Gujranwala is playing a major role to support the economy of Pakistan. It is an industrially developed district in the country. Keeping in view the availability of raw-material and skilled labor, Gujranwala district supports a variety of industries. It is considered manufacturing hub of electrical home appliance, light engineering goods, kitchen utensils, plastic products and ceramic sanitary wares.
Gujranwala region is well-known for manufacturing of aluminium utensils in Pakistan. People have been associated with this sector prior to partition. Utensils Industry mainly exists at SME level and comprises of labor intensive units having semi-mechanized manufacturing facilities. Overall production of Gujranwala aluminium utensils cluster is estimated to be 60,000 tons per annum with capacity utilization of 40%. The cluster provides direct employment to more than 18,000 individuals across the region.
As far as expenditure and revenue of aluminium utensils is concerned; the costing of a typical utensil shows that around 56% is the cost of raw material, 17% is of labor, 17% is of gas and electricity and around 10% is of administrative and operating expenses. Whereas, on average 8-10 percent of the total cost contributes to the profit margin of the owner.
Current status of the cluster is considered as stagnant due to a number of reasons such as undue delays in the export refunds, power cuts, limited opportunities of training and development support, lack of business development service providers and unavailability of raw material from local market.