COMPANY PROFILE

The Nishat Group:

Nishat has grown from a cotton export house into the premier business group of Pakistan with 5 listed companies, concentrating on 4 core business; Textiles, Cement, Banking and Power Generation. Today, Nishat is considered to be at par with multinational operating locally in terms of its quality products and management skills.

Annual turnover of 17 billion rupees. 14 billion from textiles. Earn foreign exchange of US $ 236 million. Pay taxes and levis of 2,080 million rupees annually.

Nishat Mills Ltd:

Flagship Company established in 1951. Most modern, biggest composite unit of Pakistan. Professional and client oriented marketing. Green company. ISO 9001 and IKO-TEX 100 Certified. SA 8000certification currently in progress.

NML today has 1, 73,000 spindles, 284 sulzer shuttle less looms and 244 TSUDAKOMA air jet looms. NML also has the most modern textile processing unit, 2 stitching units and power generation plant with a capacity of 33.6 MW. NML total export for the year 2009 is 38.8 billion rupees. Due to the application of prudent management policies, consolidation of operations, a strong balance sheet and an effective marketing strategies, this trend is expected to continue in the years to come. The companys production facilities comprise Spinning, Weaving, Processing, Stitching, and Power Generation.

EXTERNAL FACTOR EVALUATION (EFE) MATRIX

KEY EXTERNAL FACTORS OPPORTUNITIES Weight Rating Weight ed Score 4 3 0.48 0.39

WTO regime implementation. Cost reduction by using modern and technology. Local market development. Entering in Energy sector. (Subject to Government permission)

0.12 0.13

0.10 0.11

1 2

0.10 0.22

THREATS Export of raw cotton and yarn. WTO regime implementation. Exchange rate fluctuations. Instable political and economical conditions. Government policies.
TOTAL

0.12 0.10 0.09 0.12

4 4 2 4

0.48 0.40 0.18 0.48

0.11 1.00

0.11 2.84

Regardless of the number of key opportunities and threats included in EFE Matrix, the highest possible total weighted score for an organization is 4.0 and the lowest possible total weighted score is 1.0. The average total weighted score is 2.5. A total weighted score of 4.0 indicates that an organization is responding in an outstanding way to existing opportunities and threat in its industry. A total score of 1.0 indicates that the firms strategies are not capitalizing on opportunities or avoiding external threat.

INTERPRETATIONS: EFE score of 2.84 indicating that the NML is taking the external opportunities and avoiding external threats quite well, however there is room for improvement is well. This score suggest NML to be aggressive but the degree of aggressiveness needs to be little moderate, it should not go for diversification, rather it should go for penetration in the The industrial growth is high and Nishat Textiles has high market growth as well. So, it lies in the first quadrant (Stars) of the BCG matrix. It implies that,
3

company has the opportunity to go for Market penetration to capture more share in the existing market by using new technology, and increasing promotional activities. It also has a tremendous option of local market development. Other feasible strategies may be the backward integration to secure the supplies in order to tackle with the threat of exporting of local raw material to foreign markets. Also Nishat Textiles goes for forward integration to minimize its weakness of transit time of goods and services to its customers.

COMPETITIVE PROFILE MATRIX (CPM)

Industry: Vertically Integrated Textile Mills Nishat Mills Ltd.
CRITICAL SUCCESS FACTORS NISHAT MILLS LTD. Ratin Weight g ed Score CRESCENT TEXTILE MILLS Ratin Weight g ed Score CHENAB TEXTILE MILLS Ratin Weight g ed Score

WEIGH T

Product design Technological up-gradation Research & development Market Segmentatio n Distribution & promotion Capacity utilization Persistence in product quality Efficient procurement of raw material Effective management Trained manpower Cost competitiven

0.07 0.11 0.10 0.07 0.07 0.08 0.09 0.09

4 3 4 2 3 3 4 3

0.28 0.33 0.40 0.14 0.21 0.24 0.36 0.27

3 4 3 2 3 3 3 3

0.21 0.44 0.30 0.14 0.21 0.24 0.27 0.27

3 3 2 4 2 2 4 3

0.21 0.33 0.20 0.28 0.14 0.16 0.36 0.27

0.08 0.07 0.10

3 4 2

0.24 0.28 0.20

4 3 2

0.32 0.21 0.20

2 3 1

0.16 0.21 0.10 4

ess Customer satisfaction & loyalty

TOTAL

0.07
1.00

0.21
3.16

0.21
2.98

0.14
2.56

The Competitive Profile Matrix identifies the firm major competitors and its particular strength and weaknesses in relation to a sample firms strategic position. The rating refer to the firms strength and weaknesses where 4= major strength, 3=minor strength, 2=minor weakness and 1=major weakness. INTERPRETATIONS: A Nishat mills limited is dominating in the industry as compared to local players. There are several competitors like Agzard 9, Kohinoor textile mills, etc, but above taken competitors are the major ones. CPM scores for NML showing aggressiveness as compared to the crescent and Chenab textile mills. NML is number one company within the local environment; it is basically leading the industry in the following aspects:

Product design. Research & development. Persistence in product quality. Trained Manpower.

Moreover, crescent textile mills is resides at the second number and leading industry in effective management style. Finally Chenab textile comes at number 3rd with leading position in persistence in quality and market segmentation.