NCBA&E 

  

NCBA&E   
Subject: Communication
Topic:
Nishat Mills ltd
Submitted to:  MISS RIDA
Submitted by: Aqsa Ashraf
 Nishat Mills ltd
Table of Contents

Page No.
Topic
Executive Summary 03

08
Introduction of Organization
Mission & Vision Statement  10

Organizational Structure 13

Strategic Analysis 14

  Corporate Level Strategies 14

   Business Level Strategies 14

 Functional Level Strategies 14

SWOT Analysis 19

EFE Matrix 19

IFI Matrix 20

BCG Matrix 23

TOWS Matrix 25

Quantitative Strategic Planning Matrix 28

Porter’s Five Forces Model 30

Chart of Strategic Business Unit(s) of this Organization 32

Issues in Current Strategies 33

Proposed Recommendations 34

Conclusions 35
 EXECUTIVE SUMMARY
Nishat has grown from a cotton export house into the
premier business group of Pakistan with 5 listed
companies, concentrating on 4 core businesses; Textiles,
Cement, Banking and Power Generation. Today, Nishat is
considered to be at part with multinationals operating
locally in terms of its quality products and management
skills. I have recently done my internship in Nishat textile Mills
Limited, in which I got training from each of its department. The
internship basically revolved around the product knowledge training.
The system, the style of working & the commitment of the employees in
NML is really exemplary. The difference between the success & failure
is doing things right and doing things nearly right, & NML has always
tried for success & that is why it is known to be one of the leading
organizations in Pakistan. Irrespective of all these positive points of
Nishat Mills Limited, I have noticed a few areas where the improvement
can really increase the efficiency of NML.
In this report I have given a very brief review of what I
have seen during our internship I have mentioned all
these as I have made an internship as according to the
schedule. I also mentioned about the Textile industry in
Pakistan. Then I give the introduction of organization.
Then I have discussed about my learning in the whole
internship that is all about the Textile Terminologies and
process of different departments. Then I have done
Financial, SWOT and PEST analysis. I have made it
possible to write each and every thing that I have learnt
there. I have all my practical efforts in the form of this
manuscript that’s the asset for my future career.
HISTORY OF PAKISTAN TEXTILE INDUSTRY

Increase in the cotton production and expansion of textile

industry has been impressive in Pakistan since 1947.
Cotton – bales increase from 1.1 million bales in 1947 to
ten million bales by 2000. Number of mills increased from
3 to 600 and spindles from about 177,000 to 805 million
similarly looms and finishing units increased but not in
the same proportion. It employs 50% of industrial labour
force and earns 65% foreign exchange of total exports.
Pakistan’s textile industry experts feel that Pakistan has
fairly large size textile industry and 60-70% of machines
need replacement for the economic and quality
production of products for a highly competitive market.
But unfortunately it does not have any facility for
manufacturing of textile machinery of balancing
modernization and replacement (BMR) in the textile mills
which need to think about joint ventures for the
production of complete spinning units with china, Italy
and production of shuttle less looms (Projectile) with
Korea, Taiwan and Italy.
 TEXTILE USES

Textiles have an assortment of uses, the most common of

which are for clothing and containers such as bags and
baskets. In the household, they are used in carpeting,
upholstered furnishings, window shades, towels, covering
for tables, beds, and other flat surfaces, and in art. In the
workplace, they are used in industrial and scientific
processes such as filtering. Miscellaneous uses include
flags, backpacks, tents, nets, cleaning devices, such as
handkerchiefs; transportation devices such as balloons,
kites, sails, and parachutes; strengthening in composite
materials such as fiber glass and industrial geo textiles,
and smaller cloths are used in washing by "soaping up"
the cloth and washing with it rather than using just soap.
 Textiles used for industrial purposes, and chosen for
characteristics other than their appearance, are
commonly referred to as technical textiles. Technical
textiles include textile structures for automotive
applications, medical textiles (e.g. implants), geo textiles
(reinforcement of embankments), agro textiles (textiles
for crop protection), protective clothing (e.g. against heat
and radiation for fire fighter clothing, against molten
metals for welders, stab
protection, and bullet proof vests. In all these
applications stringent performance requirements must
be met. Woven of threads coated with zinc oxide
nanowires, laboratory fabric has been shown capable of
"self-powering nanosystems" using vibrations created by
everyday actions like wind or body movements.
INTRODUCTION OF ORGANIZATION

NISHAT GROUP
Mian Muhammad Mansha Yayha is the captain of this splendid ship having around 30
companies on board. Mansha, who owns the Muslim Commercial Bank as well, is now
setting up a billion rupee ($ 17 m) paper sack project too. He is one of the richest
Pakistanis around. Nishat Group was country's 15th richest family in 1970, 6th in 1990
and Number 1 in 1997. Mansha is on the board of nearly 50 companies. Chinioti by clan,
Mansha is married to Yousaf Saigol's daughter.

    The history of Nishat Group dates back to 1951, when Mian Muhammad Yahya
founded Nishat Mills Limited. This man of vision, courage and integrity, Mian
Mohammad Yahya was born in 1918 in Chiniot. In 1947 when he was running leather
business in Calcutta, he witnessed by the momentous changes that swept the Indo-Pak
subcontinent. This is story of success through sheer hard work and an undaunted
spirit of enterprise. Beginning with a cotton export house, he soon branched out in to
ginning, cotton and jute textiles, chemicals and insurance. He was elected Chairman of
all Pakistan Textile Mills Association. He died in 1969  at the age of 51 having achieved
so much in so short time. After almost half a century of
Undaunted success, Nishat group is among the leading business houses of the country
and ranks among the top 5 groups in terms of assets and sales revenue.
The group has its roots firmly planted into four core business namely.
•Textiles
•Power Generation
•Banking
•Cement
TEXTILES

 The textile business is further subdivided into 3-textile

division:
•Nishat Lahore
•Nishat Faislabad
•Nishat Chunian
                The textile capacity of the group is the largest in
the country. An addition of 20,000 new spindles, 100
new air jet looms and new dyeing plants has increased
the existing capacity of 242,000 spindles, 740 looms and
dyeing and finishing capacity of 5 million meters. The
largest exporters of textile products from Pakistan, for
more then decade!
THE COMPANY

Nishat Mills Limited (“Nishat”) is a public company

incorporated in Pakistan under the Companies Act, 1913(Now
Companies Ordinance, 1984) and listed on all three Pakistani
stock exchanges. The Company is engaged in the business of
textile manufacturing and of spinning, combing, weaving,
bleaching, dyeing printing, stitching, buying, selling and
otherwise dealing in yarn, linen, cloth and other goods and
fabrics made from raw cotton, synthetic fiber and cloth, and to
generate, accumulate, distribute and supply electricity. Company
is providing quality products to its customers within the
Pakistan and outside the Pakistan. Presently company is
exporting its all kinds if apparel products.
Major competitors Nishat competitors are
• Crescent
• Chenab
• Arzoo
• Alkarms
• Sitara
• Kohinoor
• Amtex
VISION STATEMENT

To transform the Company into a modern and dynamic

yarn, cloth and processed cloth and finished product
manufacturing Company with highly professionals and
fully equipped to play a meaningful role on sustainable
basis in the economy of Pakistan.
To transform the Company into a modern an dynamic power
generating Company with highly professionals and full
equipped to play a meaningful role on sustainable basis in the
economy of Pakistan
MISSION STATEMENT

To provide quality products to customers and explore new

markets to promote/expand sales of The Company
through good governance and foster a sound and dynamic
team, so as to achieve Optimum prices of products of the
Company for sustainable an equitable growth and
prosperity Of  the Company.
COMPANY PROFILE

CHIEF EXECUTIVE

•Mrs. Naz Mansha

BOARD OF DIRECTOR

•Mrs. Naz Mansha

•Mian Raza Mansha
•Mian Hassan Mansha
•Mr. Muhammad Nawaz Tishna (NIT)
•Mr. Faisal Ehsan Ellahi
•Mr. Khalid Qadeer Qureshi (Chief Financial Officer)
•Mr. Muhammad Azam
•Mr. Rana Muhammad Mushtaq
FINANCE DEPARTMENT
•Mr.Shehzad Malik (G.M)
•Mr.Usman Bajwa
•Mr.Badar Rauf
•Mr.Ashraf Ali Raza
•Mr.Inam
•Mr.Mudassar
•Mr.Asad Iqbal
•Mr.Masood Akhtar
•Mr.Nawaz
•Mr.Zulufiqar

AUDIT COMMITTEE

•Mr.waseem ul Haque Osmani Chairman

•Mian Hussan Mansha Member
•Mr. Aftab Ahmed Khan Member
 Strategic Analysis

Corporate level strategies

 Nishat stands up to its social responsibilities both in terms of
environment and Welfare. The company covers housing and
medical expenses for its employees and also provides schooling
for their children. A high school has been opened for the children
of the employees and general public of the area. A hospital has
been constructed in the vicinity of the plant. The company also
provides recreational and sports facilities for the resident
employees at the production premises. NCL has also
established a school and hospital under the Mian Mohammad
Yahya Trust, at a cost of around US$ 700,000. The trust is
sponsored by NCL and members of the sponsors family. The high
school opened in 2000 for the children of the employees and
general public of the area; has a staff of around 40 teachers and
offers education to 400 students. The hospital has also been
constructed in the vicinity of the plant; enabling local population
to get immediate medical attention instead of traveling to the
nearest city. Around 80 patients are treated daily in the hospital
by a staff of 30 people which includes 6 qualified doctors
 Business Strategy

Aggressive marketing has been the major factor in our

consistent profitability over the past years. Our strategy is
to remain at the cutting edge in terms of exploring new
markets and new products. The focus is on niche
marketing with specialized products. We have
differentiated our business through consistent quality,
reliable delivery and proactive handling of customer's
needs.
Investment in state of the art technology and top quality
human resources has been key element of our business
strategy. The organizational structure is lean with very
little hierarchy and bureaucracy compared to other
organizations of similar size. This gives us the flexibility to
respond quickly to the changes in the market situation.
 Functional Level Strategies:

1. FUNCTIONAL LEVEL STRATEGIES All organizations irrespective of the size, nature and scope of business must perform the functions like Marketing
Finance Production & Operations Human Resource Management Research & Development etc. Careful planning, execution and coordination of these
functions are highly essential for effective strategic planning, implementation and control
2. FUNCTIONAL LEVEL STRATEGIES Marketing Strategies • These strategies involves analysis, development and implementation of activities •
Marketing strategies can be studied under the following areas Product and Service strategies Pricing Strategies Place / Distribution Strategies Promotion
Strategies
3. FUNCTIONAL LEVEL STRATEGIES Marketing Strategies - Product and Service strategies Pricing Strategies The above has been covered in Marketing
II (First Year)
4. FUNCTIONAL LEVEL STRATEGIES Place / Channel of Distribution Strategies • This strategy depends upon whether the company wants to sell
directly or outsource its distribution function • Most of the companies still prefer to distribute their products through market intermediaries • Hence
channel differentiation can be a distinctive competitive advantage Egg. BSNL’s success is due to location of pay phones/STD outlets even in corners of
small towns and villages throughout India by appointing agents
5. FUNCTIONAL LEVEL STRATEGIES Promotion Strategies • This strategy includes advertising, personal selling and sales promotion • Companies
should have large advertising budgets during product introduction stage in order to create customer acceptance • The companies whose brand is enjoying
a high market share can have a low advertising budget • Companies however spend more on advertising in a highly competitive environment
6. FUNCTIONAL LEVEL STRATEGIES Pricing Strategies Please study the pricing strategies from any Marketing Text Book Ramaswamy & Namakumari,
Arun Kumar & N Meenakshi etc
7. FUNCTIONAL LEVEL STRATEGIES Financial Strategies • Finance is a fundamental resource for starting and conducting of a business • Financial
strategies are centered around acquiring capital, reducing cost capital etc. • Also making complex investment decisions through capital budgeting
financing and dividend decisions capital structure working capital strategies in terms of accounts receivables, inventories, cash flow management etc.
8. FUNCTIONAL LEVEL STRATEGIES Acquiring Capital • Capital can be equity capital and loan capital / debt capital • Equity capital provides security
and free from paying interest and financial risk • Debt capital although requires the payment of fixed interest regularly, it provides huge surplus during
business boom • Companies thus decide to have both equity and debt capital
9. FUNCTIONAL LEVEL STRATEGIES Capital Structure Strategy • Capital structure is a mix of equity capital, preference capital, retained earnings and
debt capital • Companies formulate optimum capital structure strategy in order to balance the advantages and disadvantages/ risks • Optimum capital
structure possesses the following features
10. FUNCTIONAL LEVEL STRATEGIES Features of Optimum Capital Structure • Generation of maximum rate of return on capital employed for the
purpose of maximization of wealth of equity shareholders • Excessive debt capital results in risk of solvency of the company hence they should limit the
debt capital at a point where the risk begins • Companies should adopt a flexible structure in order to adapt the structure to the economic situations • The
amount of debt capital should be within the capacity of the company to generate future cash flows • Capital structure of the company should result in
control of risk in debt capital
Chart of strategic business unit

Strategic Business Unit (SBU) implies an independently

managed division of a large company, having its own
vision, mission and objectives, whose planning is done
separately from other businesses of the company. The
vision, mission and objectives of the division are both
distinct from the parent enterprise and elemental to the
long-term performance of the enterprise.
Simply put, an SBU is a cluster of associated
businesses which are responsible for its combined
planning treatment, i.e. the company engaged in a
diversified range of businesses, categorises its multitude
of businesses into a few separate divisions, in a scientific
way. The task may include analysis and bifurcation of a
variety of businesses.
It can be a business division, a product line of the division
or even a specific product/brand, targeting a particular
group of customers or a geographical location.
Characteristics of Strategic Business Unit
Separate business or a grouping of similar businesses,
offering scope for autonomous planning.
 Issues in current strategies

The Key focus directed to any organization is geared by issues in the

economic view of the trending world's economy. The organizations need to
address specific industry related trends in the strategic management. 
Maintaining a focus on the global outlook of the firm's growth strategies
and an extensive focus on the technological needs of the firm and trends
within the industry. Main concern is addressing challenges faced within the
firms operations such as low-income segments. Some issues to address 
Corporate Strategy - The Core Concepts 
Succeeding in highly competitive sectors
Balancing a social focus in a commercial setting
Evolving products and delivery channels
Reaching new business segments
Competitive Dynamics
Putting it All Together
Corporate Philosophy and Culture
General Principles of Organization Design
Knowledge management and Data analysis of various data sets.
Quality control and Assurance 
Risk management arising within the organization and those that arise other than
organizational risks.
Addressing this issues its paramount that firms will be able to improve their
service delivery as well as revolutionalize the industry. 
 Proposed Recommendations

I would suggest or recommend to NML the following

things, which they should be implemented at NML
•At NML, such bonus facilities are given only to production
department. In my point of view, they should provide these such
bonus facilities other departments as well, this act will increase
the loyalty of their officers and employees towards NML and it
also can be motivating factor as well for them. Most important in
my point of view that NML has policy of not to give any stipend to the
internees. I think they should give some stipend to the trainees, this will
encourage new trainees to come here and this will also boost up their
energies and they will work with more interest
•At NML, salary packages are not so good, that’s why employee
turnover rate is slightly higher. I suggest them that they should provide
good salary packages to their officers and employees for retaining them
for the longer period.
•Favoritism should be eliminated and the recruitment
should be done on purely merit basis.

•The bargaining power of the buyers or customers, their

traditions, income and living standard should examine.
•Every one at NML should be agree to follow three fundamental
principles; respect individuals, strive for excellence, and
provide the best service.
•Upper management should encourage the existing employees
to go for further training  and special education; in near future it
will be beneficial for the company.
 Conclusions:

It was a wonderful and learning experience for us while 

working on this project .Took us the various phases of
project development and give us real insight into the
world of Cotton industry ,The joy of working and thrill
while tackling the various problems and challenges gave
us a feel of cotton  industry  .
It was due to this project  we came to know how cotton
industry in working nationally and internationally .
We enjoyed etch and every bit of work we had put into this
project .The project further extendable.