INTERNSHIP REPORT

NISHAT MILLS LIMITED

INTERNSHIP REPORT SUBMITTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

BY

ZUBAIR HASAN QURESHI

L2S04MBIT0284

FACULTY OF MANAGEMENT STUDIES

UNIVERSITY OF CENTRAL PUNJAB
LAHORE, PAKISTAN.

FALL 2006

1
 INTERNSHIP REPORT

NISHAT MILLS LIMITED

INTERNSHIP SUBMITTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

BY

ZUBAIR HASAN QURESHI

L2S04MBIT0284

THE INTERNSHIP REPORT OF ZUBAIR HASSAN QURESHI

IS APPROVED:

PROF. KASHIF UD DIN KHAN

ADVISOR RESEARCH PROJECT CELL.

PROF. ABDUL RAUF

CO-ASSESSOR RESEARCH PROJECT CELL

2
 SYNOPSIS

Along with theory, practical work is very important for experience and handling all
types of situations. Every MBA student has to undergo an internship program,
which really helps the students to gain knowledge and acquaint themselves with
practical aspects of the fields. During my stay at Nishat Mills Limited, I got a
chance to observe all departments especially export marketing department. I
worked according to the program assigned and scheduled to me by my
department supervisors. I learned lot of experience here. By using the techniques
of interview observation and discussion I prepared this internship report. This
report contains the industry profile and comprehensive information about the
Nishat Mills Limited, its product line, its departments, its business process, its
SWOT analysis, problems I have observed and its remedies.

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 ACKNOWLEDGEMENT

All the thanks and praises for Allah who is the ultimate source of knowledge, who
bestows guidance and wisdom to mankind and enables me to complete this
extensive work.

I am also thankful to my internship Prof. Kashif-ud-Din who helped me a lot in

producing this report. The completion of the report would have been impossible
without his consideration.

I owe a sense of utmost gratitude to the management of Nishat Mills Limited,

who gave me all the valuable support and opportunities to complete six weeks
internship program and compile this report. Of these, I am especially indebted to
Mr. Asif Mirza (Assistant Manager Gray Maketing) for this cooperation and help.

I would like to make a special mention of my worthy Controller Haroon Ahmed,

who blessed me with his valuable advices and took keen interest in the
presentation of this report. His guidance during the completion of the report
cannot be valued in words. And I am also very thankful to Mr. Kashif Babar sales
officer.

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 CONTENTS
Page No.
INTRODUCTION 1
INDUSTRY PROFILE 4
COMPANY PROFILE 8
DETAILS ABOUT ALL UNITS OF NML. 15
INTRODUCTION OF DIFFERENT DEPARTMENTS 22
PRODUCTION PROCESS 32
INDUSTRY BUSINESS PROCESS 33
BUSINESS PROCESS 33
SUBMISSION OF SUBSTITUTED DOCUMENTS 36
SHIPPING DOCUMENTS 40
PREPARATION OF IMPORT DOCUMENTS 42
SWOT ANALYSIS OF THE INDUSTRY 47
SWOT ANALYSIS OF NML. 48
PROBLEMS IDENTIFICATION AND THEIR SOLUTIONS 50
MARKETING STRATEGY & FUTURE PROSTECTS 53
CONCLUSION 57
BIBLIGRAPHY 58
APPENDIX 59

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 INTRODUCTION

A textile is a flexible material comprised of a network of natural or artificial fibres

often referred to as thread or yarn.Textiles are formed by weaving, knitting,
crocheting, knotting, or pressing fibres together. The words fabric and cloth are
commonly used in textile assembly trades (such as tailoring and dressmaking) as
synonyms for textile. However, there are subtle differences in these terms.
Textile refers to any material made of interlacing fibres. Fabric refers to any
material made through weaving, knitting, crocheting, or bonding. Cloth refers to a
finished piece of fabric that can be used for a purpose such as covering a bed or
table.

Textiles have an assortment of uses, the most common of which are for clothing
and containers such as bags and baskets. In the household, they are used in
carpeting, upholstered furnishings, window shades, towels, covering for tables,
beds, and other flat surfaces, and in art. In the workplace, they are used in
industrial and scientific processes such as filtering. Miscellaneous uses include
flags, tents, nets, cleaning devices, such as handkerchiefs; transportation
devices such as balloons, kites, sails, and parachutes; strengthening in
composite materials such as fibre glass and industrial geotextiles, and smaller
cloths are used in washing by "soaping up" the cloth and washing withit rather
than using just soap.

Textiles used for industrial purposes, and chosen for characteristics other than
their appearance, are commonly referred to as technical textiles. Textiles can be
made from many materials. These materials come from four main sources:
animal, plant, mineral, and synthetic. In the past, all textiles were made from

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natural fibres, including plant, animal, and mineral sources. In the 20th century,
these were supplemented by artificial fibres made from petroleum.

Textiles are made in various strengths and degrees of durability, from the finest
gossamer to the sturdiest canvas. The relative thickness of fibres in cloth is
measured in deniers. Microfiber refers to fibers made of strands thinner than one
denier.Animal textiles are commonly made from hair or fur. Wool refers to the
hair of the domestic goat or sheep, which is distinguished from other types of
animal hair in that the individual strands are coated with scales and tightly
crimped, and the wool as a whole is coated with an oil known as lanolin, which is
waterproof and dirtproof. Woollen refers to a bulkier yarn produced from carded,
non-parallel fibre, while worsted refers to a finer yarn which is spun from longer
fibres which have been combed to be parallel. Wool is commonly used for warm
clothing. Cashmere, the hair of the Indian cashmere goat, and mohair, the hair of
the North African angora goat, are types of wool known for their softness.

Other animal textiles which are made from hair or fur are alpaca wool, vicuña
wool, llama wool, and camel hair, generally used in the production of coats,
jackets, ponchos, blankets, and other warm coverings. Angora refers to the long,
thick, soft hair of the angora rabbit. Silk is an animal textile made from the fibers
of the cocoon of the Chinese silkworm. This is spun into a smooth, shiny fabric
prized for its sleek texture. Grass, rush, hemp, and sisal are all used in making
rope. In the first two, the entire plant is used for this purpose, while in the last
two, only fibres from the plant are utilized. Coir (coconut fiber) is used in making
twine, and also in floormats, doormats, brushes, mattresses, floor tiles, and
sacking.

Straw and bamboo are both used to make hats. Straw, a dried form of grass, is
also used for stuffing, as is kapok.Fibres from pulpwood trees, cotton, rice, hemp,

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and nettle are used in making paper. Cotton, flax, jute, and modal are all used in
clothing. Piña (pineapple fiber) and ramie are also fibres used in clothing,
generally with a blend of other fabrics such as cotton.Acetate is used to increase
the shininess of certain fabrics such as silks, velvets, and taffetas.

Seaweed is used in the production of textiles. A water-soluble fiber known as

alginate is produced and is used as a holding fiber; when the cloth is finished, the
alginate is dissolved, leaving an open area. Asbestos and basalt fiber are used
for vinyl tiles, sheeting, and adhesives, "transite" panels and siding, acoustical
ceilings, stage curtains, and fire blankets. Glass fiber is used in the production of
spacesuits, ironing board and mattress covers, ropes and cables, reinforcement
fiber for motorized vehicles, insect netting, flame-retardant and protective fabric,
soundproof, fireproof, and insulating fibers.

Metal fiber, metal foil, and metal wire have a variety of uses, including the
production of cloth-of-gold and jewelry.All synthetic textiles are used primarily in
the production of clothing. Polyester fiber is used in all types of clothing, either
alone or blended with fibres such as cotton. Acrylic is a fibre used to imitate
wools, including cashmere, and is often used in replacement of them.

Nylon is a fibre used to imitate silk and is tight-fitting; it is used in the production
of pantyhose.Lycra, spandex, and tactel are fibres that stretch easily and are also
tight-fitting, and are used to make activewear, bras, and swimsuits. Olefin fiber is
a thermal fiber used in activewear, linings, and warm clothing. Lurex is a metallic
fiber used in clothing embellishment.Ingeo is a fiber blended with other fibres
such as cotton and used in clothing. It is prized for its ability to wick away
perspiration.

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 INDUSTRY PROFILE

Textile Industry:

When Pakistan came into being there was only 16 textile mills out of which only
12 were in operation. It grew to 70 in 1957 as industrial development takes place.
Now a day there are 596-textile mills out of which 442 are in operation. The
export revenue of textile industry contributes a large share to the GDP of
Pakistan.
The textile industry is the most significant industry of Pakistan despite the
changes and the major upheaval in Pakistan's manufacturing industry during the
previous couple of years, Textile industry went under a tremendous inflow of
investment in value-added expansion. The textile industry counted Pakistan’s
total: (Annexure 1)

The demand for textiles in the world is around $18 trillion, which is likely to be
increased at the ratio of 6.5%. China was the leading textile exporter of the
world's total exports of $400 billion in 2002. Pakistan has emerged as one of the
major cotton textile product suppliers in the world market with share of world yarn
trade about 30% and cotton fabric about 8%, having total export of $7.4 billion.

Textile Industry of Pakistan

Total Capacities
(Annexure 2)
Number of Textile units in Pakistan:
(Annexure 3)

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Present status of textile sector in Pakistan

The Pakistan Textile Sector is underdeveloped and under utilized. Mostly it

caters in the form of spares, components for modernization and machines used
in cottage or small scale industries.
A cursory look at the structure of Pakistan Textile Industry shows that most of
them are cottage industry, small/medium industrial units and few large integrated
state of art units. The number of units which fall under each category varies from
sub-sector to sub-sector. Similarly the Textile Units also vary from small, medium
and large in size. The Textile Engineering Industry comprises approximately 80%
small workshops, 15% medium engineering Units and 5% large Engineering
Units. It will not be out place to mention that the large engineering units are in
Public Sector. The small and medium units work on reverse principles, only few
work according to Drawings and still fewer have Testing or Quality Control
facilities.

Future Outlook and Trends:

In last couple of years, the weaving sector shows scope for both expansion and
improvement. Decreasing demand for yarn from overseas buyers and the
likelihood of higher earnings from the export of finished products are making
more and more businesses turn to the export of cloth and value-added items,
thus creating a market for shuttle-less weaving machines as well as for knitting
and sewing machinery.

According to the "Textile Vision 2005"there will be an investment of US$ 2.74

billion in the weaving sector by year 2005.

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Pakistan's weaving industry has been producing sophisticated quality fabrics in
line with the latest overseas demand. Made of superior cotton, the textile fabrics
of Pakistan are distinguished for their quality, texture, lustrous color and rich
combination of superior designs and competitive prices.

WTO will not only create challenges for Pakistan exports but also open many
doors of opportunities subjected to the few conditions. The end of quota system
there will be a large international textile market. Pakistan has opportunity to
increase its exports. Moreover, Pakistan is agricultural-based country and its
cotton quality is known to be the best in the world, which enables opportunities
for Pakistan to bring improvements in the product quality.

Pakistan is currently implementing an ambitious strategic plan for the textile

industry, which envisages an additional investment of US $ 5.6 billion till 2004 to
upgrade its operating facilities to effectively meet the present and future
challenges of global market.

Opportunities

Global demand for textiles (around US $ 18 trillion per annum) is growing at an

average rate of 6.5%. There is a great potential for textile exports from Pakistan
as its present share in the international textile trade is less than 1 %.

Current and Future Thrust of the Textile Industry

 Up-gradation of quality of products

 Switch over to value addition
 Use of quality raw materials
 Balancing, modernization and replacement of obsolete plant and
equipment

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  Professional & Business Ethics
 Meeting schedules and reducing delivery times
 Maintaining price competitiveness
 Promoting economic blocks and international joint ventures

Investment Policies and Plans by the Govt. of Pakistan

 Whole of textile sector is included in the list of value added industries.

 5% customs duty on imported machinery if not manufactured locally.
 Tax relief: Initial Depreciation Allowance (IDA) @50% of machinery &
equipment cost.
 Above incentives are also available if 50% of annual production is
exported.

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 COMPANY PROFILE

NISHAT MILLS LIMITED

NISHAT MILLS LIMITED (NML) commenced business in 1951 as a partnership

concern, which was converted into private limited company in 1959. In 1961, the
company went public and was listed on the Karachi stock exchange, the only
stock exchange in the country at that time.

NML started out as a weaving unit with 500 semi-automatic looms; later 10000
spindles were added, laying the foundation on nation’s biggest textiles composite
project. Composite project at Nishat mills limited Faisalabad covering 98 acre of
land is providing all production process under one roof i.e. spinning, weaving,
processing, stitching and power generation.

The Founder

A man of vision, courage and integrity, Mian Mohammad Yahya was born in
1918 in Chiniot. In 1947 when he was running a leather business in Calcutta, he
witnessed the momentous that swept the Indo-Pak Sub-Continent and resulted in
the emergence of Pakistan. Like many of his contemporaries, he also migrated to
the new country to help establish its industrial base. His is a story of success
through sheer hard work and an undaunted spirit of enterprise. Beginning with a
cotton export house, he soon branched out into ginning, cotton and jute textiles,
chemicals and insurance. He was elected Chairman of All Pakistan textile Mills
Association (APTMA), the prime textile body in the country. He died in 1969, at
the age of 51 having achieved so much success in so short period.

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The Chairman

Today Mian Mohammad Mansha, the chairman of Nishat Group, like his father,
continues the spirit of entrepreneurship and has led the group to become a multi
dimensional corporation, with wide ranging interests.

Nishat has grown from a cotton export house into the premier business group of
the country with 5 listed companies, concentrating on 4 core business, 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.

Firmly believing in ‘Growth through Professional Management’ our corporate

culture is based on decentralization, delegation of authority, encouraging the
acceptance of responsibility and inculcating quality consciousness.

It is our conviction that every successful organization is a reflection on the

commitment, dedication, and team spirit of its employees, and Nishat is no
exception. Our people are all imbued with the spirit, a fact manifested in our rapid
growth and low turnover

Nishat continue to strive to be a better group today than what they were
yesterday, for their customers, for their shareholders, for their investors, for the
environment, for the community and for their employees, for it is with them that
Nishat has achieved so much success in last fifty years.

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History And Present Status Of Nishat

The history of Nishat dates back to 1951, when Mian Mohammad Yahya
founded Nishat Mills. 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
1. Textiles
2. Power generation
3. Cement
4. Banking

The textile business is further subdivided into 2 textile divisions;

 Nishat Faisalabad
 Nishat Chunian
I did my internship in the Dying and Finishing Unit Ferozepur road Lahore.

Textile Capacity

Production process consists of spinning, weaving, processing, and finishing. The

processing includes dyeing, engraving. The textile capacity of the group is the
largest in the country. An addition of 20000 new spindles, 100 new air jets looms
and new dyeing plant has increased the existing capacity of 24000 spindles, 740
looms and dyeing and finishing capacity of 5 million meters. The group is the
largest exporter of textile products from Pakistan for more than a decade.

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Export Oriented Organization

Nishat Mills Limited are an export oriented organization. Nishat mills limited
exports more than 90% of its products mainly to the Far East, Europe and United
States.

D.G khan Cement Company limited

In 1992, Nishat group acquired D.G Khan Cement Company LIMITED from the
government of Pakistan. DGKCC is the second largest project of the group and is
ideally located in the heart of the Pakistan. DGKCC Unit No I has a capacity of
2,200 tons per day, a new unit having the capacity of 3,300 ton was established
in 1997, international Finance Corporation and Common Wealth Development
Corporation have finance this unit. With addition of unit NO 2, DGKCC has
become the largest manufacture cement of Pakistan.

Muslim commercial bank

In 1991, Nishat Group ventured into the financial sector through the acquisition
of Muslim Commercial Bank. MCB has the grown ever since and is now the
largest in the private sector. MCB has a network of over 1500 branches
employing over 12,000 people.

NUMBER OF EMPLOYEES
(Annexure 4)

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Nishat Group Of Companies

 NISHAT MILLS LTD, FAISALABAD

 NISHAT DYEING AND FINISHING, LAHORE
 NISHAT FABRICS, BHIKHI
 NISHAT SPINNING, FEROZE WATTOAN
 NISHAT SEWING, LAHORE

Company Information

BOARD OF DIRECTORS: Mian Hassan Mansha

Mr. Fayaz Ahmad Longi (NIT)
Mr. Muhammad Bilal Sheikh (PICIC)
M.Waseem ul Haq Osmani
Mr. Aftab Ahmed Khan
Mr. Khalid Qadeer Qureshi
Mr. Muhammad Azam
Rana Muhammad Mushtaq

CHIEF EXECUTIVE: Mrs. Naz Mansha

CORPORATE DEPARTMENT: Mr. Muhammad Azam Company Secretary

Mr. Khalid Mahmood Chohan Manager corporate

AUDITORS: Riaz Ahmad and Company

Chartered Accountants

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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
Askari Commercial Bank Limited
Credit Agricole Indosuez
Citibank N.A.
Deutsche Bank
Emirates Bank International P.J.S.C
Faysal Bank Limited
Habib Bank Limited
Habib Bank A.G. Zurich
Mashreq Bank P.S.C.
National Bank of Pakistan
Standard Chartered Grind lays
Meezan Bank Limited
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

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REGISTERED OFFICE &
SHARES DEPARTMENT Nishat House,
53, A, Lawrence Road, Lahore.
Tel: 042-6367812-16
Fax: 042-6367414

LIAISON OFFICE: 1st Floor, Karachi Chamber

Hasrat Mohani Road, Karachi.
Tel: 021-6367812-16
Fax: 021-2412936

HEAD OFFICE: 7 Main Gulberg, Jail Road, Lahore.

Tel: 042-5715646-52
Fax: 042-5715644-5

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 DETAILS ABOUT ALL UNITS OF NML.
Spinning

NML spinning is operationally organized into eight spinning units,

each with a distinctive product range and capacity to keep a check
on the quality standards. Every cone undergoes inspection before
packing to ensure that our buyer gets only the best out of the lot.
Spinning production capacity for both Cotton and Blended
Yarns in 130 Tons / Day. ha

Weaving

Operationally divided into:

NML Faisalabad:
Machinery: 188 Sulzer Ruti Looms
Capacity: Approximate 2.1 Million Meters per Month.
Product Range: 100 % Cotton and Poly Cotton fabrics, in Plain weaves, Twills,
Drills Satins (regular / broken & striped), Bedford Cords, Herringbones, Pique
and Rib Cords.
This Unit has been producing top quality fabrics for export as well as
for the consumption of our own processing unit. Awarded with ISO-
9002 Certification, the facility is highly regarded for the production
standards and quality controls.

NML Sheikhupura:
Machinery: 96 Sulzer-Ruti Looms(Unit-1)
120 Tsudakoma Air jets (Unit-2)
60 Tsudakoma Air jets (Unit-3)

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64 Tsudakoma Air jets (Unit-4)
Capacity: 4.5 Million Meters per Month.
Product Range: 100% Cotton and Poly Cotton fabrics, in Plain
weaves, Twills, Drills Satins (regular / broken & striped), Bedford
Cords, Herringbones, Pique and Rib Cords.
NML Sheikhupura is one of the most advanced units in the country
equipped with state-of-the-art machinery and it is also awarded with
ISO 9002 Certification . Future Programs for the Unit include the
purchase of Jacquard Looms, which will add to the variety of product
range that Nishat is offering to its customers.

Processing

An ISO 9001 certified unit, which is one of the largest and most
modern processing facilities of Pakistan. With an array of custom-
made machinery, it has the capacity to produce 3 million meters of
fabric /month. To ensure that our customers get the very best we
use more than 75% dyes and chemicals that are of European origin.
To maintain quality and international standards, an on-line Quality
department has been setup. The QC department has the backing of
a fully equipped Laboratory, which scrutinizes the fabric process
flow at all levels.
Product Range
• Home Textiles
• Table Linen
•Garments

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Types of Printing

• Pigment and Reactive printing

• Printing in puff effects
• Resist and discharge dye-stuff
• Burn-out

Engraving

1) CAD/CAM Equipped Design Studio

• Ramsete III / Silicon Graphics.
• Stock Image 3010.
2) CST Rotary Wax jet.

Dyeing

Nishat provides quality-dyed fabrics to some of the leading Home

Textile brands of the world. This has been made possible by using
high quality Greige and expensive dyestuff. Depending upon
specifications, dyeing in
Reactive, Disperse, Pigment, Vat and Sulphur
is possible.

Finishing

Types of Finishing
• Soil Release
• Resist Finish

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 • Peach skin effect finish
• Fire Retardant finish
• Water proofing
• Anti crease
• Easy Care finish
• Bacteria-Killer fabric finish

Stitching

With an array of 500 modern new generation machines, the stitching

department has an average capacity to process up to 1.3 million
meters of fabric per month. 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.

Product Range
 Quilt Covers

 Quilted Throw-over

 Flat Sheet

 Fitted Sheet

 Pillow Cases

 Cushions

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  Valances

 Curtains

 Baby Sets

 Table Linen

 Embroidery

The Specialist Linen Store

Bed Linen :

Bed sheet, fitted or valance or bed spreads to coordinate with Quilt

covers, cushions, neck rolls, pillows, comforters & top/bottom sheet
sets, Pakistani, English & American sizes available.

Table linen :

Table cloth, napkins, mats, table runner, potholders etc.

Kitchen Coordinates:

Aprons, oven gloves, double mittens etc.

Children & Baby shop:

It's important that you get what you really want for your child's
bedroom. Every child's dream is his own furnished room. Don't have

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to look around now. The new nursery range is developed for more
comfort and safety. Your child sleeps easy and has maximum
comfort with our superb collection of Bed Sets, Cot sets, Cane sets,
Stuffed toys, Cushions and other accessories. Make his dream come
true.

Upholstery & Curtains

Wide choice of vibrant prints and solid colors in long lasting, durable
fabrics like sateen, dobbies.

Home Delivery Services

Nishat 's experts & designers are a click away to provide you every
possible help and advice if you're looking to furnish your home or
add style and comfort to your living. Don't worry; we're just a ring
away from you to serve you at your home.

Special Services

Besides retail shops Nishat Linen also welcomes bulk purchases at

attractive prices. It also extends CMT services for all kinds of home
textile items on a commercial level. A latest imported automatic
multi needle quilting plant is working 24 hours to cater needs of both
export and local commercial clients.

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Shop Locations:

Lahore:
Opp. McDonald's, Main Boulevard, Gulberg
Ph: 042-5761372

96-commercial Area, Cavalry Ground

Ph: 042-6650202

Islamabad:
Jinnah Super Market, F-7 Markaz
Ph: 051-2650108

Karachi:
Zamzama Commercial Area (DHA Phase-5)
Ph: 021-5870755

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 INTRODUCTION OF DIFFERENT DEPARTMENTS

In company’s office there are followings types of departments.

 Purchase Department
 Accounts Department
 Finance Department
 Export Department
 Marketing & sales Department

Purchase Department
Purpose
The main purpose of department is to maintain the desirable level of purchase,
so that ideal funds are not stuck up in the shape of heavy purchase or a position
not arise that mill stop due to non-availability of raw material or store and spares.
In addition to this purchase department is also responsible for checking of
following.

 Checking quantity of purchased goods.

 Checking rates of purchased goods.
 Checking quality of purchased goods.

Procedure
Firstly different departments according to their requirement put their demand.
Higher authorities will check the authenticity of demand. They scrutinize that the
goods, which are demanded, actually required.

When demand is approved. Purchase department gets different quotation for this
product and after making a reasonable decision in this regard, they will issue a

27
purchase order. . Purchase order declares the terms and conditions of order and
finally deal between the parties are decided. The supplier will send the goods
along with the delivery order.

On receiving the goods the purchase department will make a goods receipt note
on which the name of goods and it quantity is shown. The supplier will send the
commercial invoice or sales tax invoice according to the product and finally
purchase department will make a store purchase voucher, which provides the
evidence of transaction.

Accounts Department
There are four sections, which are described below in details,

1) Payroll section
2) Costing section
3) Payable section
4) Receivable section
 Account payable section
It primarily deals with supplier, contractors, creditors, to whom Nishat mills
limited make the payments. A person designated as assistant manager heads
account payable section. Accounts officer and assistant account officer work
under his supervision. Before payment is made to supplier or contractors
following supporting documents are required.
 Sales tax invoice
 Inward gate pass
 Good inspection note

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  Delivery Challan
1. Sales tax invoice
Invoice is prepared which shows the amount of sales tax deducted etc. this
invoice usually contain the following column.

Sr. no quantity particulars amount rate of sales tax T.

amount

2. Inward gate pass

In the supporting documents inward gate pass is also very essential. When
things are purchased from outside parties they reach factory premise so entry is
made. And a pass is issued by the concerned authorities that allowing the
entrance of goods. Account payable department require a copy of inward gate
pass. Most important thing to remember, that it deals only with the quantity. It has
no concerned with quality. Inward gate pass no is checked by

1) Gate clerk
2) Security officer
3) Store auditor

3. Goods inspection note

When purchase process of goods (commodities is initiated a purchased order is
made, a copy of purchase order is given to payable department, when goods are
received the concerned department (issuing purchase order) inspects the goods
to know whether they are according to their specification mentioned in purchase
order. So a copy of good inspection note is prepared. Goods inspection note
should be received within one day after the storeroom receives goods

29
4. Preparation of checks
After receiving the invoices and checking their accuracy finally account payable
department prepares cheques. Chief controller of Nishat mills limited signs these.
Nishat mills limited have totally computerized system so items are identified and
coded. Every party is allotted certain codes and entry is made in them as and
when they take place.

Functions
The main function of account department is to keep proper record transaction
and maintain the accounts.
Procedure
Firstly the account department makes the recording of transaction by different
type of vouchers according to the nature of transaction. The vouchers provide the
evidence of transaction.
As books of NISHAT MILLS are computerized and ledgers are being prepared in
computer, so vouchers are sent to computer operator for posting.
Here a daily print out of all entries is being checked in order to check the
accuracy and then posting made to respective ledger.

Finance Department

Purpose
The main purpose of the department is ensuring the availability of the funds for
operation and also better allocation of these funds.
Functions
The most important function of finance manager is to arrange different types of
loan according to the requirement, like:

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  Long-term loan
 Leasing
 Short-term loan
One of the main important functions performed by finance department is to
prepare loan proposals.

Loan Proposal
Nishat mills limited generate funds from inside and outside parties. Inside parties
include shareholders, while outsider parties are banks and various loan providing
agencies.
Difference between fund based and non-fund based credit:-
1. Fund base credit
In fund base credit there is actual disbursement of cash by the bank to Nishat
mills limited.
2. Non fund base credit
In non fund base credit bank only provides guarantee no disbursement of cash is
made.
When loan proposal is made various consideration should be kept in mind, first
we will see the matter from the point of Nishat mills limited then apprehensions of
bank will be discussed in detail,

Export Department

Functions & Procedure

This department is responsible for the export of yarn, grey cloth and processed
fiber. This department has to fulfill all the legal requirements and prepare
important documents involved in the export of yarn, grey cloth and processed

31
fiber. This department starts working from getting purchase order to deliver the
shipment to the buyer. The export department performs 3 major functions,
1. SHIPMENT OF YARN, GREY CLOTH & PROCESSED FIBER.
After receiving packing list from shipping department, export departments starts
its main functions. It usually prepares the following documents to ensure the
timely shipmen
The most commonly documents which export department has to prepare
and deal with are:

o Letter of credit (L\C)

o Bill of exchange
o Commercial invoice
o Export declaration form.
o Certificate of origin
o Packing list
o Customs invoice
o Textile declaration form
o Inspection certificate
o Shipping bill/bill of lodging/air way bill
o Manufacture’s certificate

In some special cases, some other documents as and when required by

the buyer are also prepared like;

o Certificate of child labor

o Certificate of forced labor

32
Contract
First of all, contract between Nishat Mills limited and importer takes place. Nishat
mills limited find its buyer through marketing department. Then negotiation starts
and finally terms and conditions of contract are finalized.

MARKETING & SALES DEPARTMENT

In marketing department I learned how the orders are executed from the old
buyers and how the new markets and buyers are discovered than orders are
executed. Normally what happen is that the buyers contacts the marketing
department and ask for the sample, if buyer accepts he gives order, Marketing
department than issue a sales contract to the buyer.
Marketing strategies
Marketing strategies includes,
i. Meeting with buyers
ii. Company profile
iii. Buyer visits
iv. Free sample
v. Contact with agents
vi. R& D for marketing
a. Through Internet
b. Yellow pages
c. APTMA buyer dictionary
d. Intranet
1. Meeting with buyers

33
Marketing manager meets with buyer, introducing Nishat products to prospective
buyer. This strategy helps manager to understand the needs and requirements of
buyers as well as marketing people are aware of current trends of market.
Through negotiation you win the sympathy of buyers and business for the
company.
2. Company Profile
Nishat mills limited has also published it profile introducing its key products to
customer. This booklet is send to various agencies dealing in purchase of cotton,
fabrics and made-ups. This strategy helps to introduce the company in out side
world. Various broachers are also published.
3. Buyers Visit
Sometimes buyer’s visits are arranged to familiarize them with products, Nishat is
offering for their valuable customers. Theses visits are crucial for the growth of
the company because they help in introducing products to others and also win a
lot of business for the company. Nishat marketing department frequently invites
buyer to show them excellent production process and quality productions.
4. Free Samples
This strategy is widely used to boost up exports. Free samples are delivered to
customers to show how best our products are? Free sample is useful techniques
in winning the loyalty of customers. When new product is made, free samples are
sent to loyal customer to show firms concern for them. Customer’s satisfaction is
a important aspect because customer is a person who gives meaning to
company.
5. Contacts with Agents
Nishat mill limited is an export-oriented organization. More that 85% of its sales
constitutes exports. So to capitalize foreign market, Nishat has long list of its
agents working in foreign market. This strategy is useful when company is not
able to communicate with buyers; it can hire services of agents who for

34
commission introduce their products in market. Relationships with distributors or
agents are recognized as critical success factors so lot of importance is paid to
agents who are valuable asset of firm.
6. R & D for Marketing
Research and development is key to success. Some organizations feel that they
cannot survive without R & D. Nishat is one of these organizations. Organizations
finances research and development projects using either % age of sales of
method or financing as many projects as possible.

Management of Nishat Mills Limited

Nishat Mills Limited employees are highly qualified professionals and have a
young, energetic and dedicated team of professionals who have a lot of
knowledge to their credit.

Managers are responsible for the task assigned to them in their departments and
also have to match whether their respective department is achieving the desired
efficiency level or not.
ORGANIZATIONAL STRUCTURE
NISHAT MILLS LIMITED

Chief Executive

G.M. G.M. G.M. G.M. Legal G.M. Chief G.M. Director Director
Finance Weave Stitching HRM Advisor Purchase Engineer Export spinning process
ing

35
 ORGANIZATIONAL STRUCTURE
NISHAT MILLS LIMITED

GM MARKETING

Incharge fair Deputy Deputy Manager Assistant

Manager Waste Manager
price shop Quality

AM quality Assistant manager Assistant

control waste
manager sales
Assistant
manager

36
 PRODUCTION PROCESS OF COTTON YARN

Raw Packing
Yarn
Material Dept.

Blow room Auto cone

Ring
Carding Dept.

For Carded yarn

Drawing Simplex/
Decision Machine Roving
to make Frames
Carded or
combed
For Combed yarn
Lap Comber Drawing
yarn
Former Machine Frame

37
 INDUSTRY BUSINESS PROCESS

Two types of business in Industry

i) With Guarantee
a) Letter of Credit
ii) Without guarantee
a) Cash Against Documents (C.A.D)
b) Advance Payment

Business Process

Ho w L/C Is Opened
Marketing Department
Meet with buyers

Sample

Negotiation upon
price,quantity etc.
Issues Purchase order
Sales Contract By the buyer

Finance Dept. Production Dept. Doc. Dept. Buyer

Opens Letter of Credit

Shipment
38
T he import department receives the Performa invoice f rom
purchasing department, after getting the approval from t he
aut horized person (Mian Umer Sahib in Nishat Mills Limited) t he
concerned person write an Application in the name of his
aut horized bank requesting him to open a Letter of Credit in t he
f avor of a particular party in a foreign country. Insurance
Certificate is obtained from the Insurance Company for t he
protection of damages.H.S Codes are also required for t he
confirmation of duty charged by the Govt on different item of
goods.(Harmonized System Codes)
T he department according to the requirement makes somet imes
amendments.
Import documents are retired by paying the all dues to bank. L / C
and Bill of Lading is given to the clearing agent for clearing the
consignment.
Finally bill of entry is received which has three copies in which every concerned
party give its remarks with stamp. One copy is sent to the SBP for maintaining
records of Imports.2nd copy is sent to the custom department and 3rd is retained by
department for record.

39
 Buyer
Seller

1.Contract take place

4.Tells the Seller

7.Make Payment

2.Buyer’s Bank 3.Contact with

opens L/C Seller’s Bank

6.Container reach
5.Starts Production
from Shipment

40
 SUBMISSION OF SUBSTITUTED DOCUMENTS
A s the loan mature after 180 days the documents must be
submitted on 179 t h day if these are submitted on 180 t h day t hen
lat e substitution fine is paid.
T he application for substitution is submitted with following
documents:

1. Covering Letter
I t is a Letter, which informs you that what Type of document s is
enclosed herewith.

2. Undertaking by Exporter
I n which the exporter informs the bank that due to un-expect ed
crisis of the buyer, they are hesitating / reluctant in establishing
let ter of credit in respect of contract. They expressed t heir
inability to accept the shipment at this stage and have accordingly
cancelled the contract.
T herefore exporter requested to allow substitution of the cont ract
and adjust the amount of Re-Finance against substituted letter of
Credit.

3. Original Sales Contract

I ndicates the date of issue and No. Of Sales Contract, buyer’s
name & address, description, brand, quality, packing, shipment
dat e, price, amount, payment.

41
4. Particulars Of Sales Contract Performa
T hese particulars include No. And date of contract, date till which
t hat contract is valid, the amount of the contract, name of buyer of
contract, destination of the goods, shipment date of the goods.
I n Case of already exported goods, value of goods yet to be
exported, No. Date and amount of re-finance loan obtained f rom
S t ate Bank of Pakistan and due date of repayment of the re –
f inance loan.

5. Telex
I t is sent by the buyer in which he informs the seller that due t o
some crisis In the international market he is not in a position t o
open the L/C against that contract so please treat the contract as
cancelled.

6. Undertaking By The Exporter

T o certify loan No. Exporter finance has been availed against
t his sales contract or will be availed of by us against this new f irm
order or against a portion of the transferable L / C duly
t ransferred in the name of above exporter or against the f irm
export order (s) in relation to which under noted L / C or a
t ransferred portion of it was received from our bank or from any
ot her bank under Part -1 of the export Finance Scheme, and t he
export proceeds realized against shipment (s) made under t he
af oresaid documents have not been / will not be accounted f or
matching purpose by the aforesaid exporters under part 11 of
E xport Finance Scheme.

42
7. Certificate To Be Given By The Bank In Cases Of
S u bstitution Of Firm Export Order / Letter Of Credit Under T h e
E xport Finance Scheme
To certify that no finance was availed of by them against this contract. And
includes the particulars of the new firm export order(s) and L/C (s) a portion of
transferable L/C which includes No. And Date of L/C, date till which that L/C is
valid, amount of L/C, name of buyer, Destination, last date of shipment, goods
already exported, Date of shipment of above goods, Value of above goods,
Value of goods yet to be exported, Date of which above goods are to be shipped.

43
44
 SHIPPING DOCUMENTS
The Shipping Documents must be submitted within three working days. After
receiving these documents.
The following documents are submitted which are the proof of shipment.

1. Invoice
2. Bill of Lading
3. E Form
4. DE Form “2” & Form ED-I

I n voice
I nvoice indicates the particulars of contract, size of commodity,
quantity, quality, price and packing.
Bi l l Of Lading (B/L)
B/L Indicates the exporter’s name; notify party, quantity, quality, destination, port
of issue and date of issue of exported items. The shipping company issues it.

E-Form

E- Form is submitted under foreign exchange regulation Act 1947.

De Form 2 & Form Ed-I

This form indicates the bank name, demand loan No., type of commodity,
contract / L/C Nos. shipment date, amount of shipping goods, sales contract No.,
issue date, amount, date of obtaining finance and %age of commission.

Retention Of Fund

The amount of document is paid to SBP then it is usable by the exporter after
repaying the loan the amount is useable by the exporter. For example; if the
contract is at sight then the amount is received within 15 days and it is sent to the

45
State Bank of Pakistan and not useable by the exporter after repaying the loan
the amount is useable by the exporter. This amount is repayable within 3
working days if it is not paid then the bank has right of retention of fund.

Loan Maturity

On the maturity date the exporter has to repay the fund if amount is receivable
after maturity date then the exporter has to pay the loan on his own sources.

The loan may be matured at sight 15 days to 120 days if more days are required
then permission is taken from SBP.

Export Proceed Realization Certificate

If amount is paid by own sources then after the amount is received the exporter
has to send EPRC to SBP.

Collection And Negotiation

Documents sent to banks mostly on collection basis as well as negotiation /

discounted.

1. Collection Basis

Forwarded to any bank without negotiating exchange rates. On payments if the

exchange rate of submission bank is better than the other we will credit the
same bank.

2. Negotiation / Discount

We sell out our export documents depending upon better exchange rates of
competitive banks.

46
 PREPARATION OF IMPORT DOCUMENTS

1.Proforma Invoice / Indent /Contract

Indicates applicant’s name, to be shipped from Export country to import country,

payment mode by L/C (type) e.g. irrevocable & unrestricted L/C at sight,
Shipment time e.g. within 2 months after receipt of L/C, place of delivery e.g.
CFR Karachi by vessel e.g. Validity until August 01, 2001, items, description,
quantity, unit price, amount.

2.Covering Letter

This indicates the detail and price of the imported items.

3.Application for Opening of Letter of Credit

In which request is made from bank to open L/C for the attached Proforma
invoices.

4.Form I

Application for permission under the Foreign Exchange Regulation Act, 1947 to
purchase foreign exchange for payment of imports. It indicates NIT No, place of
issue, date of issue, authorized bank, currency, beneficiary’s name and address,
Indenter’s name and registration No., description of goods, port of shipment,
carrying Co.’s name and applicant’s name and address.

47
5.Appendix-B

This certificate is given to the bank for export of chemicals and raw material.

6.Appendix-G:

This certificate is given in addition to appendix-G for import of spare parts &
machinery. It is not necessary to submit this document with L/C opening
documents. But is not necessary to submit it at the time of retirement because
the bank endorses it properly and it is used for shipment.

Particulars of Appendix G

Name and address of importer, location of industrial unit with full address, name
of industry, detail of machinery, products manufacture, date of original
established of the unit, No. And date of Government Sanction/Approval whether
the unit was originally established against imported or local machinery, income
tax particulars, brief description of machinery required along with H.S. Code No,
purpose for which machinery required that may be for one of the following: -

a) New Unit

b) Expansion

c) Balancing

d) Modernization

e) Replacement

Particulars of previous imports under expansion, rated capacity of new

machinery applied for, brief description of raw material and estimated annual
imports requirements.

48
7.Application and Agreement for Commercial Letter of Credit

This prescribed form is given by Bank, which includes;

Type of letter of credit, beneficiary, amount, applicant, advising bank,

transshipment/carriage, doc. To be presented within 15~21 days after the date of
issuance of the shipping document(s) but within the validity of the credit, payment
period, signed invoices that goods are of exported, country of origin & B/L.

8.Insurance Arrangements

Insurance of goods are made against the damages. This amount consists of
total amount of goods plus 10% cushion.

The insurance Co. certificate indicates: (1) Marine Cover Note No. (2) Date (3)
Issuing date.

9. H.S. Codes

These are codes used by custom department for imported commodity.

10. L/C Opening

i) Application

ii) Performa Invoice

iii) Insurance Cover Note

iv) Form I

v) Appendix-G.

11. L/C Scrutiny

49
When the L/C is prepared by bank, then it is checked by import department with
the L/C documents hold by the Department.

12. L/C Amendment

Sometimes L/C is amended e.g. expiry date, shipment date, amount, indenter is
involved etc.

13. Import Documents / L/C Retirement

When L/C is reached to the bank then bank demands the amount of L/C from
importer. Importer contacts the other bank for buying the foreign currency and
advise the bank to deposit the amount in the bank in which the importer opened
this L/C then the bank retires the document of importer L/C.

14. L/C Retirement Doc. and B/L

These documents are given to the clearing agent for clearing the consignments.
Then he requires the cheques of the amount of custom and other charges/duties.
Then the required amount is to be sent for costing in the Costing Section to
check the exemption.]

15. Bill of Entry

In which every concerned party gives its remarks and stamped one copy and is
sent to the SBP, one copy is sent to the custom department and the Company
itself retains one copy.

16. L/C’s Particulars

50
  L/C type, No. & Amount

 Date & Place

 Favoring party

 Applicant

 Signed commercial invoices indicate the value not more than L/C’s value.

 Full set of clean “on Board” marine Bill(s) of lading

 Insurance buyer’s care declaration of each and every shipment is to be

advised to Insurance Co. A-Copy of insurance declaration to accompany
the original documents.

 Packing list requirements

Special Instructions

 Outside bank charges are on beneficiary’s a/c

 This L/C is available with any bank in Exporter’s country

 Goods shipment from export country port to import country’s port.

 Partial shipment allowed / not allowed

 Transshipment allowed / not allowed

 Shipment on enemy’s flag vessels and / or parts strictly prohibited

 Doc. must be presented for negotiation within 15 days after the date of
shipment

 All shipping docs. Must show H. S. Code

 Short Form / Blank Back B/L(s) not acceptable

 Shipping Co.’s name also indicated.

51
 SWOT ANALYSIS OF THE INDUSTRY
Strengths
 Goodwill
 High profitability
 Easy availability of Raw Material
 Government Support

Weaknesses
 ISO Certifications
 Child Labor
 CE Markeing
 Low Quality High Cost

Opportunities
 New foreign Markets
 WTO

Threats
 Competitors (India and China)
 WTO

52
 SWOT ANALYSIS OF NML.

Strengths of Nishat mills limited

 Export-oriented organizations
 Highly skilled labor
 Talented marketing managers
 Qualified finance staff
 Professionalism in the employees
 Corporate culture
 Sound policies
 Strong group
 Successful history
 Computer information system
 Paperless organization
 Availability of raw material at cheaper rate
 Products are technologically competitive
 Innovative products
 Customer orientation
 Efficient production system

Weaknesses of Nishat mills limited

 Rely on foreign customers

These are only few weaknesses in Nishat textiles, over and all it is a successful
organization.

53
Key opportunities available to Nishat mills

 In 2005 when all quota barriers would be lifted

 Increase demand of Pakistan cotton-made products
 Advertising growth
 To use information technology

Key threats to Nishat textiles

 Intensive competition
 WTO
 Child labor propaganda by various NGOs
 Political instability in Pakistan
 Mostly operating in overseas market

54
 PROBLEM’S IDENTIFICATIONS AND THEIR SOLUTIONS

 Facility For Bonus

At present the facility for bonus is given only for the production department of the
company, but in my view point such bonus facility should given to other
department as well as like.

 Accounts Department
 Sales & marketing Department
 Management information system Department
 Finance department
 Export department

 Medical Facilities

Medical facilities are provided in the mill where production work is carried out but
such facility should also be provided to the employees who are working in the
HEAD OFFICE in Lahore.
Company should take great and early care of this important matter because
employees working need this very badly.

 Employees Training

Although there are educated and talented staff working in Nishat Mills limited but
it is the need of the hour that the staff should be given the time-to-time refresher

55
courses for the up to date knowledge for meeting knew and dynamic challenges
in the growing business concern of Nishat Mills Limited.
New training courses will help in uplifting the quality of the work of
employees.

 Need Of A Cafeteria

There is lack of proper facilities for food. There is no proper canteen or

cafeteria or messing facilities. If there will be messing or cafeteria facility in
the premises there will be saving of time and increase in the efficiency of the
workers and it will be easy for the people to return on work after lunch on well
in time.

 Transportation Problem

They provide transportation facility only to female employees; think they

should also provide conveyance facility to the male employees as well. This
will create the easiness for the workers to come on job on time without much
difficulty.

 No Stipend To Internees

Nishat mills Limited hire internees but doesn’t give any stipend to them I feel that
they should give some thing to their internees as well, as it would boost their
energies and they would work with more zeal and interest.

56
  Employees Turnover

What I have seen is that not many people work for long in Nishat. Many trainee
officers come and go. The reason could be that they only come here to get some
experience and as the pay scale is not satisfactory therefore they leave the
organization for better jobs offering higher pay scale, I think they should try to
increase the pay scale for their employees in order to retain the experienced
workers.

 Account Department Setup

The set up of account department should be changed. It looks very crowdie as

there are more employee than there can be adjusted. It doesn’t look like a proper
office environment. So for this purpose either the company should hire the
ground floor that is vacant nowadays or it should better shift its head office to a
place where it can adjust it’s employees properly.

57
 MARKETING STRATEGY & FUTURE PROSTECTS

Future prospectus of Nishat mills limited are given as under

The past year has been tough for the textile industry as competition is steadily
and margin of profits is becoming smaller day-by-day. Our competitors from Asia
have come up in a big way with lower prices resulting from lower overhead,
cheaper and better raw materials and machinery. Countries like China,
Indonesia, India and Bangladesh played an active role in the fabric market.
Improvement in quality and production capability was the main area of
concentration.
Market for Yarns and Grey fabrics was diversified to increase the customer base
and reduce dependency on the Far East. In this effort business with Malaysia,
Korea, Taiwan, UK and South America was initiated in case of Yarns. A new
spinning unit of 21,672 spinning has also commenced, which caters to the
weaving units in Shiekhupura.

Grey Fabric Market

In case of Grey Fabric market business was initiated in South Africa, North
America, Japan, Italy, France, and Sri Lanka etc. Product range was also
increased to cater to the differing needs of the buyers. Fancy and special items
like Dobby Designs, Bedford Cords, and Cavairy Twills and stretch fabrics were
developed which are being sold at premium prices. We have constantly updated
our machinery, replacing old machines with new ones upgrading the existing set-
up, leading to better efficiencies and quality products.

58
Quality control
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. Leaving behind the traditional way of doing business and in our journey
towards excellent it has consistently expanded its buyer base and explored the
different markets around the world.

Value Addition Strategy

Keeping in view demand of the World market, Nishat Mills Ltd pursued its
strategy of value addition that in command reducing the dependency on Grey
Fabrics and Grey Yarn. Having the foresight to assessing 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. In Europe, Nishat has made the most growth in the
year 1999. It has placed us successfully in the middle to upper end of the market.
Our strength in Europe is the curtain division.
This included yarn dyed dobbies, engineered confections, different finishes and
embellished products. The plan is to continue with this winning strategy and at
the same time we are trying to find new clients in the high end. We are also
exploring business opportunities in countries like Spain and France where Nishat
has very little business at the moment.
North America Market
North America is the star market for Nishat. It’s a new market for it after breaking
up the exclusive arrangement with our previous sale set-up. The quota is coming
down in 2005 and we have started to prepare for it internally as well as for the

59
external environment. Bedding is the bulk of the home textile business. Nishat is
in the process of updating its machinery to cater the needs of the wider width
fabric requirement for USA bedding business.
Social Responsibility
Nishat is also taking up the social accountability issues very seriously, which are
so dear to the American consumers. Lot of big brand US companies have visited
us and are discussing the possibilities of a joint venture.
Opportunities
The opportunities are limitless, we have to review and analyze them very
thoroughly to associates with the right people in the long run. In the short term
we are building a small amount of quota, which will give us recognition as a
bedding supplier.
Future Prospectus in Non-Quota Countries
Nishat is very strong in non-quota categories like curtain and table linen. These
categories are best served with new product development (NPD).Nishat will
coordinate the effort for NPD by all markets to optimize results. Nishat has
achieved the highest sales in 1999-2002 for North America market. On top
Nishat has developed more direct and closer relationship with our end
customers.
Oceanic has been our most lucrative and mature marker. In business terms it is
our “cash cow” market.
Primarily due to being a non-quota market it had no real limitations in this market.
Despite economic problems in that region, it has maintained our sales figures in
the year under review. This market is a good design source for other markets,
which is helping us to maintain our print volumes.
Middle East Countries

60
Middle East market is composed of South Africa and the new emerging markets
like the UAE, Egypt, Saudi Arabia, Jordan etc. Nishat has dedicated new staff
with fresh energy for the emerging market.

They have successfully broken the ground and we have very strong faith that
these markets will give us good volumes in the near future. We are also targeting
printed apparel business for the first time.
Position With Regard To Competitors
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.
Our dyed fabric has already established its name in the market. It is being
exported to some of the leading brands of the world.
Market leader in textile sector why?
Nishat has increasing its profitability by working efficiently, procuring better raw
material and most importantly kept a very close association with its customers. 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.

 Best Working Environment

Nishat has provided its staff with better working environment and facilities, which
enhanced efficiency and out put.
 Professional Commitment
At Nishat, it is prospering due to our professional commitment toward excellence
and giving the best results at all times and against all odds. Its marketing and

61
production team’s co-ordinance at all times and it focus remains on maintaining
its position as the market leader in the textile sector of Pakistan.

CONCLUSION

Professional education can only be best taught and understand if there is a

considerable emphasis on practical aspect of education. Likewise other
professional disciplines, MBA Semester program requires the students to undergo
practical training to enable the students to get first hand knowledge.
I completed my training at Nishat Mills Limited for six weeks and gained much
knowledge, which would be difficult to obtain while sitting in the classroom.
While preparing this internship report, I tried to present whole of experience
obtained at Nishat Mills Limited, Lahore that would be beneficial for MBA students
not only from examination point of view but also from practical point of view.

62
 BIBLIOGRAPHY

1. www.iin.com.pk
2. http://www.ptj.com.pk/Web%202004/03-2004/trend.html

63
 ANNEXURES
Annexure 1

Contribution to total exports 60% (US $ 5.2 billion)

Contribution to manufacturing 46% of total manufacturing
Contribution to value addition 27% of industrial value addition
Contribution to GDP 8.5% of total GDP
Sector Employment 38% of total employment (15 million)
Skilled & Un skilled Ratio 70 : 30
Market Capitalization 12% of total market capitalization
Salaries and Wages 44 billion per annum
Total sector Investment 31% of total investment ( Rs.140 billion)
Technology Medium
Sources of Machinery Japan,Germany,Switzerland,Belgium,China

Annexure 2
Total Capacities

Spinning 1550 million Kgs Yarn

Weaving 4368 million Sq. Mtr. Fabric
Finishing 4000 million Sq. Mtr.
Garments 670 million Pcs.
Knitwear 400 million Pcs.
Towels 53 million Kgs.

64
Annexure 3
Number of Textile units in Pakistan:
Ginning 1221 Spinning 442
Weaving:
Large 124 Small 425 Power Looms 20600
Finishing:
Large 10 Small 625
Garments:
Large 50 Small 2500 Knitwear 600 Towels 400

Annexure 4

NUMBER OF EMPLOYEES

Year 2003 2004 2005 2006

No. Of employees 10331 10090 13146 14246

65