ITC Partners: “Guliston” makes it in Tajikistan…

Closed Joint-Stock Company “Guliston” is a pioneer of the clothing industry in Tajikistan. The enterprise was established in 1933. After privatization in 2002, the factory has been equipped with the new automatic equipment from Japan, Germany, Denmark, USA, Turkey and Russia. Full reconstruction of the preparatory, cutting, experimental and sewing sites, technical modernization of the factory and development of skills of employees, provided required conditions and opportunities to meet the requirements of consumers in the domestic and export markets. At present, the company is mainly specialized in the production of garments for men, women and children, such as shirts, trousers, jeans as well as different types of uniforms. Today it has a total capacity of 2 million units of production per year.

The company has its official web-site: www.guliston.tj.

Traditionally, to wear the garments of Tajik manufacturer was considered unreal and outlandish. Today, however garment production in Tajikistan is growing slowly, but gradually. One of the pioneer enterprises in the country is the garment producer, “Guliston” company. Their products grew in recognition in the foreign markets.

“Our products are notably competitive in the foreign markets and the prices are not so high. To have the essential niche in the market in today’s conditions when the markets are occupied by Chinese and Turkish garments, it is necessary to implement mass production of diverse types of high-quality products, and ensure continuous production, to keep production costs down.” says Mr. Dilshod Begov, the General Director of Guliston company. “Indeed, it requires a great volume of financial resources, including current assets. Unfortunately, the interest rate of loans provided by our commercial banks is very high (from 24% up to 36%), and these loans are short-term. Using such loans does not offer opportunities for producers to enter the market with competitive price. Therefore, we simply work based on orders, and our customers make advance payment for purchasing raw materials and accessories, Today such scheme is more favorable for us.”

In 2009 the company produced only 38 types of products, and after collaboration with ITC, in 2011 the number of product types increased to 57. These includes men’s, women’s and children’s trousers, shirts, skirts, capri, shorts, bridges, and jackets made from denim, cotton and mixed fabrics.

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Last year the production of disposable medical garments from non-woven chemical fabrics was initiated. This line is headed by a specialist of the Company Mr. Said Norov, who participated in the 7-day Training of Trainers on quality management and productivity, organized by ITC project in 2011 in Bishkek. Consequently, involvement in this rigorous training improved the overall productivity value of the company. Furthermore, defect rate of production lines dropped from 2.8 % to 1.6-1.5%, waste rate dropped from 0.1% to 0.02%.

Active participation in international trade fairs with ITC support, such as Textilelegprom-2011, has helped Guliston company to find new partners in new markets. During the fair, the company established more than 25 contacts and signed a contract for shipment of garment for 400,000 USD. The main partner of the  company in Russia is “Shveipromservis”). It is considered, one of the main suppliers of garments to large hypermarkets of Russia, such as “Ashan”, “Underground”, “Continent”, and «Detskiy Mir». The company also works with «Eurasian Commercial Centre» (Russia) and “Jeans-makers”(Russia).

This year the company also plans to participate in the international fair, “Textillegprom” with the support of ITC project.

In 2011 Guliston’s production totaled 11.9 million somoni, 4.7 million somoni more compared to 2010 The company’s exports in 2011 totaled 9.9 million somoni, which is much higher than in 2009 (about 700,000 somoni). The sales volume increased from 5.9 million somoni in 2010 to 12.5 million somoni in 2011, out of which 2.6 million somoni was from the domestic market. During last 1.5 year period, the share of domestic sales increased from 1-1.5% to 15-20%.

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