Case for Pom

  • Upload
    humaiq

  • View
    222

  • Download
    0

Embed Size (px)

Citation preview

  • 8/14/2019 Case for Pom

    1/26

    The tradition of quality, in products and

    business practice, runs unbroken through the

    history of Nishat group since its inception in

    1950.

  • 8/14/2019 Case for Pom

    2/26

    INTRODUCTION

    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.

    Textiles Exports from Pakistan

    Textiles constitute a major exporting sector for Pakistan, which accounts for about

    60%

    Of the countrys total foreign exchange earnings. The major export items are yarn,

    gray

    Cloth, finished cloth, towels and bed sheets and their major customers are the USA,

    EU, Japan and Hong Kong. Many textile exports take place under quota arrangements

    With the EU and the United States. Gray cloth constitutes roughly 16-18% of total

    cloth

    Exports from Pakistan.

    Nishat gray cloth exports account for roughly 20 % of Pakistani gray cloth exports.

    The

    Firm has been exporting to the USA for many years, and has only recently started to

    export to EU countries.

    In Pakistan, the cotton crop season runs approximately from August to March. Prices

    are generally high at the start of the season in August/September, and fall later on as

    supply increases. Following income tax law, the fiscal year runs from October to

    September for textiles sector.

    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

  • 8/14/2019 Case for Pom

    3/26

    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 nations 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.

    NISHAT GROUP OF COMPANIES

    NISHAT MILLS LTD, FAISALABAD

    NISHAT DYEING AND FINISHING, LAHORE

    NISHAT FABRICS, BHIKHI

    NISHAT SPINNING, FEROZE WATTOAN

    NISHAT SEWING, LAHORE

    PRODUCT LINE

    Products line of Nishat mills limited consists of following items,

  • 8/14/2019 Case for Pom

    4/26

    BEDDING

    Sheet sets

    Quilt cover sets

    Bed spreads

    Comforters

    Bed skirts

    Oxford pillow cases

    Blanket covers

    Sleeping bags

    CURTAINS & ACCESSORIES

    Embroidered curtains

    Pencil pleat tape curtains

    Pinch pleat lined & unlined curtains

    Tab top & rod pocket curtains

    Assorted pelmets and window dressings

    Oxford cushion covers

    Frilled and piped cushion covers

    Frilled, piped and pleated tie backs

    TABLE, FURNITURE & KITCHEN ACCESSORIES

    Tea cozy

    Table mats

    Table cloth and napkins

    Aprons

    Kitchen gloves

    Pot holders

    Chair pads with circle tacks

    Couch cove

  • 8/14/2019 Case for Pom

    5/26

    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. Banking

    4. Cement

    The textile business is further subdivided into 2 textile divisions;

    Nishat Faisalabad

    Nishat Chunian

    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.

  • 8/14/2019 Case for Pom

    6/26

    PRODUCTION UNITS OF NISHAT MILLS LIMITED

    The Companys production facilities comprises of:

    Spinning

    Weaving

    Processing

    Design studio

    Engraving

    Rotary screen printing section

    Finishing section

    Dyeing section

    Inspection and rolling section

    Quality control section

    Production planning section

    Stitching units

    Power generation

    Plant Capacity

    UNITS Scale 1998 1999 2000 2001

    SPINNING Kgs 54969 51989 48362 52467WEAVING Sq. Mt. 118008 140229 142304 152619

    POWER PLANT KWH 264902 264902 264902 315418

    Actual Production

    UNITS Scale 1998 1999 2000 2001SPINNING Kgs 53968 50529 46729 50907

  • 8/14/2019 Case for Pom

    7/26

    WEAVING Sq. Mt. 107661 128130 130444 140046

    POWER PLANT KWH 182090 189273 174829 179882

    Reason for Low Production

    Under utilization of available capacity is due to normal maintenance. The generation

    capacity of power plant was increased due to installation of gas turbines in last quarter

    during the year under reference.

    Production Machines

    No. Of Spindles 176452 178324 166792 153192 172992

    No. Of sulzer looms 338 338 388 284 284

    No. Of Air jet looms 120 120 180 244 244

    No. Of Thermo sole dyeing 1 1 2 1 3

    No of Rotary printing machine 2 2 3 3 3

    SPINNING

    Nishat Mills Limited initially started business with 10,000 spindles, which later on

    with the gradual increase reached 165,800. The entire machinery is from world-

    renowned manufacturers from Japan. A China and Europe. For reaching high quality

    standards, research and development is imperative for which Nishat Mills has state of

    the art yarn and cotton laboratories with world class scaling standards. Cotton is

    procured at the start of the season to avoid any variation, which, can occur in the crop

    from time to time enabling the mills to produce a consistent quality all the year round.

    For this purpose a fully equipped cotton laboratory with HVI-900/I and ASIF-N is

    working day and night during the cotton season to select the best quality crop to be

    purchased.

    NML spinning is operationally organized into seven 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 the buyer gets only the best

    out of the lot.

  • 8/14/2019 Case for Pom

    8/26

    NML spinning is thus renowned for being one of the most trusted brand names in the

    market enjoying the trust and confidence of the consumers world over.

    The major production from the spinning is exported to Japan, Far East, South

    America, Europe and the USA. In addition the spinning also provides the same high

    quality yarn to their own weaving mills going into fabric production.

    A Brief Range of Machinery and Production Range is Given Below

    A) Machinery Details

    Nishat Mills Limited (Faisalabad only) has seven spinning units with a total of

    165,880 spindles. Spinning production capacity for both cotton and Blended yarn is

    120 Tons/Day.

    Here under are summarized details of spinning machinery:

    1(BLOW ROOM

    Toyofa-Ohara-Heregeth (Japanese origin with German technology know

    how(

    2(CARD

    Trytzschler (German Origin(

    Crosrol (U.Korigin(

    Toyoda (Japanese Origin(

    Howa (Japanese(

    3) DRAW

    ING

    Toyoda& Howa (Japanese Origin(

    Rieter (swiss Origin(

  • 8/14/2019 Case for Pom

    9/26

    4(COMBER

    Toyoda& Howa (Japanese Origin(

    Rieter (Swiss Origin(

    5(SIMPLEX

    Toyda&Howa (Japanese Origine(

    6) RINGF

    RAMES

    Toyoda& Howa (Japanese Origine(

    FA-507 (Chinese Origin with Germen Drafting(

    7(AUTO CORNER

    Murata (Japanese Origin(

    8(DOUBLE INCH& TWISTING EQUIPMENT

    Murata (Japanese Origin(

    COUNT RANGE

    100%Cotton Carded

    From New 12 /1 to Ne32/1

    From New 12/1 to New 32/1

    All double Yarn in 100% Knotless/ auto-spliced

    100%Cotton Combed

    From New 12/1 to New 32/1

    From New 12/1to New 32/1

  • 8/14/2019 Case for Pom

    10/26

    All double Yarn in 100% Knotless/auto spliced

    We are also producing finer counts i.e., 42/1 combed and

    Above with the bending of imported cotton of longer staple length.

    BLENDED YARN

    Poly cotton

    Poly 52%: cotton 48% carded New 10/1 to Ne30/1

    Poly 52%: cotton 48% carded New 10/1 to Ne40/1

    Poly 65%: cotton 35% carded New 10/1 to Ne30/1

    Poly 65%: cotton 35% carded New 10/1 to Ne45/1

    Cotton Rich (CVC(

    Poly 45%: cotton 48% carded New 10/1 to New 30/1

    Poly 45%: cotton 48% combed New 10/1 to Ne 40/1

    Poly 40%: cotton 48% carded Ne 10/1 to Ne 30/1

    Poly 40%: cotton 48% cambed Ne 10/1 to Ne 40/1

    All yarn made at Nishat Mills Limited is ring spun, for both knitting (waxed or UN

    waxed) and weaving.

    Standard packing 24 cones per carton

    Carton Wt. 100 lbs.

    Quantity per FCL 39000 lbs. (40ft High cube container(

    WEAVING

    NML weaving enjoys the reputation for being the market leader in the loom state

    fabric business in Pakistan. Their fabrics are not only rated as the top quality but also

    enjoy a premium for their superior quality all over the world. Supported by their own

    in house spinning units, the weaving sector of Nishat mills limited produces fabric

    range form light to heavy percales to satin and traditional to twill dobby items.

  • 8/14/2019 Case for Pom

    11/26

    Their fabric is well established all over the world with their exports going to the

    America the Far East, Africa, Australia Europe and Japan. Besides export they are also

    supplying grey fabric to their dyeing and printing units.

    NML FAISALABAD:

    Machinery: 188 sulzer- Ruti looms

    Capacity: Approximately 2.1 million meters per month

    Product range 100% cotton and poly cotton fabrics, in plain weaves.

    Twills, Drills,

    Satins (regular /broken &stripped, Bedford cordsm herring bones pique and Rib

    cords.) This unit has been producing top qualities fabric for export as well as for

    consumption of their own processing unit. Recently awarded the ISO9002

    certification, the facility is highly regarded for the production standard and quality

    control. This unit is comprised of 188 SULZER- RUTI P7100 Looms and state of the,

    back up process, with equally efficient quality control and packing department.

    NML SHEIKHUPURA

    MACHINERY 96 SULZER-ruti- looms (unit -1(

    120Tsudakoma air jets (unit-2(

    60Tsudakoma air jets (unit-3(

    64Tsudakoma air jets (unit-4(

    CAPACITY: 4.5 Million meters per month

    PRODUCT RANGE

    The products in this unit range are not only the traditional 100% cotton polyester

    cotton fabrics, but also in Dobby items, customized to the buyer need.

  • 8/14/2019 Case for Pom

    12/26

    Established initially by the name of Nishat fabric limited 1992. Subsequently merged

    into Nishat Mills Ltd, NML Shiekhupura is one of the most advance unit In the

    country equipped with the state of art machinery and back processes, the highly

    sophisticated labotary also insured total quality control in yarn purchase and fabric

    production, and other64 tsudakoma air yet looms have added (unit 4) recently along

    with the back process.

    Future programs for the unit include the purchase of some new air yet looms, which

    will be give a boost to the production capacity and the product the range the unit will

    also expand subsequently.

    PROCESSING

    Nishat processing plant with monthly capacity of 3 million meters is one of the largest

    processing facilities of Pakistan. With and array of month modern machines, it is the

    geared to meet the ever increasing the demand of there client. The processing division

    has been divided in to different section to facilitate uninterrupted process flow and to

    insured quality control at all stages almost 75% chemical and dyestuff being used is of

    European origin and independent quality control department with a strong backing of

    fully equipped laboratory insured quality standard at all level. The processing plant

    has recently been awarded ISO 9001 Certification. Yet another achievement in this

    regard by Nishat mills limited.

    Bleaching

    Sometime cloth is bleached according to customer requirements. Bleaching helps to

    remove impurity from the cloth. For this purpose singeing machines are used where

    cloth is bleached in three steps.

    1. Brushing

    It helps to remove thread.

    2. Singeing

    It removes pills by temperature.

    3. Chemicals tanks

    It is used to remove oily and stain spots on cloth.

  • 8/14/2019 Case for Pom

    13/26

    At the end cloth is raped on a batch. Polies then bags are used to prevent air

    penetration. At the end, batch number, quantity, meters of cloth are written on paper

    and stocked with batcher.

    Desizing

    Sometimes cloth is desized according to customers requirements. It is used to remove

    the grey fabric stiffness of the cloth that helps in bleaching for easy washing.

    Scovring

    It is done in bleaching machine, it helps to remove artificial spot like oil, grease etc.

    PRE-TREATMENT SECTION

    Fabric preparation is crucially important, as the successful out come of all

    subsequently operations is dependent on it.

    At, Nishat, to reduce the natural impurity of cotton and to impart good hydrophilic

    properties, this section employees too singing machine and two modern open with

    width bleaching plants, to give more luster and strength one chain less mercerizing

    machine is also in operation. Besides preparing fabrics for dyeing printing, this section

    also bleach bacteria killer fabric for Japanese hospital linen and fire retardant low pill

    fabric for contract textiles.

    MACHINERY

    Singeing/Designing vollen weides 118

    Singeing/Designing Kyoto 108

    Bleaching plant benninger 95

    Bleaching plant Kyoto 95

    Mercerising C. Less goller 95

    DESIGN Studio

    The state of the art design studio, known for producing transparencies of the highest

    quality, accommodates a STORK STK image 3000,a CST Ramste lll silicon graphic

  • 8/14/2019 Case for Pom

    14/26

    02 and STORK Drum scanner plotter, along with these a team of convention manual

    color separation artist is also maintained.

    Design studio is a sub department of processing. Here cloth design is made. Tracers

    are there to trace out different pattern and design of cloth. For each type of color

    different films are made. Different trace papers that are sued at Nishat are of Kodak

    and AGFA. For each color separation, there are positive and negative films. Positive

    film is sent for processing. Ink is used to fill scratches and unwanted graphics.

    Tracing table is used to examine designs and it helping tracing of design. Germany

    waterproof ink is sued to avoid the ink expansion. Digital design studio is also

    complementary department of design studio. Where design are made on computer

    program and using information technology.

    ENGRAVING

    Technology advancement in the field of rotary printing necessitates upgrading the

    pre-print line-up. NML is reputed for the most efficient use of the STORK engraving

    systems for manual exposing. They are known for halftone work in single step

    designing.

    Living up to this reputation, they have recently added to their line lf production the

    ROTARY WAX JET With exposing resolution at 1019dpi and a screen

    circumference of 640,820 and 9144mm. Engraving at this high resolution with digital

    technology enhances the print quality to a great extent and reduces the existing human

    error margins to the minimum.

    ROTAARY SCREEN PRINTING SECTION

    In another step to upgrade the existing machine mix. Anew 3.2m (126) Regina

    printing machine, with a facility to print 16 colors has been installed. This machine

    with UNICA system successfully combines production and quality performance at the

    highest possible level in rotary screen-printing.

    NML has a well-trained work force to print extremely intricate and complex toe-on

    tone designs. Monthly printing capacity of the section is about 203 million meters.

  • 8/14/2019 Case for Pom

    15/26

    Besides conventional printing in pigment and reactive dyes, printing in puff effects,

    resist and discharge dyestuff is also done.

    MACHINERY:

    Printing machine Reggiani 126 16 colors

    Printing machine john zimmer 110 12colours

    Printing machine stork 72 16 colors

    Following files are maintained in printing department of Nishat mills limited,

    Process

    sheet

    Job

    description specification

    Audit

    report

    ISO

    9001

    Assess

    ment file

    Purchas

    e order

    Work

    instruction

    Staff

    document

    Worker

    document

    Reactiv

    e color document

    Standar

    d operating procedure

    Custom

    er letters and fax

  • 8/14/2019 Case for Pom

    16/26

    Organiz

    ational chart

    Technic

    al literature Daily

    production report

    FINISHING SECTION

    Offering optimal final fabric quality and handle very recently this section has been

    equipped with a new generation/ Babco-starter. This machine combines tried and

    tested drying technology with innovative electronic control system. Ensuring absolute

    reproducibility of fabric qualities and full documentation on the quality control checks.

    Besides offering normal finished, this section also full fills the demands for scotch

    guard protection for soil release and resist finish, peach skin affect finish (emerizing),

    Fire Retardant finish, water proofing, anti crease and easy care finish,

    MACHINARY:

    Stenter Babcock 130

    Stenter Monforts 110

    Stenter Monforts 95

    Stenter Monforts 73

    Stenter Krantz 95

    StenterKrantz 73

    Sanforizing M/c monforts 73

    Raising for Flannel sucker &muller118

    Emerizing M/c sucker &muller 71

    Calenders Ramish 110

    DYEING SECTION

  • 8/14/2019 Case for Pom

    17/26

    Nishat provides quality piece died fabrics in heavy twills to some of the world leading

    brand names like Gap, Old Navy, Banana Republic, DKNY, Tommy Hilfiger,

    CHAPS, and sears, this has been made possible by using high quality grieve from the

    mills own weaving units and by using expensive dyestuffs, Highly trained Chinese

    technicians keep a close check on all stages of production. Depending upon

    specifications, dyeing in reactive, disperse, pigment. Vat and sulphur is possible.

    To further enhance their existing dyeing capacity of 1,000,000 meters per month, a

    designated Apparel Fabric Dyeing Unit is being set up near Lahore. The machinery

    and land have been purchased for this project, which is planned to be operational by

    the end of year 2000. This unit, which will have a monthly capacity of 2.5 million

    mergers, has been designed to give the optimal results due to the custom built

    machinery purchased after careful and lengthy consideration of the technical and

    Marketing teams

    This would certainly give them an edge over their competitors and would be welcome

    addition in the ever-changing apparel fabric market. It will help Nishat mills limited to

    improve its market access and consequently profitability.

    Following files are maintained in dyeing section,

    Trainin

    g files

    Dyeing

    files

    Washin

    g file

    Lab to

    bulk

    Sample

    received file

    Singein

    g file

  • 8/14/2019 Case for Pom

    18/26

    OK for

    curing

    Sample

    status Sample

    letter

    Shortfal

    l file

    Daily

    stock file

    Aftercuring file

    Folding

    return file

    Daily

    attendance register

    Water

    fall cardMACHINERY

    Pad steam Goller 95

    Pad thermosal monforts 95

    Washing range Goller 95

    INSPECTION AND ROLLING SECTION

    To roll and pack 100,000 meters per day, this section has 8 rolling Machines; all

    equipped with photo censors and inspection frames. Apart from rolling and folding,

    the primary responsibility of rolling section is to prevent faulty fabric reaching the

    customer; the fabric undergoes a100%inspecion system. To assist in shade checking a

    data color computer system is also used.

  • 8/14/2019 Case for Pom

    19/26

    QUALITY CONTROL SECTION

    And independent on line quality control section monitors all production operation to

    the required levels. The quality control lab is fully equipped to conduct all relevant

    tests. The staff not only keeps control of the bulk production, but also is also actively

    involved in standardization of process routes and operating procedure.

    Quality control lab

    Nishat mills limited has not only build an international standard quality control lab to

    meet customers satisfaction but also to improve their own product quality. Various

    type of test is conducted at this quality control lab to improve the quality of products

    and to meet customer requirements.

    Two Types of Cloth Are Required By Customer

    1.When Customer Needs Specific Cloth

    When customers need specific type of cloth, he sends his own sample whose

    composition is tested is laboratory and production is made according to sample.

    2.When Marketing Deppt Offers Design

    When marketing department officers approaches customers, they show their product

    quality sample books to customer. Customers can select any leaf of them and can place

    order for this type of cloth. That cloth is already available with Nishat whose

    production is carried on according to the instruction of customers.

    Quality Control Policy

    Nishat mills limited are committed to move things in direction of TQM. Their prime

    Objective is comically produce products for the satisfaction of buyers. For this they

    plan thing ahead, fresh ideas are developed, make more effective use of time, put the

    right man in the right place, and keep on updating the skills of the employee by

    training.

    In the factory, in order to motivate employee and workers toward quality management,

    many billboards are theyre containing various statements like,

    Quality has no finish line

    Quality is degree of excellence

    According to juran Quality is fitness for use

  • 8/14/2019 Case for Pom

    20/26

    Quality ensures our future

    Tests to Ensure Quality

    Following test are conducted in quality control lab,

    Counter tests

    1) To

    count warp and weft

    2) Count

    Glass

    3) To

    count ends and picks

    4) Weight

    5) To

    measure weight of cloth

    6) Cock

    meter test

    It examines dry rub and wet rub

    7) Pilling

    test

    It is used to test pilling of cloth

    8) Durra

    test

    It is used to examine fastness of cloth

    9) Auto

    wash

    It is used to examine change in shade

    10) Vasctor

    It is used to examine shrinking of cloth

    11) Tumble

    dryer

    This test is used to examine dryness of cloth

    12) Padder

    It is used to examine matching and finishing of cloth.

  • 8/14/2019 Case for Pom

    21/26

    13) Currin

    g

    It is used to examine shade of cloth

    14) Light

    box test

    It is used to examine fastness of light on cloth.

    15) Presser

    It is used to determine pressing of cloth.

    16) Visco

    meter

    It is used to measure viscoty of cloth.

    17) Inspect

    ion table

    Here warp and weft and other type of faulth are examined.

    18) Chemic

    al analysis

    It is used to examine acidity.

    19) Spectro

    photo meter

    It is used to examine shading.

    20) Perma

    meter test

    It is used to measure passage of air from the cloth.

    These types of tests are conducted keeping in view market requirements, weather

    requirements and customer demands.

    Production Planning Section

    To control all production priorities and to load machine on day-to-day basis, a full

    fledge production planning cell is in operation. This production planning system is

    designed to be fine tuned with the clients needs and thereby ensures responsive

    handling of all accounts by fore-casting demands from each client in terms of greige

    quality and quantity, space on print/ dye machines and space on stitching machines.

    Coupled with forecast from their buyers, it makes their system work efficiently.

    Advantages of this system include shorter lead times, on time deliveries and less

    quality hassles.

  • 8/14/2019 Case for Pom

    22/26

    It is an intermediate party between marketing department and processing department.

    It issues daily production program to each processing unit. Daily production reports

    are received in this department. New product development letter is also received in

    this department. Then work is planned accordingly. Nishat group is pioneer for

    making production and planning department. Instructions are first given to production

    and planning department and then distributed to other processing units. Here various

    type ofanalysis are conducted like,

    1) Bleachi

    ng production analysis

    2) Printin

    g production analysis

    3) Dyeing

    production analysis

    4) Finishi

    ng

    5) Foldin

    g

    6) Damag

    e trend analysis

    7) Monthl

    y maintenance breaks down analysis

    Data flex program is used to save the date at production and planning department.

    First export manager creates orders from the customer and record specification of that

    order on a paper. This program is sent to the production and planning department.

    The cloth required is issued against the grey demand letter. First copy is remained in

    production and planning department. And second goes to grey stock room. On this

    letter grey issued is returned. It is generally more than demanded cloth because some

    cloth expected to be damage. For this job number is issued to work. When grey

    material is issued, lot number is given than production and planning department issues

    program according to specification of each processing unit.

  • 8/14/2019 Case for Pom

    23/26

    STITCHING UNITS

    Apart of Nishat plan to have a totally integrated textile sector the stitching unit was

    set up in 1989.the unit has a string work force of 400 skilled and semi-skilled workers

    mainly in cutting, stitching, quality control, folding and packing department. With an

    array of 250 modern new generation machines, the stitching, department has an

    average capacity to process up to 10,000 bed sets and 2000 curtain pair per day,

    approximately 40000 meters of fabric, the assembly line consists of combination of

    manual and automated operation designed to provide the required flexibility in its

    system to allow processing of a wide product range and versions of its existing

    product line the units current product line includes bed sheet, quilt covers, fitted

    sheet ,cushion cover, valances, datable linen, baby sets, quilted throwovers and

    curtains in various specifications and model customized to the requirements of

    individual market . In addition, a range of embellished products with piping, bias

    binding, bulk over lock, decorative trimming and bourdon stitching is also being

    offered to customers, facility to handle small volumes of decorative embroidery is

    also on line.

    Procedure of Conducting Quality Control

    Quality control procedures are carried out at every stage during production. From

    purchasing of material to cutting and stitching right till folding and packing of the final

    product, each aspect is scrutinized and controlled to the international quality standards.

    Power Generation

    The power generation unit formerly known as Nishat Tek Limited, was the first ever

    power generation company in the private sector in Pakistan.

    Commercial production sanded in 1992 with three KRUPP-Macungies with

    generating capacity of 5.5 Mw each, Capacity at Faisalabad has since eon increased to

    27MW. Supplying power exclusively to NML.Nishata Tek also establishes a power-

    generating unit of 6Mw at Shiekhupura to supply power to sulzer unit lll and

    Tsudakoma unit ill. It started commercial operation in September 1995.

    Future prospectus of Nishat mills limited are given as under

  • 8/14/2019 Case for Pom

    24/26

    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

    of21,672 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.

    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 years value addition will be the thing of

  • 8/14/2019 Case for Pom

    25/26

    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 year1999.

    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.

    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

    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.

  • 8/14/2019 Case for Pom

    26/26

    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 production

    teams co-ordinance at all times and it focus remains on maintaining its position as the

    market leader in the textile sector of Pakistan.