Business Project Report on Nishat Textile Mills Pakistan

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University of Education, Lower Mall Campus, Lahore
Business Project
Submitted By
Muhammad Shahid .……… 133
Arslan Amjad …………….…. 122
Tauseef Raza ….…………….. 146

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Business Project
Company Name:
Submitted To:
Sir Fazal Abbas
Submitted By:
Tauseef Raza M Arslan Amjad Muhammad Shahid
146 122 133
University of Education
Lower Mall Campus, Lahore

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Dedication
We dedicate our dissertation work to my family and many friends. A special feeling
of gratitude to our loving parents, and persons whose words of encouragement and push for
tenacity ring in my ears. we also dedicate this dissertation to our many friends and church
family who have supported me throughout the process. I will always appreciate all they have
done, especially Muhammad Ali for helping me develop my technology skills.
I dedicate this work and give special thanks to my best friend Muhammad Ali. Our
teachers and friend for being there for me throughout the entire doctorate program. Both of
you have been my best cheerleaders.

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Acknowledgement
In performing our Business Project, we had to take the help and guideline of some
respected persons, who deserve our greatest gratitude. The completion of this Business
Project gives us much Pleasure. We would like to show our gratitude Mr. Fazal Abbas,
Course Instructor, University of Education for giving us a good guideline for Business
Project throughout numerous consultations. We would also like to expand our deepest
gratitude to all those who have directly and indirectly guided us in writing this Business
Project.
In addition, a thank you to Professor Ali, who introduced us to the Methodology of
work, and whose passion for the “underlying structures” had lasting effect? We also thank the
University of Education for consent to include copyrighted pictures as a part of our paper.
Many people, especially our classmates and team members itself, have made valuable
comment suggestions on this project which gave us an inspiration to improve our Business
Project. We thank all the people for their help directly and indirectly to complete our
Business Project.

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Executive Summary
Nishat has grown from a cotton export house into the premier business group of
Pakistan 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. The company is free from the energy
crisis because it has set up its own power generation units that are not even fulfilling the
energy requirement of Nishat mills but they are also selling this to Government.
The company is holding the position with the spinning, weaving and dying units with
the extraordinary production capacity. Nishat is running different business with different
famous products like Nishat Linen that has opened its outlets in major cities of Pakistan.
Different departments are working well to achieve the strategic aims of the company.
They are adopting the latest Management information system to access data that results in
producing timely results for different departments. The financial ratio analysis shows that the
company is enjoying good profits and is consistently running its operations even in the
conditions when the country is passing through critical conditions.
The PEST analysis shows that company has lived away from any kind of
complications that may have affect the company’s goodwill by fulfilling the legal,
environmental requirements and using international financial rules in the production of
financial statements.
The SWOT analysis depicts that strengths are greater in number as compared to
weaknesses and threats that shows the company does well know its position and keep the
system up to date. Still there are some lacks that company should overcome to get ultimate
results.

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Table of Contents
Introduction of Nishat Group...................................................................................................10
Subsidiary Companies .........................................................................................................10
Cement.............................................................................................................................10
Financial Services ............................................................................................................11
Nishat Power Limited ......................................................................................................11
Nishat Hospitality (Private) Limited................................................................................11
Overall Strategic Objectives ............................................................................................11
History of Nishat Textiles....................................................................................................12
Nishat Linen (Private) Limited........................................................................................13
Nishat Spinning (Private) Limited...................................................................................13
Nishat Linen Trading LLC...............................................................................................13
Nishat International FZE..................................................................................................14
Nishat Global China Company Limited ..........................................................................14
Nishat USA Inc................................................................................................................14
Vision & Mission.................................................................................................................14
Vision statement: .............................................................................................................14
Mission Statement............................................................................................................15
Board of Directors................................................................................................................15
Organizational Hierarchy.....................................................................................................16
Nature of Business (Products& Services)............................................................................17
Spinning...........................................................................................................................17
Weaving...........................................................................................................................17
Processing ........................................................................................................................17
Home Textile ...................................................................................................................18
Garments..........................................................................................................................18

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Nishat Linen.....................................................................................................................18
Contribution to National Exchequer and Economy of Nishat .............................................19
Future Prospects.......................................................................................................................19
CORPORATESUSTAINABILITY (SOCIAL RESPONSIBILITY)..................................19
Energy Conservation........................................................................................................19
Environment Protection ...................................................................................................20
Waste Recycling ..............................................................................................................20
Occupational Safety and Health.......................................................................................20
Equal Opportunity Employer...........................................................................................20
Community Welfare Schemes .........................................................................................21
Consumer Protection Measures .......................................................................................21
Introduction to Textile Industry...............................................................................................21
Economic view.....................................................................................................................21
Import and Export of Textile Industry.................................................................................22
Exports.............................................................................................................................22
Imports .............................................................................................................................23
Total no. of producers..........................................................................................................23
Major Players of the industry...............................................................................................23
DATA ANALYSIS..................................................................................................................24
Financial Analysis................................................................................................................24
Balance Sheet...................................................................................................................24
Income Statement.............................................................................................................25
Cash Flow ........................................................................................................................25
Horizontal Analysis .........................................................................................................26
Horizontal Analysis .........................................................................................................27
Vertical Analysis..............................................................................................................28
Vertical Analysis..............................................................................................................29

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Ratio Analysis..................................................................................................................30
Market analysis ....................................................................................................................35
Company and Competitor Analysis.................................................................................35
Competitors Analysis.......................................................................................................36
MARKETING STRATEGY............................................................................................38
Marketing mix 4p's. .........................................................................................................40
BCG Matrics ....................................................................................................................41
Environmental Analysis.......................................................................................................42
PEST ANALYSIS ...........................................................................................................42
Corporations code of conducts and Values......................................................................46
Code of conducts for employees......................................................................................47
SWOT Analysis of Nishat Textile Mills..............................................................................48
Strengths: .........................................................................................................................48
Weaknesses......................................................................................................................48
Opportunities....................................................................................................................49
Threats..............................................................................................................................49
Detail of SWOT Analysis................................................................................................49
Conclusion ...............................................................................................................................53
Recommendations....................................................................................................................54

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INTRODUTION
This project is the part of study course .In this business project we want to check the
company’s economic & competitive position and how company is operating the business
activities including a complete SWOT analysis and how it is participating in Pakistan’s
economy.
Introduction of Nishat Group
Nishat Group is one of the leading and most diversified business groups in South East
Asia with fixed/ current assets of over Rs.300 billion (US$ 3.03 billion), it ranks amongst the
top five business houses of Pakistan. The group has strong presence in three most important
business sectors of the region namely Textiles, Cement and Financial Services. In addition,
the Group also has reasonable market share in Insurance (Adamjee and Security General),
Power Generation, Paper products ( Nishat Shoaiba Paper Mills) and Aviation
( Phonix Aviation). It also has the distinction of being one of the largest players in each
sector. The Group has a remarkable position in the market as good as any multinationals
operating locally in terms of its quality of products, services and management skills.
Subsidiary Companies
The Company has annexed its consolidated financial statements along with its
separate financial statements in accordance with the requirements of the International
Accounting Standard – 27 (Consolidated and Separate Financial Statements).
Cement
D.G. Khan Cement Company Limited (DGKCC), a unit of Nishat group, is the largest
cement-manufacturing unit in Pakistan with a production capacity of 5,500 tons clinker per
day. It has a countrywide distribution network and its products are preferred on projects of
national repute both locally and internationally due to the unparalleled and consistent quality.
It is listed on all the Stock Exchanges of Pakistan.
Furthermore, the Group has also set up a new cement production line of 6,700 TPD
clinker near Kalar Kahar, Distt. Chakwal, the single largest production line in the country.

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Financial Services
Muslim Commercial Bank (MCB) is one of the leading banks with a deposit base of
about Rs.230 billion (US$ 3.8 billion). MCB with more than 1200 branches country wide is
the largest private bank of Pakistan also operating internationally. Since its acquisition, the
management has improved its financial performance and now it is one of the most profitable
banks of the nation. MCB is also the first Pakistani bank to be enlisted at London Stock
Exchange in October 2006 after attracting US $700 million worth of demand for its US $ 150
million GDR issue.
Nishat Power Limited
The Company owns and controls 51.01% shares of this subsidiary. The subsidiary is
listed on Karachi Stock Exchange Limited and Lahore Stock Exchange Limited in Pakistan.
The principle business of the subsidiary is to build, operate and maintain a fuel powered
station having a gross capacity of 200 MW in Jamber Kalan, Tehsil Pattoki, District Kasur,
Punjab, Pakistan. The subsidiary commenced its commercial production from 09 June 2010.
Nishat Hospitality (Private) Limited
This is a wholly owned subsidiary of the Company. The subsidiary’s object is to run a
chain of hotels across the country. Currently it is operating a four star hotel in Lahore on
international standards under the name of “The Nishat St. James Hotel”. The subsidiary
started its operations on 01 March 2014.
Overall Strategic Objectives
 To enhance the profitability of the Company;
 To increase the overall efficiency and productivity of the Company;
 To become the market leader by outshining the competitors and be an innovative
Company by introducing new ideas;
 To expand sales to the global marketplace by anticipating customer needs and develop
and maintain strong customer base;
 To monitor and improve internal processes to achieve efficiencies, improve
organizational structure and ensure the best use of available resources;
 To follow the latest technology trends and their implementation in the Company to
enhance the overall productivity of the Company;
 To develop and promote the reputation and image of the Company for its
 stakeholders in specific and non-stakeholders in general;

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 To promote awareness and best practices about environmental sustainability
and social responsibility.
History of Nishat Textiles
Nishat Mills Limited, the flagship company of the group was established in 1951. Its
annual turnover for the year 2014 is over Rs.17 billion (US$ 283 million). NML with the
production facility of 270,000 spindles, 740 looms and dyeing & printing capacity of 7
million meters (7.65 million yards) makes Nishat the largest composite textile set up
in Pakistan.
Nishat Mills Limited (“the Company”) is the most modern and largest vertically
integrated textile Company in Pakistan. The Company commenced its business as a
partnership firm in 1951 and was incorporated as a private limited Company in 1959. Later it
was listed on the Karachi, Lahore and Islamabad Stock Exchanges on 27 November, 1961, 11
March, 1989 and 10 August, 1992 respectively.
The Company’s production facilities comprise of spinning, weaving, processing,
stitching, apparel and power generation. Overall the Company has 29manufacturing units
each specializing in a specific product range located in Faisalabad, Sheikhupura, Feroze
watwan and Lahore. A major portion of the Company’s earnings is export based. Over the
years, the Company has achieved significant geographical diversification in its export sales
mix. The Company has a very broad base of customers for its products outside Pakistan.
It has a long working relationship with the top brands of the world such as J.K.N.
International, Levis, Next, Pin croft Dyeing, Ocean Garments, Gap, Carreman, Tommy
Hilfiger, Tommy Bahamas, Crate &Barrel, Laura Ashley, American Living, Chaps, Hugo
Boss, Revman and John Lewis.
Nishat Mills Limited is also called the flagship company of the Nishat Group. Nishat
Group (“the Group”) is a leading business entity in South Asia. Its net worth makes it the
largest business house of Pakistan. The Group has grown from a cotton export house into the
premier business group of the country. Highly diversified, the Group has a presence in all the
major sectors including Textiles, Cement, Banking, Insurance, Power Generation, Hotel
Business, Agriculture, Dairy, Real Estate, Aviation and Paper Products. Showcasing its
varied expertise and acumen in every facet of its operations, the group companies hold the
distinction of being among the leading players in each sector.

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The textiles sector occupies a pivotal position in Pakistan’s economy, accounting for
8.5 percent of GDP with a significant potential for growth. It has the most intensive backward
and forward linkages within the wider economic chain compared to any other sector, linking
agriculture from industry to exports. The textile sector employs 40 percent of the industrial
sector’s work force, which provides livelihood to more than 10 million families.
According to the International Cotton Advisory Committee, Pakistan is the fourth
largest producer of cotton and the third largest consumer of cotton in the world. In addition,
Pakistan is the world’s second largest cotton yarn exporter and third largest cotton cloth
manufacturer and exporter.
Pakistan is unique as it has a self-reliant production chain from cotton growing to
ginning, spinning, weaving, processing and finishing and from fabrics to home textiles and
apparel; all have links in the textile and clothing value chains which have been developed by
Pakistan’s own industry.
Nishat Linen (Private) Limited
This is a wholly owned subsidiary of the Company. The principal objects of the
Company are to operate retail outlets for sale of textile and other products and to sell the
textile products by processing the textile goods in outside manufacturing facilities. The
subsidiary started its operations in July 2011.
Nishat Spinning (Private) Limited
Nishat Spinning (Private) Limited, a wholly owned subsidiary of Nishat Mills
Limited, is a private limited company incorporated in Pakistan on 20 February 2014. The
principal business of the Company is to manufacture and sell the textile products in the local
market by processing the textile goods in its own or outside manufacturing facility. The
subsidiary will commence its commercial production in the year 2014-15.
Nishat Linen Trading LLC
This subsidiary is a limited liability company incorporated in Dubai, UAE. It is a
wholly owned subsidiary of the Company. The subsidiary is principally engaged in the
trading of textile, blankets, towels, linens, ready-made garments, garments accessories and
leather products along with ancillaries thereto through retail outlets and warehouses across
United Arab Emirates. The subsidiary started its commercial operations in May 2011.

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Nishat International FZE
This is also a wholly owned subsidiary of Nishat Mills Limited. It has been
incorporated as a Free Zone Establishment Limited Liability Company in Jebel Ali Free
Zone, Dubai according to the laws of United Arab Emirates (UAE). It has been registered in
the FZE register on February 7, 2013. The principal activity of the Subsidiary company is
trading in textile products such as blankets, towels & linens, ready-made garments, garment
accessories and leather products such as shoes, handbags and all such ancillaries thereto.
Nishat Global China Company Limited
Nishat Global China Company Limited is incorporated in Yuexiu District,
Guangzhou, China, as Foreign Invested Commercial Enterprises “FICE”, in accordance with
the Law of Peoples Republic of China on Foreign-Capital enterprises and other relevant Laws
and Regulations. Nishat Global China Company Limited is a wholly owned subsidiary of
Nishat International FZE which is a wholly owned subsidiary of Nishat Mills Limited. The
principal business of the Company is wholesale, commission agency (excluding auction),
import and export of textile goods and women fashion accessories. The subsidiary started its
commercial operations in January 2014.
Nishat USA Inc.
The subsidiary is a corporation service company incorporated in the State of New
York. It is a wholly owned subsidiary of Nishat Mills Limited and was acquired on 01
October 2008.
The corporation is a liaison office of the Company’s marketing department providing
access, information and other services relating to US Market.
Vision & Mission
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.

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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 prosperity of the Company.
Board of Directors
Mian Umer Mansha (Chief Executive Officer)
Mian Hassan Mansha (Chairman)
Syed Zahid Hussain
Mr. Khalid Qadeer Qureshi
Ms. Nabiha Shahnawaz Cheema
Mr. Maqsood Ahmad
Mr. Saeed Ahmad Alvi

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Organizational Hierarchy

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Nature of Business (Products& Services)
Being a vertically integrated textile unit, Nishat Mills Limited has adopted a business
model that helps it cater to the macro and micro level economic issues. The Company is
engaged in the business of textile.
Spinning
Nishat Mills Spinning Division has over 198,120 spindles, which are operationally
organized into 8 spinning units. The entire machinery is from world-renowned manufactures.
All yarns made at Nishat are Ring Spun suitable for both knitting and weaving. Besides the
best Pakistani cotton, long stapled American, Egyptian and US Pima cotton is also used for
fine counts. For our strong belief in product development and innovation we have our own in
house state of the art cotton and yarn testing laboratories. Nishat spinning is one of the most
trusted brands in the market due to its efficient production and quality.
Weaving
Nishat Mills Weaving division has 670 modern Air Jet and projectile looms which
produce approximate 9.0 million meters of fabric per month and makes it the largest weaving
facility of Pakistan catering to home textile and apparel fabrics.
Processing
Our fabric processing facility is one of the largest and most modern factories of
Pakistan. With an array of custom-made machinery, it has the capacity to produce 90 million
meters of fabric per annum. It is specially designed to handle heavy weight fabrics like twills,
drills, canvases / poplins, fabrics with minimum tension such as stretch fabrics and all high
density weaves. The advantage achieved by the customized design of its machines is the
result of an extensive research work with the help of world renowned machine makers. To
ensure that our customers get the very best we use more than 75% dyes and chemicals of
European origin.
The standards are higher than ever, dedicated by fashion, efficient productivity and
further automation is engineered in the plant. To maintain quality and international standards,
an on-line Quality Control (QC) Department has been setup. The QC department is
augmented by a fully equipped Laboratory, which scrutinizes the fabric process flow at all
levels. Our extra ordinary Research & Development work and highly trained marketing
personal are pivotal to sustain long term business relationships

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Home Textile
With an array of 938 modern new generation sewing machines, the Home Textile
Division consists of 2 stitching facilities. The two facilities combined have an average
production capacity of approximately 24 million meters per annum. The product line is
customized to manufacture products of various styles and sizes according to the requirements
of our customers, wholesalers, retailers and contract textile business.
Garments
Nishat Mills Limited has state of art garment manufacturing facility both for men and
women. The Apparel division has deployed 1627 high end sewing machines such as Vibe
Mac, Juki, Mitsubishi and Brother. The Division has the capacity to produce 7.20 million
garments per annum.
The Garment wet process utilizes the modern techniques of Rinse, Enzyme
Stone, Enzyme Wash, Super Bleach, Reducer Wash, Tint Wash and Raisin Wash. In order to
obtain best results, our facility is geared with Tonello Washing machines, Maino dryers,
Wrinkle Curing Hangers and Barrel washing machines and Dryers for sampling.
Our qualified team members utilize the equipment to obtain optimal results and cater
to the specific needs of the client.
Nishat Linen
Nishat Linen is a concern of Nishat Mills, the textile and home fashion retail chain
that has redefined the industry with acute attention paid to quality, design and affordability.
Nishat Linen prides itself on being the brand of preference for discerning customers who are
in search of things, unique and chic without compromising on aesthetics or price.
Unsurpassed customer service, including tailor-made orders, ensures our clientele
remains loyal to the Nishat family.
From bed linen to kitchen coordinates, upholstery to apparel, Nishat Linen has
become a household name as a creator of stunning, high-quality designs at reasonable prices;
a feat achieved by few.

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Contribution to National Exchequer and Economy of Nishat
As an export oriented entity, the Company has earned precious foreign exchange of
US$ 409.631 million during the current year. In addition to that, the Company contributed
Rs. 1,185 million towards national exchequer by way of income taxes, sales taxes and custom
duties etc. The Company is also acting as withholding agent for FBR.
Future Prospects
A vision of the future is an important ingredient in the formation of our strategy and
plans. Hopefully, the next year will bring full global economic recovery and political stability
in Pakistan which will be a recyclable to economic growth. The Company expects the
ongoing project for the installation 28,800 spindles in Feroze Watwan to be completed in the
financial year2014-15. We intend to lease this unit to our Subsidiary Company Nishat
Spinning (Private) limited which will run the operations of the unit.
Construction work has also started on a new garment unit with a production capacity
of 7.20 million garments. We expect this project to be completed by the end of this year and
commence its commercial production early next financial year.
CORPORATESUSTAINABILITY (SOCIAL RESPONSIBILITY)
The Company is dedicated and committed towards environment protection, energy
conservation and welfare of the society in large. We envisioned and initiated new projects
and continued the implementation of previously started projects during the year.
Energy Conservation
Energy is the life line of a business. The Company is not only finding out ways to
generate energy from alternative sources but also encouraging energy conservation projects.
We have installed a Solatube Daylight System at our weaving unit at Bhikki which we
established during last year.
The system covers 90% area of the unit and provides lighting free of cost. Likewise,
we have installed Solar Water Heating Project at the same location in order to provide hot
water to our boiler. The Company has made further progress in the replacement of
conventional tube lights with LED lights and solar panels at different locations of the
Company.

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Environment Protection
Our dedication towards environment protection is evident from the fact that the
management of the Company makes considerable efforts in starting new projects for
environment protection and ensuring the continuity of the old projects. The Company has
developed four water preservation/ induction wells to replenish the underground water table
for sustainable availability of water in the region.
Our “Rupee for a Tree Scheme” project, a partnership project among the employees
and the management, which has started to create awareness among our employees and
society, has successfully achieved this year’s target by planting around 3,600 more trees this
year at the Company premises, highways, roads, colleges, schools, hospital and other public
places. Effluent treatment plants at our dyeing, printing and garments’ manufacturing
facilities have been in operation for many years.
Waste Recycling
The Company collects 7 ton per month inorganic waste from around industrial units
located near its production facility at Bhikki and uses it as an alternative energy source. Other
waste recovery projects are also successfully working including Caustic Soda Recovery
Plant, Sizing Recovery Plant, Cotton Recovery Plant and Lube Oil Recovery Plant.
Occupational Safety and Health
The Company always put the safety and health of its employees first. Periodic
awareness sessions are being conducted to promote the preventive measures with the
intention of ensuring safety and security of the employees. We have established Fire Fighting
Departments which are equipped with sophisticated firefighting equipment at all our
locations. Similarly, we have established facilities of dispensaries and ambulances at all
locations. The Company also arranges Malaria and Typhoid vaccination for workers and their
families. The Company also arranges fumigation for insecticide in order to prevent dengue
and other diseases.
Equal Opportunity Employer
The Management of the Company feels pride in claiming the label of equal
opportunity employer because the Company offers employment to both genders, different
ethnicities and people with disabilities without any discrimination. Employment of women is
encouraged especially in the stitching and garments segments.

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Community Welfare Schemes
Management of the Company takes keen interest in the welfare of the society. The
Company holds twice a year free medical camps at its manufacturing facilities where free
medical advice is offered to people living near the vicinity of the Company. We also arrange
Holy Quran and Naat Competitions to promote Islamic teaching and create religious harmony
among people. The Company arranges the training of thousands of young people before they
enter the job. This is the most valuable contribution to the nation by providing a trained work
force.
Consumer Protection Measures
The products of the Company are manufactured and shipped according to the
prevailing and required international safety standards. 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 Tax 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.
Introduction to Textile Industry
Economic view
The textile industry accounts for 8.5% of the GDP and has a paramount position in
Pakistan’s economy. The sector has great potential for growth. It provides direct and indirect
employment by linking the largest economic chain of the country from agriculture to exports.
However, the growth of the textile sector is directly related to the uninterrupted power
supply, consistency in tax policies and easy availability of credit. These problems continued
to exist in the financial year 2013-14 and the industry recorded a negligible growth of 1.44%.
The Government of Pakistan is formulating the five year Textile Policy 2014-19. We
expect this policy to address these issues so that sector can perform according to its potential.
We also hope that textile policy will incentivize not only exports of value added sector but
also cater to the entire chain of the textile industry.

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Finally after hectic diplomatic efforts by the Government of Pakistan, European
Parliament has approved the GSP Plus status to Pakistan from 01 January 2014. The award of
GSP Plus status has provided duty-free access to our textile manufacturer in EU market.
Under this program more than600 items will attract zero custom duty in 27 EU member
countries. It is anticipated that the benefits of GSP Plus status will be realized during
financial year 2014-15. Nishat Mills Limited’s Market Share. The Company is the largest
composite textile entity and the leading exporter of textile products in Pakistan. It earns
valuable foreign exchange for the country. Its share is around 3% in the textile exports of
Pakistan which put it in the position to provide direct and indirect employment to thousands
of people.
Import and Export of Textile Industry
Pakistan Textile Industry is the largest manufacturing industry in Pakistan,
contributing 8.5% to the GDP. It is a major contributor to the national economy in terms of
exports and employment. Pakistan holds the distinction of being the 4th largest producer of
cotton worldwide, with the third largest spinning capacity in Asia.
The Textile Industry is dominated by Punjab. Punjab has a significant share in the
textile and garment sector as it is the largest cotton production region in Pakistan and its
finished cotton garments are exported globally. Cotton is one of the most important cash
crops in the Punjab and contributes substantially to the national exchequer.
Exports
During the first nine months of the current 2014 — July, 2013 to March 2014 —
textile exports were up at $10.38 billion which is eight per cent higher than the like period of
2013. Pakistan’s top five textile destinations now are: United States, United Kingdom, China,
Germany and Bangladesh.
The exports of textiles, including apparel, grew by 6.5 percent year-on-year to US$
11.437 billion in the first ten months of fiscal year 2013-14.
The textile exports from the country increased by 0.47 percent during the first eight
months of current fiscal year against the exports of same period of last year.
The overall textile exports during July-February (2014-15) were recorded at $9.179 billion
against the exports of $9.136 billion during July-February (2013-14), according to Pakistan
Bureau of Statistics (PBSS)

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Imports
The value of textile machinery imports made by Pakistan during the period under
review surged up by 59.72 percent year-on-year to $489.865 million, which shows that
enterprises have started investing in new machinery, especially after the country attained
European Union’s Generalized System of Preferences Plus (GSP Plus) status. In fact, textile
machinery imports in April 2014 skyrocketed by 130.07 percent to $66.374 million.
Total no. of producers
Total number of textile firms in Pakistan are 600 plus.
Major Players of the industry
1. Crescent Bahaman Textiles pvt.ltd
2. Chenab Textiles pvt.ltd
3. Arzoo Textiles pvt.ltd
4. Alkarms Textiles pvt.ltd
5. Sitara Textiles pvt.ltd
6. Kohinoor Textiles pvt.ltd
7. Amtex Textiles pvt.ltd
But main competitors of Nishat Mill are
 Crescent Bahaman Textile Mills
 Chenab Textile
 Kohinoor Textile pvt.ltd

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DATA ANALYSIS
Financial Analysis
Balance Sheet
2014 2013 2012 2011 2010 2009
Summarized Balance
Sheet
Non-Current Assets 22,964,388 15,530,320 14,318,639 13,303,514 11,841,667 11,199,635
Property, plant and
equipment
44,771,715 37,378,224 21,912,790 21,337,889 21,959,543 11,952,949
Long term
investments
537,482 521,490 547,283 1,005,542 648,176 65,264
Other Non-Current
Assets
537,482 521,490 547,283 1,005,542 648,176 65,264
Current Assets 1,316,479 1,285,371 1,019,041 955,136 688,832 561,251
Stores, spares and
loose tools
12,752,495 10,945,439 9,695,133 9,846,680 6,060,441 4,092,512
Stock in trade 3,227,560 4,362,880 1,589,093 1,781,471 1,554,543 1,414,310
Short term
investments
11,478,458 10,610,870 7,544,404 5,858,672 3,429,112 2,226,765
Other current assets 11,478,458 10,610,870 7,544,404 5,858,672 3,429,112 2,226,765
Total Assets 97,048,577 80,634,594 56,626,383 54,088,904 46,182,314 31,512,686
Shareholders’ Equity 68,589,176 58,917,035 37,762,749 35,393,959 31,376,313 19,330,767
Non-Current liabilities 6,431,304 3,149,732 3,426,578 2,861,956 2,980,694 2,334,411
Long term financing 474,878 499,415 310,305 510,640 1,256,892 245,243
Deferred income tax
liability
474,878 499,415 310,305 510,640 1,256,892 245,243
Current Liabilities 14,468,124 11,939,028 9,665,849 10,471,685 6,649,447 7,342,600
Short term borrowings 1,595,652 1,310,769 1,106,902 1,283,865 1,128,632 433,313
Current portion of
non-current liabilities
5,489,443 4,818,615 4,354,000 3,566,799 2,790,336 1,826,352
Other current
liabilities
97,048,577 80,634,594 56,626,383 54,088,904 46,182,314 31,512,686
Total Equity and
Liabilities
97,048,577 80,634,594 56,626,383 54,088,904 46,182,314 31,512,686

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Income Statement
Profit and Loss 2014 2013 2012 2011 2010 2009
Sales 54,444,091 52,426,030 44,924,101 48,565,144 31,535,647 23,870,379
Gross profit 7,863,774 9,044,485 6,789,191 7,846,447 5,980,185 4,351,541
EBITDA 9,125,677 9,334,690 7,101,295 8,186,974 5,518,864 4,127,816
Other income 3,653,041 2,739,102 2,683,685 2,444,985 981,650 599,006
Profit before tax 5,975,552 6,356,853 4,081,567 5,411,912 3,286,069 1,561,501
Profit after tax 5,512,552 5,846,853 3,528,567 4,843,912 2,915,461 1,268,001
Cash Flow
Cash Flows 2014 2013 2012 2011 2010 2009
Cash Flow from
Operating Activities
4,887,376 491,795 2,750,542 260,523 988,193 2,138,364
Cash Flow from
Investing Activities
-7,909,028 -2,695,026 47,346 -2,222,501 -5,520,869 -2,128,400
Cash Flow from
Financing Activities
4,695,106 973,537 -1,572,033 2,984,094 4,531,767 24,981
Changes in Cash &
Cash Equivalents
1,673,454 -1,229,694 1,225,855 1,022,116 -909 34,945
Cash and cash
equivalent-year end
2,802,316 1,128,862 2,358,556 1,132,701 110,585 111,494

26
Horizontal Analysis
2014 2013 2012 2011 2010 2009
Balance
Sheet
Total Equity 355% 305% 195% 183% 162% 100%
Non-Current
Liabilities
268% 141% 145% 131% 164% 100%
Current
Liabilities
224% 188% 158% 160% 110% 100%
Total Liabilities 234% 178% 155% 153% 122% 100%
Total Equity
and Liabilities
308% 256% 180% 172% 147% 100%
Assets
Non-Current
Assets
294% 230% 158% 154% 148% 100%
Current Assets 347% 328% 239% 222% 141% 100%
Total Assets 308% 256% 180% 172% 147% 100%
Profit and
Loss Account
Sales 228% 220% 188% 203% 132% 100%
Cost of Sales 239% 222% 195% 209% 131% 100%
Gross Profit 181% 208% 156% 180% 137% 100%
Distribution
Cost
194% 192% 194% 166% 130% 100%
Administrative
Expenses
237% 200% 168% 151% 125% 100%
Other
Expenses
180% 214% 179% 225% 151% 100%
202% 196% 187% 169% 131% 100%
163% 217% 131% 190% 142% 100%
Other Income 610% 457% 448% 408% 164% 100%
Profit from
Operations
252% 265% 194% 233% 147% 100%
Finance Cost 111% 112% 122% 111% 78% 100%
Profit before
Taxation
383% 407% 261% 347% 210% 100%
Taxation 158% 174% 188% 194% 126% 100%
Profit after
Taxation
435% 461% 278% 382% 230% 100%

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Horizontal Analysis
BALANCE SHEET
Increase in the balance sheet footing is constant throughout the last six years. Regular
growth in total equity shows growth in earnings and profitability. Non-current assets also
depict increasing trends which is an evidence of effective use of the Company’s earnings in
further investment in plant and machinery.
PROFIT AND LOSS
Sales increased continuously from the year 2009 to year 2014 mainly due to increase
in volume as a result of enhancement of production capacities. The sales price is also a factor
in the increase of top line. Sales took a dip in financial year 2012 on account of dip in
demand. Gross profit increase was remarkable throughout last six years on the Company.
However, growth has slowed down in the current year because of increased competition.
Profit from operations has also recorded a persistent growth from year 2009 to year 2014
mainly on account of regular growth in sales, operational efficiencies and continuous increase
in other income.
Finance cost has increased only by 11% from financial year 2009 mainly due to better
credit rating of the Company and efficient fund management. Increase was highest in
financial year 2012 because of high interest rates. As a whole profit after taxation depicts the
story of success of the Company because it has increased many folds over the last six years
because of improved sales, production efficiencies and other income.

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Vertical Analysis
2014 2013 2012 2011 2010 2009
Balance
Sheet
Total equity
71% 73% 67% 65% 68% 61%
Non-current
liabilities
7% 5% 7% 6% 9% 8%
Current
liabilities
22% 22% 27% 28% 23% 30%
Total Liabilities
29% 27% 33% 35% 32% 39%
Total Equity
and Liabilities
100% 100% 100% 100% 100% 100%
Assets
Non-current
assets
70% 66% 65% 66% 75% 74%
Current assets
30% 34% 35% 34% 25% 26%
Total Assets
100% 100% 100% 100% 100% 100%
Profit and
Loss
Sales 100% 100% 100% 100% 100% 100%
Cost of Sales
86% 83% 85% 84% 81% 82%
Gross Profit 14% 17% 15% 16% 19% 18%
Distribution
Cost
5% 5% 6% 5% 5% 6%
Administrative
Expenses
2% 2% 2% 1% 2% 2%
Other
Expenses
1% 1% 1% 1% 1% 1%
7% 7% 8% 7% 8% 8%
7% 10% 7% 9% 11% 10%
Other Income 7% 5% 6% 5% 3% 3%
Profit from
Operations
14% 15% 13% 14% 14% 13%
Finance Cost
3% 3% 4% 3% 4% 6%
Profit before
Taxation
11% 12% 9% 11% 10% 7%
Taxation 1% 1% 1% 1% 1% 1%
Profit after
Taxation
10% 11% 8% 10% 9% 5%

29
Vertical Analysis
BALANCE SHEET
High profits and effective debt management has continuously improved the debt
equity ratio on the Company over the last six years. The composition of current and non-
current assets has provided attractive liquidity position and effective potential for growth.
PROFIT AND LOSS
The Company gross profit margin remains reasonable throughout the last six years
due to consistent growth in sales and better production management.
Profits from operations also remained above 13% because of remarkable operation
management and persistent growth in other income. All these factors have contributed
towards growth in the profit after tax over the last six years.

30
Ratio Analysis
PROFITABILITY RATIOS
Ratios
Analysis
2014 2013 2012 2011 2010 2009
Profitability Ratios
Gross profit % 14.44 17.25 15.11 16.16 18.96 18.23
Return on Equity % 8.65 12.1 9.65 14.51 11.5 5.53
Return on Capital
Employed
% 10.99 15.33 14.56 18.86 15.34 12
GROSS PROFIT RATIO
Gross profit ratio decreases as compare to the last year that shows our cost of goods
sold has increased this may because of the less workforce utilization to the optimum level,
increase in the raw material prices, high wastage, use of the unskilled labor, etc… this affects
the net profit of the Nishat.
RETURN ON EQUITY
The return on equity decreases as compare to the last year that shows now Nishat
earns less profit by using equity. The equity increases but the sales are decreases as compare
to the increase in equity. This may because of the major portion of the equity has invested in
other operations or in new assets.
RETURN ON CAPITAL EMPLOYED
This shows that the Nishat have not proper concentration on the sale or profit making
and more focusing on the long term projects and the major portion of the capital has invested
in those long term projects and large machineries. This causes the low profit making of the
Nishat.
EFFICIENCY RATIO
This ratio is refers to how many expenses are incurred by generating sales. If the
efficiency ratio increase then this is not favorable for the company because expenses are
increased rather the revenue of the company.

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LIQUIDITY RATIOS
Liquidity Ratios 2014 2013 2012 2011 2010 2009
Current ratio 1.34 1.51 1.31 1.2 1.11 0.86
Quick ratio 0.68 0.83 0.6 0.5 0.47 0.38
CURRENT RATIO
Current assets are increases less while the current liabilities are more increases related
to previous year. This affects the liquidity performance of the Nishat as ability to pay the
liabilities is weak current year.
QUICK RATIO
Total quick assets decrease while total current liabilities increase due to this reasons
quick ratio decreases from 0.83 to 0.68, almost difference is 0.15, because of inventory on
borrowing increasing so noncurrent liabilities maturing this year greater than last year. Its
effect on liquidity performance decrease.
ACTIVITY TURNOVER RATIOS
Activity /
Turnover Ratios
2014 2013 2012 2011 2010 2009
Inventory Turnover
Ratio
Times 3.93 4.2 3.9 5.12 5.03 4.73
No. of Days in
Receivables
Days 30.75 33.89 24.32 16.99 19.34 20.55
Creditors Turnover
Ratio
Times 7.25 8.01 8.46 14.03 10.55 9.05
No. of Days in
Creditors
Days 50.34 45.57 43.26 26.02 34.6 40.33
Operating Cycle Days 73.29 75.22 74.91 62.26 57.3 57.39
Total Assets Turnover
Ratio
Times 0.56 0.65 0.79 0.9 0.68 0.76
Fixed Assets turnover
Ratio
Times 2.37 3.38 3.14 3.65 2.66 2.13

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AVERAGE COLLECTION PERIOD
Average collection period decreases that show now our liquidity position become
more strong means now more quickly Nishat is receiving payments (Account Receivables)
from its debtors. This may because of Nishat decreases his credit sales and promotes cash
sales and discounts.
AVERAGE PAYMENT PERIOD
This is gradually increases that show now we have more days to pay the creditor’s
amount 45.57 to 50.34. Now Nishat have opportunity to use the finance for more time and for
short term investments for receiving more interest, also help for working capital.
TOTAL ASSETS TURNOVER RATIO
This is continuously decreasing means Nishat earn Rs. 0.55 against the investment in
assets of Rs. 1. This shows Nishat continuously more investing in their total assets and
suffers low sales, now this is non-beneficial but more profitable in the future to fulfill the
greater demands from its customer side. This affects the company’s profitability because of
revenue generated is less as compared to the more investment in company’s assets
FIXED ASSETS TURNOVER RATIO
This is continuously decreasing means Nishat earn Rs. 0.55 against the investment in
assets of Rs. 1. This shows Nishat continuously more investing in their fixed assets and
suffers low sales, now this is non-beneficial but more profitable in the future to fulfill the
greater demands from its customer side.
CASH CONVERSION CYCLE
This is slightly decreases (Short related to the last year) which show that now Nishat
more quickly, efficiently recover his investing money. This affects the liquidity position of
the Nishat as improved because now more quickly recover’s his investing money.
INVENTORY TURNOVER RATIO
This is slightly decreases that is non-beneficial for Nishat and tells that now Inventory
sales period is greater as compared to the previous year. Now Nishat sells his inventory 3.93
times a year as compare to the previous year’s 4.2 times. This affects the company’s
profitability as now sales are less in comparison with last year.

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DEBT RATIOS
Capital
Structure Ratios
2014 2013 2012 2011 2010 2009
Financial leverage
ratio
% 33 28 38 41 34 52
Debt to equity ratio % 9.38 5.35 9.07 8.09 9.5 12.08
Interest cover ratio Times 4.71 4.93 3.32 4.38 3.92 2.08
Gearing ratio % 24.7 21.77 27.33 29.23 25.53 34.34
FINANCIAL LEAVERAGE RATIO
Financial leverage ratio refers to the change in EPS either positive or negative. This
means if EBIT increases with one rupee then 33% shares earning increase therefore company
more focuses on the earning by the sale good financial leverage ratio positively impacts on
shareholders and chance of more investments in a business.
DEBT TO EQUITY RATIO
This refers to what amount of debt uses in the 100% equity or what is the financial
risk of the company. This ratio has increased in the last year because of company has huge
long term borrowing from bank or financial institution. The financial risk is not beneficial for
the company if more than 50% in the total equity portion.
GEARING RATIO
This ratio refers to the how much your business improves due to debt or what amount
of the debt use in our major investments. Nishat’s gearing ratio has slightly increased which
shows that the financial risk of the company increases because of Nishat has borrowed a huge
amount and some amount of this borrowed money use as an investment in his projects.
INTEREST COVER RATIO
Interest cover ratio refers to the Nishat’s efficiency to how many time pay the interest
from his profit in a year. It is slightly decreased due to the company’s long term borrowing so
interest rate increases.

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MARKET RATIO
Investment
/Market Ratios
2014 2013 2012 2011 2010 2009
Earnings per share Rs. 15.68 16.63 10.04 13.78 10.5 6.23
Price earnings ratio Times 7.14 5.67 4.74 3.65 4.11 6.07
Dividend yield ratio % 3.57 4.25 7.36 6.56 5.8 5.29
Dividend payout ratio % 25.51 24.05 34.86 23.95 23.81 32.1
EARNINGS PER SHARE
Earnings per share of the company decreased because earning of the company by the
sale decrease or may be a chance company has issued shares in the market. the profitability
(earning) may be affected by the cost of goods sold, other expenses like administration
expenses or loss on the sale of the property plant and equipment, etc… or the increase in the
equity.
PRICE EARNING RATIO
The price earnings ratio increases because the price per share increases and earnings
per share decreases. This is due to the reason that the demand of the share increases and the
supply is not sufficient according to the supply because the share’s price is 94.21 and gives
more profit in 2013 so, demand increases and share’s prices is 111.92 but have limited
supply.
DIVIDEND YIELD RATIO
Dividend yield ratio is gradually decreases because the amount of dividend paid to the
shareholders is constant while the price of the share increases that result in the form of
dissatisfaction of the shareholders.
DIVIDEND PAYOUT RATIO
Dividend payout ratio refers to how many amount of the dividend payout to the
shareholders from our available earning. If earning is 100% then the dividend payout 25.51%
from the earning. This is positively impacts the shareholders if the dividend payout ratio
increases.

35
Market analysis
Company and Competitor Analysis
Marketing means a market research process in which attitudes, needs and competitors'
products are assessed and it also continues through, promotion, customer services,
advertising, packaging sales and distribution. Here I am going to write about Nishat textile
limited Pakistan.
COMPANY OVERVIEW
Nishat group of industries in one of the most important group in Pakistan with the
asset of more than 600 billion rupees. This is the fifth largest group in Pakistan. This group
has a strong command in four sectors named as banking, cement and textile industries and
management. This company is engaged in textile manufacturing including weaving
bleaching, spinning, combing, stitching, dyeing, printing and buying, and selling of textiles.
The company is providing high quality products to all its customers not only within the
Pakistan but outside as well.
MISSION STATEMENT OF MARKET
Mission statement of this particular company is to provide the quality products to all
its valuable customers and depending upon its high quality products to discover new markets
and its product price to expand sales of the company through good governance and energetic
management. The basic purpose is to achieve lower prices of quality products so that
company's growth and prosperity can be enhanced and gave batter services after delivery of
good.
VISION STATEMENT OF MARKET
The vision statement describes that company wants to become the leader in the
specific industry by making over itself into a processed cloth, modern and dynamic yarn and
finished product manufacturing company with latest technology, highly professionals.
TARGET MARKETING
Target marketing needs a market plan to hit the market. Target marketing is in
between market segmentation and market positioning. It can be explained better in the four
following points.
1) The market targeting means who will buy your product/service.

36
2) The need your product means why and how the people will use your product or service.
3) What are your products or services have in particular.
4) Improvement of the product or service.
So the Nishat textile is targeting the market of industry by geographic, demographic,
psychographic and behavioral.
MARKETING AUDIT
A comprehensive, systematic, independent and periodic examination of a company's-
or business unit's - marketing environment, objectives, strategies, and activities with a view
to determining problem areas and opportunities
CUSTOMERS
Customers of the Nishat Textile Limited are from around the world. The industrial
giant of Pakistan emphasis the buyers need, purchasing power, cultural customs and target
the people of all age's sector vice because it is engaged in different sectors.
Nishat Textile Limited produces great brands and therefore has a good reputation in
the different countries. It is working in the sector of spinning, waving, and home textiles and
under these units a large number of products are prepared with different designs as well.
Competitors Analysis
The major competitors of Nishat Textile Limited. Higher managers innovate the
employees of Nishat Textile Limited by listening them and have started to give them benefits
and hence get the desired results. Nishat Textile Limited has good strategy of innovation over
the competitors
Price is the very important factor and Nishat Textile Limited trying to decline the cost
and prices will go down automatically. This price strategy helps NTM to become the industry
leader in Pakistan.
The employees are being promoted on their performance level within a fix period
while the competitor's employee need more time to be promoted.

37
BRAND
All the products of the Nishat Textile Limited are traded under the name of Nishat
textile limited in all over the world. The Nishat textile limited is very famous for its brands
both nationally and internationally.
CORE COMPETENCE:
NTM's core competence is price. The prices of everything have gone up rapidly due
to the credit crunch which affected all the aspects of the industry as well. The NTM has been
utilizing advanced technology to reduce the prices and to secure itself a leading position in
the textile industry.
COMPETENCES AND CAPABILITIES (5M'S)
The internal market environment consists of money, men, machinery, minutes and
materials. The description is as follows.
MACHINERY
NTM is using the latest machinery with latest technology. "Since 1997-98 textile
machinery has been imported when a bumper cotton crop was harvested and the Textile
Industry reaped massive profits due to lower input cost. More than 9 billion (PKR rupee)
have been invested in the last five years for the import of spinning machinery. Nishat imports
machinery from all the developed countries." (Jamil bhatti in 2013).
LABOR
It has hired the skilled labor which contributes a lot in success. The higher authority
has been taken from the all over the world.
MATERIAL
For the high quality production high quality material is used. As the various functions
are performed like spinning, weaving, stitching, dyeing, sourcing, bleaching and printing and
other as well. So high quality of production factors are used.

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MARKETING STRATEGY
The past year has been tough for the textile industry due to the increasing number to
competitors and margin of profits is becoming smaller day-by-day. Competitors from Asia
have come up in a big way with lower prices resulting from lower overhead, cheaper and
better raw materials and machinery. NML has constantly updating machinery, replacing old
to better efficiencies and quality products.
Nishat has established its name in new markets be creating specialized fabrics,
designs and also by providing our customers with efficient service and excellent quality. It
has consistently expanded its buyer base and explored the different markets around the world.
Having the foresight to assess that in coming year's value addition will be the thing of
the future, Nishat Mills Limited worked towards the achievement of its goal of future
increasing its capability in value addition. The export of processed fabric and made-Ups has
shown market improvement as compared to last year.
Nishat are also exploring business opportunities in countries like Spain and France
where it has very little business at the moment.
North America is the star market for Nishat.
The opportunities are limitless, but Nishat have to review and analyse them very
thoroughly to associates with the right people in the long run. Nishat has developed more
direct and closer relationship with end customers. Oceanic has been Nishat’s most lucrative
and mature marker. In business terms it is our "cash cow" market.
Despite economic problems in the region, it has maintained the sales figures in the
year under review.
Nishat are also targeting printed apparel business for the first time. The latest addition
is the most ambitious Apparel Dyeing plant setup near Lahore, which has started its
production. The effectiveness and productivity of this plant will be further enhanced, as
Nishat Mills Ltd moves towards becoming a more vertically integrated organization.
Nishat’s dyed fabric has already established its name in the market. It is being
exported to some of the leading brands of the world. Nishat has increasing its profitability by
working efficiently, procuring better raw material and most importantly kept a very close
association with its customers.

39
It visits its business partners frequently and provides them with the best service
possible. All of the above mentioned points led to strengthened relationship with its business
partners making it very difficult for its competition to penetrate into its market share. Nishat
has provided its staff with better working environment and facilities, which enhanced
efficiency and output.
Nishat, due to our professional commitment towards excellence, giving the best
results at all times and against all odds. Its marketing and production, its focus remains on
maintaining its position as the market leader in the textile sector of Pakistan.
TARGET MARKETING
The target marketing comes after the market segmentation which I have explained
above and here we select specific group of people or analyze the market of the products or
services. After the identification of segmentation the managers make decision of taking the
opportunities considering the prime target and secondary target but the target marketing of
NTM wants to hit the weaving sector which contributed a lot in the revenues of NTM. So this
is the specific sector of NTM where it wants better results and high quality products are
essential.
POSITIONING STRATEGY
After selecting the target market, the next stage is to decide how company wants to hit
the chosen segmentation. NTM has decided to hit the cotton industry in all over the world by
reducing the cost because china, India has the lower rates than the NTM. So the low rates and
better quality is the demand of customer and company.
COMPETITIVE STRATEGY
Attacking Strategy
At the moment NTM is not in attacking position because it has problems both
nationally and internationally. Because of the high cost of production, heavy government
taxes, political instability are main factors.
Defensive Strategy
NTM's defensive strategy is to block the attack of the competitors because of the
above problems it has been adopting the defensive strategy.

40
Marketing mix 4p's.
PRICE
The Nishat Textile Limited for the survival will have to reduce the prices and they are
trying to do this because they have the higher prices as compared to the competitors and this
is because of high cost of production. But gave some discount on price for wholesale
PRODUCT
The managers of the Nishat Textile Limited trying to take the decision about products
quality, design, functionality and warranty as well.
PLACE
It's about the NTM transportation; order processing, warehouse and logistics as well.
At a national and international level NTM trying to reduce the expenses and this would be
helpful to increase the margin profit.
PROMOTIONS
Customers are everything so NTM trying to focus more on the customer based
policies so that the customer's confidence can be won. And its product quality also good then
its competitors’.
Tactics
Tactics means a short time plan used immediately to increase the sales or market
share. NTM tactics in difficult time is to improve the overall system with a quick survey and
information. The contact is made with other dealers and their interest is kept in view. NTM
sends articles to its clients that it has solved its problems very easily. The rewards are given
to the valuable clients to improve the sales and stake holders are taken into confidence.
MARKET BUDGET
NTM has fixed a certain amount of money for the development of marketing mix. At
NTM, the higher management has installed complete system of information for all its places,
people, product and prices providing relevant information accurately to ensure thoroughness
in decision-making and managing company s resources. Some of the sectors contributed a lot
in the profit such as weaving but this segment in the future will go down because of the high
prices and it would affect the profit, products, place and people because the company will
have to prepare for this coming threat and therefore has announced a total package of

41
1010.236 (PKR) for next year. The required amount for the development of marketing mix
has been included in this specific amount.
IMPLEMENTATION PLAN
Strategic implementation is a way to put the strategic plan into an action-based road
map that helps the companies to reach their organizational goals. A business plan is done
when the internal analysis are made such as strategic marketing, management structure,
personnel and finance. It plays an important role if it is run properly. NTM has decided to
implement a plan against the increasing prices of the cotton and weaving. The NTM basically
implements a plan by taking the action, check the action steps twice and then implement a
plan. "The process of implementing your plan can be divided into three components:
A. Taking action
If you work actively then you can achieve the goals and can get success.
B. Review the steps
At this point all the steps are rechecked and go through all of them.
C. Preparing for the next step
BCG Matrics
Market
Growth
High
Question Marks
 Home Textile
Stars
 Nishat Linen
Low
Dogs
 Yarn
Cash cows
 Garments
Low High
Market Share

42
Environmental Analysis
PEST ANALYSIS
POLITICAL FACTOR
The largest problem that the industry faces today is political factor .Political (Legal)
Aspects Industry will not be able to gain success, good reputation and trust if it will not
consider legal and political sector as part of their strategy. Political and legal sectors include
the needs of the company to follow the given policies and regulations of the government in
order to be considered as legal.
In this manner, industry should be able to consider political and legal aspects so as to
show that they value the policies and regulations of the government in any of the business
operations. - Tax policy - Employment laws - Political stability - Environmental regulations -
Trade and tariff restrictions.
Political Instability effect the textile industry and risk level increase in this situation
and policies are change and cost of production high because overall industry faces troubles
due to political instability and it’s a tough time because political instability in country Govt.
Policies it’s also effect the Nishat textile Law & Order govt. and political parties insure this
now Nawaz Sharif promote the business or industrial sector in country but the Asif Zardari
don’t focus to promote this sector so law and order change according to the political parties
and leaders Positive Relation sits play a vital role to promote this industry if political
stability in our country so our export increases and business opportunities increases day by
day and govt. revenues increase and unemployment low and develop country give different
business opportunities Terrorism & Corruption its increases day by day in our country.
In Karachi and Rawalpindi cities faces very hard and sewer condition due to terrorism
so the business condition is very bad day by day and business shutdown and crises level high
and poorly level increase due to these factors.
In this people purchasing power low and textile faces a lot of problems Political
Situation it’s not satisfactory due to rapid changes in the govt. and every govt. set its own
trade policies, rules and laws and different tax policies so in this govt. should apply
sustainable policies for the beneficial of the exporter as well as invertors Effect On
International Market it’s also effect the international Nishat textile buyers e.g. UK, Japan

43
etc. Govt. Sanctions if relations are not positive to other country so it’s also effect on Nishat
textile export products e.g. India and Pakistan relations etc.
ECONOMIC FACTORS
Economic Stability Growth has immensely contributed towards economic stability
of the country .Moreover, when the finished goods are domestically available, it helps keep
prices down and fluctuations due to international market influences are less likely to strike
populace.
Improvement in Balance of Payments Textile industry has brought structural
changes in the pattern of foreign trade of the country. Today, the Textile sector account for
about US$ 10.2 billion export of the country. On one hand, this sector helps reduce import
bills of textile products and on the other hand, it contributes in earning foreign exchange
thereby helping towards keeping balance of payment in control.
Following table presents a comparison of years 2008-09 and 2009-10 with respect to
exports of different textile products.
Greater Employment Nishat provides more employment opportunities to the
unemployed people. It is a source of providing employment opportunities.
Collateral Industrial Development of one industry leads to the development and
expansion of other industries. A number of industries and work opportunities are directly or
indirectly related with Textile Sector. For example, colors and dies, plastics, printing,
machinery etc. are equally affected by booms or busts in Textile sector.
Enhanced Government Revenues Any industrial development is bound to increase
government revenues. Though textile sector is still zero rated for the purposes of sales tax on
exports yet the tax on domestic supply and income tax contribute greatly to government
revenues.
Diversification of Economy Development in textile sector has helped in diversifying
economy by reducing dependence on mere production and export of raw material. It also
instilled diversification by stimulating collateral industrial development.
It is also a source of Foreign exchange earnings.
SOCIAL, CULTURE, DEMOGRAPHIS & ENVIRONMENTAL FORCES
Nishat Mills Ltd. is a large organization and according to its claims of social
responsibility it provides its employees with good attitude to work and leisure and a safe
work environment. Now what this organization is doing under corporate social responsibility

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is also venerable. Changes in social trends can have impact on demand for a firm's products
and the availability, attitudes to work, income distribution and willingness of individuals to
work. In social factors demographics have a lot of importance.
Pakistan Culture is generally considered to be the basic identity of Pakistan nation as
their trends, History, Silent Features, rituals and way of life forms their culture of living, and
this culture becomes their distinctiveness. Pakistan has a very unique mixed culture in which
the various cultures from different provinces combines together to form an amalgamation of
ethics, values, norms and beliefs which forms a very charming and attractive national culture
of Pakistan.
The people of Pakistan should stick to their own Pakistan culture and should always
promote it by being its brand ambassador so that the entire world show know and praise them
due to their exquisite culture of Pakistan.
Demographics include age structure of the population; gender; family size and
composition; changing nature of occupations etc. Some important social factors that affect
Nishat Mills Limited are as:
 Health consciousness
 Population growth rate
 Age distribution
 Career attitudes
 Emphasis on safety
Pakistan is facing all the problems mentioned above. The government has been unable to
provide the manufacturing sector with what it needs to flourish. International buyers are
reluctant to do business in Pakistan as orders placed in Pakistan are often delayed due to
unavoidable circumstances such as electricity shortages, gas shortages, and petroleum levy
and sudden increase in its prices. The high cost of doing business is because of intensive
increase in the rate of interest which has increased the problems of the industry.
The change in the lifestyle of the people affects the growing demand of the Nishat Mill
Ltd products. The change in the lifestyle and needs in different demographics also affect the
demand of the customers. Due to all these changes Nishat Mills Ltd is performing excellent
for the excellence organization as well as for the customer. As the lifestyle of people changes

45
their needs change, so Nishat Mills Ltd is there to fulfill their requirements regarding
clothing admirably. Its products are available for different age groups and gender.
Environmental factors include the weather and climate change. Changes in
temperature can impact on many industries including farming, tourism and insurance. With
major climate changes occurring due to global warming and with greater environmental
awareness this external factor is becoming a significant issue for firms to consider. The
growing desire to protect the environment is having an impact on many industries and Nishat
Mills Ltd is one of them that are conscious about what is good for the environment.
General moves towards more environmental friendly products and processes are
affecting demand patterns and creating business opportunities. Pakistan is beautiful country
where all four weather seasons emerge. So Nishat has launched seasonal varieties to fit
according to the weather. On the other side to save the environment from being polluted it
takes precautionary measures like it has set up a water treatment plant.
Better Living Standards Textile sector development helped in increasing the value of
output per worker. The income of the labor, due to higher productivity increased resulting in
better living standards of growing middle class.
Growth in textile sector enhanced social welfare in a multitude of ways. Better and
greater employment opportunities, meeting domestic needs, generating revenue and thereby
positively affecting public social spending etc. all lead to social welfare.
Growth in textile sector enhanced social welfare in a multitude of ways. Better and
greater employment opportunities, meeting domestic needs, generating revenue and there by
positively affecting public social spending etc. all lead to social welfare.
TECHNOLOGICAL FACTORS
In this era of advancement technology can help to touch the sky of success.
Technology creates new products and processes. It can also reduce the cost, improve quality
and lead to innovation. These developments can benefit the consumers as well as the
organization.
Nishat is taking care of technological factors to be successful in today’s tough
competition. Nishat has a very well developed research and development department and
facility members who are working very hard to develop new and improved methods to reduce

46
the production time. Nishat has made extension in its present setup by installation of well
advanced technology imported from Japan, China and France. Mostly processes are
automated. Modern cost and energy effective machines are taking place of workers and
ultimately reducing the cost of company. Internet development helps Nishat to reduce its
advertisement cost and get quick feedback from its customers.
Corporations code of conducts and Values
COMPUTER AND SYSTEM SECURITY
All the employees of the Company are required to use the computer and information
technology system of the Company according to the Company information technology policy
and guidelines.
FAIR DEALING
All employees must deal with all the stakeholders of the Company fairly. He/she
should not provide unfair advantage to any customer, supplier, banker etc. due to his/her
position.
BRIBERY
The payment of bribery and kickbacks in any form is strictly prohibited because the
Company does not allow anyone to promote his/her business by compromising the integrity
and ethical practices.
CONFIDENTIAL INFORMATION
All the employees must keep the Company information on its premises and should not
make copies of documents, papers, statements and record for an unauthorized use. Employees
are not permitted to share the information about Company business outside the Company
unless authorized.
REGULATORY COMPLIANCE AND CORPORATE GOVERNANCE
The Company maintains an environment of good governance. All the employees are
required to follow the country’s policies, rules and regulations.
FINANCIAL INTEGRITY
No employee should indulge himself/ herself in any fraudulent activity. If he/she
believes and finds anyone engaged in a fraudulent activity, he/she should inform about it to
his/her seniors.

47
ALCOHOL, DRUGS AND GAMBLING
The use of alcohol, drugs (other than for medication) and gambling is prohibited on
the location or premises of the Company.
INSIDER TRADING
No employee or his/her spouse will transact in the shares of the Company during the
close period prior to the announcement of financial results. Employees categorized as
executives according to the requirements of Code of Corporate Governance 2012 should also
inform the Company Secretary immediately about transactions performed by them and their
spouse in the shares of the Company other than during the close period.
Code of conducts for employees
SAFETY
The Company is highly concerned about the safety of both employees and non-
employees in its premises and maintains standard operating procedures in case of
emergencies. All the employees must follow these procedures and are required to inform their
seniors in case of any emergency.
FITNESS FOR DUTY
An employee should be mentally and physically fit when he/she is on work. He/she
should not use any drugs. Even if he/she is using any prescribed medicine which might affect
his/her performance at work, he/she should inform about it to his/her senior.
ATTENDANCE REPORT
An employee should have contact information of his/her senior and inform him/her if
he/she is not able to report on work.
WORK PLACE HARASSMENT AND DISCRIMINATION
The Company treats all its employees equally and maintains an environment free from
workplace harassment and discrimination. The policy of equal treatment applies to hiring,
career prospects, promotions, training, remuneration and dismissal as well.
ENVIRONMENT
All the employees are required to promote a culture of environmental protection
among employees, customers, suppliers, public authorities and communities. They must use
the Company’s facilities and processes in an environmentally sustainable way.

48
WORKPLACE VIOLENCE
Employees must restrain themselves from any form of violence at the Company
premises otherwise he/she will be terminated from his/her job.
WEAPONS IN WORKPLACE
All the employees, other than those who are authorized, cannot carry any weapon
whether on or off duty if they are using the premises, vehicle or any other property of the
Company.
PROTECTION AND PROPER USE OF COMPANY ASSETS
Employees should ensure that all assets of the Company must be used for the benefit
of the Company. They are required to exercise the best of their abilities and judgment to put
the assets of the Company for efficient use and benefit of the Company.
SWOT Analysis of Nishat Textile Mills
Strengths:
 Strong Security System
 Latest mechanized machinery
 Tremendous market positioning
 Highly Motivated Workforce
 Adequate financial resources
 Competitive advantage
 Own power generation plant
 Strong financial position
 High quality standards
 Professional management
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

49
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
Detail of SWOT Analysis
STRENGTHS
 Strong Security System
Nishat textile limited has a greater security system. There are different hidden security
cameras which capture the all moments.
 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.

50
 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 nationwide which is its competitive advantage.
 Own power generation plant
They have own power generation plant and Nishat is the pioneer in the private organization
who start the power generation. Nishat is also selling its produced power to WAPDA.
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.
 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.

51
 Lack of benefits and rewards for the employees:
Some facilities are provided to their employees like Transport and medical fee etc. Nishat is
not providing sufficient facilities to their employees because of which the productivity of the
employees decreases.
OPPORTUNITIES
 Advanced technology:
Nishat has advanced and highly automated technology
 New market segments:
Nishat can enter in new market segments easily due to its high standards and reputation.
 Existing production capacity:
Nishat has sufficient existing production level or capacity that can be seen as company’s
opportunity.
 Lifestyle attitudes:
Lifestyle attitudes are a major opportunity in this style-oriented world.
 Population growth rate:
Increasing population is always handy as it increases the demand as well as the sales of the
company.
 New styles and demands:
New demands and styles are considered to be an opportunity for Nishat as it has highly
skilled professional and designers.
THREATS
 Political instability
Political instability effects the Nishat because of the quota system the company can be restrict
by the government to export.

52
 Changes in government policies
Government policies are changing day to day so it is a threat for the Nishat to survive in such
a changeable situation.
 Economic downturn
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.
 Emerging competition
Emerging competition and increasing level of competitors is a significant threat to the
organization
 Increased taxes
Increasing taxes is a major threat to the organization
 Intense price competition
Intense price competition has developed due to the increasing competitors in the marketplace.

53
Conclusion
Nishat Mills limited is one of the largest composite units in Pakistan. Nishat Mills is
having centralized system for the betterment of the system they have to decentralize it
because the group has got very good management workforce. On the other hand the group in
the textile sector doesn’t fulfill the demand of foreign countries because of high production
cost, the core object of this report is to reflect those areas which needs to be improve.
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

54
Recommendations
Currently in textile sector the group is exporting quality products to foreign countries
in order to get high market share the group also have to provide quality level products
on domestic bases. They provide transportation facility to only female employees I think
male should also be provided with conveyance convenience. This will create the easiness for
workers and reduce the wastage of time.
Medical facilities are given in mill but such facilities should also be given to
management. Different training courses should be arranged for the up lifting and improving
the quality of work for employees. There is also a problem of work overload for the
employees and it should be control properly so that the employees are motivated. Employees
should be paid extra for the work which they done after working hours.

Business Project Report on Nishat Textile Mills Pakistan

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