Nishat Mills LTD..

Submitted to :
Sir Adeel
Submitted by:
Aqdas Tariq (20)
Samia Maqbool (22)
Fatima Tabbasum (05)
Nabeel sulahri (41)
M. Asif
 INTRODUCTION
• Nishat Mills Limit is the most modern and
largest vertically integrated textile Company
in Pakistan. The Company’s production
facilities comprise of spinning, weaving,
printing, dyeing, home textile and garment
stitching and power generation.
 Industry Overview
 Nishat Mills Limited is the flagship
company of Nishat Group. It was
 established in 1951.
 It is one of the most modern, largest
vertically integrated textile
companies in Pakistan. Nishat Mills
Limited has 227,640 spindles, 789
Toyota air jet looms.
 The Company also has the most
modern textile dyeing and
processing units, 2 stitching units for
home textile, Two stitching units for 
garments and Power Generation
facilities with a capacity of 120 MW.
The Company’s total export for the
year 2015 was Rs. 39.868 billion
(US$ 393.683 million).
 Due to the application of prudent
management policies, consolidation
of operations, a strong balance sheet
and an effective marketing strategy,
the growth trend is expected to
continue in the years to come.
 The Company's production facilities
comprise of spinning, weaving,
processing, stitching and power
generation.
The group has a remarkable
position in the market as good as
any MNC operating locally in terms
of its quality of products, services
and management skills.
 TEXLITE CAPACITY
20000 new spindles, 100 new air jets looms and
new dyeing plant has increased the existing
capacity of 24000 spindles, 740 looms and dyeing
and finishing capacity of 5 million meters.
The group is the largest exporter of textile
products from Pakistan for more than a decade.
Nishat mills limited exports more than 90% of its
products mainly to the Far East, Europe and
United States.
 Vision Statement
To transform the Company into a modern and dynamic yarn,
cloth and processed cloth and finished product manufacturing
Company that is fully equipped to play a meaningful role on
sustainable basis in the economy of Pakistan. To transform the
Company into a modern and dynamic power generating
Company that is fully equipped to play a meaningful role on
sustainable basis in the economy of Pakistan.
 Mission Statement

To provide a quality product to the

customers and explore new market to
promote sale of company through good
governance and foster a sound and dynamic
team, so as to achieve optimum price of
product of the company for sustainable and
equitable growth prosperity of the company.
 BOARD OF DIRECTORS
Nishat Mills limited consist of seven board of directors.
 DEPARTMENTs

• Marketing department
• Accounts department
• Finance and banking department
• Import export and miscellaneous
department
• Human resource department
Competitors of Nishat Textile Mills Ltd
Competitors of Nishat Textile Mills Ltd
COMPETITIVE PROFILE MATRIX (CPM)
 COMPETATIVE EDGE

• Leading position

• Better customer perception

• Best quality
•
• Vide range of product
 SUBSIDIARY COMPANIES
• Nishat Power Limited
• Nishat Linen (Private) Limited
• Nishat Hospitality (Private)
Limited
• Nishat Commodities (Private)
Limited
• Lalpir Solar Power (Private)
Limited
• Hyundai Nishat Motor (Private)
Limited
• Nishat Linen Trading LLC
• Nishat International FZE
• Nishat Global China Company
Limited
• Nishat USA Inc.
• Nishat UK (Private) Limited
• Concept Garments and Textile
Trading FZE
 MARKETING STRATEGIES

• The management has hired software houses at port)

the competent employees • By using personal contacts
• who are working effectively • EPB (export promotion
and efficiently bureau)
• They use the following • Trade Association’s reports
sources to identify new and publications
• customers:
• Internet
• Infotex (organized by the
• After they have gathered the information, they
start the conversation with the prospects.

• They send them e-mail in which they introduce

their organization and different production
facilities available.

• They give them the different incentives to work

with NML. These incentives may include
competitive prices, better quality, increased
satisfaction
 NISHAT EXPORTS
• Nishat mills limited are an export-oriented
organization.
• Nishat mills limited exports more than 90%
of its products mainly to the Far East, Europe
and United States
• 50% of their product are export to USA
• And other 40 % to Middle east, Russia and
France
 PROCEDURE OF EXPORT
• Inquiry from the customer
• Reply to inquiry
• Price bargaining
• Gray procurement sheet
• Sales contract
• Buyer purchase order
• Strike of program
• Opening of L/C
• Production schedule
• Quality control
• Stitching schedule
• Dispatching
SWOT analysis of Nishat Mills
• Strenghts
• ISO 9001-2000 and OKTEX 100
certification
• Strong security system
• High quality product
• Latest mechanized machinery
• Tremendous market position
• Highly qualified and skilled
management
• Adequate financial resources
• Highly motivate workforce
• Own power generation plant
• Weaknesses
• High cost of production
• Centralized decision making
• Small international market share
• Less promotional activities
• Lack of benefits and rewards for
the employees
• Non availability of 100 % polyester
processing
 SWOT analysis of Nishat Mills
External Factors
• Opportunities:
• Advanced technology
• New market segments
• Existing production capacity
• Lifestyle attitudes
• Population growth rate
• External relations
• New styles and demands
• Threats:
• Political instability
• Change of government policies
• Economic downturn
• Emerging competition
• Increased taxes
• Intense price competition
EXTERNAL FACTOR EVALUATION
MATRIX (EFE MATRIX)
Products and services
PORTER’S 5 FORCES ANALYSIS OF
NISHAT MILLS LTD
 Company information
Bankers to the company:
• Al Baraka Bank (Pakistan)
• Allied Bank Limited
• Askari Bank Limited
• Bank Alfalah Limited
• Bank Islamic Pakistan Limited
• Dubai Islamic Bank Pakistan
• Limited
• Faysal Bank Limited
Share capital of Company:
• Authorized share capital
1,100,000,000 ordinary shares of
Rupees 10 each which is
(11,000,000) rupees in thousands.
• Issued, subscribed and paid-up
share capital which is (3,515,999)
rupees in thousands.
 Board Committees:
• Audit Committee Human Resource & Remuneration
(HR&R) Committee
 Financial Highlights

Profit after tax of the Company increased significantly by 40.72% in the quarter
ended 30 September 2018 as compared to the corresponding quarter ended 30
September 2017.
 Financial performance

Overall marketing strategy of the Company worked well which resulted in a

significant increase in revenue by 9.10%. Export sales recorded an increase of Rs.
2,149.681 million due to favorable rate variances
 CORPORATE SOCIAL RESPONSIBILITY

The Company is at the forefront of implementing the best

practices of Corporate Social Responsibility (CSR) in textile
industry. CSR activates are:
 Environment Protection
 Energy Conservation
 Waste Recycling
 Occupational Safety and Health
 Equal Opportunity Employer
 Community Welfare Schemes
 Consumer Protection Measures
 Contribution to National Exchequer and Economy
• Environment Protection:
The Company has installed Effluent Treatment Plants (ETPs) for the purification
of the water at those manufacturing facilities of the Company where danger of
contamination of water due to the usage of textile chemicals exists. Recently, up
gradation of ETP at Dyeing and Home Textile Divisions has been achieved by
enhancing capacity of waste water treatment up to 400 cubic meters per hour.
Moreover, ETP in house laboratory has been established in Garments Division for
continuous monitoring of ETP plant to ensure efficient performance.

• Energy Conservation:
The Company is determined to save energy by adopting techniques such as
replacement of existing conventional tube lights with LED lights, by installing
waste and heat recovery plants to generate steam from gas engine exhaust and
implementation of code of conducts for employees to promote energy
conservation. The Company has also installed eco-friendly washing machines and
curing oven which consume less energy as compared to conventional machines.
• Waste Recycling:

The Company is fully concerned to protect environment by recycling of waste.

This is why the Company regularly invests in such technologies which can recycle
waste generated by production processes. The Company has installed water
treatment plants, cotton recycling plants and oil recycling machines at different
sites to recycle the water, textile waste and oil for maximum saving of natural
resources.

• Occupational Safety and Health

The management is very concerned about health and safety of its workers. In order
to ensure better health of workers, the Company regularly organizes medical camps
for malaria, typhoid, dengue and eye sight. Further regular fumigation is carried out
at premises of all manufacturing facilities by using fogging machines which prevent
dengue and also ensure healthy environment for workers. The Company has also
established dispensaries under the supervision of qualified doctors at its production
facilities which are equipped with ambulances.
• Equal Opportunity Employer:

The Company is an equal opportunity employer and offers employment without

any gender and class discrimination. A large number of women are part of
workforce in Stitching and Garments Segments of the Company.

• Community Welfare Schemes:

The Company regularly organizes medical camps for malaria, typhoid and eye
sight for the people living in the surroundings of its manufacturing facilities.
Moreover, the Company provides aid to Basic Health Units established by
Government of Punjab and provides free food to SOS villages on special occasions.
• Consumer Protection Measures
 The Company believes in adopting such method which ensures safety and
protection of its customers when they use its products. Our continuously
expanding customer base and long term relations with customers imply us to
exercise care for the protection of our customers in manufacturing and transit
of our goods.

 We have set up systems such as the installation of metal detectors for

prevention and detection of any harmful substance in the products. For this,
the Company meets the OEKO Tex Standards 100 which is an independent
testing and certification system for textile raw materials, intermediate and end
products at all stages of production. The Company has also acquired C-TPAT
Certification
(Customs-Trade Partnership against Terrorism)
at all its production facilities.
Further the Company has
obtained SA-8000, WRAP and SEDEX
certifications.
• Contribution to National Exchequer and
Economy:

As the Company is counted among top exporters of the country, it

has contributed to the economy by earning foreign exchange of US$
353.026 million during the current year. Further it has also
contributed Rs. 1,295.201 million towards national
exchequer by way of custom duty, income taxes, sales taxes,
education cuss, social security contribution, EOBI contribution etc.
 Corporate governance
• Best Corporate Practices:
Directors are committed to good corporate governance and
comply with the requirements of the Listed Companies (Code
of Corporate Governance) Regulations, 2017 and the Rule Book
of Pakistan Stock Exchange.