Kohinoor Mills

1. KohinoorMills

2. DISCLAIMER The present information package (the "Information Package") is being furnished for use by recipient in considering a transaction in relation to the Business. Distribution of this document should be limited to specific qualified persons within recipient’s organization who will further discuss the package with Kohinoor. By accepting this Information Package, the recipient agrees to keep confidential, the information contained herein or made available in connection with any investigation of the Company. Without limiting the foregoing, the recipient acknowledges and agrees that: • Kohinoor will not be subject to any liability based on the information contained in the Information Package, errors therein or omissions there from, • the recipient will not copy, reproduce or distribute to any third party this Information Package, in whole or in part, other than in accordance with the written permission obtained by the recipient from the Kohinoor • if either the recipient or Kohinoor elects not to pursue this matter, the recipient will return to Kohinoor this Information Package and any other material relating to the Kohinoor Business that the recipient may have received from the Company, without retaining any copies thereof; • the recipient undertakes to keep secret the planned transaction and the fact that he is or has been involved, or is no longer involved in reviewing information concerning the Business; and • any proposed actions by the recipient which are inconsistent in any manner with the foregoing will require the prior written consent of Kohinoor.

3. TABLE OF CONTENTS • DIVISIONAL PROFILE • KOHINOOR WEAVING • KOHINOOR DYEING • KOHINOOR APPAREL • KOHINOOR GENERTEK • PAKISTAN ADVANTAGE • COTTON • PAKISTAN AS A TEXTILE EXPORTER • PAKISTAN AS A TEXTILE EXPORTER TO US • TEXTILE IS A MAJOR INDUSTRY OF PAKISTAN • KOHINOOR SRENGTH • ABOUT KOHINOOR • WE WORK WITH • KOHINOOR MANFACTURING OPREATIONS • KOHINOOR STRENGTH • INFRA STRUCTURE • MACHINERY & EQUIPMENT • PROFESSIONAL MANAGEMENT • HRM & COMPLIANCE • QUALITY MANAGEMENT SYSTEMS • ERP SYSTEMS

4. PAKISTAN ADVANTAGE • COTTON • Pakistan is one of the ancient homes of cultivated cotton, and a leading exporter of yarn in the world. • Cotton is not only an export-earning crop but also provides raw material to local textile industry. A huge investment in the form of over 1000 ginning factories, over 400 textile mills heavily depends upon cotton. • Pakistani coarse count cotton yarns are most competitively priced and are being exported world wide including China. • Coarser count yarn is the primary raw material for sports socks, apparel fabric & garments making the final product from Pakistan very competitive.

5. PAKISTAN ADVANTAGE • PAKISTAN AS A TEXTILE EXPORTER • Fourth largest producer of Cotton in the world. • Sixth largest exporter of category 347 (Cotton Trousers) to US with a market share of 5% of quantity shipped valuing US $ 206 million till Nov-2007. • Ninth largest exporter of category 12 (Cotton Fabric) to US with a market share of 3% of quantity shipped valuing US $ 150 million till Nov-2007. • Eighth largest exporter of total textile products to US with exports of US$ 2,940 million till Nov-2007. (Source: www.otexa.ita.doc.gov).

6. PAKISTAN ADVANTAGE PAKISTAN AS A TEXTILE EXPORTER TO US: (Source: www.otexa.ita.doc.gov).

7. PAKISTAN ADVANTAGE • TEXTILE IS MAJOR INDUSTRY OF PAKISTAN: • it imparts 46% share in the manufacturing sector; • contributes 66% of total exports; • provides 38% of total employment; • and have 30% share in GDP. • The availability of one of the top quality cotton in Pakistan, a cheap & efficient workforce and investment in the sector over the past few years, will give Pakistan competitive edge in the new trade regime, despite strong competition from China and India. • Pakistan’s textile sector has been steadily gearing up, with over $5 billion invested since year 2000 under its Balancing, Modernization & Replacement program. • Recent appreciation of the Indian Rupee & Chinese Yuan against the US Dollar coupled with slight devaluation of Pak Rupee will give our Export sector a competitive edge over India & China. • The reduction of export rebates & significant increase in wages have made the Chinese products more expensive. Consequently some brands have reduced their business volumes in China & are sourcing now from Pakistan. (Source: www.sbp.org.pk)

8. ABOUT KOHINOOR • Kohinoor is involved in Textile business since 1949. • Publicly listed on all stock exchanges of Pakistan. • Leading business organization. • Textile operations include socks manufacturing, weaving, fabric dyeing and apparel production. • Annual Sales around US$ 130 million. • Employing over 4,300 work force.

9. WE WORK WITH

10. KOHINOOR MANUFACTURING OPERATIONS KOHINOOR MILLS LIMITED HOSIERY DIVISION WEAVING DIVISION DYEING DIVISION APPAREL DIVISION GENERTEK DIVISION

11. KOHINOOR STRENGTH Excellent Infrastructure State of the Art Equipment Short-Term Profit Long-Term Profit Increased Market Share Product and Services Professional Management Capabilities Competitive Advantage HRM Compliance Value QMS ERP Systems

12. KOHINOOR STRENGTH • EXCELLENT INFRASTRUCTURE: • Kohinoor has planned infrastructure and buildings available which have been designed to take the current capacity to the next levels.

13. KOHINOOR STRENGTH • STATE OF THE ART EQUIPMENT: • Kohinoor has modern machinery and equipment. We can expand capacity on the need of our strategic business partners, within a reasonable period of time. • The detail of machinery and equipment is given later in the presentation.

14. KOHINOOR STRENGTH PROFESSIONAL MANAGEMENT: CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER GENERAL MANAGER HUMAN RESOURCE CHIEF INTERNAL AUDITOR GENERAL MANAGER INFORMATION TECHNOLOGY MANAGING DIRECTOR HOSIERY GENERAL MANAGER WEAVING MANAGING DIRECTOR DYEING GENERAL MANGER APPAREL MANAGING DIRECTOR GENERTEK • Kohinoor has professional staff as well as trained labor which are successfully running the current operations and can also take this to the next level.

15. KOHINOOR WEAVING ORGANOGRAM : GENERAL MANAGER WEAVING HUMAN RESOURCE INFORMATION TECHNOLOGY FINANCE MARKETING PROCUREMENT QUALITY ASSURANCE ENGINEERING PRODUCTION PRODUCT DEVELOPMENT PRODUCTION PLANNING & CONTROL WARPING SIZING WEAVING INSPECTION FOLDING PACKING FINISHED GOODS

16. KOHINOOR DYEING ORGANOGRAM : MANAGING DIRECTOR DYEING HUMAN RESOURCE INFORMATION TECHNOLOGY FINANCE GENERAL MANAGER OPERATIONS GENERAL MANAGER PRODUCTION PROCUREMENT QUALITY ASSURANCE BLEACHING DYEING MARKETING PRODUCTION PLANNING & CONTROL FINISHING DYEING QC LAB PRODUCT DEVELOPMENT ENGINEERING

17. KOHINOOR APPAREL ORGANOGRAM: GENERAL MANAGER APPAREL HUMAN RESOURCE INFORMATION TECHNOLOGY FINANCE MARKETING PROCUREMENT QUALITY ASSURANCE ENGINEERING PRODUCTION PRODUCT DEVELOPMENT PRODUCTION PLANNING & CONTROL SPREADING CUTTING SEWING WASHING CHECKING PACKING FINISHED GOODS

18. KOHINOOR GENERTEK ORGANOGRAM: MANAGING DIRECTOR GENERTEK HUMAN RESOURCE INFORMATION TECHNOLOGY FINANCE GENERAL MANAGER OPERATIONS PROCUREMENT MECHANICAL ELECTRICAL BOILER

19. KOHINOOR MAN POWER

20. KOHINOOR STRENGTH KOHINOOR HRM PHILOSOPHY • Our people are our most valuable asset. • We view Human Resources as a competitive advantage. • To ensure business goals are realized through people while meeting their own personal aspirations. • To ensure only motivated and professionally qualified people are employed. • Kohinoor is an equal opportunity employer with policies to ensure there is no discrimination on the basis of caste, creed, sex, religion etc.

21. KOHINOOR STRENGTH • SAFETY, HEALTH & ENVIRONMENT (SHE): • The principles by which we operate: • All work related injuries and illnesses are preventable. • Compliance with local regulations are a priority. • Line management are accountable for continuous improvement in Safety, Health & Environment performance. • Energy, water and other resources, both natural and man-made, will be utilized efficiently to minimize waste. • EMPLOYEE TRAINING AND DEVELOPMENT: • Management supports training and development programs to ensure motivated and professionally competent people are available within the organization. This is an essential responsibility of every manager and is a part of their key result area and objectives. • A corporate training department which apart from assessing individual training needs also provides extensive in-house training and consultancy for the development of employees. • Each division has its own training facility are continuously train the work force.

22. KOHINOOR STRENGTH • CERTIFICATIONS & COMPLIANCES • Social Responsibility is one of the central values & we believe in Socially responsible trading.

23. KOHINOOR STRENGTH INDUSTRIAL RELATIONS We comply with all applicable labour laws; • Company Profits Act, 1968 (Workers’ Participation) • Act regarding participation of workers in company profits. • Employee Old Age Benefits Act, 1976 • Act relating to old age pension. • Employment of Children Act, 1991 • Act to prohibit child labour • Factories Act, 1934 • Law regulating labour in factories. • Provincial Employees Social Security Ordinance, 1965 • Scheme providing health benefits to employees or their dependents. • Industrial Relation Ordinance, 2002 • Law relating to trade unions & regulations of relation between employer & worker. • West Pakistan Industrial and Commercial Employment Ordinance, 1968 • Law relating to industrial and commercial employment • Workers’ Compensation Act, 1923 • Act provide for the payment by employers to workmen for compensation relating to injury by accident.

24. KOHINOOR STRENGTH COMPENSATION BENEFITS & FACILITIES Colony Free accommodation with canteen facility. Free Transport Facility Social Security Group Health Insurance Group Life Insurance Old Age Pension Free Uniform Efficiency Award Man of the Month Cash award plus commendation certificate • Over Time: • At double than the normal rate • Contributory Provident Fund @ 10% • Workers Participation in Profit • Profit Bonus • Annual Increment • Canteen • Subsidized & self service facility • Leaves • 8 sick, 10 casual & 14 earned leaves annually

25. KOHINOOR STRENGTH • QUALITY MANAGEMENT SYSTEM • Complete tracking of product on production floor through barcode scanning system. • Product traceability is available from finished product back to raw material & machine operator. • Online stocks positions at each level of production. • Defects and fault analysis reports at each stage of production ensuring best quality standards. • Performance appraisal of workers.

26. KOHINOOR STRENGTH WEAVING DYEING WELL EQUIPPED LAB AT EACH DIVISION • TESTING IS CARRIED OUT ON ISO, AATCC, ASTM, STANDARDS

27. KOHINOOR STRENGTH • INTEGRATED IT SYSTEMS COMPANY WIDE • PRODUCTION MONITORED BY DATA COLLECTION NETWORK SYSTEMS • Each machine is connected with central server; • Real time information from all machines; • Online efficiency, production, rejection and faults; • Integrated with Product Traceability systems . • ERP SOLUTIONS PROVIDED BY ORACLE • With Oracle E-Business Suite, Kohinoor has moved from optimizing pieces of its business to optimizing the entire enterprise. • Integrated with product traceability systems and data collection systems.

28. KOHINOOR STRENGTH • CUSTOMER SERVICE PORTAL • Online order and shipment status • Projected shipments • Online inquiry • CCTV NETWORK • Web enabled cctv network • Real time videos of workspace • Accessible from anywhere in the world through internet • Camera control through internet

29. KOHINOOR MILLS DIVISIONAL PROFILE WEAVING DYEING APPAREL GENERTEK

30. KOHINOOR WEAVING

31. TEXTILE–WEAVING • 270 air-jet Looms produce 36 million meters/annum. • Flexibility to produce fabrics up to 143”. • Weave greige fabric for Home Textile and Apparel with dobby and jacquard capability. • Quick style article changes in < 1 hour. • Off loom batching allowing larger rolls.

32. WEAVINGPROCESS FLOW Yarn Supplies WARPING SIZING WEAVING INSPECTION PACKING WAREHOUSE & DISPATCH

33. WARPING & SIZING

34. WEAVING

35. INSPECTION FOLDING & PACKING

36. GREIGE WAREHOUSE Fabric warehouse has the capacity to store in excess of 3 million meters fabric, equivalent to almost one month production.

37. WEAVING LEAD TIME

38. PRODUCTS • Twills • Poplin / canvases • Sateen • Jacquards • Dobbies • Yarn dyes • Broken twills • Herring bone • Bfc • Ripstop CUSTOMERS A significant portion of our weaving capacity is consumed in house by our dyeing division. We also supply greige fabric to dyeing facilities in Europe, Asia and Australia.

39. KOHINOOR DYEING

40. TEXTILE – DYEING • Capacity – 30 million meters/annum. • Started production in June 2002. • One of the most modern, automated plant in Pakistan. • Specialized in apparel dyeing. • Machines controlled & monitored through PLC’s. • Automated Recipe storage/recall. • Automated chemical dozing.

41. DYEING PROCESS FLOW Greige Supplies Greige Issued to Singeing/ Desizing Process From Singeing/ Desizing Greige Transferred for Bleaching From Bleaching Greige Transferred for Mercerizing & Dyeing From Mercerizing & Dyeing Greige Transferred for Finishing From Finishing Greige Transferred to QA inspection After QA Inspection Greige Transferred to Finished Goods Warehouse for Dispatch

42. RAW MATERIAL WAREHOUSE • Greige Store with a storage capacity of 3 million meters, equivalent to one month of production. • Dyes , Chemicals & Packing material ware house with a capacity to store materials of more than one month production.

43. SINGEING, DESIZING

44. BLEACHING

45. MERCERIZING

46. DYEING

47. FINISHING

48. FINISHES • Lubricants • Silicon/soft finish • Soil release • Fire retardant • Organic finish/anti microbial • Nano/cool comfort • Pre-cure/post cure (wrinkle free/crease resistant) • Stiff /industrial finish • Water repellant/stain defender (teflon, 3m) • Micro-sand/heavy sand/aqua sand/peach skin/brushing • Anti-static finish All finishes meet the requirements of green dyeing as well as OEKO-TEX standards.

49. CURING

50. FINISHED FABRIC WAREHOUSE • Storage capacity of 1.5 million meters equivalent to 15 days of production in warehouse.