Nishat Mills

Anas Ejax
Bilal Niazi
Wajahat Ali
Zeeshan Tahir

Bussiness Policy
Term Project

INTRODUCTION
This preliminary report provides an overview of Nishat Mills, a prominent textile and apparel
manufacturing company operating in Pakistan. The report delves into Nishat Mills' business activities, its
financial position in the market, the industry it operates in, and its major competitors.

Introduction:

Nishat Mills is a flagship company of the Nishat Group, one of the largest and most diversified business
conglomerates in Pakistan. Established in 1951, Nishat Mills has since become a leading player in the
textile and apparel industry, and it has expanded its operations globally.

Industry Overview:
Nishat Mills operates in the textile and apparel manufacturing sector, which is a vital component of
Pakistan's economy. The textile industry is a significant contributor to the country's GDP and exports. It
encompasses various sub-sectors such as spinning, weaving, dyeing, printing, and garment
manufacturing. The industry benefits from Pakistan's abundant availability of cotton and a skilled labor
force.

Business Activities:
Nishat Mills is engaged in a wide range of business activities within the textile sector, including:

Spinning: The company has a robust spinning division that produces high-quality yarn for its downstream
operations.

Weaving: Nishat Mills operates modern weaving units, which play a vital role in the production of
fabrics.

Dyeing and Finishing: The company has state-of-the-art dyeing and finishing facilities for enhancing the
quality and aesthetics of fabrics.

Apparel Manufacturing: Nishat Mills is involved in the production of a wide array of garments, from
casual wear to high-end fashion.

Exports: The company exports its products to numerous countries, contributing significantly to Pakistan's
foreign exchange earnings.

Financial Position
Competitors:
Nishat Mills faces competition from several key players in the textile and apparel industry. Some of its
prominent competitors include:

Gul Ahmed Textile Mills: A well-established textile company with a diverse product range.

Lucky Textile Mills: Known for its integrated textile operations and strong export presence.

Fazal Cloth Mills: Engaged in spinning, weaving, and processing of fabrics.

Chenab Textile Mills: Another major player in the textile sector with a strong focus on exports.
EFAS for Nishat Mills
External Factors
Opportunities
Expanding e-commerce market/
Productivity improvements
Increasing demand for sustainable
and ethical textile products. /
Focus of Technology
Growing middle class in emerging
economies / LIFESTYLE CHANGES
Technological advancements in
the textile industry / FOCUS OF
TECHNOLOGY PATENT
PROTECTION
Government support for the
textile sector / SPENDING BY
GOVERNMENT FOR R&D
Threats
Intense competition from other
textile producers / ATTITUDE
TOWARDS FOREIGN COMPANIES
Rising costs of raw materials and
energy / WAGES PRICE CONTROL
Global economic slowdown due
to the COVID-19 pandemic /
UNEMPLOYEEMENT
Trade barriers and tariffs /
FOREIGN TRADE REGULATION
Political and economic instability
in key markets / STABILITY OF
GVERNMENT
Total Score
Weight Rating Weight Score Comments
The COVID-19 pandemic emphasized the significance of
0.18 4 0.72 e-commerce due to widespread store closures and
restrictions.
Consumers are growing more aware of the ecological
and ethical consequences of their buying choices,
0.1 3 0.3 including considerations like water and energy
consumption, fair labor standards, and chemical usage
within the textile sector.
The expanding middle class in emerging economies
presents Nishat Mills with a significant market potential
0.15 3 0.45
to broaden its customer base and cater to the
increasing demand for quality textiles and apparel.
Maintaining efficiency, quality, and sustainability is
0.2 3 0.6 crucial for Nishat Mills to remain competitive in a rapidly
changing market.
The textile sector benefits from government support,
creating a conducive environment for Nishat Mills to
0.02 2 0.04 thrive through incentives, subsidies, and policy measures
that enhance the company's competitive edge and
sustainability.
Intense competition from other textile producers poses
a threat to Nishat Mills, necessitating constant
0.14 3 0.42
innovation, cost-efficiency, and differentiation to
maintain its market position.
The rising costs of raw materials and energy present a
significant threat to Nishat Mills as they can impact
0.08 3 0.24 profit margins and overall operational expenses,
requiring strategic cost management and sourcing
strategies.
Global economic slowdown triggered by external factors
such as the COVID-19 pandemic and the Ukraine
conflict poses a substantial threat to Nishat Mills,
0.05 3 0.15
affecting demand, supply chains, and overall business
stability, requiring adaptability and contingency
planning.
Trade barriers and tariffs present a significant threat to
Nishat Mills by potentially hindering international trade,
0.03 3 0.09 increasing costs, and limiting market access,
necessitating strategies to navigate trade restrictions
and explore alternative markets.
Political and economic instability in key markets poses a
substantial threat to Nishat Mills, impacting market
0.05 2 0.1
conditions, investment climate, and business operations,
requiring risk mitigation and diversification strategies.
1.00 3.11
IFAS for Nishat Mills
Internal Factors
Strengths
Strong brand recognition /
COMPETITION
Well-established distribution
network / INDUSTRIAL RELATION
CLIMATE
Experienced management team /
SKILL LEVEL OF WORKFORCE
Vertically integrated business
model / Suppliers
Focus on product innovation/ E-
COMMERCE
Weakness
High dependence on cotton /
SUPPLIERS
Fixed Labor wages by law /
Regulatory Provisions
Lack of investment in research
and development / FINANCIAL
INSTITUTION
Total Score
Weight Rating Weight Score Comments
Nishat Mills benefits from strong brand recognition,
0.2 4 0.8 which can enhance customer loyalty and trust, provide a
competitive edge, and facilitate market expansion.
Nishat Mills' well-established distribution network is a
significant strength that enables efficient product
0.15 3 0.45 delivery, wider market reach, and enhanced customer
accessibility, contributing to the company's competitive
advantage.
Nishat Mills' experienced management team brings
valuable industry knowledge and strategic expertise,
0.05 2 0.1
which can drive informed decision-making, innovation,
and long-term sustainability for the company.
Nishat Mills' vertically integrated business model is a key
strength that allows the company to exercise control
0.1 2 0.2 over its entire supply chain, leading to cost efficiency,
quality assurance, and adaptability to changing market
conditions.
Nishat Mills' focus on product innovation is a significant
strength that enables the company to stay at the
forefront of market trends, meet evolving customer
0.1 3 0.3
preferences, and maintain a competitive edge through
differentiated and cutting-edge textile and apparel
offerings.
Nishat Mills' high dependence on cotton is a weakness
that can leave the company vulnerable to fluctuations in
0.25 3 0.75 cotton prices and supply disruptions, highlighting the
need for diversified sourcing strategies and risk
management.
Nishat Mills' limited product diversification can be a
weakness, as it makes the company more susceptible to
0.1 3 0.3 market shifts and changing consumer preferences,
emphasizing the importance of expanding product lines
to reduce risk and capture a wider market share.
The lack of investment in research and development is a
weakness for Nishat Mills, as it may hinder the
company's ability to innovate, develop new products,
0.05 3 0.15
and keep pace with evolving industry trends,
necessitating a focus on R&D to foster competitiveness
and long-term growth.
1.00 3.05