Nirala Sweets: The Karachi Project Debrief
Nirala Sweets was started by Taj Din in 1948. He was encouraged by a friend to start a Puri-Halwa Shop providing breakfast around Fleming road. As his business grew he decided t moveinto suburbs of Lahore. After the demise of Taj Din, the management was passed on to his sonFarooq. He then expands the business to other Lahore cities to have greater accessibility tocustomers. Faisal had certain difference with his father that how the business should be run. Hebrings the professional managers and systems and to improve the complexity of Marketing andoperations he hired Inam though a common friend.it was observed that almost 75% mithai was bought to present to someone rather than to beconsumed by purchaser. Most of the innovations were introduced by Nirala in the packagingand size of the mithai and the appearance of the stores. Though Nirala offered premium qualitybut some new entrants by offering significantly lower prices were causing occasional
complaints of Nirala’s high prices.
With growing health awareness and modernization the trendwas changing to cakes rather than Mithai. Word of Mouth was recognized to be the only formof advertisement by Nirala.
All mithai was prepared at Nirala’s Waris Road facility. Demand or
orders were communicated to Supply during the day. Faisal expands the business from Lahoreto Islamabad. Then it has been followed by the new store in Faisalabad. Despite their wealthFaisalabad customers were not willing to pay the premium that Nirala charged for his mithai. In1998 Nirala opened its outlets in Dubai, which had a large population of Pakistanis and Indians.The new outlet in both Islamabad and Faisalabad were handled by Kamran Sheikh-new Erateam but he could not delegate the tasks at the site to any of his staff lest they start their ownbusiness. Faisal thought project of Karachi will exciting because customers were moredemanding and sophisticated than the typical customer in the Punjab. The added challenge inKarachi was the low price. Faisal also wanted to target the Karachi corporate market with hispremium custom packaged mithai. There has been some debate at Nirala about the costs andlogistical problems air shipment but Faisal do not want to compromise anything with quality.Skilled and Semi-skilled workers needed for this would be sent from Lahore and as inIslamabad. Inam was hired on May 11 to lead the compa
ny’s inexperienced staff and move