climate of Pakistan
 People are becoming quality conscious
 Per capita income is increasing
 Electricity projects in rural areas

 
^



 Fan manufacturers have enhanced the prices of
fans by 20 per cent due to a µ100 percent¶ increase
in raw material prices.

 Manufacturers could not afford to continue the policy

of lifetime guarantee in the wake of continuous hike
in input prices.

 The exporters of fans and allied goods could not

survive if they do not have sufficient stocks of
imported raw materials as well as finished goods so
as to fulfill the demand of the domestic as well as
international buyers.
‰




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 To avoid the mis-declaration, accommodate the
inputs of industry and to facilitate the capital goods
industry around 96 new tariff lines have been
created.

 The duties on imports have been cut down to 0%,

5%, and 10% from 5-25 percent.

 Provides every opportunity to the businessmen to

participate in various international fairs and helps
them to move forward
 
 


 

 Presence of large manufacturers;

 Fan product: durability & performance;
 Availability of raw material;
 Presence of specialized vendor industry;
 Local machinery manufacturers;
 Presence of Fan Development Vnstitute.
 




 Lack of proper marketing techniques;
 Low marketing budget;
 Old technology;
 High wastages;
 Monopoly of raw material providers;
 Non-standardization of parts;
 Exploitation by the distributors & retailers;
 Labor not trained from any technical training institute;
 Less technical assistance available;
 Low working capital;
 Load shedding of Electricity & Natural Gas during the
peak manufacturing season.
 


  


 New and unexplored  Quality standards and

international markets; certifications;
 Unutilized production  Competitions with
capacity; international manufacturers
 Product/material like China & other countries;
diversification.  Fan products more light
weight, less priced,
attractive;
 Dependency on Vmported
raw material.



 The competitive products in the international market
were light weight, plastic bodied, attractive and low
priced.

 The immediate concern of small manufacturers was the

problem associated with the µDistribution channel¶,
especially in the domestic market.

 The labor is not trained from any technical institute, and

the seasonality effect had also reduced the productivity
and efficiency of labor.

 Most of the small & medium manufacturers were using

old technologies in their production facilities, which was
a major reason for increased costs and lower
productivity.


!

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 Role of PEFMA as a representative body of Gujrat fan

manufacturers had been largely diminished over the
passage of time. The association was hardly meeting its
expenditures because of having no other source of
income.
 Late dissemination of information and palming only the
selected few were the usual dissatisfaction remarks
about GCCV.
 The need of a specialized industrial estate was
highlighted during the interactions. The entrepreneurs
even exhibited keen intentions to invest for the purpose.
º



 


 Provision of Fan market information (Local & Vnternational).
 Exposure visits of potential markets.
 Participation in Trade fairs/exhibitions.
 Advertisement at network level (Local).
 Seminars on Quality standards..
 Awareness workshops on training.
 Strengthening of the role of FDV: meeting platform; introduction of
customized training courses.
 Seminar on increase in productivity level through technology up-
gradation synergies.
 Meetings with stakeholders to solve financial problems linked with
procurement of more expensive technologies.
 Domestic market exploration on Vndustrial fans usage.
 Vnformation provision regarding the World trade on various types of
fans with different materials.
d&