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.
