New IPO Notes

Zaheen Spinning Limited

• Nature of business: Zaheen Spinning Limited is engaged in production of 100% cotton yarn of different counts.
• Principal products and services: The Company has only one product (i.e. 100% cotton yarn) that contributes 100% to its revenue.
• Market for product & services: The company sells its products through agents and the customers of the company collect the finished products
and carry them to their sites at their own risk from the agents.
• Competitive condition in business: Zaheen Spinning Limited operates in a highly competitive environment. It has to compete with other spinning mills in and outside the country. The company needs to ensure competitive pricing, acceptable quality and on-time delivery. Local spinning mills have a few competitive advantages over foreign spinners such as, shorter lead-time, low cost local procurement, lower transportation costs and requires less management involvement.

Zaheen has uninterrupted power supply to its factory plant. Major  competitors are as under:
• Power: Zaheen Spinning Limited has own Gas Generated power plant namely Wakesha Gas Generator with a capacity of 2 MW which is imported in brand new condition from USA. The company also has an agreement with REB for power supply. Operating load of power requirement for existing project is 600 KW. For expansion of the project additional power requirement will be covered by the excess capacity of Gas generator and from REB.