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 par with multinationals operating locally in terms of its quality
products and management skills.

In this assignment I have given a very brief review of what I have seen during our
experience I have mentioned all these as I have made an assignment as according to the
schedule. I also mentioned about the Textile industry in Pakistan and vision of its
industry. Then I have done a detailed SWOT analysis as well as PEST Analysis.

Then I have discussed about my learning in the whole assignment that is all about the
Textile Terminologies and process of the productions. 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.

Introduction
History
*The Nishat Group* Mian Muhammad Mansha Yaha 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.

He is deemed to have made investments in many bourses, currency and metal exchanges
both within and outside Pakistan. He has had his share of luck on many occasions in life
and has recently been awarded Pakistan's highest civil award by President Musharraf. He
could have bought the United Bank too, but then who doesn't have adversaries. Nishat
Group of comprises of textiles, cement, leasing, insurance and management companies. If
Mansha was bitten by Bhutto's nationalization stint of 1970, his friends think he was
compensated by Nawaz Sharif's denationalization programme to a very good effect.
There is no stopping Mansha and he is still on the move!

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.

Objective of this assignment

This assignment is about the nishat textile group which is the largest textile mills in
Pakistan. In this assignment the I suggest the nishat textile mills the new product line and
also emphasize on new target market for more progress in Pakistan. In this way the nishat
textile mills will become a Pakistan’s most successful industry of Pakistan. Following I
discuss the introduction of nishat textile mills, products, competitor, SWOT analysis,
PEST analysis conclusion and recommendations.

Methodology of this report:

For accessibility and availability of information we have chosen to work on the strategies
of Nishat textile mills. As the company operates in the market with a huge number of
products in different industries, we have decided to focus on one of their world wide
successful brands, NISHAT TEXTILE MILLS. Most of the information used in this
report is from primary sources. The main source of information was the focus group
discussion. In addition information was also collected from websites.

Product Category, Market Segmentation, Target

Marketing and Positioning

Products

Valances Quilt Covers

Quilted Throw-over
Flat Sheet
Fitted Sheet
Pillow Cases
Cushions
Curtains
Baby Sets
Table Linen
Embroidery
Market Segmentation:
The company claims that Nishat mills are the largest exporting brand in Pakistan.
Moreover some survey reports also reveal the same result.
Though Nishat mills are the highest selling Linen and curtain clothes in Pakistan, it does
not go for traditional mass marketing. Moreover as clothes does not even segment its
market according to gender.

Target market
Nishat textile mills has only emphasis on the export of its total production and even in
local market export quality goods in their outlets. The major export countries are south
and north America, Far east Australia, Europe, Middle east and many other countries.

The textile export figures for the first ten months of the current year released by the
Export Promotion Bureau revealed that the textile quota exports to the US improved by
24 per cent while the increase in exports to EU countries at the end of October 2002
registered an increase of 16.6 per cent in terms of value and 13 per cent in terms of
quantity.

Major competitors
 C rescent

Chenab

Arzoo

Alkarms

Sitara

Kohinoor

Amtex

But main competitors of Nishat Mill are

“Crescent Textile Mills”

“Chenab Textile”
Detail of SWOT Analysis
Strengths:
ISO
 9001-2000:

Nishat textile is certified under ISO 9001-2000 and so it meets the requirement of
international standard and has a value in the mind of concern people.

Strong
 Security System

Nishat textile limited has a greater security system. There are different hidden security
cameras which capture the all moments.

OKTEX
 100:

Nishat is also Oktex 100 certified its mean that Nishat is satisfied to not using hazard
chemical using.

High
 quality product

Nishat textile limited using advance technology like they have modern machinery by
which the quality of product produced is very high.

Latest
 mechanized machinery.

They are using modern looms which they have purchased from Japan and France. And by
using that latest machinery the productivity of the employees are very high.

Tremendous
 market positioning

Nishat textile is one of the pioneer textiles in the Pakistan so it got the position in the
mind of its customer. And being an old textile company people are loyal with it. Nishat
has a better position in the mind of its customers.

Highly
 qualified and skilled management

The management of Nishat is skilled they have hired the foreign graduate people in their
management and also experienced people from all over the country.

Highly
 Motivated Workforce

They are providing better pay to their employees and also bonus to them which motivate
the workforce and they are doing well at work setting.
Adequate
 financial resources

The owner of the Nishat is one of the richest persons of the Pakistan and they have more
plant and investment in other industries like cement, Bank, They have adequate financial
resources to meet their requirements.

Competitive
 advantage

Because it is an old textile and it has still keep its position in the textile market on all
others competitors in the nation wide which is its competitive advantage.

Equipped
 with MIS System

They have a management information system by which the departments and employees
are connect with each other and they have a data ware house by which they can share
their resources easily.

Own
 power generation plant

They have own power generation plant and Nishat is the pioneer in the private
organization who start the power generation. And also selling to the WAPDA its
produced power.

Weaknesses:

High
 cost of production

The production cost is high because of not properly utilization of its resources.

Centralized
 decision making

The decisions are made by the upper management which is weakness of the Nishat
because they have no proper idea about the situation and their decision can be not fruitful
for the company.

Weak
 image in the international market

Because of the other textile specialized countries like China, Bangladesh etc the
international image in the textile sector is very weak. Those countries providing cheap
product to the market then Pakistan’s textile industries.
Small
 international market share

Although Nishat has very strong in the national wide but it has small market share in the
global textile industry due to the sound competitors like china, and Bangladesh etc
[

Less
 promotional activities

The advertising and promotional cost of the Nishat textile is very low it can take
advantage for more turnouts.

Lack
 of benefits and rewards for the employees

Some facilities that other providing to their employees like Transport and medical fee etc
Nishat not providing to their employees because of which the productivity of the
employees decrease.

Opportunity:

Organization
 Can expand product lines

Currently the Nishat not dealing in knitwear they can expand their product line by
producing knitwear. They have plants and the extra cost for the production will be low
for Nishat. And they also have better market repute.

Organization
 Can reduce the cost by proper utilization of resources

If the cost of different matters which is not utilizing properly is controlled by the Nishat
management they can produce more in a few costs. It has to develop a further systematic
process for controlling and managing resources.

Organization
 Can hire more well-educated and experienced person
They can take advantages by hiring more skilled people and they should hire young, fresh
and energetic staff for their betterment.

Threats:
Buyer
 needs demands changes

Because of the research and development the design and the product of Nishat is just
satisfactory as compare to competitors in the globally and they are not fulfilling the
demand of customer.

Political
 instability

Political instability effects the Nishat because of the quota system the company can be
restrict by the government to export.

Changed
 of government policies

Government policies are changing day to day so it is a threat for the Nishat to survive in
such a changeable situation.

Globally
 Economic instability

Because of the economic instability the Nishat affected a lot. Dumping system which is
rising on daily basis in the world can create many problems for the company and any
uncertainty in the world like 9/11 may affect also the overall export.

PEST Analysis
Political Instability.

The political situation of Pakistan is not satisfactory. Due to the rapid change in
the Government every government sets its own new trade policies.
Govt. should apply sustainable policies for the beneficial of the exporters as
well as the investors.

Economic situation:

The economic condition of Pakistan can also affect the foreign investors
increasing inflation rate make the cost of production high and thus reduce the
profit margin of the investor.

Social situation:

The change in the lifestyle of the people affects the growing demand of the
NTM products. The change in the lifestyle and needs in different demographics
also affect the demand of the customers.

Due to all these changes NTM is performing excellent for the excellence
organization as well as for the customer.

Technological factor:

Technological advancement in all the sectors of the country has changed the
entire socio-economic environment. Especially in the textile sector there is a lot
of technological development.

NTM Excellent computerized machines and devices are installed in the

NTM \has made extension in its present setup by installation of well advanced
technology imported from Japan China and France.

Conclusion
　

　 Nishat Mills Limited is one of the leading groups in Pakistan. The system, the
management style, the policies & decentralized decision making environment is really
remarkable. This report is basically an attempt to identify the areas which need to be
improved.

In this era of technology, the “Information” is the key to success in the business. This
means that the successful businessman will be who will have the right information at the
right time. This comment leads to the conclusion that the Information Sharing Process
should really be improved.

　 The overall analysis is indicating that the company’s progress has mainly attained
through dedication of employees. The effectiveness of its management, their willingness
to take advantage of opportunities and face challenges of changing economic picture, this
all contributes to the very much improved and sound position of company. This is really
appreciable for the devotion and hard work of all the employees of the company.

Recommendations
Organizations big or small profit or unprofitable have problems and there are
always chances of improvements. This is also the condition for Nishat textile. As
problems and difficulties have been identified, now here are some suggestions that may
help the organization to improve.

 Expanding product lines that will give more variety to people of country could
extend local marketing and ultimately sales would be increased. There should be
more staff in local marketing department to enhance the sales figure and to
capture wide area of local market.

 Nishat textile mills should be emphasis on the local market of the Pakistan
because of the nishat textile only the textile mill who is surviving in the worst
time of Pakistan’s economy because the major problem of Pakistan is Power and
Nishat mills is producing its own power not dependant an the governmental
power so they can easily hold the local market
 Nishat textile mills should also be emphasis on producing the denim fabric
because it is the demand of the time in this way they can boost up their export as
well as in the local market.

 In processing department there is a need of skilled workers. There are certain

departments of processing in which employees have been working since long but
there efficiency is not improved and unsatisfactory results come out sometimes.
The skilled labor will not only improve the efficiency but also will
improve effectiveness. There should be chances given to skilled workers to
enter the organization.

 There should be female artists and designers in design department as females have
naturally more esthetical qualities than males. They will really improve the
quality of designs and will introduce more innovative designs.
 Bibliography

http://www.nishatmillsltd.com/nishat/main.php?val=6

http://en.wikipedia.org/wiki/Nishat_Group

http://en.wikipedia.org/wiki/Mian_Muhammad_Mansha_Yaha

1. Report on “Competition Scenario in Pakistan”, page 18, prepared by Pakistan

Enterprise Institute, July 2005.)
2. project report on “ nishat mills ltd.”

http://www.ptj.com.pk/Web-2010/07-10/July-2010-CT.htm