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

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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

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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 The davenport, a small desk with a hinged lid that opens out for writing, was originally made by William Davenport.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

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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 CATEGORIESPlastic

Furniture, 6%Metal

Furniture, 21%

Wooden Furniture,

73%

Products Range: Wooden furniture main products/items are; Bed room furniture Dining room furniture Living room furniture

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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.

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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.

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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 WOOD

CUTTING OF WOOD

SEASONING/DRYING

CUTTING INTO SLICES

MOLDING

HAND CARVING

DESIGN SELECTION

FINISHING

POLISHING/PAINT

ASSEMBLY/ FITTING

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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.

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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)

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1. Bed 2. Side tables 3. Dressing table & mirror frame 4. Dressing stool

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 Cost after value addition Rs. 27,200 Fitting Charges Rs. 4,000 Cost after value addition Rs. 31,200 Finishing charges Rs. 500 Cost after value addition Rs. 31,700 Value Addition Breakup of a Finished Bed Set

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

Wood Raw Material Rs. 20,700

Designer Designing Charges Rs. 1,500

Carver Carving Charges Rs. 4,000

Fitter Fitting

Charges Rs. 4,000

Wood Seasoning

Rs.1, 000

Finisher Finishing Charges

RSs.500

Polish Charges Rs. 4,000


Designer Designing Charges Rs. 1,500


Fitter Fitting

Charges Rs. 4,000

Wood Seasoning

Rs.1, 000


Rs.500

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Cost after value addition Rs. 21,700 Designing Charges Rs. 1,500 Cost after value addition Rs. 23,200 Carving charges Rs. 4,000 Cost after value addition Rs. 27,200 Fitting Charges Rs. 4,000 Cost after value addition Rs. 31,200 Finishing charges Rs. 500 Cost after value addition Rs. 31,700 Polish charges Rs 4,000 Cost after value addition Rs. 35,700 Value Addition Breakup of an Un-Finished Dinning Table

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

Total cost of un-finished dinning chairs RS. 6,000 approximately Value Addition Breakup of 6 Finished Dinning Chairs


Designer Designing Charges Rs. 500


Fitter Fitting

Charges Rs. 500

Wood Seasoning

Rs. 250


Rs.300



Carver Carving Charges Rs. 800

Fitter Fitting

Charges Rs. 500

Wood Seasoning

Rs. 250


Rs.300

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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




Fitter Fitting

Charges Rs. 500

Wood Seasoning

Rs. 250


Rs.300

Polish Charges Rs. 1, 500

Cousin Charges Rs. 1,500

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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 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;

Forest officers Timber Merchant Craftsmen Contractor

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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

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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.

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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)

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“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

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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

(R & D, testing, etc)

Design & Product Development

Market Facilitation

Credit Facilitation

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

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SMEDA……... Small & Medium Enterprises Development Authority EPB….. …….. Export Promotion Bureau PSIC …………. Punjab Small Industries Corporation

SMALL UNITS (500-600)

MICRO UNITS (3,000-3,400)

Direct Exporter Finished (4-5)

National Market Exp Retailers/Expo Finished Lhr, Gujarat, Karachi, etc

C. Banks (6-8) WSFC PSIC F C C I

M.SUPPLIERS (Woodworking) G.WALA, LHR, F.ABAD

R.M Suppliers (30-35)

Local Retailers Semi-Finished/Finished (250-300)

S S F A A P F E

End Consumer

End Consumer

End Consumer

L. M.SUPPLIERS (8-10)

E P BS M E D A P S I C

JCCI

Carvers (12,000)

Fitter (12,000)

Brass inlay Craftsmen (2,000)

Wood inlay Craftsmen (2,000)

Polisher (1,000)

Hardware Shops (20-25)

Jig Saw Craftsmen (4,000)

Molders (100-150)

Brass Inlay Material Manufacturers (4-5)

Wood Inlay Material Manufacturers (50-60)

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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

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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.

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4. Value Chain

MACHINERY

FORESTRY

MACHINERY TIMBER MERCHANT

M A N U F A C T U R E RMANUFACTURER/RETAILER/EXPORTER

CARVERS

MACHINERY FITTERS

PAINTER / POLISHER

SEMI – FINISHED OR FINISHED FURNITURE

EXPORTER RETAILER

PAINTER / POLISHER

E N D C O N S U M E R

SEASONING

DESIGNERS

WATER SEEDS

JIG SAW CRAFTSMEN

MOLDERS

CONTRACTOR

BRASS INLAY CRAFTSMEN

WOOD INLAY CRAFTSMEN

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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

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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

24

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 2. Quality of raw material 3. Human resource and skill

availability 4. Knowledge of the activity 5. Capital availability 6. Availability of

infrastructure

4 2

4

3 2

2

Sheesham wood available throughout the year Quality of raw material inconsistent Human resource present in abundance & skills are traditionally inherited traditional bases of artisans for whom carpentry is a family trade The artisan’s requirement are minimal but lack of working capital for woodworking craftsmen

25

Poor road connectivity inside the city, lack of communication, inconsistent power supply & space

Demand condition: 1. Size of domestic market 2. Number of buyers 3. Growth rate of domestic

demand 4. Sophistication of buyers 5. Presence of inter-regional

buyers

3

4 3

2

3

Sold allover the country but limited consumer segment No of buyers increasing, due to dowry Growth rate is stable since last 2-3 years due to quality Customers has low quality orientation and cannot distinguish a copy from an original

Size and structure of firms: 1. Number of firms 2. Size / efficiently of the

firm 3. Existence of rivalry

(among firms) 4. Formation of new firms 5. Congruence b/w sub

sector firms goals

4

3

3

3 4

Large number of household into woodworking activity Home-based units, efficiency limited by space, technology & capital Customary rivalry among the firms New trade is feasible Craftsmen more bothered about immediate gains

Related and supporting industries: Design / product

development Marketing network Market research Advertising Training Research & development Machinery/components

suppliers Existence of promotional

institutions Existence of promotional

association

2

2 2 2 2 2 2

1

2

Design development by managing, product development is infrequent Trader ship is unfair, No market research No promotional efforts No proper training institutions Need for R & D department Govt College Of Technical Education, Faisalabad is need to be linked Association has no action plan for the 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

26

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

27

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

28

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

SMALL UNITS (700-800)

MICRO UNITS (3,500-3,600)

Direct Exporter Finished (10-15)

National Market Exp Retailers/Expo Finished Lhr, Gujarat, Karachi, etc

Banks (10-12) WSFC & CDC PSIC F C C I

M.SUPPLIERS (Woodworking) G.WALA, LHR, F.ABAD

R.M Suppliers (40-45)

Local Retailers Semi-Finished/Finished (300-400)

S S F A A P F E

End Consumer

End Consumer

End Consumer

L. M.SUPPLIERS (15-20)

E P BS M E D A P S I C

JCCI

Carvers (12,500)

Fitter (12,500)

Brass inlay Craftsmen (2,200)

Wood inlay Craftsmen (2,200)

Polisher (1,200)

Hardware Shops (25-30)

Jig Saw Craftsmen (4,500)

Molders (150-200)

Brass Inlay Material Manufacturers (8-10)

Wood Inlay Material Manufacturers (80-100)

29

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

30

11. Action Plan

F U N D S Sr.#

ACTIVITY

OBJECTIVE Associ-

ation Stake- holders

Other Organization

Total Rs:

RESPONSIBLE STAKEHOLDERS

DATE

OUTCOME

1 Networking Raw material / Wood seasoning Consortiums (Short term activity)

*

1,000

*

1,000

Stakeholders

Up to 31 Oct 2005

Efficient Supply of Raw Material

2 Workshop Promote Export Culture, & Awareness ISO Certification (Short term activity)

5,000

*

EPB 20,000 Certification Body 5,000 PSIC 5,000

35,000

EPB PSIC & Certification Body

Up to 15 Nov 2005

Show rooms Owners & manufacturers (40-50) Participants

3 Linkages Strengthen Linkages with other cluster’s network (Medium term activity)

*

*

*

*

Best-line Furniture Consortium & Greenways Wazirabad Network

Up to 15 Nov 2005

Export quality Regular order

4 Linkages Strengthen Linkages with PHS Lahore (Short term activity)

5,000

*

* 5,000

Stakeholder & PSIC Shops

Up to 31 Dec 2005

Regular Order

31

5 Workshop Awareness PSIC Lending Schemes & Awareness Training (Auto CAD Designing) (Short term activity)

5,000

5,000 PSIC 10,000 MCB 5,000 Govt. College Of Tech Faisalabad 10,000

35,000

Association PSIC & Commercial Bank (MCB)

Up to 31 Jan 2006

Least 1 Million Disbursement

6 Registration Of Association

Organized & Strengthen Body (Medium term activity)

50,000

*

*

50,000

Association Up to 28 Feb 2006

Registered Association

7 Participation In Trade fair fair

Exposure To Export Market (Long term activity)

200,000

*

EPB 40,000

240,000

Association & EPB

Up to 31 Jun 2006

2 Major orders

8 Develop Diploma Certificate

Upgrade the Designers Skills & Conduct Training courses (Designing & product standardization,

*

*

Govt College Of Technology Faisalabad 50,000

50,000

Association & Govt Coll Of Tec F.Abad

Up to 31 Jun 2006

HRD 20 TOTs (Training of trainers)

32

Manufacturing & process flow, Finishing & quality control (Long term activity)

33

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

34

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 Organization:

Sole proprietorship, Partnership, 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?

35

(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

36

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

37

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

38

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?

39

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 1 ½ @ 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

Raw Material & Labor Charges 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

40

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) Raw Material & Labor Charges 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)

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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.

42

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.”

43

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.

44

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

45

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.

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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;

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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

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The Middle East Countries

Algeria Bahrain Egypt

Iran Iraq

United Arab

Emirates Jordan Kuwait

Lebanon Libya

Morocco Oman Palestine

Qatar Saudi Arabia

Sudan Syria Tunisia

Turkey Yemen

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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.

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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.

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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.

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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.

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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: [email protected] 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 Shahrah-E-Quaid-E-Azam, Chiniot Mob: 0333-6702755

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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

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Annexure X

List of Top Five Furniture Exporters of the Cluster 1. Chiniot Art Centre

Malik Khalil Ahmed Nazam UC-38 Chiniot Exporter of wooden furniture & handicraft Tehsil Road Chiniot, Pakistan E-mail: [email protected] 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 Shahrah-E-Quaid-E-Azam, Chiniot Show Room: 0466-332690 Res: 0466-335090 Mob: 0320-4890090

4. Diamond Furniture Centre

Mr. Javed iqbal Shahrah-E-Quaid-E-Azam, Chiniot Tel: 047-6331380, FAX: 047-6331680 Cell# 0300-7709281

5. Mohammad Afzal Afzal Furnitures Shahrah-E-Quaid-E-Azam, Chiniot Showroom: 0466-332531

Source: Sh.Shahzada Alam, Hi-Light Furnishers, Quaid –E-Azam Road, Chiniot

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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: [email protected], [email protected]

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: [email protected]

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

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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

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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

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List of Handicraft & Furniture Manufacturers

1. Chiniot Art Centre

Malik Khalil Ahmed Nazam uc-38 chiniot Exporter of wooden furniture & handicraft Tehsil Road Chiniot, Pakistan E-mail: [email protected] 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: [email protected], [email protected]

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

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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

Documents

Diagnostic Study Furniture Cluster Chiniot