1:INTRODUCTION
Nishat (Chunian) Limited was incorporated in 1990 as a public limited company with
an equity investment of Rupees100 million. A spinning mill having a capacity of
14,400 spindles was established at Bhai Pheru, Tehsil Chunian. It started
commercial production on 10 March 1991. The capacity was enhanced to 19,200
spindles in 1998. In 1998, the Company diversified its business interest by
venturing into a weaving project with the installation of 99 air jet looms.
A new state of art spinning unit started production in November 2000, increasing
the total spinning capacity to about 40,872 spindles. Subsequently weaving
capacity was increased to 212 air jet looms while the spinning capacity was
increased to 50,952 spindles. During the period ended 30 June 2005, the Company
enhanced its spinning capacity substantially by acquiring the operating assets of
Umer Fabrics Limited comprising of 38,544 spindles and by addition of a new
spinning unit with 40,128 spindles. In 2006, the Company also diversified into Home
Textile Business. The
Company is currently operating with 149,948 spindles, 293 looms, a modern dyeing
and finishing plant having capacity of 101,370 meters per day and captive power
plants with a total capacity of 29MW.Nishat Chunian Power Limited (NCPL)
incorporated on 23 February 2007, is a subsidiary of Nishat (Chunian) Limited. The
gross capacity of the NCPL is 200MW and is operating as an independent power
producer, selling its electricity to National Transmission & Dispatch Company
Limited. The Company successfully commenced commercial operations on 21 July
2010.
Vision Statement
To transform the Company into a modern and dynamic yarn, cloth and processed cloth and finished
product manufacturing Company that is fully equipped to play a meaningful role on sustainable basis in
the economy of Pakistan. To transform the Company into a modern and dynamic power generating
Company that is fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan.
Mission Statement
To provide quality products to customers and explore new markets to promote/expand sales of the
Company through good governance and foster a sound and dynamic team, so as to achieve optimum
prices of products of the Company for sustainable and equitable growth and prosperity of the Company.
Objective of Study in the Organization
The objective of this project is to conduct investment management of Nishat Chunian Ltd in order to
know the current position of Nishat Chunian Ltd for investment purpose and to suggest the following
persons in taking their decisions.
Investors
Creditors
Corporate Overview:
Nishat Chunian Group has an enviable business history of over two decades. From a modest start in 1990
with a spinning mill of only 14,400 spindles, the group today has a vertically integrated textile company
which prides itself of being the fourth largest textile company in Pakistan (in terms of turnover). In 2007,
the group diversified into the power sector by setting up a 200 MW Independent Power Producer. Today,
Nishat Chunian Group contains two companies – Nishat Chunian Limited (a textile company) and Nishat
Chunian Power Limited (a power generation company).
Brief History 1990 Nishat Chunian Limited (NCL) incorporated as a public limited company
1991 First spinning unit started commercial production
1998 Diversified into Weaving Business
2005 Acquired operating assets of Umer Fabrics Limited
2006 Diversified into Home Textiles Business
2007 Diversified into Power Business with the incorporation of Nishat Chunian Power Limited (NCPL)
2010 NCPL started commercial operations
Nishat Chunian Group is strongly committed to minimizing the adverse processing effects on the
environment. Nishat Chunian has the first dyeing unit in Pakistan to have all Size recovery, Caustic
recovery as well as a Waste Water Treatment System.
Size recovery
Reduces the overall environment impact by recycling the sizing agents from waste water thus reducing
effluent generation. This also reduces the need to manufacture these chemicals, which further reduces
emissions.
Caustic recovery
Reduces the overall environmental impact by recycling the caustic material used in fabric processing.
This set up not only reduces the emission of pollutants in waste water but also provides cost savings in
chemical and water recovery as well as energy savings through the recovery of hot water. It reduces water
usage and the need to manufacture these chemicals, which further reduces emissions.
Waste Water Treatment System
In our efforts to make the lives of our employees safe and more enriching, we have set up a Water
Effluent Plant at our Dyeing & Printing unit. This plant recycles the water to reduce the effluent load in to
the drainage system, thereby not only ensuring security for our employees but also for the society at
large.
Corporate Governance
Proper books of financial accounts are kept by the group.
Appropriate accounting policies are consistently applied in preparation of annual, half yearly and
quarterly financial statements. Accounting estimates used in the preparation of these financial
statements are based on reasonable and prudent judgment.
The international accounting standards, as applicable in Pakistan are followed by the group
companies in the preparation of published financial statements.
The system of internal controls at the group companies is sound in design and is effectively
implemented and monitored regularly.
The group companies are in compliance with the best practices of corporate governance as
detailed in the listing regulations of the stock exchanges in Pakistan.
Social responsibility
We are committed to contributing and caring for the community in which we operate. In this regard,
Nishat is well aware of its social responsibility for employee welfare and development. The group covers
housing and medical expenses for its employees and also provides schooling for their children. The group
also provides recreational and sports facilities for the resident employees at production premises.
Nishat has also established a school and a hospital under the Mian Mohammad Yahya Trust, at a cost of
around US$ 700,000. The trust is sponsored by Nishat Chunian Limited and members of the sponsors’
family.
The high school opened in 2000 for the employees’ children and general public of the area; has a staff of
around 40 teachers and offers education to 400 students.
The hospital has also been constructed in the vicinity of the plant; enabling local population to get
immediate medical attention instead of traveling to the nearest city. Around 80 patients are treated daily
in the hospital by a staff of around 30 people which includes 6 qualified doctors.
In 2009, our employees set up a fund of US $ 35,000 with their donations for setting up a relief camp for
about 500 internally displaced people of Swat. The camp was managed with the help of Pakistan Army
and locals of the area. We provided tents, water supplies, washrooms, food storage and all basic
necessities of life. The camp continued for almost 3 months and was regarded one of the best managed
facilities for the internally displaced people.
After the floods of 2010 in Pakistan, our employees took active part in the relief efforts for the
rehabilitation of flood victims. The relief efforts included a medical camp at Kot Adhu plus a month’s
supply of basic necessity goods for about 100 families. These goods were distributed in the areas that
were cut off from other parts of the country due to excessive flooding and the aid was flown into those
areas through helicopters provided by the Pakistan Army. Bedding Supplies were also provided for about
80 families. Total donations amounted to approximately US $ 25,000.
Spinning Profile
Nishat Chunian Limited has a Ring-spinning capacity of 150,000 spindles producing 50,000 tons of
greige yarn per annum. Our state of the art machinery, technical expertise and careful selection of best
available raw material result in the finest quality of yarn. NCL has a wide range of brand loyal customers
all over the world which comes as a result of consistency in quality, reliability and diversity of the yarns
that we produce. We make yarns for multiple end-uses including Denim, Apparel, Shirting, Home Textile
and Technical Fabrics. Our major markets include Hong Kong, Mainland China and Europe. Our focus is
to maintain consistent quality, on time delivery, after sale service and prompt response to all customer
needs.
Spinning Products
NCL covers a broad range of Ring-spun yarns from Ne 6/1 – 135/1 for multiple end products &
applications. We are a market leader in coarse yarns including plain, Slub, Siro and Core-spun stretch
yarns for denim and bottom weight fabrics. Our fine Compact Yarns cater to high thread count Sheeting
and fine quality Shirting Fabrics. We also produce yarn for work wear, technical fabrics, towels and
knitted fabrics. Depending on count and customer requirement, yarns are available in a wide range of
local and imported cottons including US Pima, Egyptian, CIS ELS, Australian, Indian, Brazilian & US
cottons. We are Supima® and Cotton USA® certified and Lycra® accredited.
Spinning Machinery
The spinning facility consists of five mills with a capacity of 150,000 spindles producing 50,000 tons of
yarn per annum. It includes 42,000 spindles with compact attachments from Toyota and Sussen; 26,000
spindles producing Amsler slub yarns and 14,000 spindles equipped with core-spun stretch yarn
attachments from Pinter. All mills are equipped with modern Japanese and European machinery, which is
regularly upgraded to make use of the latest available technology. Each mill is specially designed to
produce its specific count range resulting in unmatched control over yarn quality.
Weaving Profile
Established in 1998, the weaving department consists of 293 air jet looms producing 3 million yards of
greige fabric per month. With a combination of state of the art weaving equipment, technical know-how
and managerial expertise, NCL Weaving has developed a reputation for quality service and products
worldwide.
Our in-house spinning helps maintain a better control over quality and facilitates innovative product
development, greater product flexibility and shorter lead times. At NCL we cater to the demands of both
the local and the international markets. Apparel fabric is exported to the Far East , Europe and North
America , whereas the sheeting fabric is mainly exported to high-end US and European buyers. In terms
of sales, Nishat Chunian is one of the largest Pakistani exporters of sheeting products to the US.
Weaving Machinery
The weaving mill consists of state of the art Picanol Omni Plus, Picanol Omni Plus 800 and Toyota jet
710 Air jet in various widths ranging from 110 – 150 inches, providing greater flexibility in catering to
customer needs. The Sizing and Warping machinery is manufactured by the renowned European
company Benninger-Zell.
Highlights
Warping Bendirect-1000-2400-GV/OPTOSTOP-1152
Sizing Ben-Sizetec ZB32 MWKVDMW CTA4/4/6 PW BBe
Looms Picanol Omni Plus, Picanol Omni Plus 800 and Toyota jet 710 Air jet
No. Of Looms 293
Model 2003-2010
Widths 280cm, 340cm, 380cm
Special Features Dobby Attachments, Batching Motions, 4 Color Insertion, Multiple Pick insertion till 8PI.
Compressor Atlas Copco, Cooper Air Compressor
Air Conditioning Luwa, Air Plus
Product Development
At NCL, we believe in experimentation and exploration of new dimensions. Our product development team carries out extensive research to keep updated on new market trends and to stay one step ahead of the competition. We constantly work hard to translate our novel and creative ideas into attractive products.
Usage of Special FibersThe flexibility in our product range allows us to use various types of fibers. Some of the fancy yarns we use include blends of Cool Max, Nylon, Modal, Tencel, Bamboo, Pearl, Soyabean Fiber, Milk Fiber, Silver, Cashmere and Amicor.
Innovation in Fabric Construction
Our innovations in fabric construction have resulted into several noteworthy products. High thread count sheeting fabrics of unmatched quality have been produced as far as 1000 thread count using single ply yarn till Ne 150. Fabrics can be produced using multiple pick insertion upto 8PI. Some fancy dobby fabrics with intricate designs have also been manufactured using 12-16 frames.
Home Textiles Profile
The dyeing and printing plant has a capacity of 4.0 million yards per month with an equivalent stitching
capacity. These plants are equipped with state of the art machinery specially designed to cater to high
thread count fabric.
During the dyeing, printing, finishing and stitching processes, several measures are taken to ensure timely
delivery of high quality fabric. This includes special care in fabric handling, full width rail stitching, PVA
based size recovery, various devices to avoid creases and band mark variation, special unwinding devices,
efficient squeezers, a computerized dye dispensing system and an on-line measurement and storage of
data at every machine.
We have implemented a wide range MIS system that efficiently links all the processes. This information
system is installed to minimize idle machinery time, increase productivity and reduce costs, affirming our
position as a leading and cost effective supplier.
Home Textiles Products
The dyed and printed Sheeting range comprises of high density fabrics of unmatched quality with widths
up to 340 cm and yarn count range of Ne 20/1 – 100/1. This includes Percales up to 400 thread count and
Sateens up to 1000 thread count. Other products in this range include fabrics with upto 6 pick insertion,
dobby fabric with intricate designs using 12-14 frames and fabrics made using plied, slub and fancy
yarns.
In addition to 100% cotton, a number of fibers in various blends are used including Polyester, Viscose,
Modal, Tencel, Bamboo, Soyabean, Milk Fiber, Lycra, Cool Max, eVAP, Nylon, Amicor, and Pearl
Fiber.
Dyes & Finishes
We offer a wide range of dyes and finishes which can be adapted in accordance with customer
requirements. The various dyeing options include Pigment, Vat, Reactive and Disperse. In printing we
have the option of doing Pigment, Soft Pigment, and Reactive Prints.
Some of the various finishes we can do are Water Repellant, Soil and Stain Resistant, Wrinkle Free, Anti-
microbial, Fragrance, Bleach Resistant, Ultra Soft Hand Feel, Anti-Dustmite and Fire Resistant.
Stitching Products
Bed Linen
Products in this category include Flat Sheets, Fitted Sheets, Pillowcases, Pillow Shams, Dec Pillows, Bed
Skirts, Duvet Covers and Comforter Shells.
Curtains
The product range also includes 100% Cotton & Cotton Polyester Blended Window and Shower Curtains.
Some of the different styles that we offer are Tab Top Curtains, Rod Pocket Curtains, Back Tab Curtains,
Grommet Curtains and Tie Backs.
Table Linen
We produce Table cloth, Table Runner, Napkins and Ruffles Round.
Home Textiles Machinery
The dyeing and finishing plant is equipped with the latest machinery from Kuesters and Monforts, market
leaders in processing technology for wet and dry processes respectively.
Highlights
Singeing and Bleaching Kuesters
Mercerizing Kuesters
Pad Steam Range Kuesters
Highlights
Thermosol Range Monforts
Stenter Range Monforts
Printing Machine Reggiani
Sanforizing Range Monforts
Calender Kuesters
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