Marketing

Marketing means a market research process in which attitudes, needs and competitors’
products are assessed and it also continues through, promotion, customer services,
advertising, packaging sales and distribution. Over the years the Nishat Marketing team has
been successful to build trust with various known global brands like Micheal Korrs, Crate
and Barrel, Tommy Hilfiger, Ralph Lauren etc which are associated with consumers
throughout the planet.Nishat Mills Limited is known to be the best marketing department in
the whole textile industry because of the commitment and dedication of employees, the
determination of work & the best management system.

Marketing mix for Nishat Mills Limited

Products and services

Products:

NML produces great brands and therefore has a good reputation in the different countries. It is
working in the sector of spinning, waving, and home textiles and under these units a large number of
products are prepared with different designs as well. NTM is engaged in the business of textile
manufacturing and using weaving, spinning, printing, bleaching, dyeing, combing, stitching, buying,
selling, cloth, yarn and fabrics made from raw cotton, synthetic fibre and cloth, linen and to generate,
distribute and supply electricity. All the data is taken from the official website of nishat mils limited.

. spinning weaving home textile

garments processing nishat linen power generation

 1. Spinning:

Nishat Mills Spinning Division has over 238,032 spindles, which are operationally organized into
7 spinning units. The entire machinery is from world-renowned manufactures. All yarns made at
Nishat are Ring Spun suitable for both knitting and weaving. Besides the best Pakistani cotton,
long stapled American, Egyptian and US Pima cotton is also used for fine counts. For our strong
belief in product development and innovation we have our own in house state of the art cotton and
yarn testing laboratories. Nishat spinning is one of the most trusted brands in the market due to its
efficient production and quality.

Spinning production capacity for both Cotton and Blended Yarns is 200 Tons / Day.

Yarn dyeing: Nishat Yarn Dyeing is one of the latest exhaust dyeing units in Pakistan
having installed production capacity of 5.0 tons per day. We are processing yarn and

2-weaving:

Nishat Mills Weaving division has 794 modern Air Jet looms which produce approximate
11.3 million meters of fabric per month and makes it the largest weaving facility of Pakistan
catering to home textile and apparel fabrics.

3-processing:

Our fabric processing facility is one of the largest and most modern factories of Pakistan.
With an array of custom-made machinery, it has the capacity to produce 104 million meters
of fabric per annum. It is specially designed to handle heavy weight fabrics like twills, drills,
canvases / poplins, fabrics with minimum tension such as stretch fabrics and all high density
weaves. The advantage achieved by the customized design of its machines is the result of an
extensive research work with the help of world renowned machine makers. To ensure that our
customers get the very best we use more than 75% dyes and chemicals of European origin.
The standards are higher than ever, dedicated by fashion, efficient productivity and further
automation is engineered in the plant. To maintain quality and international standards, an on-
line Quality Control (QC) Department has been setup. The QC department is augmented by a
fully equipped Laboratory, which scrutinizes the fabric process flow at all levels. Our extra
ordinary Research & Development work and highly trained marketing personal are pivotal to
sustain long term business relationships.

4-home textile:

With an array of 1,339 modern new generation sewing machines, the Home Textile Division
consists of 2 stitching facilities. The two facilities combined have an average production
capacity of approximately 24 million meters per annum. The product line is customized to
manufacture products of various styles and sizes according to the requirements of our
customers, wholesalers, retailers and contract textile business.

5-garments:

Nishat Mills Limited has state of art garment manufacturing facility both for men and
women. The Apparel division has deployed 2900 high end sewing machines such as Vibe
Mac, Juki, Mitusibishi and Brother. The Division has the capacity to produce 14.40 million
garments per annum.The Garment wet process utilizes the modern techniques of Rinse,
Enzyme Stone, Enzyme Wash, Super Bleach, Reducer Wash, Tint Wash and Raisin Wash. In
order to obtain best results, our facility is geared with Tonello Washing machines, Maino
dryers, Wrinkle Curing Hangers and Barrel washing machines and Dryers for sampling. Our
qualified team members utilize the equipment to obtain optimal results and cater to the
specific needs of the client.

6-power generation:

Generation Facilities

Nishat Mills has established state of the art, modern, highly reliable and extremely efficient
captive co-generation power plants to cater in house energy requirements at all its spinning,
weaving, processing, stitching and apparel units. These facilities are using Wartsila,
Caterpillar, Cummins, Daihatsu, Jenbacher & Mak engines for power generation. Gas,
Furnace Oil, Diesel, Coal & Biomass and Steam is being used as fuel for power generation.

7-nishat linen: Nishat Linen is a concern of Nishat Mills, the textile and home fashion retail
chain that has redefined the industry with acute attention paid to quality, design and
affordability. Nishat Linen prides itself on being the brand of preference for discerning
customers who are in search of things, unique and chic without compromising on aesthetics
or price. Unsurpassed customer service, including tailor-made orders, ensures our clientele
remains loyal to the Nishat family. From bed linen to kitchen coordinates, upholstery to
apparel, Nishat Linen has become a household name as a creator of stunning, high-quality
designs at reasonable prices; a feat achieved by few.

Pricing strategy

The NML for the survival will have to reduce the prices and they are trying to do this because
they have the higher prices as compared to the competitors and this is because of high cost of
production. This data is taken from the following link
https://www.ukessays.com/essays/marketing/company-and-market-analysis-for-nishat-group-
marketing-essay.php

Place/ Distribution channel

Its about that Nishat Textile transportation, order processing, warehouse and logistics as well.
NML export more than 90% of its products. So, they are using two types of distribution
channels in export.

 Direct channel
 Indirect channel
Direct channel

NML is also dealing directly with customers. As in the local market, the buyers direct contact
with the NML. So the export department fulfill their order by the transformers. The
transporter help in delivering the products. The comely deliver to the buyer is the greatest
service to the customer, timely delivery is important for thee success and the department of
the organization.

Indirect channel

NML to agent & customer. In the export of textile products, the agent are the backbone of the
textile industry. They receive order on the behalf of buyers, give to the seller. They receive
their commission from the buyer and the seller.

 The agent also purchases the products; sell them directly to other buyers. So, in the
trading they earn enough profit.
 There has been a large no. of employees which are working for their organization in
the foreign countries as well as in this country.
 NML mostly receive orders through agents
 NML pays commission to them.
 Mainly the responsibility lies on the agents in the case of late shipments, payment
problems and the quality problems.
 They are using different modes of transportation to transfer the products from Nishat
to customer’s country.
 Trucking
 Shipping
 Air lines

Promotion

Customers are everything so NML trying to focus more on the customer-based policies so
that the customer's confidence can be won.

 NML provides the company broachers to the buyers.

 It provides the samples of the grey fabrics. The yarn to the customers.
  NML has direct contact with the local and foreign agents, so they promote the
company’s products.
 Visits to the customers.
 NML marketing manager also visits its customers.
 Their high quality of the products on the fine count the grey cloth is also promoting
the company and establishing image and goodwill.
 NML provides the timely information to the customers which help in promoting.

http://www.academia.edu/28708827/NISHAT_MILLS_LIMITED_MARKETING_IN_HOM
E_TEXTILE_REPORT_WORKED_BY

Environmental analysis for NML

Micro external environment enables an organisation to have a good knowledge of the forces
which can cause problems for the organisation from outside the organisation.

Porter forces model:

“Five forces model is helpful to analysis an industry’s competitive environment. In all

industries, the rules and nature of competition are alive in a five forces framework (FFF). The
Porter’s 5 Forces model is a very simple but the powerful tool which helps to understand the
business situation. This model enables an organisation to understand both current competitive
situation and the position which you are looking for.

 
  supplier’s bargaining power:

Supplier bargaining power is affecting the Nishat mills profit. Because of inflation the prices
have gone up and the raw material as well. So this powerful bargaining hitting the profit
badly of NML.

 New entrance threat:

This is a threat which every organisation faces. Keeping them save from this threat they use a
scale of economies so that the cost can be reduced and product differentiation can be
maintained.

 Buyers bargaining power:

Bargaining power of the buyer is helping to reduce the profit ratio of the NML because they
want discount in the products and insist for the more which is helping to minimise the margin
ratio.

 Substitute’s threat:

Substitute products are available in the market and creating the problems for the Nishat
textile mills. So such kind of threats are available both at national and international market.

 Rivalry between existing competitors:

This is strong threat to the company’s profit ratio and market goodwill. Both nationally and
internationally the competitors are very strong and beating to each other in everything. So
this is the strongest threat for the NML and they will have to consider it as a first priority
threat for the survival. The below table shows the porters five forces analysis.
PEST analysis

Political Instability

The political situation of Pakistan is not satisfactory. Due to the rapid change in the
Government every government sets its own new trade policies. Govt. should apply
sustainable policies for the beneficial of the exporters as well as the investors.

Economic situation

The economic condition of Pakistan can also affect the foreign investors increasing inflation
rate make the cost of production high and thus reduce the profit margin of the investor.

Social situation

The change in the lifestyle of the people affects the growing demand of the NML products.
The change in the lifestyle and needs in different demographics also affect the demand of the
customers. Due to all these changes NML is performing excellent for the excellence
organization as well as for the customer.

Technological factor

Technological advancement in all the sectors of the country has changed the entire socio-
economic environment. Especially in the textile sector there is a lot of technological
development. NML Excellent computerized machines and devices are installed in the NML
has made extension in its present setup by installation of well advanced technology imported
from Japan China and France.

https://www.academia.edu/28708827/NISHAT_MILLS_LIMITED_MARKETING_IN_HOME_TEXTILE_IN
TERNSHIP_REPORT_WORKED_BY
 FINANCE

Ratios of the NML

Liquidity Ratios: current assets/current liabilities

Ratios that measure a firm’s ability to meet its short term obligation.

Summarized statement of financial position 2018 2017

PKR (000) PKR (000)
Current Assets
Stores, spares and loose tools 1,714,031 2,106,878
Stock in trade 12,243,652 12,722,712
Short term investments 2,581,520 2,535,973
Other current assets 12,503,482 11,632,584
Total current Assets 29,042,685 28,998,147
Current Liabilities
Short term borrowing 12,507,590 14,697,393
Current position of long term liabilities 2,144,900 2,093,024
Other current liabilities 6,607,726 5,948,141
Total current liabilities 21,260,216 22,738,558
Current Ratio 1.37 1.28
Inventories 13,947,931 14,900,241
Acid test (quick) Ratio 0.71 0.62

current assets
Current Ratio=
current liabilities
It shows a firm’s ability to cover its current liabilities with its current assets.
current assets−inventories
Acid test (quick) ratio=
current liabilities
It shows a firm’s ability to meet current liabilities with its most liquid (quick) assets.
Financial leverage (debt) Ratios:
Ratios that show the extent to which the firm is financed by debt.

Statement of financial position 2018 2017

PKR (000) PKR (000)
Debts
501,849,566
Add: current liabilities 498,131,959
22,738,558
21,260,216
Total debt 519,392,175 524,588,124
Shareholders’ Equity 75,713,145 88,762,796
Debt-to-Equity Ratio 6.86 5.91
Total Assets 102,736,033 117,530,275
Debt-to-Total-Assets Ratio 0.26 0.24

Total debt
Debt-to-Equity Ratio=
Shareholder s' equity
Total debt
Debt-to-Total-Assets Ratio=
Total assets

Coverage Ratios:
Ratios that relate the financial charges of a firm to its ability to service, or cover them.

Statement of financial position 2018 2017

PKR (000) PKR (000)
Earnings before interest & Taxes 4,957,127 5,020,342
Interest Expense 860,000 758,000
Coverage Ratio 5.76 6.62

Earningsbefore interest ∧taxes(EBIT )

Coverage Ratio=
Interest expense

Activity Ratios:
Ratios that measure how effectively the firm is using its assets. It is also known as
efficiency or turnover Ratio.
 Statement of financial position 2018 2017
PKR(000) PKR(000)
Net credit sales 58,556,734 61,911,159
Receivables 3,420,370 2,828,285
Receivable turnover Ratio 17.12 21.89
Receivable turnover in Days 21.32 16.67
Cost of goods sold 48,178,678 43,867,819
Inventory 13,947,932 14,900,241
Inventory turnover Ratio 3.86 3.87
Inventory turnover in Days 94.56 94.32
Total Assets 102,736,033 117,530,275
Net sales 53,729,124 49,247,657
Asset turnover Ratio 0.52 0.42

Annual net credit sales

Receivables Activity=
Receivables
The receivable turnover ratio provides insight into the equality of the firm’s receivables and
how successful the firm is in its collection.
Days∈the year
Receivable turnover in days=
Receivable turnover
Cost of goods sold
Inventory Activity=
Inventory
It help to determine that how effectively the firm managing inventory and also to gain an
indication of the liquidity of inventory.
Days∈the year
Inventory turnover in days=
Inventory turnover
Net sales
Total Asset turnover Ratio=
Total assets

Profitability Ratios:
Ratios that relate profits to sale and investment.

Statement of financial position 2018 2017

PKR (000) PKR (000)
Cost of goods sold 48,729,124 43,867,819
Net sales 53,729,124 49,247,657
 Profitability in relation to sales Ratio 0.09 0.11
Profit after taxes 4,097,127 4,262,342
Total Assets 102,736,033 117,530,275
Profitability in relation to investment Ratio 0.03 0.04

Net sales – Cost of goods sold

Profitability in Relation to Sales=
Net sales
Net profit after taxes
Profitability in Relation to Investment=
Total assets

Human resource management

Recruitment process

1-Internal Recruitment:
 
Job Posting:
 
Advertising of job openings to current employees via bulletin boards,
newsletters, or personal letters. Filling a job opening from within the firm has
the advantages of stimulating preparation for possible transfer, or promotion
and increasing the general level of morale. The first and foremost preference of
Nishat Mills is to hire the employees through internal recruitment and giving
existing employees more chances to develop their career. For this purpose
Nishat Mills firstly use Internal Job Posting to fulfill the vacant seat

2-External Recruitment

To search the employee to fulfill the vacant seat outside the organization is
called external recruitment. HR Department can use various approaches to
locate and attract 

external candidates like Government agencies, private employment agencies,

recruiting consultants, executive search firms, and educational
institutions. Nishat Mills run the external recruitment campaign itself and do not
use the other sources like agencies and search firms.

Sources used for external job recruitment

Following are the some sources of Job Recruitment in Nishat Mills:

By Newspapers
By Website
By Universities

selection process

Following steps are followed in the selection process

1-Reception of Applicant
2-Preliminary Interview
3-Application Form
4-Tests
5-Interview
6-Background
7-Preliminary screening by HR Department
8-Final selection by line managers
9-Medical Examination
10-Placement on the Job

Training and development

Training
Training is an activity that results in learning .it seems important than
to consider what learning is and what trainers can do to positively
influence it. There is considerable disagreement over which theory
best explains how learning occurs. This is however consensus on the
definition of learning and the goals of learning process 

Methods of training

The Nishat Mills adopts many different training programs for

enhancing the skills of its employee. In Nishat Mills following
methods are used for employee training

1. On job training
2. Off the job training 

On Job Training

Making teams of new employees with a few old specialized

Employees.

Acquaintance with day to day procedures

Contribution to overall productivity.
Lower cost
Lower Time

Off Job Training
 
  In housing training done at once a year
 Provide proper learning environment for employee s
 Specialist trainer hired

For employee training and development to be successful, Nishat Mills do

following things:

 They provide a well-crafted job description- it is the foundation upon

which employee training and development activities are built
 Provide training required by employees to meet the basic competencies for the job.
This is usually the supervisor's responsibility
 Develop a good understanding of the knowledge, skills, and abilities that
the organization will need in the future. staff.
 Explain the employee development process and encourage staff to
develop individual development plans.

.I n t h e d e v e l o p m e n t p r o c e s s N i s h a t a l i g n s t h e i n t e r e s t a n d s k i l l s w i t h
t h e n e e d o f   organization. It means carrier must be managed strategically so the
skills demanded   by the organization’s strategic business objectives are
understood and a work force with the matching profile of skills is developed.

https://www.scribd.com/doc/55466067/Nishat-Group-Final