[box type=”shadow” align=”” class=”” width=””]Updated status on revival of Chenab Limited
Recently, Chenab Group has announced revival of its business on 29-10-2021 after reversal of an earlier decision by Lahore High Court Lahore vide its order dated 13-07-2017 that pronounced the winding up of the Company in a petition filed by a small creditor of the company. The Court took into consideration Chenab’s excellent track record for the last 35 years and its great capacity to bounce back to pay all its financial obligations through normal course of business. The default made by the company in payment of debt was purely due to some un-controllable local & international factors including past severe energy crises in the country. Henceforth, a “Scheme of Arrangement” for the revival of the company was prepared by the related banks. In this Scheme no haircut or write off in the loan amount was given to Chenab. The Scheme was approved by more than 90% banks of the company and it was also allowed by the Lahore High Court. Resultantly, the corporate status of the company has been restored and Chenab is now enabled to start its production activities.
At present spinning, weaving, garment & home textile units of Chenab have started production while renovation of the fabric processing unit is under process which shall also start production within next couple of weeks. After the above said Court’s order, Chenab has hired above 1,000 workers. It is expected in the coming days the number of employees will increase to more than 5,000.
It is worth mentioning that with the start of Chenab’s production the business activities of other allied industries has also been increased. It is a fact that with the revival of Chenab, banks would not only be able to recover their entire debt, but the employment opportunities and much needed exports of the country will also increase. It is now government’s duty to provide all required facilitation to newly revived companies including Chenab enabling them to run their operations smoothly.[/box]
Synopsis on Company Profile
The Chenab Group started its business in 1975 under the name of Chenab Textiles Industries, Faisalabad as a fabrics processing unit. Its sponsors belonged from a well-respected family hailing from Toba Tek Singh, a neighboring district of Faisalabad. Since the inception of Pakistan, the patrons have been deeply involved in the cotton growing and ginning business of the country. Over the years, the Group expanded its facilities and added more companies to its portfolio. However, to streamline its operations and create synergies within the conglomerate, the Group merged its companies into a flagship concern, known as Chenab Limited. The Group has now emerged as a consolidated producer of world-class home textiles and woven / knitted fashion apparel. At present, Chenab is capable to process and convert more than 90 million meters of fabric into made ups and garments, on yearly basis. Chenab has a world class plant having over US$ 250 million replacement value, over US$ 200 million annual export potential and can provide direct employment to 15,000 people. Chenab is one of the few fully compliant companies in Pakistan dealing in high end value added textile products with renowned international brands.
Chenab Limited has always been regarded as one of the leading manufacturers and exporters of quality home textile products and woven/knitted fashion apparel worldwide. It is a vertically integrated unit, equipped with the latest and sophisticated machinery. Chenab houses one of the largest textile processing facilities in the country. These include in-house facilities of spinning, weaving, fabric dyeing, printing, finishing, stitching and exporting top quality made ups and garments. It is hence fully equipped to cater to the varied requirements of its customers based in any part of the world.
Chenab operates under the following three business segments:
- Made Ups (Home Textiles)
- Garments (Apparel)
- Fabrics
Having supplied to the leading brands around the world for a quarter of a century, Chenab is highly reputed and widely respected for its products’ quality of fabric, variety of designs and superior finish. The Company’s production facilities have been sourced from world renowned textile machinery manufacturers and are of diversified make and origin including Germany, Japan, Italy, Switzerland, Austria and UK.Being an export oriented Company, Chenab trades its products to USA, Canada, Australia and Europe. Moreover, the Company exports more than 90% of its sales to various regions across the world.
| Highlights of Chenab’s production facilities | |
|---|---|
| Production Facility | Capacity |
| Spinning | 19,200 spindles/ 36,000 Lbs. per day |
| Weaving | 240 air jet looms/ 90,000 Mtrs per day |
| Bleaching | 4 Plants/ 400,000 Mtrs per day |
| Dyeing | 3 Plants/ 90,000 Mtrs per day |
| Printing | 4 Rotary machines/ 160,000 Mtrs per day |
| Finishing | 27 Machines/250,000 Mtrs per day |
| Stitching | 1800 Machines/225,000 Mtrs per day |
| Quilting | 17 Machines/3000 Comforter Sets per day |
| Embroidery | 15 Machines/142,000,000 Stitches per day |
| Polyester Wadding | 1 Plant/15,000 Mtrs per day |
| Power Generation | 14 MW gas based & 7 MW diesel operated |
Chenab has concentrated on marketing its products both in international and national markets. It has followed an aggressive marketing strategy, which has resulted in a well-diversified client list and a geographically hedged revenue base. The Company has been expanding its export sales through a network of franchised outlets, selling agents, direct marketing and strategic alliances. Chenab is exporting high value-added textile goods to the leading brands of the world. The key customers of the Company include: JC Penney, Macy’s, Williams-Sonoma, Kohl’s Departmental Stores, in the USA, Otto Group in Germany, IKEA in Sweden and Home Centre in UAE.
