1

NISHAT MILLS LIMITED

(MARKETING IN HOME TEXTILE)
7-KM Nishat Avenue off 22-KM Ferozepur Road Lahore, Pakistan.

NISHAT
INTERNSHIP REPORT
WORKED BY:
Syed Muhammad Salman

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Acknowledgements
All the praises are for the almighty, Allah who
bestowed me with the ability and potential to
complete this Internship. I also pay my gratitude to
the Almighty for enabling me to complete this
Internship Report within due course of time. Words
are very few to express enormous humble
obligations to my affectionate Parents for their
prayers and strong determination to enabling me to
achieve this job.I’m very Thankful to Arslan Salam
and Zahid Farooq and all team members who
provide me lot of knowledge about textile.

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Table of Contents

Contents
Acknowledgements................................................................................................................................... 2
Vision............................................................................................................................................................. 6
Mission .......................................................................................................................................................... 6
Quality Policy ................................................................................................................................................ 6
Introduction .................................................................................................................................................. 7
The Textile Industry: ................................................................................................................................. 7
Nishat Group ............................................................................................................................................. 8
The Company ................................................................................................................................................ 9
Nishat Mills ............................................................................................................................................... 9
Fields of textile ............................................................................................................................................ 10
Process Flow chart of Spinning .................................................................................................................. 11
Blow Room .............................................................................................................................................. 12
Carding: ................................................................................................................................................... 12
Drawing: .................................................................................................................................................. 12
Combing: ................................................................................................................................................. 13
Simplex/ Roving Machine: ...................................................................................................................... 13
Objectives: .......................................................................................................................................... 13
Ring Spinning:.......................................................................................................................................... 14
Weaving Department:............................................................................................................................. 15
Process Flow chart of weaving ........................................................................................................... 16
Faults/Defects/Problems in Weaving: ................................................................................................ 17
Processing Department: ......................................................................................................................... 18
Bleaching Department: ........................................................................................................................... 19
Dyeing Department:................................................................................................................................ 20
Printing Department: .............................................................................................................................. 22
Engraving Department: ........................................................................................................................... 23
Finishing Department: ............................................................................................................................ 24
Folding Department: ............................................................................................................................... 26

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Types of fault in Folding : ........................................................................................................................ 27

CUTTING DEPARTMENT .......................................................................................................................... 28
How we can find Cut length/ consumption of a Product?.......................................................................... 29
Stitching Department (GSC) .................................................................................................................... 30
QUALITY CONTROL LAB........................................................................................................................... 31
Marketing ................................................................................................................................................ 34
Marketing process .................................................................................................................................. 35
Payments terms/pricing:......................................................................................................................... 37
Letter of Credit ............................................................................................................................................ 37
Cash Against Documents (CAD): ................................................................................................................. 37
SWOT Analysis......................................................................................................................................... 39
Detail of SWOT Analysis .......................................................................................................................... 41
PEST Analysis ........................................................................................................................................... 44
Conclusion ............................................................................................................................................... 45
Recommendations ..................................................................................... Error! Bookmark not defined.

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Executive Summary

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
and vision of its industry. Then I have done a detailed
SWOT analysis as well as PEST Analysis.
Then I have discussed about my learning in the whole
internship that is all about the Textile Terminologies and
process of the productions. I have made it possible to
write each and every thing that I have learnt there. I have
all my practical efforts in the form of this manuscript
that’s the asset for my future career.

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Vision
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 sustain able basis in the economy of Pakistan.

To transform the company into a modern and dynamic power generating company with highly
professionals and fully equipped to play a meaningful role on sustainable basis in the economy
of Pakistan.

Mission
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

Quality Policy
We work together as a team for implementation and continual improvement of total
quality system in order to achieve satisfaction of our internal and external customers.

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Introduction
The Textile Industry:

Over the years, Pakistan is said to be the single crop economy i.e. cotton and textile
that claims the lion's share in terms of the contribution in the national economy of
Pakistan.

Despite efforts to bring in diversification in country's overall economic get-up the textile
sector continues to be the most important segment of the national economy. Its share in
the economy, in terms of GDP, exports, employment, foreign exchange earnings,
investment and revenue generation altogether placed the textile industry as the single
largest determinant of the economic growth of the country.

Despite harsh and hard international economic conditions, Pakistan's textile industry
has weathered the storm by coming out of the international crisis in a very positive
manner.

During the year exports were controlled from falling and significant investment was
made in value-added expansion and in Balancing-Modernization- Replacement (BMR).

Besides fall out of the events of September 11, the implementation of WTO's
agreement, various bilateral agreements have been signed and implemented.

As a result global scenario has changed. Government and the corporate textile sector
adjusted their policies to achieve maximum benefits of free trade. So, local structure of
the corporate culture, investment pattern and fiscal and monetary policies were
significantly changed.

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Nishat Group
*The Nishat Group* Mian Muhammad Mansha Yaha is the captain of this splendid ship
having around 50 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. Chinioti by clan, Mansha is married to
Yousaf Saigol's daughter

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$ 5 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.

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

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The Company
Nishat Mills Limited is a public Limited Company incorporated in Pakistan under the
Companies Act, 1913(Now Companies Ordinance, 1984) and listed on Stock
Exchanges in Pakistan

Nishat Mills

Nishat Mills Limited (“Nishat”) is a public company incorporated in Pakistan and listed
on all three Pakistani stock exchanges. Nishat is engaged in textile manufacturing.

Which involves spinning, combing, weaving, bleaching, dyeing, and printing, stitching,
buying, and selling of textiles? They deal with yarn, linen, cloth and other goods
including fabrics made from raw cotton, synthetic fiber and cloth.

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.

Company is providing quality products to its customers within the Pakistan and outside
the Pakistan. Presently company is exporting its all kinds if apparel products.

Its annual turnover for the year ------------ 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.

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Fields of textile

Flow Chart of Textile Processing:

Input/Raw Materials →→ Processing
Steps → →→→→→ Output
Textile Fibers →→→→→→ Yarn Manufacturing →→→→→→→→→→→ Yarn
(Spinning Mill)
↓
↓
Yarn→→→→→→→ Fabric Manufacturing→→→→→Grey Fabrics
(Weaving/Knitting Industry)
↓
↓
Grey Fabrics→→→→→→Wet Processing →→→→→Finished Fabrics
(Dyeing, Printing & Finishing Industry)
↓
↓
Finished Fabrics→→→→ →Garment Manufacturing→→→→→ Garments
(Garment Industry)

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Process Flow chart of Spinning

Blow Room

Carding

Drawing

Combing

Drawing

Simplex machine

Ring Spinning

Auto cone

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Blow Room
The section where the supplied compressed bale is turnt into a uniform lap of particular
length by opening, cleaning, blending or mixing is called blow room section.

Operations in the Blow room:

1. Opening
2. Cleaning
3. Dust Removal
4. Blending

Carding:
Carding machines further loosen and separate the fibres by passing them between two
rotating metals drums covered with wire needles. This aligns the fibers in a the web of
parallal fibers which is formed into a ropelike strand called sliver.

Drawing:
Drawing is the operation by which slivers are blended, doubled and leveled.

Objects of drawing

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1. To straighten the crimped, curled and hooked fibers.

2. To make the fiber parallel to their neighbors.
3. To improve uniformity of fibers by drafting and doubling.
4. To reduce weight per length unit of sliver.
5. To remove dust from slivers

Combing:
Combing is very expensive. Its used to remove fibers shortan tan a predetermined
length .So as to enable spinner to produce finer yarn.

Simplex/ Roving Machine:

Objectives:

1. To draft the sliver to reduce weight per unit length.

2. To insert small amount of twist to strengthen the roving to prevent breakage
during next processing.
3. To make conical or tapper shape of the bobbin.
4. To wind twisted strand on the bobbin.

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Ring Spinning:
Ring spinning is a method of spinning fibres, such as cotton, flex or flax or wool to make
a yarn. The Yarn loop rotating rapidly about a flixed axis Generates a surface referred to
as a ballon.

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Weaving Department:
Very similar to the spinning units, the weaving units of NML are really very well equipped with
the latest machinery to make the best possible product for the customer to gain the customer
satisfaction.

Most of the machines in the weaving unit of NML are of new technology & NML has a very
good check on the quality of fabric produced by its Quality Control department.

The end product of the spinning unit is the starting point of the weaving unit. When the cones of
the yarn are brought to weaving unit, it is then taken to the warping zone in which the beams are
prepared.

These beams are then taken to the sizing section where the different chemicals are applied to the
yarn so that the weaving of the fabric can be done with the minimum breakage of yarn. After
sizing the process of drawing inn is applied so that the yarn could be converted into fabric.

After the drawing inn the beams of the yarn is then taken to the Sulzer Looms so that the yarn is
converted into the weaved product. When the greige is made, then it is taken to the inspection
department, where a lot of quality check is done. At the first step the fabric is classified into two
types, i.e. A grade & D grade.

The D grade fabric is either used in the B grade sale or in gathering of the fresh pieces. While the
process of A grade fabric is a bit longer.

The A grade fabric after mending, goes to the checking machines, from where it is taken to the
rechecking machines. After rechecking either the greige is rolled or folded & packed according
to requirements of the buyer.

NML Lahore:
Total Narrow 132, Wider
Looms: 72
Capacity: Approximate 3.2
Million Meters per
Month.
Efficiency: 96% narrow , 93 wider

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Process Flow chart of weaving

Warpping

Sizing

Drawing

Looming

Inspection

Folding

Packing

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Faults/Defects/Problems in Weaving:
Major problems/faults/defects of weaving are pointed out below:

1. Warp streaks
2. Reediness
3. Weft bar
4. Weft crack
5. Thick and thin places
6. Weft loops
7. Box marks
8. High incidence of warp breaks
9. Weft breaks
10. Shuttle traps

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Processing Department:
Processing Unit of every textile mill has a paramount importance because it actually provide the
finish fabric product which is either sent to customer either as a piece good or as made up after
converting the fabric into the required stitched product. The processing unit of NML comprises
of the following department:

Bleaching Department

Finishing Department

Printing Department

Dyeing Department

Folding Department

Quality Control Lab

Digital Design Studio & Engraving Department

Sample Room

Production & Planning Department

The operations of Production & Planning Department are to work as a bridge between the
marketing team and the processing people, so this department has the prime importance.

All of the communication which is held between the processing & the export people is done
through this department. The finishing department is also very important because it is the center
of operations held in the processing unit.

A brief overview on the Processing capacity of NML has been discussed as follow

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Bleaching Department:
Bleaching: As a whole this process consists of desizing process, scouring
and bleaching. Pretreatment process basically aim to removal all impurities found
on fiber ( especially cellulose) so that materials have

i) degree of white,

ii) absorbent to dyestuff .

The raw material in generally contaning unwanted matter of fibres and the
impurities of fibres. This impurities is :

• Natural impurities is the dirt is emerge together on cotton.

• Impurities from outside
Dirt coming from outsider, yarn or fabric , for example : oil, ,dust , parts of leaf,
branch, stains of oil from machine and etc.

The bleaching department of NML is equipped with the latest machinery to

compete with the market. Bleaching department has the following
machines:
Machine No. Make/Country Width

Bleaching
Bleaching Plant 1 Kusters 126"
Bleaching Plant 1 Redflag 67"
Mercerizing 1 Kusters 126"
Mercerizing 1 Redflag 72"
Mercerizing 2 Japan 70"
Jigger 1 Funk 126"
Jigger 1 Goller 126”
Singing 2 Osthoff 126"
Singing 2 Japan and China 70”
L-Box 2 Japan and China 70”

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Dyeing Department:
Dyeing is the process of adding color to textile products like fibers, yarns, and
fabrics. Dyeing is normally done in a special solution containing dyes and
particular chemical material.

In NML Three ranges of best Thermosole continuous dyeing machines have the
capability of dyeing with Vat, Reactive & Pigment dyestuffs. All dyestuffs are
imported from Europe to ensure highest quality standards.

The dyeing department is a major department of NML processing. Dyeing

department has the following machines:
Machine No. Make/Country Width
Dyeing
Pad Thermosole 1 Bruknor 126"
Pad Thermosole 1 Monfort 98"
Pad Thermosole 3 Monfort 70"
Pad Steam 1 Kusters 126"
Pad Steam 1 Goller 98"
Pad Steam 4 Kyoto Japan 70"
Pad Dry 1 China 70"
Washing 1 Goller 98"
Jiggers 2 Red Flag 70"
Drier Steamer 1 Red Flag 70"

Capacity : Production 50,000 per day and Capacity one lakh ( Narrow
thermsole, Width 67’’)
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Production 25,000 per day and capacity 50,000 ( wider thermsole ,width
180’’)

The Quality of dyeing is depends upon its counts ,the less the counts
more the quality is better.

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Printing Department:
The Printing department of Nishat Mills Limited comprises of three rotaries, i.e. Reggianni,
Zimmer & Stork. Along with theses three rotaries, the printing department has three sampling
tables to fulfill the sample need of the customers of NML.

The Printing department of NML is working at its best & producing really good stuff. After the
printing from the rotaries, the route of the fabric depends on the dye class.

If the reactive dyes have been used, then the fabric will be taken to first of all Ager Machine &
then Goller Soaper Washing, then to Stenter finish & finally to the calendar.

Machine No. Make/Country Width

Rotary 1 Regganie 126"
Rotary 1 Regganie 126"
Rotary 1 Stork 70”
Curing 1 Arioli 126"
Curing 2 Germany 70”
Ager 1 Babcobe 126"

Rotary Sample machine: 2 ,wider

Rotary Production : 4 , 2 wider, 2 narrow

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Engraving Department:
In the Engraving Department of NML, the screens are generally prepared which are then used in
the printing process.

Sizes of the Screens:

Following are the three repeats of screens which are used in the Engraving Department:

640mm

820mm

914mm

The most important thing which should be kept in mind is that only one screen should be used
for one color that means the number of screens will be equal to the number of colors which will
be used during the printing process.

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Finishing Department:
Finishing department of any textile mill has a very significant importance because it acts like a
hub in the Processing. Almost every fabric which goes through processing unit, it has to be
passed through the finishing department.

The finishing department of NML Processing unit is famous for its quality work. It comprises of many
latest machines which are given below :

Machine No. Make/Country Width

Stenter 2 Monfort 126"
Stenter 1 Monfort 110"
Stenter 5 Monfort 70”
Stenter 1 Brucknor 126"
Stenter 1 Brucknor 70"
Calander 1 Kusters 126"
Raising 1 Suker/Muller 112"
Raising 1 Italy 70"
Emerizing 1 Lafer 126"
Emerizing 4 Lafer 70"
Emerizing 1 Suker/Muller 70"
Sanforizing 1 Monforts 126"
Sanforizing 2 Monforts 70"
Airo 1 Italy 70”
Coating 1 Zimmer Austria 70”

Types of Finishes:

There are two major types of finishes:

Chemical Finishes

Mechanical Finishes

The finishes in which no chemical is used is called the mechanical finish, a very good example
of mechanical finish is Calender Finish. On the other hand the finishes through stenter are known
to be the chemical finish. The finishes are of the following types:

1. Soft Finish
2. Razier Finish
3. Anti Wrinkle

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Sanforizing Machine:

The Sanforizing machine is used for relaxing the shrinkage of warp. The machine possessed by
NML has a workable width of 114”. It is basically used either on customer demand or in case of
Garments. The standard is 5%. NML has two Sanforizing machine in its processing unit.

Calender:

The basic purpose of calendaring is to have the shine & to have better hand feel. These Cylinders are of
two different lengths, the workable width of the Cylinders is 100” & 111” respectively.

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Folding Department:
The folding department of the NML has a daily production of 1,00,000m. The folding
department is the last department of the Processing Unit. After the folding unit the fabric is
transferred to GSC.

The folding department has two kinds of machines; the kind is rolling machine while the other
kind is of folding machines. It depends on the requirement that which kind of machine would be
used.

In the folding department of NML latest 4 score method is used for the inspection purposes.
Quality checks are made at every step of processing unit.

Types of faults that folding department check:

Printing faults Weaving faults Dyeing faults

Design out Miss Pic Dyeing Stain

Over laping Float Wrap Weft

Screen block Weaving creeze MCR

flashing Thick & Thin place Dyeing Stopage

Printing stain Broken ends & picks Dyeing Creeze

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Types of fault in Folding :

Minor Faults

Tag able Faults

Cut able Faults

Medium Faults

Machines:
In NMl Folding department they have 18 inspection machines.

10 wider
8 narrow

Capacity: 100000 meters per day.

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CUTTING DEPARTMENT
The cutting department is the first department of GSC, which takes the fabric. The fabric, which
is to be stitched, is brought from the folding department to the cutting department. In this
department the fabric is cut according to the specifications & need. The Gerber Garment
Technology (GST) is used to perform the marker making, spreading and cutting functions But in
NML cutting dept most of use manual cutting because its production is more than GST.

PRODUCTION : 70,000 per day.

The cutting department objectives:

Quality control

Cutting

Minimize Wastage

So cutting department was performing these responsibilities. Mr. Shahid the Quality officer who
shared the rules of cutting that is the foundation of the complete stitching department. Those are

One: LENTH FOR LENGTH (L*L)

Design cutting the motives on the fabric Parallel to the selvedge of the fabric.

Two: WIDTH FOR LENGTH (W*L)

Cutting the motives on the fabric perpendicular to the selvedge of the fabric.

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Types of Cutting:
1. Random/ All over cutting
2. Special/panel cutting

Types of Cutter:
1. Hand Cutter
2. Rod cutter
3. Sizzer cutter ( best Cutting)

How we can find Cut length/ consumption of a Product?

Width by length Products:

For Example Pillow case cut length:

If size of Pillow case is 50x80+20

Than the cut length is find as below:

W*L .80*2 = 1.60+20

1.80+6 (6 is margin in fabric length)
1.86 (length of product).

50+5 ( 5 is margin in width)

55 ( width of Product)

1.86 /5= 0.372 (one piece Consumption )

If 1700 pieces is produced then ( 1700*o.372+3%) = 670

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Stitching Department (GSC)

With an array of 450 modern sewing machines equipped with switch track system we
have the capability to produce 10,000 bed sheets, quilt covers, and 800 curtain pairs on daily
basis. Or product range includes bed sheets, quilt covers, bedspreads, comforters, table
linen, slip covers, cushion covers, decorative pillows, furniture and curtain accessories.

The objectives of the stitching department are:

The cost minimization

To minimize wastage

Best utilization of time

Quality control by line checker

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QUALITY CONTROL LAB

During the production, quality control lab ensures that every work has done according to the
standards of NML. Following checks are made at different departments:

Checks while Printing:

Rubbing

Washing

Dry Cleaning

Chlorine Test

Checks after Curing:

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Rubbing

Washing

Checks after Stenter Process:

Light Fastness

Shrinkage

Rubbing

Washing (Optional)

Pilling

Checks after Raising:

Quality check

The purpose of all these checks is to ensure the Quality of the end
product.

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Marketing
The marketing team utiizes the best industry tools alongwith years of professional expertise to achieve
cost optimisation of all products. They research global trends and work with local and international
vendors to source various fabrics and accessories required during manufacturing. This facilitates in
accomplishing the company's vision of creating high class home textile products.

Over the years the Nishat Marketing team has been successful to build trust with various known global
brands like Micheal Korrs, Crate and Barrel, Tommy Hilfiger, Ralph Lauren etc which are associated
with consumers througout the planet.

Nishat Mills Limited is known to be the best marketing department in the whole textile industry
because of the commitment and dedication of employees, the determination of work & the best
management system.

NML Marketing has a very strong liaison with their customers around the world. That’s why
NML has different segments on the basis of different regions like North America, Australia and
Europe.

Every region has a different Export Manager and its whole staff. The marketing responsibility is
not only to just sales and marketing it has also to find out new horizons and new ways. That’s
why Managers visit to new Markets around the world.

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Marketing process

Enquiry Handling:
Market executive receives order from customer with complete description which includes design,
Qauilty, Product size, Product Package, Complete Product specs price terms etc.

Price Quotation:
On the belf of Product description size, pigment terms, Shipment terms, product Quantity, type dye,
packing stitching etc we quote the price for customer according to the nishat price cost list.

Grey Booking:
When the price is confirmed by the customer and then customer say how much fabric booked
according to the product description. Nishat outsourcing and as well as used their own fabric or yarn.

Purchase order:
Customer generate (PO) in this they mention design. Size, quality of product payment terms against
every product mentation in (PO).On the other hand customer also describe the packing, delivery date,
Branding, Grey Quality, Confections of product in (PO) and the main thing that price should match to our
given prices.

Grey Cloth Demand Document:

After getting the purchase order we create the grey cloth demand document I this document we
mentation the customer/Agent name and then the executive name of marketing. In this document
includes the demand number which is already includes in the internal register of NIshat and then
content NO, Party No, Construction and Grey (W) and finish (W) and required meter fabric and in the
end. Date of receiving the fabric.

Programs:
Bleaching, dyeing, printing, stitching program for home textile. Its all depends upon the customer What
he want to do with fabric.

Follow up:
After generating the program marketing follow up all the work .which performed in every contract.

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Sale Contract:
Sale contracts document is prepared for sale department with complete detail of order, article quantity,
quality , packing, price terms shipment terms as coordination with customer against the customer open
the LC.

Inspection Report:
Its depends upon the customer requirements either he want to do internal or external audit.(
Sometimes third party audit).

Dispatch Report:
After shipping warehouse generate the Dispatch report thought Oracle system o the behalf of sale
contract. And this dispatch report forward to the customer. Its contains following things:

Dispatch No, invoice, exmill date, contract status, contract no, article no, product size and quality, total
dispatch Quality , number of cartoons, cross wait, net wait etc.

Invoice & Bill of loading:

After dispatching the product finance dept generate bank invoice/ commercial invoice which contains
invoive number, Notify party address or shipment terms (PO#No) total dispatch cartoons with price and
total value in Dollor/euro. When ship all the product we received bill of loading that shows that goods
has to ship to the relavant customer.

The most commonly documents which export department has to prepare and deal with
are:

Letter of Credit (L/C)

Bill of Exchange

Commercial Invoice

Export Declaration Form

Certificate of Origin

Packing List

Customs Invoice

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Textile Declaration Form

Inspection Certificate

Shipping Bill/Bill of lodging/Air Way Bill

Manufacture's Certificate

Payments terms/pricing/Shipment:

Letter of Credit
Letter of credit is the conditional undertaking on the request of the importer/buyer. It is also
called documentary credit defined as;

“A written undertaking by the bank of importer i.e. issuing bank at the request of buyer or
importer to make payments at sight or at determinable future date upto stated sum of money
within prescribed time against stipulated documents”.

FNML parties are involved in the payment of the goods, i.e., the buyer, buyers bank, beneficiary,
L.C. advising bank.

After clearance of the export documents, export department negotiate the papers with bank
receive payments from the bank. Then NML local bank sends documents to the buyer bank and
foreign bank release payment to NML bank with the permission of the buyer.

Cash Against Documents (CAD):

A condition in the contract of sale which states that a buyer must pay in cash before he gets
shipping papers. The transaction involves a third party, which keeps shipping papers until it
receives a payment from the buyer.

FOB:
FOB means that the shipper uses his freight forwarder to move the merchandise to the
port or designated point of origin. Though frequently used too describe inland
movement of cargo, FOB specifically refers to ocean or inland waterway transportation
of goods. “Delivery” is accomplished when the shipper releases the goods to the buyer’s
forwarder. The buyer’s responsibility for insurance and transportation begins at the
same moment.

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CNF:

Seller must pay the costs and freight to bring the goods to the port
of destination. However, risk is transferred to the buyer once the
goods have crossed the ship's rail. Maritime transport only and
Insurance for the goods is NOT included. Insurance is at the Cost of
the Buyer.

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SWOT Analysis

Strengths:

ISO 9001-2000:

Strong Security
System

High quality product Weaknesses:

Latest mechanized High cost of

machinery. production

Tremendous market Centralized

positioning decision making

Highly qualified and Weak image in the

skilled management international market

Highly Motivated Small international

Workforce market share

Adequate financial Less promotional

resources activities

Competitive Lack of benefits

advantage and rewards for the
employees
Equipped with MIS
System

Own power
generation plant

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Opportunity:

Organization Can
expand product lines

Organization Can
capture new market
segments around the Threats:
world
New Entry of competitors
Organization Can
reduce the cost by Buyer needs demands
proper utilization of changes
resources
Political instability
Organization Can
hire more well-
Changed of government
educated and
policies
experienced person
Globally Economic
instability

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Detail of SWOT Analysis

Strengths:
ISO 9001-2000:

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

Strong Security System

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

OKTEX 100:

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

High quality product

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

Latest mechanized machinery.

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

Tremendous market positioning

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

Highly qualified and skilled management

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

Highly Motivated Workforce

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

Adequate financial resources

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

Competitive advantage

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

Equipped with MIS System

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

Own power generation plant

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

Weaknesses:
[

High cost of production

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

Centralized decision making

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

Weak image in the international market

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

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Small international market share

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

Less promotional activities

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

Lack of benefits and rewards for the employees

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

Opportunity:
[

Organization Can expand product lines

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

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

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

Organization Can hire more well-educated and experienced

person

They can take advantages by hiring more skilled people and they should hire young, fresh and
energetic staff for their betterment.

Threats:
Buyer needs demands changes

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

Political instability

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

Changed of government policies

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

Globally Economic instability

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

PEST Analysis
Political Instability.

The political situation of Pakistan is not satisfactory. Due to the rapid change in the
Government every government sets its own new trade policies.

Govt. should apply sustainable policies for the beneficial of the exporters as well as
the investors.

Economic situation:

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

Social situation:

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

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

Technological factor:

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

NTM Excellent computerized machines and devices are installed in the NTM \has
made extension in its present setup by installation of well advanced technology
imported from Japan China and France.

Conclusion

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

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

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

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