SAILOR SOLDIER SURGICAL CORP

THE SURGICAL CLUSTER:-The Surgical Instruments industry of Pakistan is centered in and around the city of Sialkot situated at 32.31N and 74.33E in North East of Punjab Province of Pakistan. The city has had a long industrial background and one of its ancient specializations was the paper industry that supplied paper to sub-continent for almost 600 years. The city is presently a large export center of Pakistan second only to Karachi. Many exclusive industries are thriving in the city producing sport goods, sports wear, sports trophies, surgical instruments, working tools, cutlery and cooking utensils, leather garments, leather gloves, saddles, musical instruments, chandeliers & decorative lights, rubber goods and software. The city takes pride in supplying 80% of the world' championship standard soccer balls and 20% of the world's stainless steel surgical instruments.The city has a population of around 800,000 people. It is also center of an urban cluster of small towns and large villages with a total population of 1.7 million spread in a radius of 25 kilometers from the city center.HISTORY OF SURGICAL INSTRUMENTS INDUSTRY:About 10 kilometers away from the city of Sialkot is the legendary town of Kotli Loharan (fortress of blacksmiths) with population of 25,000 people. It was there that the Surgical Instruments industry was started around the year 1880 when a local missionary hospital was desperately short of essential surgical instruments and a blacksmith of the town obliged by repairing the broken instruments. Impressed by the fine work, the in-charge of the hospital asked the blacksmith to produce some specimens for emergency use. The blacksmith received ready acclaim from modern hospitals of the British rulers in the area and spread this cottage industry in the town of Sialkot. By the time of independence in 1947, the Surgical Instruments industry, populated by not less than fifty factories was the backbone of supplies to the Indian Hospitals. After independence, the entrepreneurs started looking for European and American markets and the size as well as number of factories grew rapidly. Skilled workers passed on their art to younger generation and the size of workforce also increased rapidly. Now the industry is a powerhouse of economic activity and has engulfed almost all disciplines of the instruments starting from dressing scissors to high precision cardiovascular operating instruments and from OM orthopedic toolings to microscopic ophthalmic instruments. The industry has also branched out into producing dental instruments, veterinary instruments, beauty-care instruments, measuring instruments and working tools.SIZE OF INDUSTRY:The industry is producing more than 12,000 different items and variations of surgical, diagnostic and related instruments along with hospital furniture.Although the industry has a vast market for local consumption (to a population of 147 million) the size of exports has gradually risen to US$ 200 million. The industry is populated with more than 2500 units out which about 700 are manufacturer cum exporters. The number of skilled workers is more than 50,000. Despite the growth in size and number of units, the industry is essentially a small-scale industry with a mix of cottage-sized units.There are about 90 units employing more than 100 workers in-house. Almost all companies get at least one or two processes performed outside the factory. The diversity of processes and peculiar nature of plant/machinery and skills make it almost impossible to produce an instrument in-house for single company.MODERN DRIVES:The automation started entering the industry in the first quarter of 20th century when motors and grinding wheels, lathes and milling machines etc. were introduced. Later on, the industry has been drawing upon newer and modern methods of production evolved around the world. Hard leather buffs, sand blasting, mechanical presses and electro-plating etc