Project Report

NISHATMILLS
Submitted to Dr Amir Shamsi
Submitted by
Baiza Babar (63031)
Saniya Khurram (62449)
Osama Yaqoob (63125)

Strategic Management
 
INTRODUCTION
• Nishat Mills Limited is the leader company of Nishat Group.

• It was set up in 1951.

• It is perhaps the most current, biggest vertically coordinated textiles organizations in Pakistan.

• Nishat Mills Limited has 238,032 spindles, 794 Toyota air jet looms.

• The Company's all out trade for the year 2018 was Rs. 38.862 billion (US$ 353.03 million).

• The Company's creation offices contain turning, weaving, preparing, sewing and force age .
HISTORY:
• The history of Nishat Group dates back to 1951, when Mian Muhammad Yahya founded Nishat
Mills Limited.
• Mian Mohammad Yahya was born in 1918 in Chiniot. In 1947 when he was running leather
business in Calcutta,
• Beginning with a cotton export house, he soon branched go in to ginning, cotton and jute
textiles, chemicals and insurance. He was elected Chairman of all Pakistan Textile Mills
Association.
• After almost half a century of undaunted success, Nishat group is among the leading business
houses of the country and ranks among the highest 5 groups in terms of assets and sales
revenue.
 Current market position of nishat mills:
• Nishat mills limited is a public limited company incorporated in pakistan under the companies act, 1913(now companies
ordinance, 1984) and listed on all three pakistani stock exchanges.

• The company is engaged in the business of textile manufacturing and of spinning, combing, weaving, bleaching, dyeing
printing, stitching, buying, selling and otherwise dealing in yarn, linen, cloth and other goods and fabrics made from raw
cotton, synthetic fiber and cloth, and to generate, accumulate, distribute and supply electricity

• Today, Nishat Mills has been performing well according to its benchmark because of the efforts of their management.

• Overall, the company has a strong presence in the Pakistani Market and this is expected to grow in the coming years. But
although the revenues have increased, the profit margins of the company seemed to have declined on a year-on-year basis.
Nishat Mills Ltd has been prominent in the international markets. The Company's total export for the year 2018 was Rs.
38.862 billion (US$ 353.03 million).
 PRODUCTS OF NISHAT MILLS

SPINNING
• Nishat Mills Spinning Division has more than 238,032 spindles, which are operationally divided into seven spinning units. Nishat not only
deals in Pakistani cotton but also in American long stapled, Egyptian and US pima cotton

• The spinning production capacity for both Cotton and Blended Yarns is 200 Tons per day.

• The company has a capacity utilization of 95.68%.

• Prices of cotton increased drastically in 2021 which has led to increases in cost of production. However, the Company has started to produce
recycled yarn in its efforts to discharge its CSR respectively.

WEAVING
• Nishat Mills Weaving division has 794 modern Air Jet looms which produce approximate 11.3 million meters of fabric per month.

• This makes it the largest weaving facility in the country catering to home textile and apparel fabrics

• Weaving is geographically divided into two division, Lahore and Sheikhupura. The Lahore facility has 204 looms and a production
capacity of 3.5 Million Meters per Month. While the Sheikhupura division has a total of 590 looms with a production capacity of 8.46
Million Meters per Month. Both divisions combined have an annual capacity utilization of 95.68%.
SPINNING WEAVING
 PROCESSING
• Nishat has one of the largest and most modern processing
facilities in Pakistan.
•  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 machines were customized to give an output of 104
million meters of fabric every year. To ensure product quality
and customer satisfaction, 75% of the Dyes and chemicals
used by Nishat are European manufactured.
• Because of the COVID-19 pandemic, the overall priorities of
people changed as majority was working from home. This has
impacted the performance of the division.
• Sale of the Division decreased by 32.17% during the half year
of 2021 as compared to the corresponding half year.
processing
 QUALITY CONTROL DEPARTMENT
• The company has a separate department that oversees and ensures quality in every step of the process.

HOME TEXTILE
• The home textile division has 1,339 latest sewing machines that ensure quality stitching. This is
divided into two facilities with an annual processing capability of 60 million meters of fabric.
• With an array of 1,339 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 division had been working at full capacity recently. The increase in sales of home textile was
caused by the trend in working from home. The demand is expected to increase this year and the
company is planning to expand its production capacity.
 GARMENTS
• Nishat Mills Limited has state of art garment manufacturing facility both for its product lines, both for men and women.
• This Apparel division has deployed 2900 high end sewing machines such as Vibe Mac, Juki, Mitusibishi and Brother. The
Division has an annual capacity to produce 14.40 million garments and a capacity utilization of 64.13%.
• Garments Division is a vital part in the value chain of the Company. Therefore, management is planning to double the
production capacity by increasing it up to 1.2 million garments per month.

BATH DIVISION
• Nishat makes has a diversified rage of bath products. The dyeing and weaving facility produces around 300 tons per
month including Jacquard capacity of 45 tons.
• The stitching facility has a capacity of around 2.1 million towel pcs and 15,000 bathrobes.
• The bath division entails the following products.
1. Bath towel.
2. Pool towel.
3. Bath robes.
 Power Generation
• Nishat Mills has set up cutting edge, present day, exceptionally solid and
incredibly productive hostage co-age power plants to cater in house energy
necessities at all its turning, weaving, handling, sewing and clothing units.
These offices are utilizing Wartsila, Caterpillar, Cummins, Daihatsu,
Jenbacher and Mak motors for power production. Gas, Furnace Oil, Diesel,
Coal and Biomass and Steam is being utilized as fuel for power generation.
NISHAT LINEN
• Nishat Linen is a care of Nishat Mills, the material and home style
corporate store that has reclassified the business with intense consideration
paid to quality, plan and moderateness. Nishat Linen values being the
brand of inclination for knowing clients who are looking for things,
remarkable and stylish without settling on feel or cost. Amazing client
support, including customized orders, guarantees our customer base
remaining parts faithful to the Nishat family

• From bed material to kitchen arranges, upholstery to clothing, Nishat Linen

has become an easily recognized name as a maker of dazzling, great plans
at sensible costs; an accomplishment accomplished by not many
PORTER’S 5 FORCES ANALYSIS OF NISHAT MILLS
PEST ANALYSIS
 INTERNAL FACTOR ANALYSIS
INTERNAL FACTORS WEIGHT RATING WEIGHTED COMMENTS
SCORE
STRENGHTS        
Skilled workforce 0.10 5.0 0.5 Capable existing employees

Latest technology 0.20 5.0 1 Utilized and expanding

Geographical advantage 0.10 5.0 0.5 Utilizing by exporting
Diversified Subsidiaries 0.10 3.5 0.35 Synergy
Power generation facility 0.15 5.0 0.75 Utilized
Product quality 0.10 5.0 0.5 Constant improvement
         
WEAKNESSES        
Increase in costs of production 0.10 3.0 0.3 Questionable

Reduction in profit margins 0.08 3.0 0.24 Questionable

Less promotional activities 0.07 2.0 0.14 Needs attention
         
         
  1.00   4.28 The company performance is above average
 EXTERNAL FACTOR ANALYSIS
EXTERNAL FACTORS WEIGHT RATING WEIGHTED COMMENTS
SCORE
OPPORTUNITIES        
Cost-efficient and productive labor in Pakistan 0.10 5.0 0.50 Well utilized

Reducing carbon footprint 0.10 4.0 0.40 Work in progress

Strong Agricultural presence 0.10 1.0 0.1 Under utilized

 

Potential neighboring countries 0.10 4.0 0.40 Well positioned

Large market in Pakistan 0.10 4.5 0.45 Well positioned
New export policy 0.10 2.0 0.20 Needs direction
         
THREATS        
Fluctuating cotton prices 0.15 3.0 0.45 Strategy needed
Fluctuating currency 0.10 2.0 0.20 Questionable
Losing market share 0.15 4.0 0.60 Questionable
  1.00   3.3 The company performance is slightly more
than the average
 TOWS MATRIX
INTERNAL FACTORS STRENGHTS (S) WEAKNESSES (W)
(IFAS) S1 Skilled workforce W1 Increase in costs of production
  S2 Latest Technology W2 Reduction in Profit margins
  S3 Geographical Advantage W3 Less promotional activity
  S4 Diversified subsidiaries
  S5 Power Generation Facility
  S6 Product Quality
   
EXTERNAL FACTORS
(EFAS)

OPPORTUNITIES (O) SO Strategies WO Strategies

O1 Cost efficient and productive labor in Pakistan  Using Diversified subsidiaries to create synergy and increase overall  Improve marketing activities by allotting a budget for the
O2 Reducing carbon footprint efficiency. Pakistani market, to compete with others
O3 Strong Agricultural presence  Introduce your product quality to new international buyers with the
 Employing labor to establish cotton farming to reduce raw
help of export policy aid
O4 Potential neighboring countries material costs
 Using skilled labor for R&D so that innovative products can be made
O5 Large market in Pakistan to cater the marge local market  
O6 New export policy  
 

THREATS (T) ST Strategies WT Strategies

T1 Fluctuating cotton prices  Creating innovative and customized products can help gain  Establish a cotton farm to minimize the effect of raw material prices on
T2 Fluctuating Currency market share margins
T3 Losing market share  Use endorsement campaigns by influencers to capture more market
share
 
CONCLUSION
Since the effects of the lockdown caused because of pandemic
have subsided, the company has started to get back on track in
its local business. Its international trade will still need attention
in order to be fully beneficial to the company. Overall, the
performance of the company is above average and can be
enhanced by the adoption of the suggested strategies in the
TOWS Matrix.