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International Industries

  1. The water crisis (continued)
  2. The textile policy
  3. The dairy industry
  4. International industries
  5. Hydrogen potential as a vehicular fuel

May 22 - 28, 2000

Established in 1948 as Sultan Chinoy & Company, the entity was later on incorporated as International Industries. In 1985 the Company ventured into manufacturing of high quality steel pipe and at present the sole exporter of welded pipes. It has been also awarded ISO-9001 certification. Following are excerpts of an exclusive interview with Towfiq Chinoy, Managing Director, International Industries Limited.

Question. What has been the role of IIL in the local industry?

Answer. The years immediately after the establishment of Pakistan were the pioneering phase of the 50-year-old company known today as International Industries Limited.

International Industries decided to concentrate on pipe manufacture, making it the core of its business strategy in 1980 and gradually withdrew from other related business interests. Withdrawal from other non-pipe and steel related business activities released cash and management resources and manufacturing was expanded to include Galvanized Pipe in 1983. Cold rolled strip manufacture for in-house use and sale, commenced when the Company commissioned the country's first and only Cold Rolling Mill in the private sector in 1990. The Company remains the market leader in its segment of Galvanized Pipe and Precision Steel Tubing.

Sales of IIL products have exhibited a consistent growth over the years. IIL pungently manufactures Galvanized Pipe, Self-Colour pipe, Precision Steel Tubing and Argon Arc welded pipe primarily due to the high quality of its products, integrity and ethical values. IIL continues to remain the market leader in all segments within the country having a market share of about 30%. IIL strives to manufacture and sell product of the highest international quality and retain its position as the market leader.

Q.What are your main export markets?

International Industries is well into a successful program of international sales and marketing of welded steel pipes, with it remaining a challenging, although promising market for exports. International Industries Limited entered the international arena in an organized manner in September 1995. With a modest beginning of 384 tons exported to the West Indies and 92 tons to Sri Lanka in that year, the Company has to date sold over 27,000 tons of welded steel pipe internationally (valued at over $10 million) and remains the leading exporter of this product from Pakistan.

The Company today exports its products to the following destinations in five continents.

Australia, Bangladesh, Barbados, Belgium, Italy, Jamaica, Kenya, Kuwait, Myamnar (Burma), Netherlands, The, Puerto Rico, South Africa, Sri Lanka, Surinam (South America), Tanzania, Trinidad & Tobago, United Arab Emirates, United Kingdom, United States of America

With the quality of its products comparable to those manufactured internationally, competitive pricing and excellent manufacturing lead time, the Company continues to make entries into new markets on a consistent basis.

Q. What sort of competition is faced in the overseas market?

A. The products of international Industries have been generally perceived as competitive on a quality and a price basis. However, it is noticeable that international buyers tend to move gradually rather than rapidly in placing orders in this hitherto unexplored sector of engineering goods originating out of Pakistan. The company has however, been patient and has pursued markets with vigor, commitment, persistence and the required adaptability in various markets and regions. The increased level of international sales is a strong endorsement of the company's resolve and intent.

IIL has felt the effect of the dumping policy in the fiscal year 1998-99 due to the turmoil in East Africa and the erosion in value of the South East Asian and Turkish currencies. Major pipe manufacturers adopted a dumping policy in South Asia, Europe, Africa, the Caribbean and the USA, by selling at very low prices. Despite this setback the Company set a very ambitious target for the fiscal year 1999-2000. This decision was taken on as the company forecast that it would be able to regain and improve upon its existing international market share and evidence to this was noticeable in the first nine months of the current fiscal year. The imposition of anti-dumping duties in Europe and USA on its competitors was an added advantage. However, spiraling freight costs low frequency of direct sailing and limited availability of break-bulk cargo vessels remain an impediment to further growth.

Q. What is the edge enjoyed by IIL as compared to other local manufacturers?

A. IIL continues to remain a market leader of its products in Pakistan with its products being classified as the market leaders. A professionally managed company, the ethical values with respect to quality, production, marketing and sales as well as contributions made to the national exchequer have stood it in good stead over the years.

An ISO 9001 certified company, it is now moving toward implementation of the ISO 14000 and ISO 9000:2000 enviromnental and quality standards in addition to under going a major expansion program which will imporve its product range and contribute significanlty in further improving efficiency.

International Industries continues to be a model for modern professional management in the country. With its aims of excellence, it has endeavored to be a profitable and a growth oriented organization. Provision of high quality services and products are the cores of its business strategy, making it a reliable business partner and associate.

following additional incentives should be given to the local manufacturers to improve their competitiveness

• Price structure of Pakistan Steel products to be made more competitive.

• Quality of Pakistan Steel products to be improved.

• Bringing input/output ratios in line with India.

• Removal of presumptive tax on expenses which is applicable on export freight payments.

• Improving availability and reliability of beak bulk cargo vessels from PNSC.