The tradition of quality in products and in business practice runs unbroken throughout the history of Nishat Group, since

its inception in 1951.

CHAIRMANS MESSAGE:
We continue to strive to be a better group today than what we were yesterday, for our clients, for our shareholders, for our investors, for the environment, for the community and for our employees, for it is with them that we have achieved what we have. It is with them that we will continue to surpass our past achievements

Mian Mohammad Mansha

INTRODUCTION:
At the time of partition, there were 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.

TEXTILE SECTOR:
Pakistan ranks fourth in the world for production of cotton and cotton yarn that is regarded as one of the best amongst varieties produced all around the world. Pakistan is also one of the world leaders in export of cotton yarn, including coarse, medium and fine varieties, Made of superior material, Pakistani products are distinguished for their quality, texture, lustrous colours and variety of designs. Pakistan's textile industry accounts for over 60% of the country's exports, 46% of total manufacturing, 8.5% of total GDP, 31% of total investment and 40% of total employment in the manufacturing sector. The industry is based largely on locally grown cotton, and its main products include cotton yarn, cotton cloth made-up Textiles and Apparel. Cotton and cotton-based manufacturing account for two-thirds of Pakistan's exports while strong advances in cotton-based exports have provided further boost to Pakistan's export earnings in recent years. Today, the rapidly increasing exports have placed Pakistan's name in the top order of world trade, ranking as 2nd largest exporter of towel & Bed wear. In order to meet the upsurge in competition in textile industry expected from 2005 throughout the world, the Government of Pakistan has already announced its "Textile Vision 2005" that comprehensively envisages the periodical progression of Pakistan's textile manufacturing sector

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 businesses; 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: Annual turnover 17 billion Rupees 14 Billion from textiles Earn foreign exchange US $ 236 million Taxes and levy of 2,080 million Rupees annually

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 company went public and was listed on the Karachi stock exchange, the only stock exchange in the country at that time. Professional and Client Oriented Marketing Green Company 9000 Employees ISO 9001 and IKO-TEX100 Certified SA 8000 Certification currently in process

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

NML today has 173,000 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 Generating plant with a capacity of 33.6 MW. NML total export for the year 2000 was Rs. 9.1 billion (US$ 143 million). Due to the application of prudent management policies, consolidation of operations, a strong balance sheet and an effective marketing strategy, this trend is expected to continue in the years to come. The Company's production facilities comprise spinning, weaving, processing, stitching and power generation 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 .

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 the community and for their employees, for it is with them that Nishat has achieved so much success in last fifty years.

GROUP PERFORMANACE
Playing a pivotal role in the private sector, Nishat group ranks among top five business houses in Pakistan in terms of sales and assets.

Their open and decentralized management structure helps them in making quick decisions, vital to remain competitive in our businesses. The proud of its achievements and they work together to maintain high standard og quality and service. As a responsible corporate citizen, they continue to strive for beneficial partnership with the communities in which they operate.

COMPANY INFORMATION
BOARD OF DIRECTORS: Mian Hassan Mansha Mr. Fayaz Ahmad Longi (NIT) Mr. Muhammad Bilal Sheikh (PICIC) Mr. Wasim ul Haq Osmani Mr. Aftab Ahmed Khan Mr. Khalid Qadeer Qureshi (Chief Financial Officer) Mr. Muhammad Azam Rana Muhammad Mushtaq CHIEF EXECUTIVE: HEAD OF INTERNAL AUDIT: CORPORATE DEPARTMENT: Mrs. Naz Mansha Mr. Khalid Kabeer Mr. Muhammad Azam Company Secretary

Mr. Khalid Mahmood Chohan Senior Manager corporate AUDITORS: Riaz Ahmad and Company Chartered Accountants LEGAL ADVISOR: Mr. M. Aurangzeb Khan, Advocate, Chamber No. 6, District Court, Faisalabad.

BANKERS TO THE COMPANY: ABN AMRO Bank

Allied Bank of Pakistan Limited American Express Bank Askari Commercial Bank Limited Credit Agricole Indosuez Citibank N.A. Deutsche Bank Emirates Bank International P.J.S.C Faysal Bank Limited

Habib Bank Limited Habib Bank A.G. Zurich Mashreq Bank P.S.C. National Bank of Pakistan Standard Chartered Grind lays Societe General The French And International Bank The Hong Kong & Shangai Banking Corporation Limited Union Bank Limited United Bank 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) 5 K.M. Nishat Avenue off 22 K.M Ferozepur Road, Lahore (Dyeing & Finishing Unit and Power Plant) 20 K.M. Shiekhupura Faisalabad Road, Froze Watwan (Spinning Unit) REGISTERED OFFICE & SHARES DEPARTMENT 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

HEAD OFFICE:

3rd and 4th Floor E.F.U. House, 6-D, Main Gulberg, Jail Road, Lahore. Tel: 042-5715646-52 Fax: 042-5715644-5

PRODUCT LINE:
Products line of Nishat mills limited consists of following items:

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 curtains Unlined curtains Tab top curtains Rod pocket curtains Assorted pelmets and window dressings Oxford cushion covers Frilled cushion covers 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

NUMBER OF EMPLOYEES:
Year No. Of employees 1998 9445 1999 10331 2000 10090 2001 13146

PRESENT STATUS:
Nishat Group has always maintained its reputation for quality products. For this modernization/ expansion has always been given top priority., which helped not only in improving the quality standards but has also reduced the operational costs. These achievements have made the company one of the most efficient and productive outfits in the Textile sector in Pakistan. Nishat mills limited are an export-oriented organization. Nishat mills limited exports more than 90% of its products mainly to the Far East, Europe and United States . Nishat is one of the few Pakistani textile companies that deal only with export business. It does not sell its products to the local market. This year Nishat Textiles also received Export Trophy. Currently Nishat is exporting its products all over the world. Its main markets are Australia, Scandinavian countries, Germany, United Kingdom, United States of America etc. Nishat is currently countrys biggest composite unit. Nishat textile is currently enjoying a good repute in the market and is taking major share in the export market as compared to its competitors. Currently more than 10000 employees are working at Faisalabad unit.

FINANCIAL HIGHLIGHTS:
Due to adverse economic conditions, the company has been able to earn after tax profit of Rs. 201.511 million as compared to previous year profit of Rs. 314.96 million. The turn over has increased to Rs. 11947.78 million as compared to previous year 11662.45 million showing an increase of 2.45%. gross profit has decreased to Rs. 2027.95 million. The operating expenses has increased mainly due to the operation of the dying and finishing unit capacity, causing a decrease in operating profit to Rs. 1231.59 million.

COMPETITORS:
Currently the competitors of the Nishat textile are various companies and groups. They are: Sitara Textiles Sapphire Textiles Gul Ahmad Textiles Muhammad Faooq Textiles Amtex Textiles

PRODUCTION MACHINES:
No. of spindles No. of Sulzer looms No. of Air jet looms No. of Thermo sole Dying machines No. Of Rotary Printing machines 172832 284 252 3 3

NISHAT TEXTILE RELATED COMPANIES:

Nishat mills ltd, Faisalabad Nishat dyeing and finishing, Lahore Nishat fabrics, Bhikhi Nishat spinning, Feroze wattoan Nishat sewing, Lahore

PRESENT NISHAT GROUP: 1. Textiles 2. Power generation 3. Banking 4. Cement

The textile business is further subdivided into 2 textile divisions;

o o

Nishat Faisalabad Nishat Chunian

I did my internship at Nishat textile mills 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.

EXPORT ORIENTED ORGANIZATION:

Nishat mills limited is an export-oriented organization. Nishat mills limited exports more than 90% of its products mainly to the Far East, Europe and United States.

D.G KHAN CEMENT COMPANY LIMITED:

In 1992, Nishat group acquired D.G Khan Cement Company LIMITED from the government of Pakistan. DGKCC is the second largest project of the group and is ideally located in the heart of the Pakistan. DGKCC Unit No I has a capacity of 2,200 tons per day, a new unit having the capacity of 3,300 ton was established in 1997, international Finance Corporation and Common Wealth Development Corporation have finance this unit. With addition of unit NO 2, DGKCC has become the largest manufacture cement of Pakistan.

MUSLIM COMMERCIAL BANK:

In 1991, Nishat Group ventured into the financial sector through the acquisition of Muslim Commercial Bank. MCB has the grown ever since and is now the largest in the private sector. MCB has a network of over 1500 branches employing over 12,000 people.

FUTURE OUTLOOK:
The company has high hopes for the year 2003-04. In this regard the management is making continuous efforts to further improve the quality of products. In order to compete in a highly commoditized industry, efforts are also under way to explore new markets in search of new horizons. Decrease in cotton rates and lower interest rates would significantly increase the profitability of the company.

EXPANSION PLAN:
The company is planning for an expansion program by installing a dying unit and a waving unit of 120 looms near existing stitching plant at Ferozpur Road, Lahore. Dying

unit will consists of 2 thermo sole dying machines with complete back process. Letter of credits for import of dying machinery have been established and trial run production is expected by the end of this year. Civil works and boundary walls are under progress. In addition the company is setting up a Spining unit of 21672 spindles at Ferozawatwan near Sheikhupura. This unit will provide yarn to weaving unit nearby

MISSION STATEMENT

To provide quality products to customers and to 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 the products of the company for sustainable and equitable growth and prosperity of the company

To provide uninterrupted power supply to customers at affordable price and foster asound and dynamic team, so as to achieve optimum profitability for the company for sustainable and equitable growth and prosperity of the company

VISION STATEMENT
To transform the company into a modern and dynamic yarn, clothe, and processed cloth and finished product manufacturing company with highly professionals and fully equipped to play meaningful role on sustainable basis in the economy of Pakistan.

To transform the company into a modern and dynamic power generating company with highly professionals and fully equipped to play meaningful role on sustainable basis in the economy of Pakistan

MANAGEMENT OF THE COMPANY:

At nishat mills limited the employees are dedicated towards their goals in order to make the company long living and to attain its long term as well as short-term objectives. It is the duty of the managers to assign tasks to the subordinates so that they can come to know what they are going to do in future and authorities are also given to the employees so that they can do their work efficiently and in time. When ever a problem occurs at any level the manager call a meeting and settles the disputes or the problems that the company is facing. if any problem occurs at employee level the management is ever ready to guide them and to help them to come out of the problem. Nishat Mills Limited employees are highly qualified professionals and have a young, energetic and dedicated team of professionals who have a lot of knowledge to their credit.

There are at least three basic requirements for a successful company and the managers of Nishat Mill Limited are made to think on these lines: 1. It must provide a product (good or service) that suits best to the companys capabilities and for which there is a sufficient market. 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.

INTERNATIONAL STANDARD OF ORGANIZATION (ISO)

There are various standards that Nishat needs to fulfill in order to be competitive in the market. As the competition in the market is increasing day by day specially with the introduction of World Trade Organization concept, the importance of the meeting the standards have become much important for the business world. For this purpose Nishat has got various certificate of standards so that its business might not get damage. The standard are: ISO 9001 SA8000 IKO-TEX 100

9000 INTRODUCTION:
ISO 9000 series is a set of international standards on quality management and quality assurance. These standards are critical to doing business internationally particularly in Europe. Companies that satisfy standards are registered as having done so, and they are given preference over unregistered companies. ISO 9000 series quality standards are a group of standards related in the creation of a product or service. It is not a standard applicable to specific products or services. ISO 9000, therefore, is considered a generic standard that most any company can use to improve and maintain the quality of its work processes. By achieving such success, one of a company's most significant objectives can be met. This objective is that of customer satisfaction. The development of the ISO 9000 has created the Industry-wide standardization. This standardization is a condition existing within a particular industrial sector when the large majority of products or services conform to the same standard. These economic players agree on specifications and criteria to be applied consistently in the choice and classification of materials, the manufacture of products, and the provisions on services.

BENEFITS FROM ISO 9000:

ISO assures your customers and other stakeholders that are vital to your success that your business has taken measures to ensure that your products and services are carefully monitored for quality. With ISO 9000 certification, companies that do not enjoy much of a brand image can gain the credibility they need to do business internationally, with institutions, or even with other local businesses. ISO 9000 bridges language and cultural boundaries in the world economy. Your company can use ISO 9000 to improve its policies, procedures and documentation.

Other benefits of ISO 9000 include:

* MAJOR COMPETITIVE ADVANTAGE - Enhanced market position and improved company image * CUT COSTS - Improved quality reduces costs of rework, returns and waste * IMPROVED CUSTOMER DEMAND - Better customer retention, repeat business, and new business from referrals means you are winning more business. * NEW BUSINESS SOURCE over 20,000 ISO registered companies want to do business with other ISO companies. This will open the door to many opportunities. Nishat mills limited have achieved ISO 9001 and ISO 9002 certificate in 1997. The goals achieved by Nishat textiles from ISO 9000 are: Enhance product quality and reliability at a reasonable price Improve health, safety and environmental protection, and reduction of waste. Greater compatibility and interoperability of goods and services.

Simplification for improved usability, Reduction in the number of models, and thus reducing the cost, Increased distribution efficiency, and the ease of maintenance. In order to achieve this certificate following requirements should be fulfilled

BRIEF REQUIREMENTS OF THE 20 ELEMENTS:

There is a maximum of 20 Quality Management System requirements that are met by Nishat

1. Management Responsibility: The organizations Quality Policy must be demented and communicated to each person in the organization A special management representative should be appointed for the implementation of these standards. Management should meet regularly to review the system. Keep second of each meeting.

2. Quality System Principles: The purpose of this element is to establish and maintain document procedure for contract review and far coordination of these activities. System also ensures that products are produced in accordance with the companys plan. There should be effective mechanism to maintain the implementation of this quality System and procedures for connective action.

3. Contract Review: Establish documented procedures for contract review to check that the customers requirements are well defined and that the organization meets these requirements. All these customers requirements should be clarified policies regarding the solving of discrepancies should be clearly stated.

4. Design Control: Each design must be properly documented and verification should be done to ensure to specific requirement are met. Design input and out put must be clearly documented. Most important point in those personnel in design and development must prove their competence. If there is a need to make any alteration in the design so procedures should documented and communicated to the person concerned.

5. Document data Control: There should be a master register for indicating the current revision status of each document. Language and should be under stable by the user and out of data documents are removed promptly from use. It should be kept in mind that documents should be in a presentable farm.

6. Purchasing: The purchasing orders should clears describe what is being ordered. The data include type, class, grade, inspection instruction etc. each purchase order must be properly reviewed and verified before issuance. Records of various assessments are maintained. Established procedure for the assessment and approve of sub contractors and vendors. 7. Control of Customer Supplied Product: It includes products owned by the customer and provided to the organization for incorporation with the final products such as leather for shoes, stickers for garments. Safety should ensure while it is in the companys, possession and product that is lost damaged or is unsuitable for use shall be recorded and reported to the customer.

8. Product Identification and Tractability: Maintain documented procedures for identifying the product by suitable means from receipt and during all stages of production, delivery and installation. Traceability (the history of the products throughout the flow cycle, i.e. during incoming, in process, and final stages. Each piece or batch is identified by a serial number.

9. Process Control: Production, installation and servicing process should be carried ort under controlled conditions with written documents explaining how products or services shall be produced e.g. details of machine operations, equipment tools to be used working practices and workmanship required. Identification monitoring and control of processes, and product armatures and Specifications. There should be suitable maintenance of equipment of ensure continuing process capability. Special statistical techniques must be established especially in bulk production.

10.Inspection and Testing: It should be done according to the quality plan and with the documented procedure. In care of urgent production release it should be properly identified and recorded. Record of all inspection and testing should be maintained. After a final inspection and verification of all preceding inspection product can be released.

11. Control of Measuring and Test Equipment: In this element maintain documented procedure to control calibrate and maintenance of inspection, measuring and test equipment to demonstrate conformance of product to the specific requirement. Serial number should be

given to the equipment and maintain their lists, indicating their location. For portable equipment, define their handling instructions. Maintain calibration records also. Note in Pakistan, some calibration facilities are available at National Physical standards laboratories- Islamabad University of Engineering and Technology, Lahore and PCSIR.

12. Inspection and Test Status: The purpose of this element is to ensure that only products conforming to the agreed specification are delivered to the customer. Clearly make products at the place of their storage as: inspected OK, rejected, to be inspected, and under hold. This Marking can be done by Tags, Stamps artificers. The test status of products placed any where in the company should be obvious from their markings.

13. Control of Non-Confirming Product: The purpose of this cause is to prevent the dispatch of non-confirming products. Clearly assign responsibilities for the identification of non-confirming products at every inspection point. Non-confirming products must be reinserted afterrework/repair.

14. Corrective Action: The main aim of this element is to take action to correct and prevent faults occurring in the product, process and system. A firm should establish a formal system for investing the cause soft non-conformities. The procedure must be in a written form. And corrective Action should cover customers complaints, production and installation after Sale Service Vendors and maintenance. A firm should maintain a paper second of it.

15. Handling, Storage, Packaging, Preservation and Delivery: All the employees should adequately be trained for all these walks. Procedures should be established for people and Caf handling of products. Protection of products should be against environmental hazards. Packaging and delivery requirement should be examined and proper instructions should be communicated to the relevant person. Stock should review regularly to prevent product from damage.

16. Quality Records: This clause include establishment of a formal systems of quality records, including their identification, filling, collection and disposition. An organization should maintain the lists of quality records with people indexing and area of usage. Specify retention time of each record and property safe it during this time. Procedure for disposal of records after their retention time is over should be their.

17. Internal Quality Audit: This clause establish a systematic Audit of all quality related activities to provide Confidence to management `that the system is continuously running effectively, and to improve the system or routine basis. Audit plan should be prepared and schedule giving dates of audits with responsibilities and areas to be auditedQuality audit should be recorded. Internal audit reports should be presented to the top management in the quality council meeting.

18. Training: It is to carefully identify training needs and establish procedures for the systematic training of all personnel performing activities affecting quality. Training records should be maintained and refresher courses should be provided where lever needed.

19. After Sales Service: Clause is for the safeguard of customer. In it a firm establishes a well defined maintenance and repairs service for customers procedure. After Sale Services should be established in written farm. The Calibration procedures should be applied to the tools, instruments and test equipment used in this function.

20. Statistical Techniques: Identify need for statistical technique fare establishing, controlling and verifying process capability and product characteristics. Appropriate statistical tools for quality control should be applied in every department e.g. check sheets, praetor analysis, histograms etc.

QUALITY MANAGEMENT SYSTEM:

Organizational structure, procedures and resources need to implement quality management.

Advantages of Quality Management System:

Makes sure that every thing is under control. Makes sure things are done consistently. Provides objective evidence for determining and correcting the courses of poor quality. Ensures best practices.

This document introduces the eight quality management principles on which the quality management system standards of the revised ISO 9000:2000 series are based. These principles can be used by senior management as a framework to guide their organizations towards improved performance

Principle 1 Customer focus Principle 2 Leadership Principle 3 Involvement of people Principle 4 Process approach Principle 5 System approach to management Principle 6 Continual improvement Principle 7 Factual approach to decision making Principle 8 mutually beneficial supplier relationship

SA8000 AND NISHAT:

Nishat also get SA8000 certification in 2003. SA stands for Social Accountability. SA 8000 is a standard for social accountability in the workplace

BACKGROUND:
In essence, social accountability means managing business activities in a manner that respects and promotes the basic human rights of all workers. Social accountability expectations can vary from one company to another. Fair compensation, reasonable working hours, a safe and healthy environment and prohibition of child labor and forced labor are common to all codes. Some codes add requirements for non-discrimination, freedom of association, disciplinary practices, or management system controls. A few mix in non-social issues such as drug interdiction, customs issues, or basic environmental controls. Expectations of the level of conformance to each of the above issues also vary dependent upon the code or standard selected. The absolute minimum expectation would be compliance with applicable laws, however this is often inadequate from the viewpoint of civil society and more stringent criteria are usually adopted Many companies choose to define their own values through a "Code of Conduct for Suppliers" or similar document. Other companies, in order to ensure that common values are adequately addressed, prefer to adopt a standard or common code and an associated, credible monitoring program, (such as the SA 8000 standard and program developed by the Council on Economic Priorities). Whatever social accountability code or standard is adopted, and no matter how stringent the criteria contained within it, little credibility or value is provided to any party without periodic monitoring to determine and demonstrate conformance in the workplaces themselves.

The SA8000 standard for socially responsible employment practices first appeared in 1998 after nearly a year of drafting by the advisory board. It was modeled on the wellestablished ISO9000 quality standard. However, unlike ISO9000, it prescribes specific performance standards. The SA8000 programme offers two separate routes for companies that want to demonstrate their commitment to social responsibility. The first, membership, is designed for businesses that are involved in retailing. The second route, certification, is intended for manufacturers and suppliers themselves. Following the formal assessment, the company is again given the opportunity to put right any shortcomings, before being checked again. If at the end of this process the auditors are satisfied that the company is fully compliant, they will issue an SA8000 certificate, valid for three years SA8000 deals with the following items: Child labour Forced labour Health and safety Freedom of association and collective bargaining Discrimination Disciplinary practices Working hours Compensation Management systems

MANAGEMENT STYLE AT NISHAT MILLS LIMITED

PERSONAL DEVELOPMENT AND TRAINING:
In order to build up confidence among junior and to make them creative Junior-level courses are frequently held in-house for personal training. Various courses organized in the past include the following:

1. Japanese-style Production Management

Supervisors play a vital role in an organization and their training is necessary. This course was formulated for supervisors and officers to enhance their management capabilities in interaction with the lower staff and associates and also to improve the production efficiencies.

2. Executive Development Course

Middle management is important for the organization as they act as link between supervisors and higher management. At Nishat Mills the production and planning department performs this function. This course was specially designed for middle management to enhance their principle-centered leadership qualities so that they could meet the emerging challenges of the global world. Neuro-linguistic programming was part of the course to help the employee in day-to-day activities to improve proficiency and effectiveness in their attitude and work style.

3. Basic English Language Course

English language is necessary for the mangers especially at export department, as they have to deal with foreign customers. This course was for those staff that is not proficient in written and verbal English language. An external instructor whose services were especially hired for this purpose conducted the course.

4. Basic Labor laws of Pakistan

Now-a-days they labor laws are necessary to be fulfilled and to be given right to the workers for which they deserve especially for an export oriented organization. Professionals from Labor Department organized this course. The main purpose was to give acquaintances to the staff of their rights. Wage rates, vacations, working hours, child & bonded labor etc, were the main topics covered.

5. In-Housing Training School

Nishat mills limited has also established an in-house Training School for unskilled labor so that they may be trained on stitching machines, and qualify for work in the stitching floors. Unskilled manpower is hired from the market for training. And during this period they are paid as per the prevailing wage rules.

ENVIRONMENT OF OPERATION:

Working environment plays a n important role and if it is not proper then it requires an accountability. With the world fast becoming a Global Village and the Internet Information Technology Revolution, the issues of HUMAN RIGHTS and Working Condition are becoming significant important with each passing day. Nishat can pride itself in having one of the most congenial and professional working environments of any company operating in Pakistan. Nishat is an equal opportunity employer and there is no discrimination on the basis of sex, caste or creed. All hiring and

promotion decisions are taken on merit. All local laws are adhered to regarding different matters. Safety and health responsibility lies with the organization. It has its member ship with social security hospital that provides all the facilities as a person get injured. At the same time the protective measures are also taken to avoid such events. Extreme emphasis is placed on worker safety and health. All stitching machines are being equipped with belt and needle guards. Employees using cloth cutters are required to wear steel mesh safety gloves.

SELECTION:
First of all the concerning department gives a requisition to hire an employee for its department. Then its educational ot technical backgroud required is set up. HRM department takes interview and then selects the person After orientation the employee is handed over to the concerned department.

CAREER LADDER:
Nishat mills limited provides vast opportunities for its employees to build up their career in textiles and they are success full to in achieving this. For this motivation plus efforts are made. These people are expected to work with full devotion, loyalty etc. management of Nishat believes in healthy competition among the employees so that workers are promoted on the basis of performance. Management cares a lot of their employees. Normally young people with great enthusiasm are preferred. Mostly clerical and middle level management are young people. Average age would be 25 to 30 years.

PROMOTION OF PERSONS AT NISHAT:

On the basis of experience and performance, they are promoted to higher managerial level; at higher level I have seen various persons during my internship that persons are awarded promotion on their experience and performance basis.. In order to provide incentives to employees at Nishat mills limited, cash rewards are also granted. The head of the department, on job basis gives bonuses. Normally 5-10% of salary is bonus in each year.

JOB ASSESSMENT:
At Nishat mills their is a system of checking the employees while working at job and of job as well. For production workers the supervisors do all such thing and at other levels the senior member of the team. 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 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

CHECKING OF OVERALL PERFORMANCE:

Higher manager to check the performance of employees adopts following measures, Standards are established first

Measure the individual performance Measure the performance collectively as well Compare actual performance with planned Taking corrective action Reviews of job are made. Superior management assesses accuracy of work.

On the basis of performance appraisal awards and rewards or punishments are given.

ACCOUNTABILITY:
Accountability is an other aspect that cannot be neglected as it creases a sense of responsibility among the employees. If the employees are rewarded and at the same time the employees are punished for their wrong working practices. 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.

COMMENTS ON JOB SATISFACTION OF EMPLOYEE:

Employees at Nishat mills limited are highly satisfied as they get all what they want in the form of monetary benefits and also the working environment is good. Senior are also cooperative.

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.

ORGANIZATIONAL SRTRUCTURE OF NISHAT MILLS LIMITED

Board of Directors
Company Secretary

Chief Executive
Director Marketing Director Finance Director
Processing

Director Purchase

ORGANIZATIONAL STRUCTURE NISHAT MILLS LIMITED

Chief Executive

G.M. Finance

G.M. Weave

G.M.
Stitching

G.M. HRM

Legal Advisor

G.M.
Purchase

Chief
Engineer

G.M. Export

Director spinning

Director

process ing

ORGANIZATIONAL STRUCTURE NISHAT MILLS LIMITED

GM MARKETING

Incharge fair price shop

Deputy Manager Quality

Deputy Manager Waste

Assistant Manager
Assistant manager sales

Assistant
manager

AM quality control

Assistant manager waste

ORGANIZATIONAL STRUCTURE NISHAT MILLS LIMITED

Director processing

Manager processing

Manager folding

Dy. Manager processing printing

Dy. Manager processing dying

Dy. Manager folding

ORGANIZATIONAL STRUCTURE NISHAT MILLS LIMITED

G.M LOCAL MARKETING

In charge fair price

Dy. Manager Quality

Sr. assistant manager waste

Assistant manager

Assistant manager fair price

Assistant manager waste

Assistant manager waist

Assistant manager sales

ORGANIZATIONAL STRUCTURE NISHAT MILLS LIMITED

G.M SALES

Sr. Assistant manager

Asst. manager sales

Asst. Manager sales

Sales officer

Sales officer

Sales officer

Asst. sales officer

Asst. sales officer

Computer programmer

Computer programmer

ORGANOGRAM OF STORE

G .M stores& costing

Store incharge (main)

Store incharge (garments)

Storekeeper

Store clerk

Store man

Store clerck

Store man

ORGANOGRAM OF AUDIT

Dy. Manager audit

Chief internal auditor

Auditor

Auditor

ORGANOGRAM OF MANAGER ADMINISTRATION

Manager Admin. Asstt. Manager Admin. Admin Officer Office Asstt

Clerk / Comp. Operator

Time Keeper

PLANT LOCATION
Plant location is critical success factor. It involve huge investment and irreversible. It is either a life long asset or life long liability because building and other structure once made cannot be move Plant location is an important factor that should be kept in mind before setting up of a factory. It should be accessible to every one so that it should not face any hurdle while operaring. Plant location is one of the main long-term strategic decisions normally taken by top management. Nishat mills limited is ideally located in, Niashatabad Faisalabad. 12- K.M Faisalabad road Shiekhupura. 21- K.M Ferozepur road Lahore. 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. While at Shiekhupura, weaving process is being carried out. At 21. K.M ferozepur road, Lahore a stitching unit has been established to meet the customers requirements. Finally 20.K.M Shiekhupura Faisalabad road is a spinning unit is working. This unit involves converting cotton into yarn.

Now we see the appropriateness of Nishat plant location,

NISHATABAD FAISALABAD
I did my internship at Nishat mills limited Faisalabad. It is located at Nishatabad, which is a populous area of Faisalabad. Now we see the appreciation of Nishat Mills limited plant location as Access to best cotton Low rate cotton Availability of Technical staff Residence facility Other facilities Availability of basic infrastructure Cost of transportation of labor Land Proximity to market Stitching and its worker

ACCESS TO BEST COTTON:

Faisalabad is an area, which is famous for textile products, and it is surrounded by such areas that have fine cotton so it is easy for the Nishat mills to get fine cotton at low rates. Cotton is procured at the start of season to avoid any variation, which may occur in the crop from time to time, enabling the mills to produce consistent quality all the year. For this purpose a fully equipped cotton laboratory is established and it is working day and night during cotton seasons to select the best quality crop to be purchased.

LOW RATES COTTON:

Since the Nishat locates in such an area where cotton is easy available and it is also available at low rates than other areas of the country

AVAILABILITY OF TECHNICAL STAFF:

Faisalabad is an industry-boosting city. People have technical skills. In order to promote their skills, government has established various training schools, like TEXTILE COLLEGE FAISALABAD. This college is providing skilled persons to NISHAT MILLS LIMITED.

RESIDENCE FACILITY:
It is necessary for the organization to satisfy their employees and their management so that they can do their work efficiently and effectively. To fully exploit the skills of worker Nishat is providing them various facilities. A housing scheme was introduced. It was named at NISHATABAD COLONY. This colony provides residential facilities to workers.

OTHER FACILITIES:
Other facilities include in-house training school to upgrade the skills. Seminars/lectures are arranged to acquire satisfactory results. Its plant location enables it to invite celebrities from Faisalabad chamber of commerce to share their personal experiences.

AVAILABILITY OF BASIC INFRASTRUCTURE:

It includes availability of water, gas, electricity, roads (roads from factory to market), disposal of wastage etc. all the facilities are available there. Road conditions are

absolutely perfect for the transportation of products. Goods can be transported either by road or by railway. There is also a dry port at Faisalabad, so delivery of finished products becomes very easy. There are certain objective factors, which include

COST OF TRANSPORTATION OF LABOR:

Plant is not far enough from city, infact with increase in population; it has become heart of industrial area. Cost of transportation of labor/material is low as compared to its competitors.

LAND AT REASONABLE PRICE:

Nishat mills limited started out as a weaving unit with 500 semi-automatic looms. Later on 10000 spindles were added, laying the foundation of nations biggest textile composite project. Nishat mills Faisalabad covers 98 acres. It has quality with adequate provisions for future expansion.

PROXIMITY TO MARKET:
Nishat mills limited are export-oriented organizations. The major products are exported to Japan, Far East, South America, Europe and use. Logistics are available to carry goods. Dry Port, railway and roads all are in perfect conditions.

LOW COST LABOUR:

Nishat Mills locates in such area where the labor is cheap especially for the stitching unit. Mostly the women workers are hired for this. Women can do this work in a better way as compared to men and charge less. Stitching unit also locates in the same area where the factory locates so the women are not reluctant to go there. They utilize their spare time. There are certain subjective factors like emotional sentiment of people. I want to serve my people and I want to serve my homeland. Frankly speaking capitalist do not believe.

They invest money to get return. Nishat mills limited do not have any subjective factors, which are considered, before location of plant.

PRODUCT LINE
Products line of Nishat mills limited consists of following items,

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 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

PRODUCTION FACILITIES AT NISHAT MILLS LIMITED

NML started out as waving unit with 500 semi-automatic looms. Later on the 10,000 spindles were added, laying the foundation of nations biggest textile composite project. NML today has 165800 spindles, 38 Sulzer shuttle less looms and 180 TSUDAKOMA air jet looms. NML also has biggest countrys processing unit, a stitching and power generation plant with capacity of 33.6 MW. NML earned a pretax profit of 223.673 million up till mid of 2003 due to application of Prudent management policies, consolidation of operations, strong balance sheet and an effective marketing strategy this trend will continue to come. The Companys production facilities comprises of:

o o o o o o o o o o o o o

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

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. 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

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:

BLOW ROOM
Toyofa-Ohara-Heregeth (Japanese origin with German technology know how)

CARD
Trytzschler Crosrol Toyoda Howa (German Origin) (U.Korigin) (Japanese Origin) (Japanese)

DRAWING
Toyoda& Howa Rieter (Japanese Origin) (swiss Origin)

COMBER
Toyoda& Howa Rieter (Japanese Origin ) (Swiss Origin)

SIMPLEX
Toyda&Howa (Japanese Origine)

RINGFRAMES
Toyoda& Howa FA-507 (Japanese Origine) (Chinese Origin with Germen Drafting)

AUTO CORNER
Murata (Japanese Origin)

DOUBLE INCH& TWISTING EQUIPMENT

Murata

(Japanese Origin)

COUNT RANG

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 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 Poly 52%: cotton 48% carded Poly 65%: cotton 35% carded Poly 65%: cotton 35% carded New 10/1 to Ne30/1 New 10/1 to Ne40/1 New 10/1 to Ne30/1 New 10/1 to Ne45/1

Cotton Rich (CVC):

Poly 45%: cotton 48% carded Poly 45%: cotton 48% combed Poly 40%: cotton 48% carded Poly 40%: cotton 48% cambed New 10/1 to New 30/1 New 10/1 to Ne 40/1 Ne 10/1 to Ne 30/1 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 Carton Wt. Quantity per FCL 24 cones per carton 100 lbs. 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. 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: Capacity: Product range ` 188 sulzer- Ruti looms Approximately 2.1 million meters per month 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) 120 Tsudakoma air jets 60 Tsudakoma air jets 64 Tsudakoma air jets CAPACITY: 4.5 (unit-2) (unit-3) (unit-4)

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.

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 laboratory 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. 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 Singeing/Designing Bleaching plant Bleaching plant Mercerising C. Less Vollen weides Kyoto Benninger Kyoto Goller 118 108 95 95 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 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 preprint 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.

ROTARY 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. Besides conventional printing in pigment and reactive dyes, printing in puff effects, resist and discharge dyestuff is also done.

MACHINERY:
Printing machine Printing machine Printing machine Reggiani John zimmer Stork 126 16 colors 110 12colours 72 16 colors

Following

files are maintained in printing department of Nishat mills limited,

Process sheet Job description specification Audit report ISO 9001 Assessment file Purchase order Work instruction Staff document Worker document Reactive color document Standard operating procedure Customer letters and fax Organizational chart Technical 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 Stenter Stenter Stenter Stenter Stenter Sanforizing Babcock Monforts Monforts Monforts Krantz Krantz M/c monforts sucker & Muller 130 110 95 73 95 73 73 118 71 110

Raising for Flannel sucker & Muller Emerizing M/c Calenders Ramish

DYEING SECTION
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 team.

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,

Training files Dyeing files Washing file Lab to bulk Sample received file Singeing file OK for curing Sample status Sample letter Shortfall file Daily stock file After curing file Folding return file Daily attendance register Water fall card

MACHINERY
Pad steam Pad thermosal Washing range Goller Monforts Goller 95 95 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.

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 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 Cock meter test It examines dry rub and wet rub Pilling test It is used to test pilling of cloth

Durra test
It is used to examine fastness of cloth Auto wash It is used to examine change in shade Vasctor It is used to examine shrinking of cloth Tumble dryer This test is used to examine dryness of cloth Padder It is used to examine matching and finishing of cloth. Curring It is used to examine shade of cloth Light box test It is used to examine fastness of light on cloth. Presser It is used to determine pressing of cloth. Visco meter It is used to measure viscosity of cloth. Inspection table Here warp and weft and other type of fault are examined. Chemical analysis It is used to examine acidity. Spectro photometer

It is used to examine shading.

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. 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 of Analysis are conducted like, 1) Bleaching production analysis 2) Printing production analysis 3) Dyeing production analysis 4) Finishing 5) Folding 6) Damage trend analysis

7) Monthly 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.

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 throw overs 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.

PLANT CAPACITY

UNITS SPINNING WEAVING POWER PLANT

Scale Kgs Sq. Mt. KWH

1998 54969 118008 264902

1999 51989 140229 264902

2000 48362 142304 264902

2001 52467 152619 315418

ACTUAL PRODUCTION
UNITS SPINNING WEAVING POWER PLANT Scale Kgs Sq. Mt. KWH 1998 53968 107661 182090 1999 50529 128130 189273 2000 46729 130444 174829 2001 50907 140046 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 No. Of sulzer looms No. Of Air jet looms No. Of Thermo sole dyeing No of Rotary printing machine

176452 338 120 1 2

178324 338 120 1 2

166792 388 180 2 3

153192 284 244 1 3

172992 284 244 3 3

MARKETING STRATEGY & FUTURE PROSTECTS

Future prospectus of Nishat mills limited are given as under: 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 of 21,672 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 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 year 1999. 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.

NORTH AMERICA MARKET

North America is the star market for Nishat. Its a new market for it after breaking up the exclusive arrangement with our previous sale set-up. The quota is coming down in 2005 and we have started to prepare for it internally as well as for the external environment. Bedding is the bulk of the home textile business. Nishat is in the process of updating its

machinery to cater the needs of the wider width fabric requirement for USA bedding business.

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.

FUTURE PROSPECTUS IN NON-QUOTA COUNTRIES Nishat is very strong in non-quota categories like curtain and table linen. These
categories are best served with new product development (NPD).Nishat will coordinate the effort for NPD by all markets to optimize results. Nishat has achieved the highest sales in 1999-2002 for North America market. On top Nishat has developed more direct and closer relationship with our end customers. Oceanic has been our most lucrative and mature marker. In business terms it is our cash cow market. Primarily due to being a non-quota market it had no real limitations in this market. Despite economic problems in that region, it has maintained our sales figures in the year under review. This market is a good design source for other markets, which is helping us to maintain our print volumes.

MIDDLE EAST COUNTRIES

Middle East market is composed of South Africa and the new emerging markets like the UAE, Egypt, Saudi Arabia, and Jordan etc. Nishat has dedicated new staff with fresh energy for the emerging market. They have successfully broken the ground and we have very strong faith that these markets will give us good volumes in the near future. We are also targeting printed apparel business for the first time.

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.

MARKET REVIEW:
The first half-year of the 2003 witnessed many ups and downs including fluctuation of prices, regional instability due to US and Iraq war and proliferation of SARS. These factors somehow adversely affect world market. However Nishat mills are keeping on implanting effective strategies in order to counter the problems caused by these negative developments and hence remained stable in terms of holding market share.

SPINNING
This year NML started with exploring new avenues in European markets in order to attain diversity in market portfolio. They developed corporate ties with some of the leading and renowned companies which act as major players of European textile world. In these sic months we worked very hard to stream lime shipments to these new European clients land thus maintained as steady growth. Other the Europe many new markets were also targeted including Guatemala, Brazil Saudi Arabia and Mauritius. In Europe Italy Spain and Germany remained in focus where as efforts are being carried out to enter in two of the potential Mediterranean countries Egypt and morocco.

WEAVING
We were able to improve and diversify our product mix, which was one of the goals set out for 2002-03. gray fabrics sections target ot diversify and improve product mix is steadily achieved. As a result our profit margins have also increased. We were able to; lower profit margins and replace them with higher profit products of the European and the US market. Leaving behind the traditional way of doing business and in our journey

towards excellence we have consistently expanded our buyer base and explored the different markets around the world. A new air-jet weaving shed has been planned at Nishat Dyeing and Finishing Project which will support the Dyeing Unit. This weaving will help in maintaining inventories for orders, which used to go to our competitors due to long lead-time. The project will start production by the end of year 2003.

PRINTING, DYEING AND STITCHING

The companys performance in the processed fabric/ made-up business has been encouraging during the half year under review. Despite of difficult business conditions in the international market, we have managed to increase our sales and margins in the period under review. This has been possible le by product innovations and finding new marketing channels. New machineries were added in Stitching units, which gave further boost to our exports.

DYEING AND FINISHING (LAHORE)

The period had been a difficult time for international dyed market. Lack of buyers confidence, drastic slow down in retail sales due to war in Iraq, high inventories and rising stocks remained the major concerns. The pre Iraq war era stopped major movement of market in Europe and America. An unexpected rise in yarn and greige prices put the end users in very difficult position in the market, where less business and demands of price reductions from buyers were giving a bad taste. Moreover buyers started moving production from Gulf countries due to war hazards where major fabric was shipped from Pakistan. As the production got shifted to the parts of the world, the advantage of location and lead-time of Pakistan to Gulf was lost.

Overall it remained a tough time for textile industry. However our Dyeing and Finishing plant showed progress. By the end of year 2002 we had achieved our set goals. Major focus was made on New Research &Develop0ment and Dyeing Techniques. An aggressive marketing approach was obtained with exports to all major destinations and Nishat remained the largest exporter of Piece Dyed fabrics in going slow down. Purchases of new finishing and back process machines were made, which, once running will result in high production and diversification of existing product range. Nishat also focused on inventory reductions and also savings on dyes, chemicals and fuel. As the world business situation is improving everyday, we hope to achieve our goals and targets in the current year.

CARING FOR THE ENVIRONMENT:

Nishat Group is playing a leadership role in setting the pace for environmental protection in the country. To control pollution and provide safer working and living conditions in and around Nishat Mills Limited, a sophisticated Water Treatment and Disposal System has been installed which removes hazardous materials from effluents. This system was the first of its kind in the country. Also at D.G.Khan Cement, modern, high-tech pollution control and de-dusting equipment, like electrostatic precipitators, bag filters etc., are being in stalled to meet the dust control standard set by the World Band-Another first in the country by Nishat.

THE FUTURE:
Textile, being the single largest revenue source of the group has always been the core area of attention. That is why the bulk of our future plans and strategies revolve around it. Special emphasis has been placed to explore new markets, meeting customer demands, improving quality, developing new products and diversifying the exports to non-conventional markets to achieve better results in future. The expansion programs to setup a cloth Dyeing and finishing unit near existing stitching unit at Ferozepur Road, Lahore, and a spinning unit at 12 km. Faisalabad Sheikhupura Road is also under way. After the successful completion of the expansion project in D.G. Khan Cement Co, Lt., efforts are under way to expand the market share by aggressive advertising, innovative packaging and bulk marketing. After achieving self-sufficiency in un-interrupted energy requirements for Nishat Group, the management is actively looking into the possibility of selling the surplus electricity to other buyers for better capacity utilization and increased profitability. Another area of interest has been the financial sector, in which the group has consolidated its position by acquiring majority shareholding in Muslim Commercial Bank Limited, nations largest commercial bank in the private sector.