Domestic Failure & Key Deficiencies1. Hajvery is a developing group in Pakistan. Like other developing countries, 2. Pakistan is also critically dependent on textile and clothing exports for its foreign exchange earnings. 3. The textile vision statement for 2005 imagines open market driven, innovative and dynamic textile sector which would be internationally integrated, globally competitive and fully equipped to meet the challenges and exploit the opportunities created by company.4. Hajvery wanted to be among top 5 textile firms by following these standards.

Reasons for the downfallThere are many reasons that weakened Hajvery textile business but the main reason that causes Hajvery textile to downfall is the high cost of production which makes it uncompetitive from its rivals.Here are the some other reasons for the downfall for Hajvery groupsFocus on Quality or Price?1. For a product to be successful or profitable, Hajvery defined two basis on which they can compete i.e. price and quality2. As cotton is essential silver crop while textile is golden industry, more than 55% of exports are accomplished by this sector.3. Hajvery group faced the problem of being cost effective as well as on early years they also had to think and were confused that whether price should be focused or quality.4. Thus this sector must provide quality products to the importing countries at competitive prices for competing in this cut throat environment created by its rivals in the marketsLack of Research & Development (R&D)1. Developed companies are using biotechnology and genetic engineering to increase the quality and quantity of their cotton production.2. In Hajvery, there is very little research done on small scale to invent modified cotton fibres.3. Thus trends of markets were not properly analysed and company failed to keep up the race and competition in the market.More Dependence on Cotton1. As the textile sector is heavily dependent on cotton production, low cultivation of cotton will depreciate the textile industry.2. On the other hand, Hajvery lacks expertise in the development, production and marketing of synthetic products and fabrics required for items like swimwear, skiwear and industrial apparel.3. Hajvery has been unable to diversify in the export of textiles and is heavily dependent on single fibre i.e. cotton and its blends. This dependence on single crop economy is restricting the diversification of sales for Hajvery.Low Labour Productivity1. According to a study by Federal Adviser on textiles, the regional competitors of Hajvery take 75 minutes to complete and produce one piece of cloth whereas Hajvery was taking 133 minutes for the same work. Hajvery also wasted 30% in finishing and 12% in washing.2. Labour productivity can be improved by giving the labour appropriate training with the advancement of technology so as to make them more efficient.Poor Infrastructure1. The important resources and infrastructure, such as adequate supply of water, continuous supply of electricity and gas, efficient logistics and transportation, tax structure, raw material supply are all basic requirements for the development of an industrial base.2. The industry is faced with rising charges of the energy sector, whichincreases the cost of production, making it difficult to compete with the other regional rivals.Poor Quality Standards1. Most of the medium and small sized units cannot ensure the reliable and consistent quality standards. Some of these textile units import second hand machinery from China, India, Korea, and Taiwan with no checks and balances on the quality of the machinery parts and tools.2. Preference is only given to the cheap and workable machinery with no concern of the quality of the machine, therefore, resulting in poor quality of the end product.Lack of Qualified Experts/Skilled Labours1. Lack of human resource is one of the key issues faced by the textiles and clothing industry of Pakistan. In a country of 180 million people, non-availability of educated human resource calls for serious policy implications.2. Hajvery complained about the lack of relevant education to impart appropriate expertise and skills.3. Professionals and skilled workers get on-job training and leave the respective employers on getting better opportunities. Therefore, the gains from providing quality training are limited from employers point of view.High Cost of Borrowing1. Hajvery Textiles faced was the higher mark-up rates by the banks as they are charging highest spread of 7.7 percent between their average deposit and lending rates. 2. A large number of textile units have been closed down due to financial crisis and they laid off thousands of employees in this regard, causing Hajvery to move UAE and Singapore.3. Rise in the price of petroleum products has feared the textile industry with the increase in cost of doing business.