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SELECTION OF THE ORGANISATION:

Company that we have selected is Nagina Textile Mills Ltd. for our work. Foremost reason was that the textile sector is the backbone of the Pakistan economy and has a very important part. We search for a suitable company and at last we came find Nagina Textile Mills best of our interest. Pakistan has been struggling with different crisis for some time and this had a direct effect on all the industries. But the good performance of NTM encouraged us to study deeply about this organization.

Project Aim and Objective:


The objective of the project is to analyze the business and financial performance of the NTM from 1st July of 2009 to 30th June 2011. Business analysis would include the analysis of the organizations internal and the external environmental conditions in which it is operating. Business analysis would be carried out by using different industrial models.

Company profile
Nagina Group: Nagina group was founded on May 16th 1967 with the incorporation of Nagina Cotton Mills Limited. Since then Nagina Group has expanded its operations in textile manufacturing and has diversified into other sectors. Currently, Nagina Groups textile manufacturing capacity is 100,956 spindles and 340 air jet looms. A steady and well thought out growth strategy coupled with a solid commitment to quality has earned Nagina Group a family of satisfied customers, hardworking employees, appreciative shareholders and the confidence of the banking community. The core businesses of Nagina Group generate an annual turnover in excess of 180 Million US dollars. Due to decades of dealing with Pakistani, North American, European and Far Eastern customers Nagina Group has created a skilled and knowledgeable management fully capable of understanding and responding to customer needs in record time. Nagina Group consists of three publicly listed companies on the Karachi Stock Exchange (Nagina Cotton Mills Limited, Ellcot Spinning Mills Limited, Prosperity Weaving Mills Limited) nagina group have its own power generation units to meet its need and excess is sold, five private companies (Monell (Pvt.) Limited, Icaro (Pvt.) Limited, Haroon Omer (Pvt.) Limited, Ellahi International (Pvt.) Limited), ARH (Pvt.) Limited), and employs over 3,500 employees. Nagina Group was selected in 2003 by Forbes Magazine as one of the best 200 international companies with an annual turnover of under a billion US dollars. This group has further diversification as Spinning, weaving etc following two are in spinning head: Nagina cotton mills limited: Established in 1967, Nagina Cotton Mills Limited (Winner of Forbes Global Award "Best under a Billion-200") is the mother company of Nagina Group. The company operates state of the art spinning machinery comprising of 46,428 Spindles with related process machines. Latest equipment from Japan, Europe and China allow production of high quality spun yarns in carded and combed versions for use in high speed looms and knitting machines. The directors are pleased to report that the prestigious International business magazine FORBES included Nagina Cotton Mills Limited in their list of "Best under a billion - 200". According to FORBES Our list of 200 successful companies outside the U.S. is drawn from among 19,000 publicly traded concerns with annual sales below $1 billion. We screened out most corporations that did not have operating margins of at least 5% in the latest year and

average returns on equity of at least 5% over the past five, aiming for businesses that were profitable and that rewarded shareholders. A handful of companies that failed these tests were considered if they had outstanding results otherwise. The remaining 4,000-odd concerns were graded against one another using various dollar-based performance measures, and the top 500 reviewed for inclusion on this list. Ellcot spinning mills limited:

Established in 1991, operates the art spinning machinery comprising of 54,528 Spindles with related process machines. The company produces high quality yarns of 100% cotton, synthetic, and polyester / cotton blends. Both carded and combed Yarns for weaving and knitting application are produced in many blends. Ellcot Spinning Mills Limited high quality yarns are

In weaving there is a seperate head: Prosperity weaving mills: Prosperity Weaving Mills Limited (An ISO 9001:2000 Certified Company) started production of high quality apparel and home furnishing greige fabrics in June, 1993. The mill comprises a total of 340 looms of various widths. Fabric production is over 55,000,000 (Fifty five million) linear meters annually and caters to the quality conscious buyers of Europe, North America, and the Far East. All kinds of sheeting, flannel, canvas, duck, drills, twills, satins, down proof, rip stop, stretch and dobby fabrics are produced in 100% cotton and synthetic blends. The fabric is mainly produced for dyeing quality and extra care is taken to produce fault free minimum contamination fabrics of long piece lengths. Real estate development: Nagina Homes is a real estate development initiative of Nagina Group. The rich experience of Nagina Group with a multitude of different industries in Pakistan ranging from trading, power generation, textiles, and leasing; coupled with a history of healthy relations with the banking community distinguishes Nagina Real Estate as exemplary and second to none.

Power generation: The power generation division was established in 1996 as Ellahi Electric Limited. Subsequently, Ellahi Electric Limited was merged into Nagina Cotton Mills Limited, Ellcot Spinning Mills Limited, and Prosperity Weaving Mills Limited. Ellahi Electric Limited was formed as Nagina Groups response to the challenge of meeting the power shortage of the country and also to ensure uninterrupted power supply to the group companies. The power generation division operates three separate plants attached to the textile companies of the group.The installed capacity of the power generation division is 36.50 Megawatts. The electricity produced is used by the group companies and sold to the Lahore Electric Supply Company (LESCO).

Tata group:
TATA Group is a leading player of textile industry in Pakistan. It has acquired a status which is desired by many but achieved by a few. The industrial side of the group took a concrete shape with the acquisition of Island Textile in 1981. As the years passed by TATA Group is today one of the most modern yarn manufacturing organizations in Pakistan. We are fully equipped to meet both domestic as well as International clients requirements. ISLAND TEXTILE MILLS LTD. : Island Textile Mills Limited (the Company) was incorporated in Pakistan on May 20, 1970 as a public limited company under the Companies Act 1913 as repealed by Companies Ordinance, 1984 and is listed on Karachi stock exchange. The registered office of the Company is situated at 8, 8th floor Textile Plaza, M.A. Jinnah Road, Karachi. The principal activity of the company is manufacturing and sale of yarn. The Company's manufacturing facilities are located at Kotri Industrial Estate in the province of Sindh.

ACCOUNTING AND BUSINESS TECHNIQUES AND LIMITATIONS: The techniques used in my research work are described below: SWOT Analysis: Situation analysis in which internal strengths and weaknesses of an organization, and external opportunities and threats faced by it are closely examined to chart strategy. SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organizations resources and capabilities to the requirements of the environment in which the firm operates. In other words it is the foundation for evaluating the internal potential and limitations and the probable opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success. A consistent study of the environment in which the firm operates helps in forecasting predicting the changing trends and also helps in including them in the decision making process of the organization. Strengths: NAGINA COTTON MILLS LTD is integrated vertically as well as horizontally i.e. managing spinning weaving, dyeing, printing, and electricity generation (NCM Limited, 2011). NCM Limited has great Strengths of Professional Ownership Professional Management Effective Cost of Production. Due to vertical integration the lead time and cost has decreased and increased its competitive advantage (In 2011). Company is also enjoying good capacity utilization position (NCM Limited, 2011). Companys sales and profitability was highest ever in the year 2011. Large Production Capacity State of the art of the machinery setup Large economy of the scale. Highly Skilled Technician Self Power Generation Strong Financial Liquidity Dedicated Employees Healthy Working Environment ISO 9001:2000 Certified company Advanced technologies internal communication and information system is very fast and strong. Diversification of quality specialized fashion products all are the strengths prosperity weaving mills ltd of NCM Limited 2011.

Weaknesses: NCML being a textile industry mainly depends on cotton. In case of any natural catastrophe, company would have to import cotton which would increase its cost (Sheraz, 2011). In NCML the Quality issue due to old Machineries problem. Another threat is Bureaucratic Culture. In NCML No training system is present in the company Centralized Structure Low salary. No specific H.R Department to understand the growing needs of employees. Traveling shortage of marketing managers.

Communication Gap unbalanced divisions of work load. Receivables are not receives because of not effective management of NCML. NCML is a large and diversified industry which includes different sectors of spinning weaving, dyeing, printing, and electricity generation. It may become a threat if the operations of industry are not managed properly. Opportunities Governments regulations, strategies, and trading policies are directly effect on textile industry. Pakistan is enjoying good physical and social infrastructure which includes transportation, education (regarding textile). New laws, incentives and introduction of committees for the welfare of the textile industry have helped the textile industries to flourish. One of them is the approval by the federal cabinet of Trade Policy 2009-12 (The Nation, 2009a). The Government of Pakistan has also reduced the quotas for textile which has provided a great help to textile sector (Pakistan Credit Rating Agency, 2009). Their must be increase in traveling of marketing managers to expand the business more effectively. The rapid changes in the fashion industry and better life style are a good sign for the growth of the textile industry. Produce fine fabric to capture more export market Introduces yarn dyed fabric for apparel and bed wear to expand the business in dying nit. For use of modern technology helps to improved efficient manufacturing techniques and assists in designing and printing by using latest techniques of machinery and software. He also states that technology enhances the management, production and controlling systems for every organization. And also gave

help to introduces innovation and synergy in textile. It also helps in launching a fair price product by comparing prices of same products from buying portals.

Threats/ Challenges: There are many challenges or threats which faced the textile industry now a day. Pakistan is a developing country so quality issues arise in textile due to old unit of yarn manufacturing. If quality is not maintained the market position will lose the industry. Pakistan economic condition which is not much favorable for textile. Energy issues like high fuel prices also a threat for business. The Pakistani rupee value decrease day by day due to uncertain economic conditions. Politically instability also affects our strength and opportunities. Increased in the number of competition are also challenges for textile industry. Competition in industry also affects because china fulfill the demand with low cost in market REFRENCE. The workers in spinning sectors encounter few health problems like asthma or tuberculoses due to harmful particles of cotton dust in the air or injurious chemical exposures which require special medical care REFRENCE AND HOW DOES IT INFLUENCE.