Escolar Documentos
Profissional Documentos
Cultura Documentos
Dedication
We would like to dedicate this report to our beloved parents for their kind support and help on our way to gain knowledge and skills. Their presence means a lot to us and a major source of motivation on the way to our goals.
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Acknowledgement
Without the help of certain people, our thesis would have never been completed. Thus, we want to take this opportunity to thank them. We thank, respected Mr. Mahboob Sanghi our examiner. His lessons gave us insights about the way of writing a report, and his constructive criticisms were a great help and provided the opportunity to learn from our mistakes. We thank as well our tutor, Mr. Mujeeb for the help he provided, the advices he gave, and for the time he took. We also want to thank the other students for their helpful advises during the completion of report and for the time they took to read our paper.
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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.
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Vision Statement
To transform the Company into a modern and dynamic yarn, cloth and processed cloth and finished product manufacturing Company with highly professionals and fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan.
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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.
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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.
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
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Nishat Mills Limited the community and for their employees, for it is with them that Nishat has achieved so much success in last fifty years.
COMPANY INFORMATION
BOARD OF DIRECTORS: Mian Hassan Mansha Mr. Fayaz Ahmad Longi (NIT) Mr. Muhammad Bilal Sheikh (PICIC) Mr. Aftab Ahmed Khan Mr. Khalid Qadeer Qureshi Mr. Muhammad Azam Rana Muhammad Mushtaq Mr. Muhammad Ali Zeb Mrs. Naz Mansha
Company Secretary Senior Manager corporate
CHIEF EXECUTIVE:
CORPORATE DEPARTMENT: Mr. Muhammad Azam Mr. Khalid Mahmood Chohan AUDITORS: LEGAL ADVISOR: Riaz Ahmad and Company Chartered Accountants
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Nishat Mills 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. (Stitching unit) Lahore 5 K.M. Nishat Avenue off 22 K.M Ferozepur Road, (Dyeing & Finishing Unit and Power Plant) 20 K.M. Shiekhupura Faisalabad Road, Froze Watwan (Spinning Unit)
REGISTERED OFFICE
Nishat House, 53, A, Lawrence Road, Lahore. Tel: 042-6367812-16 Fax: 042-6367414 LIAISON OFFICE: 1st Floor, Karachi Chamber Hasrat Monani Road, Karachi. Tel: 021-6367812-16 Fax: 021-2412936 3rd and 4th Floor E.F.U. House, 6-D, Main Gulberg, Jail Road, Lahore. Tel: 042-5715646-52 Fax: 042-5715644-5
HEAD OFFICE:
Nishat Mills Limited 4. Cement The textile business is further subdivided into 2 textile divisions; Nishat Faisalabad Nishat Chunian I did my internship in the head office of Nishatabad Faisalabad.
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.
Nishat Mills Limited 2. It must provide the product with consistent quality at a level that appeals to intended customers and satisfy their needs. 3. It must provide a product at a cost that always an adequate profit and a reasonable sale price.
i.
Quality policy
According to the ISO 9001 and ISO 9002, it is utmost responsibility of management to devise policies that provide quality products to customers. Nishat is working hard to ensure that they produce quality products.
ii.
Customer expectation
It is essential that customer expectation should be fulfilled. It is the responsibility of management to do so. Since Nishat is an exportoriented organization so utmost attention is paid to meet customers need and requirements.
iii.
Resource management
Utilization of resources play crucial role in the success or failure of organization. If resources are effectively utilized, they become cause of success for organization. Nishat is effectively using its resources and thus has achieved ISO 9001 and ISO 9002. In the financial year of 1999-00, it declared dividend of 26%, which is highest so far. This performance shows that Nishat mills limited have skyhigh goals. Human resource management also exists. They have ensured that, right man is placed at right job and also at the right time. Various training programs are offered for upgrading the skills of staff.
iv.
Nishat is fairly decentralized organization. Middle level management makes most of decisions and matters are decided in a friendly environment. Nishat cares a lot for its staff. Orders are not dictated but they are made with effective participation from staff.
v.
Management representatives
Nishat governing body is highly talented. Board of directors include professional of great repute. They are committed toward achieving a good name for Nishat mills limited.
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ii.
Amendments
If the amendments are made in the contract, they should be made with authorized person. And management should be fully informed with that.
iii.
Quality record
For the storage of record, there should be proper arrangements. Each item in accounts should be properly coded and placed. Cash should be paid by cheque.
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1. Design review
Design should be reviewed once made by the firms. This design should have some characteristics that should be in accordance with the business practices.
(8) Inspection
There should be proper inspection of stores so that every thing functions according to manners prescribed by certificates.
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Director processing
Manager processing
Manager folding
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Assistant manager
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G.M SALES
Sales officer
Sales officer
Sales officer
Computer programmer
Computer programmer
Job Assessment
At Nishat mills limited Performance Appraisal is prepared to check the performance of workers. It is like ACR (annual confidential report) in the government sector. The basic Objectives of job assessment are
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Nishat Mills Limited Check the overall performance of employees Whether the job assigned is fully done or not Integrity, honesty Loyalty Devotion and commitment of the part of employee to achieve organizational objectives
Accountability
Employees have to face inquiries or suspensions, if they are involved in activities which are not according to the goal of Nishat mills limited. They are often terminated from their jobs, if they are not performing well. They can be demoted from their ranks. In Nishat mills limited, promotion is granted on performance basis so they are also accountable if they are performing poorly. If the employees are not obedient to their superior or involved in unethical activities, they have to face the circumstances. Severe punishment like demotion, firing and suspensions are given to non-performing or low-performing employees.
Satisfaction Of Employee
Employees have a high morale. Top management is maintaining very cordial relationships with union leaders. Actually employees feel a part in the organization and its achievements.
Plant location
Plant location is one of the main long-term strategic decisions normally taken by top management. Nishat mills limited is ideally located in,
Nishatabad Faisalabad.
12- K.M Faisalabad road Shiekhupura. 21- K.M Ferozepur road Lahore.
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Nishat Mills Limited 5 K.M Nishat Avenue Lahore. Off 22.K.M ferozepur road Lahore. 20-K.M Shiekhupura Faisalabad (ferozewatan) Main factory is located at Niashatabad. It is a composite unit. Composite unit means all the process i.e. from spinning to stitching takes place under one roof. Product process includes spinning, weaving, processing, finishing and stitching units.
Spinning Section
The year 2008 mainly started with difficulties in the shape of the bullish and uncertain cotton market. Ever highest cotton prices were seen this year in Pakistan.
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Nishat Mills Limited Cotton prices started with Rs. 2,900/maund and went up to Rs. 4,000/ maund during this year. Most of the Spinning mills remained in a serious cotton crisis through out the year. We have, however, by passed these crises by following our one time cotton buying policy and same has also helped us to maintain steady quality results. Demand of 100% grey cotton yarn remained steady and we tried to uphold the prices along with market and to keep over all spinning in profits. By the end of the year, Far East market showed good response in terms of demand and prices of carded & combed yarn. Far East remained our main selling market of cotton yarn. USA had some steady demand during this year, where as in Europe demand of cotton yarn was reduced more. Development in terms of machinery is in progress for better quality of yarn. Installation of state of art ring frames is under way at one of our spinning units.
Weaving Section
During the year under review, we have observed highest ever yarn prices which made the job more difficult. The increase in the yarn prices was not absorbed by the fabric prices. We faced a lot of difficulties to win business in the international market because of high raw material prices. Moreover, political instability, law and order situation and energy crisis (Oil, Gas and Power shortage), increased our cost of production and held our product uncompetitive in international market. It is becoming difficult to maintain our performance in the present scenario. Fareast market showed difficulties on ground of price. Business in South America reduced by 80% in comparison with previous period because of the bullish yarn market and cheaper prices from competitors. Our wider width looms home textiles greige capacity continued facing decline in prices. Our strategy in this competition was to diversify ourselves customer wise, market wise and product wise. This was the only way to survive in such uncertain market. Another strategy was to cut costs by bringing innovative technologies. We continued to replace our old looms with the new state of the art looms and got new looms in different widths to meet the varying requirements of all of our customers. This is the first time that Nishat has looms with 90 width. By having these looms, we will be more competitive and can supply all types of greige fabric in varying widths. We hope that after getting these new looms, we would not lose any business because of the width problem, especially stretch articles. Moreover, we are planning for PFD plant in our weaving to give PFD fabrics to our customers, as many - 19 -
Nishat Mills Limited customers in Europe are asking for PFD fabrics instead of weaved fabric. In this way, we will be much competitive product wise and quality wise. It would increase our customer profile in Europe. We are also trying to reduce our production lead times by bringing state of the art looms. Customer services, keeping stocks of special filaments, yarns and fibers, are our major tools for a better lead time. We have added new European customers and started to increase business in France, Denmark, Turkey and Poland markets to fulfill the gap of the Fareast and South American markets. Our business in the special and technical fabric (Antistatic, Fire retardant, and military fabrics) has also increased with continuation of orders. We have increased the sales volumes to Nishat Dyeing and Finishing with a better product mix. We have launched several new products like Viscose Lycra, Cotton/Kapok/Lycra, Bamboo Lycra and Linen based items etc. in the Fairs/ Exhibitions and developed the same in different markets.
Nishat Mills Limited transportation costs. It will overcome unnecessary operational delays and costs. Moreover, this stitching unit is being upgraded with the latest machinery and a state of the art switch-track system that will enhance the working efficiency enormously along with the product quality. We are installing caustic soda recovery plant to have further value addition, cost reduction and diversification in production resources. We have installed new gerbur cutting equipment in our sewing operation. For exports, European market remained our main bread & butter earner during the period due to its economic and currency strength. Devaluation of rupee provided an auxiliary edge to European customers to shop more on our existing prices, which consequently increased our production & sales. We are exploring more opportunities to enhance our strong presence in European market. Furthermore, a lot of developmental works are underway for American market for regular and branded items. With escalating value of Chinese currency, Pakistani market is once again expected to attract US importers. Coupled with Nishats capabilities and competencies, our vertically integrated production facilities that can turn raw cotton to a final finished consumer product, always attract attention of US clients. We are very positive to materialize current developments into tangible sales in near future.
Nishat Mills Limited efforts towards specialized finishes over regular run-of-the-mill products to fetch better margins.
Power Generation
Nishat has 80 MW of self power generation facilities at different sites. We have always concentrated on installation of most modern and efficient power generation machines to get more with less fuel consumption. s Faisalabad 2 7 1 - Bhikki 3 4 1 Lahore 6 4 4 Ferozewatwan 3 4 - - Out of the total generation capacity, 46 MW generation is done through most modern and highly efficient gas fired generators and their design is based on tri-generation concept i.e. besides generating power these plants are producing steam for use in processing, for further power generation and hot water for process use or air conditioning. This concept makes it possible to use the precious energy to the maximize profitability of the company and help reduce environmental pollution. Keeping in view the current power shortage in the country, Nishat has responded to beckon of the Government and sold its excessive power from different locations to the local distribution companies.
Information Technology
Following series of adaptation efforts, our information system has got to a stage where activity based data are collected, classified, processed and interpretation of results is done there at in order to provide an integrated series of information to users for decision making, for further communication or analyses. In a progressively spirited atmosphere, our system plays the role as enabler and facilitator, which endows tactical values to the officialdom and considerably step up the excellence of administration. Starting with co-ordination and control, our systems help managers to investigate problems, envisage complex subjects and to take up new orders for production or services calculatedly. The concern is being taken by us in line with global conception and our team is taking part in every activity of our company to get
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Nishat Mills Limited better and instant outcomes. Keeping in view its significance, we have confirmed allocations in our budgets for investment in IT structure and activities.
By using personal contacts EBP (export promotion bureau) Trade Associations reports and publications.
After they have gathered the information, they start the conversation with the prospects. They send them e-mail in which they introduce their organization and different production facilities available. They give them the different incentives to
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Nishat Mills Limited work with NML. These incentives may include competitive prices, better quality, increased satisfaction etc.
Reply to inquiry:
When the inquiry has been received by the Deputy Export Manager (DEM), he carefully analyzes the specified products. He evaluated that whether the organization has the required production facilities or not to produce those products. He also tries to estimate the time required to produce those products before replying to the other party, DEM also analyzes the interested organization because Nishat prefer to work with chain store and organization which have some worthiness. If he feels that this party can become valuable and loyal customer for the organization in the long run, he then after consultation with the export manger replies to interested party. At this stage the DEM also analyzes the amount of each product inquired and determine whether it will be feasible for NML to produce that quantity of required products.
Price bargaining:
When the DEM gives the positive reply to interested party that we can provide you the desired product, quality and design, the other party asks for the price quotation for the each and every product. At this point the DEM perform the difficult task of costing. He calculates each and every cost which would be involved from the purchase of the Grey fabrics to the delivery of the products. In the costing calculation DE M also keeps in view the complexity of the design which would be printed. Hew includes the cost of the grey fabric, bleaching, printing, dyeing, finishing, stitching, packing etc. After the calculation of cost and consultation with the export manager the demand send this price to the party. if the other party is agreed on this price then its ok but is the party does not accept that particular prices then dem ask them to quote the
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Nishat Mills Limited price they are willing to pay. Then export manager and dem discuss these prices with the GM export that whether these prices are acceptable for the organization and we should accept or not. In the cases these prices are unacceptable for NML, the GM, Manager Exports and DEM offer new prices after reviewing the old ones to attract the party. It these prices are workable the other party places the order.
Sales contract:
In the next step, the export manager prepares the sales contract according the detailed terms & conditions mentioned in the order confirmations sheet to make the deal formal & legal. The GM export signs the contract and then it is sent to the buyer for counter sign. If the buyer feel any discrepancies or wants to make some changes in the contract, the GM & manager export discuss the matter to examine that whether the proposed changes are feasible for us. If it is so, the amended contract is sent to buyer for signature.
Nishat Mills Limited After the sales contract has been signed by the both par5ties, the buyer issues the purchase order regarding the specified design, quality & quantity of the product on their letter head and signed by the higher authority of the organization. The purchase order includes date, purchase no., shipment date, and ref. no. , terms, name of the vendor, description of the products required.
Opening of L/C:
If the customer approves the strike off, NML considers it a signal for starting the production. But if the customer does not approve the strike off and demand some kind of changes in design, color or shade then it is communicated to the designing and engraving department for making the desired changed so that the customer requirements could be met. Designing department make the necessary changes in the design to take a new strike off. On the other hand if the strike of is approved then before starting the bulk production of the req2uired products the DEM Asks the customers to open letter of credit according to the term or condition of the sales contact. Some Times NML also ask buyer to open L/C in the specific bank with which Nishat prefers to work. The DEM study all the clauses of the L/C and see what changes are required in the different clauses.
Production Schedule:
After the L/C has been opened by the bu6er, the DEM prepares the production schedule so that the production could be started in order to deliver the
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Nishat Mills Limited required products on time. Production schedule include the order no, date, quality of the fabric, quantity and quality standard (e.g. pilling, rubbing, shrinkage). entire concerned departments. This production schedule is signed by the GM export, manager export and sent it to the
Quality control:
As the productions starts, the duties of the merchandisers increase. They not only have to visit the designing department to ensure that the work is being done on the designs, the design are made according to the requirement of the customer, screens are sent to the printing department on time etc. They also see that fabrics are being bleached according to the requirement of the dying and printing. If the fabric goes for dyeing they should be very careful about color matching in the printing department. They have to mange the printing on time. They also have to give the guidelines to the production department employees. They have to remain in close contact with the quality control department in each and every stage. The merchandiser also ensures that the fabric has been reached in the finishing department on the time and that the finishing is done according to the customer specification (e.g. water repellent, oil repellent, and fire retardant).
Stitching Schedule:
If the end product is made ups, then the manager export prepares the stitching schedule according to the requirement and sends it to the stitching department. Stitching schedule includes all the details of Stitching (e.g. sales contract no, schedule date. Stitching schedule no, item description, quantity cutting instruction etc.) And packing. Merchandiser makes it sure that stitching is being done according to the stitching schedule, instructions are followed regarding cutting, time, quality of stitching, design etc.
Dispatching:
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Nishat Mills Limited At last after the stitching has been completed, the products are packed according to the customers requirement and sent to the port or as per requirement. The export department makes it sure that the bar codes are present, cartons are same as per requirement, the contents of the each carton and its weight has been written on it.
Accounting Department
In Accounting Department, under the supervision of concerned officers, I came to know different types of vouchers being prepared and their process of preparation vouchers are simply a written evidence of any business transaction. The
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Nishat Mills Limited different type of vouchers prepared in different departments of Nishat Textile which are as follows:
o o o o o o CASH PAYMENT VOUCHERS CASH RECEIPTS VOUCHERS BANK PAYMENT VOUCHERS BANK RECEIPTS VOUCHERS JOURNAL VOUCHERS PETTY CASH VOUCHERS
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PURCHASE ON CREDIT:
Generally raw material, store & spares are purchased on credit. In order to record them in the general voucher are prepared by the concerned person as purchase account debited and account payable credited.
SALE ON CREDIT:
Like purchase sale local and export are made on credit and at the time of delivery of goods general vouchers are prepared by account officer as account officer debit and credit the sale account copy of invoices attached with vouchers.
FINANCE DEPARTMENT
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Nishat Mills Limited Finance department is like heart in every organization whether organization is big or small. In every organization the department which firstly established is finance department. Efficiency and effectiveness of every organization depends upon efficiency and effectiveness of finance department. All the planning of an organization based on finance department because every new project needs financing and it cannot be acquired without better financial planning which is done by financial manager present in fianc department. At Nishat Textile finance department is situated at ground floor of the main office building. Upper level hierarchy of finance department is as follows, These are various types of activities performed in finance department. Financial decisions under instructions of board of directors Handling the accounting activities Credit management Handling the purchase Negotiation with bank In all the financial decisions there is G.M. Finance and financial manger involved. They let the board of directors know the latest financial condition of the industry. They assist the board how the can get finance and from where. Acquisition of short term running finance is their responsibility under the instructions of CEO and Director. Finance department heads account and monitor the accounting activities and give the proper instructions. There are various types of transactions, some are related with export some are related with local sales and some are related with purchase. These transactions are day to day or routine transaction. Treatment of extra ordinary or sudden in done according to instructions of upper level management. All other departments get assistance from finance department. All purchase of factory is taken place through finance department. Commercial manager who is the head of purchase department works under G.M. finance.
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Nishat Mills Limited The staff of department is educated and efficient and provided with computer facilities. On the whole department is very good and efficient that is why Nishat Textile is doing a good business. THE YEAR ENDED JUNE 30, 2008:The Share Transfer Books of the Company will remain closed for entitlement of Final Cash Dividend @ Rs. 2.50 per share i.e. 25%, from 25-10-2008 to 31-10-2008 ( both days inclusive). Physical transfers / CDS transactions / IDs. received in order at Nishat House, 53-A, Lawrence Road, Lahore upto 1:00 p.m. on 24-10-2008, will be considered in time for the entitlement of said dividend and attending of meeting. 2. A member eligible to attend and vote at this meeting may appoint another member as his/ her proxy to attend and vote instead of him/her. Proxies in order to be effective must reach the Companys Registered Office not later than 48 hours before the time for holding the meeting. Proxies of the Members through CDS shall be accompanied with attested copies of their CNIC. The shareholders through CDC are requested to bring original CNIC, Account Number and Participant Account Number to produce at the time of attending the meeting. 3. Shareholders are requested to immediately notify the change of address, if any. 4. Members who have not yet submitted photocopies of their Computerized National Identification Cards to the Company are requested to send them at the earliest.
SWOT ANALYSIS
Strengths:
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The major strength of Nishat is its location. The plant is situated in Faisalabad which is renowned in the world for textile production. Nishat is using the best machinery available in the market in its all the department, which helps Nishat to produce the world class products to meet the needs of the customers. As Nishat is a part of large industrial group, so it has no need to search out the raw materials from the market even during the peak season. For example, they can produce high quality yarn. Nishat management provides an excellent working environment to its employees, which motivate them to work more effectively and efficiently. Nishat has strength to produce the quality products at the lowest possible prices as compare to their competitors. Nishat is an ISO certified company, which produce a sense of satisfaction to its customers. Nishat also follow the ISO Standards. Quality control department equipped with most modern machines is also a big strength of Nishat, which ensures the quality at every stage of production. As a result the wastage is very minimal as compare to competitors. Adequate financial resources are also strength of Nishat. Nishat has the assets of worth about us4.5$ Billion. Nishat has highly educated and competent management and skilled labour which contributed to the success of Nishat. Nishat focuses on the chain stores and other big customers rather than focusing on the small customers. Nishat also focus on the long lasting relations with the customers. For these reasons its customers are very loyal. Nishat has a good reputation and image in the local as well as in the international market, which is also a major strength of Nishat.
Weaknesses
NML is purely following the centralized management style, due to which management has a burden of decisions, which ultimately takes too much time.
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Nishat Mills Limited As most of the machinery is imported from other countries therefore sometimes few spare parts are not available in the market which creates problems. Although NML pays very high salaries to the top management, it is not offering attractive salaries to the other employees of the organization. Therefore the moral of the employees is decreasing. Due to low salaries the rate of turnout is very high which hinders the growth of the organization. The rate of overtime payment to the employees is not comparable with market. NML is paying at the normal wage rate for overtime while the overtime rate is always high in all the organizations. Due to centralized management there is n o delegation of authority in NML which also hinder motivation of the employees. Less chances of promotion are available for the employees in NML, which is causing dissatisfaction.
OPPORTUNITIES:
When the WTO will be implemented, there would be a great opportunity of increase in exports if NMLl follow the international standards and provide high quality products to the customers at competitive prices NML should try to implement the latest ISO market as well as in international market. NML can explore the new markets for exports by giving the different incentives to its employees in the export department, which will improve its profitability. There is a lot of potential in the local market for NiCads products because people believe that Nishat products are always of high quality. So NML should also focus on local market. Nishat can introduce its garments in the local market by using the same stitching unit. This is also a great opportunity. standards including ISO14000 series, which will improve their image and customer satisfaction in the local
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Threats:
WTO implementation is a good opportunity but it is also a big threat at the same time it STI fails to provide good quality and competitive prices to its customers. There is no consistency in the government policies regarding textile sector. Incidents like September 11, 2001 attacks would also be a major threat. Political conditions of the country affect both NML and its customers as well. On one hand it makes reluctant to the management to make new investments. On other hand its customers also hesitate before signing new contacts. Increasing rate of electricity and GST are also big threats. Currency fluctuations and exchange rates can also create problems for NML. Government is focusing on the industrialization and is giving different incentives to the investors. competitors will increase. More and more competitors (National and International) are entering in the same markets and offering attractive pric4es to the customers. It is also a big threat because the number of
Conclusions
Nishat Textile is considered to be the leading organization in the field of textile. The name Nishat has become has become a symbol of quality and standard. The quality of cloth is dependent of textile yarn to finished cloth. Which is totally imported form various countries. Major machine are mercerizing machines, sober machine and J-Zimmer that con print cloth with 12 colors. All the sub department of processing like bleaching, dyeing, printing, and finishing are working under laboratory instructions so laboratory is playing role of executive in quality control. All the schedules of bleaching, dyeing printing and finishing are prepared by the laboratory. The customer satisfaction is a basic criterion of Nishat Textile. They are producing good quality products and 80% products are exported. Great care is taken for export products regarding. Marketers of Nishat Textile know the competition in the international market. They put their level best efforts to satisfy the customer keeping in view the costs of products and quality. - 35 -
Nishat Mills Limited Nishat has also a big share in local market. Local market. Local marketers are performing their jobs efficiently to enhance the sales and to satisfy the customers however in local market quality is lower then export market. So Nishat has greater capability to preclude what they claim for. If we turn to human resource department we see that there are certain gaps in human resources management of Nishat Textile. This department is not established and not considered to be very much important. Low attention is paid to this department by upper level management. There is lack of human resources planning, lack of recruiting activities lack of job analysis, compensation and reward system is not very much attractive and employees are not well motivated in Nishat textile. One good thing of this department is that the department let the employees follow the rules and regulations set by the organization strictly. Attendance is strictly checked 7 leaves as well. So there are good and bad both present in the human resources management of Nishat Textile. Nishat textile has the ability to produce what their customers want through excellent machinery and skilled workers in processing department and qualified marketing staff. But there are problems regarding human resource management and financial management. Despite having problems Nishat has good and increasing sales figures that will lead the organization to prosperity again.
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RECOMMENDATIONS /SUGGESTIONS
Organizations big or small profit or unprofitable have problems and there are always chances of improvements. This is also the condition for Nishat textile. As problems and difficulties have been identified, now here are some suggestions that may help the organization to improve. In processing department there is a need of skilled workers. There are certain departments of processing in which employees have been working since long but there efficiency is not improved and unsatisfactory results come out sometimes. The skilled labor will not only improve the efficiency but also will improve effectiveness. There should be chances given to skilled workers to enter the organization. There should be female artists and designers in design department as females have naturally more esthetical qualities than males. They will really improve the quality of designs and will introduce more innovative designs. Expanding product lines that will give more variety to people of country could extend local marketing and ultimately sales would be increased. There should be more staff in local marketing department to enhance the sales figure and to capture wide area of local market. There is need to increases the staff in this department only three or four This area persons are working with all the affairs regarding let the employees abide by the rules 7 regulation, recruiting, selecting and other activities. enhance efficiency and effectiveness. Job analysis should be done to know what are the jobs needed in the Compensation and reward system should be brought at higher level in order organization. I know some persons who are doing the job of two or three persons. to let the employees be motivated and happy. There should be more fringe benefits for the employees taking into consideration there devotion skill and experience. This higher level would make the employees more efficiency & effective. should carefully be handle to attract skilled employees and ultimately to
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Nishat Mills Limited There should be little compensation for trainees as well, as they can fulfill
their day to day traveling and food expenses. By doing this trainees will show more interest, more devotion, more potentials and will work with their full mental and physical efforts. The first aid and other medical facilities should be provided to the employees with in the mill area. There is continuous working in the mill and every time there are chances of any accident or unpleasant incident. So in order to handle this type of situation the first aid dispensary should be there with in the mill area. Company should have proper planning to purchase raw material as it is purchased sometimes without planning in every season that is the cause of high level of inventory and blockage of funds and ultimately affects the liquidity. As company has problems with its financial condition and Human resources, so there is need of better planning in order to solve the problems and to bring the company n right track that might have been lost.
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