UNIVERSITY OF CENTRAL PUNJAB

Assignment no.3:
Group No.2:
Group members:
Usman Javed (L1F20ADBA0067)
Hassan Asghar (L1F20ADBA0094)
Shahbaz Naveed (L1F20ADBA0074)
Hassan Hamid (L1F20ADBA0057)

Group Leader:
USMAN JAVED (L1F20ADBA0067)

Assignment Submitted to :
Sir Amjad Ali.
Subject :
Management.
Company:
 Nishat Group.

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

INTRODUCTION OF ORGANIZATION
NISHAT GROUP

Mian Muhammad Mansha Yayha is the captain of this splendid ship having around 30
companies on board. Mansha, who owns the Muslim Commercial Bank as well, is now setting
up a billion rupee ($ 17 m) paper sack project too. He is one of the richest Pakistanis around.
Nishat Group was country's 15th richest family in 1970, 6th in 1990 and Number 1 in 1997.
Mansha is on the board of nearly 50 companies. Chinioti by clan, Mansha is married to Yousaf
Saigol's daughter.
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. After almost half a century of
Undaunted success, Nishat group is among the leading business houses of the country and ranks
among the top 5 groups in terms of assets and sales revenue.
The group has its roots firmly planted into four core business namely.
Textiles
Power Generation
Banking
Cement

TEXTILES
                The textile business is further subdivided into 3-textile division:
Nishat Lahore
Nishat Faislabad
Nishat Chunian
                The textile capacity of the group is the largest in the country. An addition of 20,000
new spindles, 100 new air jet looms and new dyeing plants has increased the existing capacity of
242,000 spindles, 740 looms and dyeing and finishing capacity of 5 million meters. The largest
exporters of textile products from Pakistan, for more then decade!
POWER GENERATION
            Nishat group has also been a pioneer in power generation in the private sector of the country.
Nishat setup the first power generation unit in the private sector in 1995.
CEMENT
                In 1992, Nishat Group acquired D.G Khan Cement Company Limited (DGKCC) from the
second largest project of the group and is ideally located in the heart of the country, with easy access
to transportation all over Pakistan. DGKCC unit No. 1 has a capacity of 2,200 tons
per day. A new unit heaving the capacity of 3,300 tons was setup in 1997. International Finance
Corporation and common Wealth Development Corporation have financed this unit. With the
addition of unit No.2, DGKCC has become the largest manufacturer of cement in Pakistan.
BANK
In 1991, Nishat Group ventured into the financial sector through the acquisition of Muslim
commercial Bank. MCB has grown ever since and is now the largest bank in the private sector. MCB
has a network of over 1200 branches employing over 12,000 people.
 VISION STATEMENT
To transform the Company into a modern and dynamic yarn, cloth and processed cloth and finished
product manufacturing Company with highly professionals and fully equipped to play a meaningful
role on sustainable basis in the economy of Pakistan.
To transform the Company into a modern an dynamic power generating Company with highly
professionals and full equipped to play a meaningful role on sustainable basis in the economy of
Pakistan.
MISSION STATEMENT
To provide quality products to customers and explore new markets to promote/expand sales of The
Company through good governance and foster a sound and dynamic team, so as to achieve Optimum
prices of products of the Company for sustainable an equitable growth and prosperity Of  the
Company.

COMPANY PROFILE
 CHIEF EXECUTIVE

Mrs. Naz Mansha

BOARD OF DIRECTOR
Mrs. Naz Mansha
Mian Raza Mansha
Mian Hassan Mansha
Mr. Muhammad Nawaz Tishna (NIT)
Mr. Faisal Ehsan Ellahi
Mr. Khalid Qadeer Qureshi (Chief Financial Officer)
Mr. Muhammad Azam
Mr. Rana Muhammad Mushtaq

 FINANCE DEPARTMENT
Mr.Shehzad Malik (G.M)
Mr.Usman Bajwa
Mr.Badar Rauf
Mr.Ashraf Ali Raza
Mr.Inam
Mr.Mudassar
Mr.Asad Iqbal
Mr.Masood Akhtar
Mr.Nawaz
Mr.Zulufiqar

 AUDIT COMMITTEE
 Mian Hussan Mansha Member
Mr. Aftab Ahmed Khan Member
  HEAD OF INTERNAL AUDIT
Mr.Khalid Kabeer

 CORPORATE DEPARTMENT
Mr. Muhammad Azam
Mr.Khalid Mahmood Chohan

 AUDITORS
Riaz Ahmed & Company
Chartered Accountants

 LEGAL ADVISOR
Mr. M. Aurangzeb Khan, Advocate,
Chamber No. 6, District Court,
Faisalabad.

 BANKERS TO THE COMPANY

ABN AMRO Bank
Allied Bank of Pakistan Limited
American Express Bank Limited
Askari Commercial Bank Limited
Credit Agricole Indosuez
Citibank N.A
Deutsche Bank
Faysal Bank Limited
Habib Bank Limited
Habib Bank A.G. Zurich
Mashreq Bank P.S.C
Meezan Bank Limited
National Bank of Pakistan
Standard Chartered Bank Grindlays
The Hong Kong & Shangai
Banking Corporation Limited
Union Bank Limited
United Bank Limited

 MILLS
·        Niashatabad, Faisalabad (Spinning, Weaving, Processing, Stitching units & Power                     
Plant)12 K.M. Faisalabad Road, Shiekhupura (Weaving units & Power Plant)
21 K.M Ferozepur Road, Lahore. (Stitching unit)
5 K.M. Nishat Avenue off 22 K.M Ferozepur Road, Lahore (Dyeing & Finishing
Unit                                                                
and Power Plant)
20 K.M. Shiekhupura Faisalabad Road, Froze Watwan (Spinning Unit)
 1) In the light of what you learned during class lectures read carefully
chapter# 2 Making Decisions to further clarify your understanding
Answer:
Decisions Making:
Decision making is the process where by an individual, group or organization
reaches conclusions about what future actions to follow given a set of objectives
and limits on available resources.

Characteristics:
Following are the characteristics of decision-making:
1. Decision-making is based on sensible thinking. The manager tries to take a
reasonable decision for an organization.
2. It is a process of selecting the best from among alternatives available.
3. Decision maker has a freedom to take a decision.
4. Decision-making is the end product because it is led up by discussions and
thinking.
5. Decision-making is aimed to achieve organizational goals.
6. It also involves certain commitment. Management is committed to every
decision it takes.
Assessment:
Assessments are systematic methods of collecting data under suitable conditions
and reaching a conclusion regarding the knowledge, qualification of that decision.

Planning:
Planning is the process of thinking about and organizing the activities required to
achieve a desired goal. Planning is also a management process, concerned
with defining specific goals or establishing an overall strategy covering a specific
time period.

Implementation:
Implementation is the process that turns strategies and plans into actions in order to
accomplish strategic objectives and goals implementing your strategic plan.

Monitoring Evaluation:
Monitoring Evaluation is used to assess the performance of projects plan set up by
organizations. Its goal is to improve current and future management of outputs and
outcomes.

Steps For Decision Making:

 Identify a problem
 Identify decision criteria
 Allocating weights to criteria
 Developing alternatives
 Analyzing alternatives
 Selection an alternate
 Implementing an alternate
 Evaluating decision effectiveness
Identify a problem:
A problem can be regarded as a difference between the actual situation and the
desired situation.

Identify decision criteria:

Decision criteria are principles, guidelines or requirements that are used to make
a decision. This can include detailed specifications and scoring systems such as
a decision matrix.

Allocating
weights to
criteria:
This means ranking which criteria is the most important to the decision-making
process. Violet feels that the biggest weight should be given to how the change will
affect employees. The other weights are then distributed equally.

Developing alternatives:
Developing alternatives requires decision makers to gather data, interpret that data,
and brainstorm to come up with multiple solutions that can be compared and
ranked. Creative thinking, and thinking out of the box, are key to coming up with a
full range of alternatives.
Analyzing alternatives
 Analyzing  Alternatives is an analytical comparison of the operational
effectiveness ,suitability, risk, and life cycle cost of alternatives that satisfy
validated capability needs.

Select an alternate
The selection of best alternative from many alternatives is known as decision-
making. Decision making is a process of selecting the best among the
different alternatives. It is the act of making a choice. There are so
many alternatives found in the organization and departments.

Implementing an alternate:

Evaluating decision effectiveness

The last step in the decision making process involves evaluating the outcome or
result of the decision to see if the problem has been resolved. If
this evaluation shows that the problem still exists then the manager would need
to assess what went wrong.
 2) Visit the website of the organization allocated to the group
Solution:

3) Explore and identify six structured problems faced by this organization.

Structured problems:

Structured problems are budget management and budgeting, semi-structured

problems are sales forecasting and product pricing while
unstructured problem is personnel management.

 Six structure problems faced Nishat Group:

The company faces number of problem during Covid-19
1:Cotton Supply and Price:

The supply and prices of cotton is subject to the act of nature and
demand dynamics of local and international cotton markets. There is
always a risk of non-availability of cotton and upward shift in the cotton
prices in local and international markets. The Company mitigates this
risk by the procurement of the cotton in bulk at the start of the
harvesting season.

2) Export Demand and Price

The exports are major part of our revenue. We face the risk of
pandemics, competition and decline in demand of our products in
international markets. We minimize this risk by building strong relations
with customers, broadening our customer base, developing innovative
products without compromising on quality and providing timely
deliveries to customers.

3: Dyeing

Covid-19 pandemic severely affected the financial performance of the

Division during the last quarter. After the spread of Coronavirus, all our
major customers immediately cancelled or asked us to hold the
production of their orders. The outbreak has upset the annual financial
results of the Division which performed well during the first nine
months of the financial year ended 30 June 2020. Since the governments
all over the world have eased lockdowns due to slowdown in spread of
the virus, the situation is expected to improve somehow. However, end
of pandemic is nowhere in the sight. In current global scenario, fashion
industry foresees a very slow demand for dyed cloth as there are huge
4: Capital risk

When managing capital, it is our objective to safeguard the Company’s

ability to continue as a going concern in order to provide returns for
shareholders and benefits to other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital. The Company
maintains low leveraged capital structure. We monitor the capital
structure on the basis of the gearing ratio. Our strategy is to keep the
gearing ratio at the maximum of 40% equity and 60% debt

5:Interest rate risk:

The Company’s interest rate risk arises from long term financing, short
term borrowings, loans and advances to subsidiary companies and bank
balances in saving accounts. Financial instruments at fixed rate expose
the Company to fair value interest rate risk.

6: Lack of stock

In the start of the organisation the first structure problem they faced was lack of
stock in their start they get a very good response even their stock was ended for
this problem solution they start making back up as well.

7:Coronavirus impact

This was the problem that many organisations faced at that moment markets we're
getting closed so for this problem in terms of solution they make online buying and
selling product so now this problem is a structure problem for them.
4) Explore two rules applied to two different structured problems faced by this
organization

Answer:

Two rules

 An clear statement that limits what a manager or employee can or cannot do.
 Develop a plan to achieve a goal of that mission.
Six Steps to Structured Problem solving:

1. Define the Problem

It is important to write a problem statement that is easily understood and is stated purely in terms of
measurable or observable symptoms. At this point, there should be no mention of suspected causes or
possible solutions. We just need to know what the problem is.  A good problem statement might look
something like this: “High (greater than 8 ppb) trace metals in one of our hardmask products are causing
unacceptably high defect counts with our most important customer.  We will lose this business if we
cannot correct the problem by the end of the year.”

2. Describe the Current Situation

We do this by examining data that is readily available. In our hardmask example, we would collect batch
data to identify the specific batches with the elevated defects and then study this data to see what they
have in common.

3. Identify Possible Causes

To identify possible causes, we should gather the team and brainstorm all potential causes that come to
mind.  Once we’ve exhausted all possibilities, we can then start systematically ruling items out.  This is
the most time-consuming, but one of the most vital steps in the process as we take each potential cause
and work to rule it out. We must keep working until we have eliminated everything but the root cause.
4. Verify Root Cause

When we think that we have identified the true root cause, we need verify that it is
the root cause by testing out our theory.  For our hardmask example, let’s say that
we believe that the root cause is due to a bad batch of one of the raw materials. We
can test our theory by making a new batch with everything the same except for a
new batch of the suspect ingredient.  If the defect levels are back to normal, that’s
a good indication that we have confirmed our root cause. 

5. Implement Solution

After we’ve identified the root cause, we implement a solution to remedy the issue,
standardizing our solution and making the change permanent. This could mean
updating specifications, writing new training materials, updating training packages
or update the rule.

6. Monitor for Success

After the solution has been implemented, test data can then be created to find
which solutions offer the best improvements.  Measurements should also be taken
on a scheduled basis to continue to confirm that the solution is still valid, making
updates if and when needed.

4) Explore two procedures used to two different structured problems faced

by this organization :

Answer:

Two procedures:

 A series of connected steps that a manager can use to respond to a structure

problem.
 A sequence of steps that used to respond well structure program.
 6) Explore two policies applied to two different structured problems faced by
this organization

Answer:

Two policies:

 A general guideline for making a decision about a structured problem.

 Fairly structured a decision which we work.

COMPLETE.
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my

teacher(Amjad Ali)who gave me the golden opportunity to do
this wonderful assignment.