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SWOT ANALYSIS

Every company has some plus points and some week points in the business. The Company also gets some opportunities and also face some threats same in the case with Nishat (Chunian) Limited.

STRENGTHS OF NISHAT (CHUNIAN) LIMITED


Nishat Chunian Limited is one of the biggest composite textile units in Pakistan. The machinery of the Nishat Chunian Limited is most modern in the textile industry of Pakistan that consists of 50952 spindles and 188 Air Jet looms. Nishat (Chunian) Limited always set new standard of quality. Nishat (Chunian) Limited quality standard match with the international standard of quality. In order to compete in the international markets the Nishat (Chunian) Limited got the ISO 9000 ISO 9002 certifications. Nishat (Chunian) Limited is a vertically integrated organization so Nishat (Chunian) Limited to depend on the supplier is about to negligible one. Due to this vertically integrated setup the Nishat (Chunian) Limited has comparatively edge on her competitors. Nishat (Chunian) Limited spinning and weaving unit is ISO 9002 certified this will also boost up the credibility level through the customer satisfaction and insures the standard of quality.

Pakistan Textile Sector is non-organized one term of its

service and setup. Nishat (Chunian) Limited has an organized setup in a non organized setup of textile industry in Pakistan. Highly qualified professionals and their commitment with Nishat (Chunian) Limited is a positive sign for future success.
Nishat (Chunian) Limited has a wide product range. It makes

yarn and fabric according to the requirement of foreign customers. Nishat (Chunian) Limited has a lab equipped with the most modern machinery to check the quality of yarn and grey cloth. Nishat (Chunian) Limited has allotted a large quota for export in USA and European countries. Nishat (Chunian) Limited provide a friendly and healthy environment to it employees. Thats why Nishat Employees turnover is very low. Ncl2 is the most modern facility of the country producing superior quality fine counts using premium quality imported cotton.

WEAKNESS OF NISHAT (CHUNIAN) LTD.

Nishat (Chunian) Limited setup is an organized one Nishat (Chunian) Limited has also bear extra cost to organized its setup. It is difficult for Nishat Chunian Limited to deal with cheaper hand items with the price conscious customers. Nishat (Chunian) Limited wastage rate is high in fabric wastage rate is 15% and in yarn wastage rate is 18%. Shipment rate at shipment due is not a positive one. Due to delay in shipment, sometimes Nishat Chunian Limited has to ship by air and pay extra charges. Due to air flight contract goes into losses. The implementation of production planning is not a healthier one. Sometimes it is interrupted due to mechanical fault and some times due to inefficiency of anyone of the production related department. Transit time for international market is comparatively high as compared to India. China and Turkey. Nishat (Chunian) Limited has not developed any brand name instead of high repute in the textile industry especially inside the country. Nishat (Chunian) Limited is about to ignore the local market due to high potential in the international market.

The employee working in the Nishat (Chunian) Ltd feels insecurity of job.
In the Nishat (Chunian) Limited there is a lack of staff work

participation for decision making.

OPPORTUNITIES FOR NISHAT (CHUNIAN) LIMITED


After ISO 9002 certification Nishat (Chunian) Limited has a chance to increase the quality conscious customers.
The new 24 most modern picanol air jet looms are imported by the

NCL. So there is chance NCL to increase their exports and sales. Crisis in the for-east market as well as in Japanese economy is to be over. So there is a chance to build the business-relation again in this market. By increasing the promotion budgets especially in terms of attending all the international textile exhibition Nishat (Chunian) Limited can attract a large number of new customer independently as well as through agents. Government pre Import-export policy for textile is also in favor of Nishat (Chunian) Limited. Nishat (Chunian) Limited has a large range of quality product as Well as worldwide good will in textile industry. If efforts are made in term of finding new market i.e. new customers and agents Nishat Chunian Limited can cash all its strengths.

GDP of the Pakistan is increasing and it is better for the export of textile of Pakistan. The Govt. reduces the duties in order to encourage the export of textile industry of Pakistan. In 2005 there is a free trade in the world. So the Nishat (Chunian) Ltd can increase their export sales to foreign countries by providing good quality of yarn and fabric to the foreign customers.

THREATS FOR NISHAT (CHUNIAN) LIMITED


Due to economic crisis in for east countries so many sales was lost during the last few years, but now these countries are again one the road of progress. If the previous customers are not properly attended now, they may be lost possible forever. South Africa is thinking about to impose the anti-dumping duties on Pakistan textile export. If it is imposed the reasonable export share and a big market may be lost. Foreign investment in textile sector in Sri Lanka, Bangladesh and China is also a danger in the future.
Every year Pakistan is always near to default. The temporary

oxygen provided by the IMF and the World Bank has given some relief and temporary life. Since Nishat (Chunian) Limited is getting its revenue majorly through export and in future if this oxygen is stopped by the IMF and the World Bank, then there will be a great

impact on the export of Pakistan as well as on the export of Nishat Chunian Limited has not share in the local market. There is no any foreign investment is made in the textile sector in Pakistan. The Nishat (Chunian) limited face more competition in selling it product in international markets. There is a political instability in Pakistan so these political factor are also responsible for reduction of profit and exports of Nishat (Chunian) Limited. In 2005 there is a free trade so Nishat (Chunian) Limited face competition in selling its product.