Hand Woven Carpets

# Template State Owned Enterprises- Company Overviews OCPA - Ministry of Industry & Minerals Note: All currency figures are in 000's of Iraqi Dinars unless otherwise noted. 1. General Information Company Name: State Company for Hand Woven Carpets Sector Textile Brief Description Started in 1993. Hand woven silk and wool carpets manufactured in 7 centers throughout Iraq. Also manufactures rugs and mattresses - where it generated most of its revenue. Almost all 900 employees are female, as is the DG. 80% of sales were to the Presidential offices. Revenue in 2002 3559518 # of Employees 905 Annual Employee Salaries & Bonus 2006748 (on questionnaire, claims only 875,000) Headquarters Address Baghdad, Al-Kadhmiya 2. Company Highlights May be a candidate for NGO support for organizations interested in helping female employment and/or artisans. Over $1.3 million USD in finished product ready for sale. 2 years worth of raw materials in inventory. Sale of finished products or collateralized loan would cover salaries and all costs for 1 year. Immediate needs include $100,000 USD for supplies of minor items and safe transportation for women to get from home to work. Most of Company's revenue actually came from selling mattresses to the Ministry of Defense, even though most employees work on carpets. Allocated $100K USD for 2H 2003 operating budget and provided with zero mw off of grid. 3. Facilities Name Province City Grid Damage % Power Needs Baghdad Center Baghdad baghdad MB453835 0 2 mw Mosul Center Mosul 0 2 mw Kirkuk Center Kirkuk 0.1 2 mw Al-Hilla Center Babel hila 0 2 mw Al-Midhatia Center Babel hila 0 2 mw Anna Center Ambar Anna 0 2 mw Rawa Center Ambar Rawa 0 2 mw Value of All Plant & Equipment Before War, and Initial Purchase Dates and Prices for Major Items Minimal. Mostly manual labor. Initially paid 518,678 for equipment. Valued at 263,178 before war. 4. Products Product Name Unit Measurement Design Capacity Available Capacity 2002 Production 2002 Revenue Traditional Rugs Sq. Meters n/a n/a 3920 Hand Made Carpets Sq. Meters n/a n/a 6697 273014 Mattresses Units n/a n/a 74980 3217500 Description of Importance of Products to Other Iraqi Industries None. This Company will have to gain a "sponsor" looking to help artists and female-run companies. 5. Customers Customer Name 2002 Revenue Subsidized (Y/N) Products Sold to Customer and Unit Pricing Ministry of Defence 0.8 N $150/sq mtr for wool, $500 for silk, 50,000 ID per mattress. Offices of the Presidency 0.15 Private Market 0.05 6. Suppliers Supplier Name 2002 Purchases Subsidized (Y/N) Products Purchased and Unit Pricing Al Hilla Textile Company Jordan Textile Company Current Payment Terms From Suppliers Cash at delivery. 7. Imports & Exports 2002 Import Markets for Raw Materials USA, Asia, Europe Potential Import Markets in Free Market USA, Asia, Europe 2002 Export Markets for Finished Products None Potential Export Markets in Free Market "We have many opportunities to export our productions because it has high quality to many countries and at this time, we can export nearly the quantity of 3000 m^2 from woolen carpets and natural silk carpets". 8. Competition Description of Competitive Situation No local competitors in hand made carpets, but many competitors in other countries. Heavy competition in mattress market. Market Share Description 10% of total market. 9. Summary of War Damage & Looting of Property & Equipment Description of Damage Only carpets looted from headquarters (70 carpets), and Kirkuk had carpets and raw materials stolen. Current Operating Status There are seven facilities (Baghdad, Hilla, Midhatiya, Anna, Rawa, Mosul Kerkuk), some of them started working lately including Mosul Hilla and Midhatiya but in limited competence. The other facilities have not yet re-started due to security situation. Immediate Property & Equipment Needs To Restart Operations None Total Cost to Return to Pre-War Condition The carpets and raw materials looted were worth 277,000. 10. Inventory Status Raw Material Status 1- Woollen and acrylic yarns (55 ton) and we paid about 74,250 2- Cotton yarns (17 ton) and we paid about 2,890 for it 3- Natural silk yarns (16 ton) and we paid about 80,000 for it. Months of Material Supplies & Production Rate Two years of wool, five years of cotton and one year of natural silk. Immediate Raw Material Needs Minimal, just dyes and specialty yarns for details within rugs. Finished Products Supply (Units and Value) Over $1.3M USD worth of finished carpets. 11. Fuel & Electricity Needs Description of Fuel Needs Gas and Electricity Description of Electricity Needs The electricity was 361,104 kW and it cost $ 1,806 12. Other Needs to Restart Working Capital Needs Only salaries and limited raw materials needed. Security Needs Women need secure transportation to factories. Other Needs None 13. Strengths, Weaknesses, Opportunities & Threats Description of Strengths Long experience in this industry Description of Weaknesses High prices of sale because of high costs of productions, difficulty of marketing the productions inside Iraq, constraints and difficulties for export production outside Iraq Description of Opportunities Export productions outside Iraq. Description of Threats None identified by mgmt. Iranian, Pakistani and other Asian rug manufacturers pose threat to Company's export hopes. 14. Long Term Strategy Description of Strategy Retrain the employees and replace the old machines, make the company more efficient, get into new product lines with better quality with a good marketing. Potential New Products None Potential Partnership Opportunities Needs partnership with good export/marketing company. 15. Revenue and Costs Overview Description of How Pricing Was Set Usually by Ministry, but Company claims to have adjusted to market rates over last 2 years. Description of Production Costs Mostly raw materials for mattresses and silk for carpets. Potential for Profitability in Free Market Unclear. Needs the freedom to select the best raw materials and determine market pricing for finished goods. Notes Not an industrial company. More like a small private business. The size of carpets they had been producing fits only the presidential palaces, they are very large in size as therefore very expensive.