ACKNOWLEDGEMENT

Respected Sir,

Iam thankful to ALLAH Almighty, for making my

efforts worthy of condition. iam thankful to my course
instructor, Sir. Khalid mukhtair, whose assistance,
guidance and support from initial to final level enabled
us to develop the understanding of the subject.
INTRODUCTION TO THE COMPANY
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 Companys total export for the year 2016
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
com
 Strategies
Product Strategy
Nishat will launch exclusive designs of wear created by a variety of new designers. This innovation would be
affective as upcoming designers work with more energy and creativity that would boost their sales.
Pricing Strategy
Before setting prices of products, various elements are kept into mind.Customer is of utmost importance. If
customer is old, his track record is good and enjoys a favorable repute so profit margin may be reduced. Prices
area determined on cost basis by adding certain percentage of profit. This is highly sensitive area.
Current pricing for their products are:
Unstitched fabric is 2700-6900 it would be revised with more variety having range 1980-6800
Stitched fabric is 2400-21000 it would be revised with economic and unique aspect having range 1900-25000
Bed linen is 1200-3000 it would be revised from regular and exclusive range of bed linen from 500-9000
Bridal wear will be launched having introductory prices 15000-55000

Distribution Strategy
Nishat has their own outlets in Punjab and Sindh, and the product will be delivered only to registered outlets. As
the manager of one outlet has enlightened the point why dont sell their product other than Nishat outlet as their
competitor is doing that he replied we never want to enter in a market because as soon as we entered in it then
our fake product will take birth as it happened with other competitors. Our exclusive designs and products
would still be sold at our authorized outlets .Furthermore to facilitate the customers, online shopping facility and
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.
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 and equitable growth and
financial condition of the Company.
STRENGTHS:
One of the first few brands to launch bed linen in Pakistan.
Strong product diversification.
Outlets in nearly every city of Punjab and three outlets in
Karachi which is also the business capital.
Catering all market segments except children.

WEAKNESSES
Nishat linen is not catering the middle and the lower income
group that can be seen by looking at the price range of their
products:
Unstitched fabric: Rs. 2900 to 4900
Stitched fabric: Rs. 1400 to 5000
OPPORTUNITIES
Nishat linen can look to get affiliated with more
diversified designers who are into accessories as well.
Publish their own catalog for bed linen and fabric and
put them at different book stores so that customers have
easy access to their designs.
Nishat can get into western clothing line which will
give them an edge over their competitors.
THREATS
Strong promotional campaigns of competitors producing fabrics
through exhibitions.
Fabric designs of their competitors are available at other retail
stores as well where as their fabrics are available at their outlets only.
Most of their bed linens is exported therefore the local market tend
to suffer where as their competitors like ideas and Chen One are more
focused on the local market gaining competitive advantage.
Required Rate of Return (RRR)
The required rate of return is the minimum return an investor is willing
to accept on an investment. This rate is used in the calculation of the
present value of future cash flows needed to evaluate the investment
options. So, we need to determine the required rate of return to be
used in the decision. We can always just pick a number. But, as
financial professionals, we need to be a little more scientific in our
approach.
Three methods available for use in determining the required rate of
return are the:
Dividend discount approach
Dividend Discount Approach
The dividend discount formula uses the expected annual dividend of a
stock, the stock price and a growth factor to calculate the required rate
of return. Sometimes referred to as the Gordon Growth model, it
estimates the return on an individual investment in the stock market.
This rate can be used to compare different investment opportunities.
The growth factor is the anticipated increase in dividends expected over
the next year. We will estimate this growth using a five year trend.
Capital Asset Pricing Model
The capital asset pricing model (CAPM) Describe the relationship
between risk and expected return)IT,S also uses financial data from
the neshat to help establish the required rate of return. This model
uses the return on a risk free investment, the expected rate of
return in the market and the Beta of a stock. The Beta is a
measurement of the volatility of a security compared to the mills.
It's a measurement between -1 and 1. If the neshat mills realizes a
price increase overall, a brand with Beta equal to minus one will
decrease. However, if the Beta is plus one, then the individual rate
under analysis will increase in price along with the market. A Beta
of zero shows low volatility.
conclusion
Nishat Mills limited is one of the largest composite units in
Pakistan.Nishat Mills is having centralized system for the
betterment of thesystem they have to decentralize it because
the group has got verygood management workforce. On the
other hand the group in thetextile sector doesnt fulfill the
demand of foreign countries because of high production cost,
the core object of this report is to reflect thoseareas which
needs to be improve.In this era of technology, the Information
is the key to success inthe business. This means that the
successful businessman will be whowill have the right
information at the right time. This comment leads tothe
conclusion that the Information Sharing Process should really
beimproved.