Exploring the bridal runway

LAHORE: Despite huge potential, the share of fashion industry in the textile sector exports is negligible and to increase it, value addition is the key, said Haris Ateeq, chief executive officer of Bridal Zone.

“We are a major exporter of textiles but the share of value-added products is far less than the actual potential. There is a need to add value, as it will help increase the volume of exports, besides promoting the soft image of the country,” Ateeq, who is also one of the youngest-ever vice-president of the LCCI, said, while talking to BOL News.

“Yes, the government is supporting the textile sector. But many facilities for the textile sector are of little or even no value for the labour-intensive fashion industry. There is a need to take short- and long-term measures after due consultation with the stakeholders for reaping the benefits of the huge potential of the fashion industry.”

“The first step should be to give separate status and provision of facilities to the fashion industry, according to its requirements. The way forward is linkage of industry with fashion designers, documentation of the informal sector, promotion of craftsmanship, technical education and capacity-building of workers, setting up a separate wing in the Ministry of Commerce and the use of foreign missions for promotion and marketing of the local brands,” Ateeq said.

Ateeq is the chief executive officer of Bridal Zone, whose sister organisation Haris Ahmed is a major exporter of high-end bridal apparels to the UK, the US and Canada.

Ateeq took the family business to new heights through excellent management skills, proper quality control, innovative product designing and marketing practices.

An ACCA (Association of Chartered Certified Accountants) degree holder of Skans College of Accounting, he achieved unprecedented success in business through a number of initiatives.

Earlier, he completed A-Levels from LACAS and O-Levels from Beacon House. He is a proud recipient of merit scholarships throughout his academic career. Bridal Zone is a big enterprise employing more than 600 artisans at 40 plus manufacturing units in Punjab and Sindh.

Haris Ahmed brand is a top choice of high-profile families in the country. The family of Chaudhry Wajahat Hussain of Gujrat is among its clients. Haris Ahmed has designed the dress of Bakhtawar Bhutto Zardari, daughter of former president Asif Ali Zardari and former prime minister Benazir Bhutto, for her wedding reception last year.

After getting unprecedented success in the fashion industry, the company entered the dairy business with the brand name Divine Foods. Presently, it is dealing in dairy products, including butter and desi ghee. It will soon start producing cheese for the local market.

Divine Foods is also entering rice, husk and maize businesses. It is setting up a state-of-the-art rice mill at Kamoke, a fine quality rice grown area in Gujranwala district.

Having an interest in trade politics, this humble and down to earth person has twice served as the LCCI Executive Committee member before holding the office of the vice president.

As a role model entrepreneur and a business community leader, he is determined to play the role of a bridge between the policymakers, executors and fellow colleagues.

Following are the excerpts of an informal chat with him:

What was your first venture?

After completing my education, I started working with my father in his fabrics business. In 2011, we set up the Bridal Zone, which is now employing more than 600 artisans at its 40 plus units in Punjab and Sindh. In the following year, we started marketing our high-end bridal apparels with the brand name Haris Ahmed. Now more than 70 per cent of the total turnover of Haris Ahmed is based on exports to the US, UK and Canada.

Haris Ahmed is a big success due to focus on quality, client satisfaction and innovative designing and marketing.

After the success of Bridal Zone and Haris Ahmed, we set up Divine Foods for the business of dairy products such as butter and desi ghee. Divine Foods will soon start production of cheese. In the near future, it will enter rice, husk and maize businesses. We are setting up a state-of-the-art rice mill in Kamoke, heart of basmati growing area.

How can we bridge the trade deficit?

Our problem will persist unless we reduce our reliance on imports and boost exports to earn foreign exchange. The government should take short- and long-term measures for bridging the ever-increasing trade deficit. The government should give due attention to all the sectors, especially IT, engineering and agriculture. It is a pity that an agrarian economy is relying on the imports of oilseeds for fulfilling its domestic needs. Crop diversification and use of technology is the need of the hour.

There is a need to discourage unnecessary imports, especially luxury items such as cars, reducing the input cost of export-oriented industries, diversification of products, value addition and exploring new export destinations.

How does the fashion industry contribute to increasing exports?

The fashion industry has a huge potential but its share in the textile-related exports is negligible. The promotion of this labour-intensive industry will not only increase exports but will also help generate job opportunities for the skilled workforce. A 40-feet jeans loaded container fetch around $40,000 to $50,000. But the value of 25-kilogramme box, carrying value-added apparels is $15,000 to $20,000. Shifting from traditional to value-added textile products will help increase the volume of exports.

The first step should be its recognition as a separate industry and documentation of the informal sector. The documentation of the informal sector will force exporters to use proper banking channels. It will help get real figures of fashion industry-related exports.

The way forward is the promotion of craftsmanship through sector-specific incubation centre for designers and provision of technical education and capacity building of workers, collaboration of the industry with the fashion designers, setting up a separate wing in the Ministry of Commerce, holding exhibitions and the use of foreign missions for promotion and marketing of the value-added apparels.

What are the challenges and possible measures for the dairy sector growth?

The dairy sector has a huge potential. There is no realistic data. Extensive surveys for getting reliable data, documentation of existing dairy farms, tax reliefs and sufficient spending for breed development are the way forward. The government should ban the sale of loose milk and encourage branding. We should give due attention to branding of byproducts such as butter, cheese and desi ghee.

Your take on the interest rate hike?

An increase in the markup rate has enhanced the cost of borrowing for the businesses. Now, it is more difficult for the cash-strapped Small and Medium Enterprises (SMEs) and the cottage industry to manage their businesses. The State Bank of Pakistan (SBP) should reduce the interest rate and bring it at par with the regional countries to provide some breathing space to small businesses.

How has global inflation affected local businesses?

Inflation has badly affected all businesses across the world. The situation is really alarming in Pakistan, as our economy is import-based. We import oil and gas for fulfilling our energy needs and even agro-based products such as oilseeds. High energy costs and freight charges have badly affected our businesses. Skyrocketing prices of essential products and heavy utility bills have reduced the buying capacity of the consumers.

What is your opinion about the volatile exchange rate and depreciation in the rupee value?

Uncertainty due to a volatile exchange rate is harmful for the economy. I don’t think the rupee depreciation has helped increase exports. Most of the export-oriented industries rely on imported raw materials and as such, the high landing costs of imported raw materials has enhanced the cost of doing business and rendered our products uncompetitive in the global market. We are facing difficulties due to global inflation and the rupee depreciation.

How do you see IT and e-commerce growth?

The IT sector growth is really heartening. More and more startups are entering the market. E-commerce has grown considerably in the post-Covid-19 scenario. Still, it has not reached its actual potential. There is a need to get due share from the trillion-dollar global e-commerce industry. The real challenges are trust deficit of consumers and the lack of proper complaints redressal mechanism. The entry of Amazon and Alibaba in the Pakistani market is a good omen. The development will motivate other such companies to enter the market and the local players will focus on improving the quality and service delivery.

How do you see the existing business environment in the country? Possible measures for improvement?

The government is encouraging the local industry. A lot has been done for bringing ease in doing businesses. But still, there are a number of challenges, including high input costs, volatile exchange rate, high interest rate, multiple taxes and bureaucratic hurdles. There is a need to shift focus from large-scale manufacturing to the Small and Medium Enterprises and the cottage industry and giving due attention to the IT, engineering and agriculture sectors. New entrants should be given a one-window facility and tax exemptions.

Controlling inflation, reducing input costs, checking double taxation, reducing markup and stabilisation of the exchange rate are necessary for the new entrants and the existing players alike.

What is the future outlook of the overall business atmosphere in Pakistan?

I am optimistic about the future due to enormous natural and talented human resources. There is a need to sign a charter of economy for developing consensus on fiscal policy and resolving the macroeconomic issues.

The government should focus on skill development and providing a conducive and enabling business atmosphere to the new entrants and the existing entrepreneurs.