RISK MANAGEMENT

● RISK ANALYSIS

Management
Nishat Mills Limited employees are highly qualified professionals and have a young, energetic and dedicated
team of professionals who have a lot of knowledge to their credit Managers are responsible for the task
assigned to them in their departments and also have to match whether their respective department is achieving
the desired efficiency level or not. There are at least three basic requirements for a successful company and the
managers of Nishat Mill Limited are made to think on these lines:

● It must provide a product (good or service) that suits best to the company’s capabilities and for which
there is a sufficient market
● It must provide the product with consistent quality at a level that appeals to intended customers and
satisfy their needs.
● It must provide a product at a cost that always an adequate profit and a reasonable sale price.

RISK ANALYSIS

The Risk Score is a relevant measure for the assessment of a stock attractiveness. Nishat Chunian Ltd. shows a Risk Score
of N/A.
0 corresponds to a very high risk and 10 corresponds to a very low risk."
The Risk Score for Nishat Chunian Ltd. is lower than its peer groups. This means that Nishat Chunian Ltd. is more risky
than its peer group

DRIVERS OF SUPPLY CHAIN

LOGISTICAL DRIVERS
● Facilities
● Inventory
Facilities

PROCESSING

Nishat fabric processing facility is one of the largest and most modern factories of Pakistan. With an array of
custom-made machinery, it has the capacity to produce 104 million meters of fabric per annum. It is specially
designed to handle heavy weight fabrics like twills, drills, canvases / poplins, fabrics with minimum tension
such as stretch fabrics and all high density weaves. 

Inventory
 On trading across borders

• Pakistan is at 78th rank

• China is at 44th rank

• India is at 94th rank

• Bangladesh is at 107th rank

• Cambodia is at 127th rank

Cross-functional drivers:
● Sourcing
● Pricing

Sourcing
Suppliers of NISHAT

● Nishat Mills Ltd. Pakistan Manufacturer. ...

● Seagold (Pvt.) Ltd. ...
● Nishat (Chunian) Ltd. Pakistan Manufacturer. ...
● Seagold (Pvt.) ...
● Waterlink Pakistan (Pvt) Ltd. ...
● Expeditors International Pakistan. ...
● Expeditors International Pakistan Nishat Mills Ltd. ...
● Damco Pakistan Pvt., Ltd.

Pricing
Before setting prices of products, various elements are kept into mind. Customer is of utmost
importance. If customer is old, his track record is good and enjoys a favorable repute so profit
margin may be reduced. Prices area determined on cost basis by adding certain percentage of
profit. This is highly sensitive area.

Current pricing for NISHAT products are:

● Unstitched fabric is 2100-3100 it would be revised with more variety having range 1500-
3500
● Stitched fabric is 1500-5000 it would be revised with economic and unique aspect
having range 1200-10000
 ● Bed linen is 1200-3000 it would be revised from regular and exclusive range of bed linen
from 1000-5000
● Bridal wear will be launched having introductory prices 20000-40000

OBSTACLES FACING BY NISHAT

As of now, the industry is facing challenges emanating from the imposition of the 17 per cent sales tax,
the CNIC condition for transactions, which has effectively blocked the flow of money, and a four percent
withholding tax on every transaction within the sector.

ACHIEVING STRATEGY FIT

Strategic fit:

– Consistency between customer priorities of competitive

● strategy and supply chain capabilities specified by the
● supply chain strategy

COMPETITIVE STRATEGY
Competitive advantage of Nishat textile, and sustain position.

● Resources of Nishat textile huge amount of investment in business, assets machinery, brand name,
employees, infrastructure, and better quality of material.
● . Core competences of Nishat textile is advance machineries and technology, well-educated employees
,well management system , better coordination with employees and management, feedback system,
better MIS system.
● Competitive advantage of Nishat textile is high quality and standard products, strong security system,
highly motivated workforce, customer loyalty with brand, ISO 9001-2000 implementation, well
discipline culture and environment that enables Nishat textile to compete with other competitors and
achieve the competitive advantage.
● Sustain competitive advantage of Nishat textile is its product according to the trends and fashion to
win its customer.

UNDERSTAND THE CUSTOMERS

NISHAT understands the needs of their customers and serve their customers by products according to
their needs.

● They prioritize their customers.

● Provide them good service
● Products available in their customers range
● Provide them good quality
 ● Provide them innovative products

Distribution strategy

Nishat has their own outlets in Punjab and Sindh, and the product will be delivered only to registered
outlets. As the manager of one outlet has enlightened the point why don’t sell their product other then
Nishat outlet as their competitor is doing that he replied “we never want to enter in a market because as
soon as we entered in it then our fake product will take birth as it happened with other competitors.” Our
exclusive designs and products would still be sold at our authorized outlets .Furthermore to facilitate the
customers, online shopping facility and door step delivery of order will also be started by the introduction
of BUY ONLINE option on our website for that purpose we have acquired services of T.C.S for order
delivery.