Case
THE OLYMPIC TEXTILE MILLS LIMITED
INDUSTRY :TEXTILE
AREA :FINANCE
ORGANIZATION :-
LENGTH :26
LUMS No :02-175-90-1
PUBLICATION YEAR : 1990
ABSTRACT:
In the spring of 1989, the executive committee of the Olympic Group of Industries decided to explore the feasibility of entering the cotton yarn spinning industry. The idea was encouraged by an incentive provided by the Government of Pakistan which exempted industrial plant and machinery in underdeveloped areas of the country from custom duties and sales tax. To take advantage of the opportunity, letters of credit (LC)1 for the import of equipment had to be established before June 30, 1989. Mr Rashid Malik, who was given the responsibility of the project by the Olympic Group, was enthusiastic about the establishment of an Olympic spinning unit at the earliest. He engaged a technical consultant for the preparation of a detailed feasibility study which covered the technical, marketing and financial aspects of the project. The consultant submitted his report by the end of May 1989. On the basis-of this report, Mr Malik and the executive committee had to decide whether to proceed with the project.