Industry Introduction

Largest manufacturing industry in Pakistan

Main employment industry for skilled and unskilled labor
Contributes 8.5% to the GDP of the country
13 million people employed in the industry and the number is increasing
Pakistan is the 8th largest textile exporter in Asia

Company Introduction

Nishat Mills ltd is a textile giant of Pakistan

Nishat Mills is a flagship company of the Nishat Group ltd
Owned by Mian Muhammad Mansha
Run by his son MianUmerMansha
Listed on the Karachi stock exchange in 1961 and on all exchanges in 1989
The companys operations include spinning, weaving, printing, dyeing and
stitching

Competitive advantage
From

sales point of view

Huge customer base, both nationally and internationally
Exports in 2015 amounted to more than US$ 393million
Nishat International FZE is an established subsidiary in the international free
zone area in Dubai
Most exporting is done through this subsidiary because of duty exemptions
and incentives

From

Technological point of view

State of the art production facility
Printing an dyeing machines are very advanced
Technologically much more advanced that competitors
Competitors do not have the same efficiency and advancement that they
have

From

Quality Point of view

Famous for its premium quality fabric
High exports are a directly related to the outstanding quality they provide
The subsidiary Nishat Linen is one of the top brands in the country

From

Financial Point of view

Very financially sound company
Sales of more than US$ 510million both locally and internationally
Backed by a very secure holding company

Exempt from income tax because they export more than 80% of their
manufactured goods

Products
Unstictched garments

Unsticthed fabric (exported)

Spinning products

Main Products of Nishat Mills

Apparel

Home Textile prodcuts

Men and Women garments (mainly exported)

Competitors
M a in
co m p e tito rs
o f N ish a t M ills

S ita r
a
M ills

A lka r
am
M ills

Chen
ab
M ills

C re sc
en t
M ills

S a p p h ir
e M ills
ltd
Ko h in o o r
Tex tile
M ills

Bhaner
o M ills
ltd

SWOT Analysis

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Foreign Market Analysis of Canada

Second largest land mass in the world

Ranked 4th best business environment in the world
High GDP and high purchasing power
Lower overall corporate tax rate than Pakistan which is a big plus

Canadian textile institute estimated the total textile production at more than
US$ 5.7billion
The industry received an investment of US$ 4billion from 1996-2005
The industry employs more than 40,000 people
In 2006, textile exports were US$ 2.7billion while imports were more than
US$ 5.64billion
The institute reported an innovation rate of 85.8% which was higher than any
other industry

PEST Analysis of Canada

Political:

Federal and Provincial Governments

Government system follow British parliamentary model
Business should form strong relations with the government
Monetary Policy and its relationship with housing prices.

Economic:

11th largest economy in the world

Decline in manufacturing industry-> Unemployment
Increase in Merchandise trade deficit
Technological advancement encouraged growth of technical textile
production in Canada and its use across the globe
Increase in the world population- Increase in textile demand
Strong academic research in the field

Social

Social and volunteer to community service and environmental programs

Factor of trust and honesty amongst each other (Research survey)

Technological

Council of Canadian Academics- Research center

Increase in textile technological production

Technological Road Map for the textile industry of Canada.

The technologies currently employed include Anti-bacterial, carbon nanotube, functional

membrane or coating, lamination, electro spinning, digital printing, plasma surface
treatment and Canadian hemps.

Mode of Entry(Canada)

Culture similarity due to high Pakistani population in Canada

Focused region: GTA where South Asian minorities count for around 13% of the total

population;

Exporting through NFZE will be cost competitive.

Less business risk liability

Malaysia:
Export of textile and apparels

Mode of Entry:

Pakistani businesses are allowed 100% equity rights

Compensation and subsidies e.g. taxes and duties
Free trade agreement with Pakistan

Textile imports are higher- 0% share of Nishat

High growth market
Local knowledge can be gained through a JV

PEST
Political:

Malays National Organization (UMNO)- Mose significant political party

Prime Minister- Corruption scandal

Economic

3rd largest economy in the region

GDP per capita of $11,307.1 in 2011-2015

Growth in GDP
Depends on the oil market- effected by the oil prices

Social

No labor exploitation by large companies, poverty and unemployment issues

problem of racial discrimination
Conflicts due to religious discrimination
Cultural diversity

Technological:

Well developed infrastructure

Educated and skilled workforce

The country invests heavily in technological advancements

Presence of smart schools
High industry growth

Trade analysis of Malaysia

-Malaysia is rich in culture and religions- demand for variety of clothing and
apparels
-Reliability of products quality- Global contracts
-Availability of raw materials locally- including cotton to silk. To recyclable material
-Ranked 9th in the textile industry worldwide.
- In 2011, exports of textiles made by the country were valued at RM6.72 billion.

-Main markets of Malaysian textile Industry: U.S.A, Japan, Turkey, Indonesia and China

with the United States

-Example out of a few large textile companies present in Malaysia: Mayford Group consisting of
the MKK industries and Mayford Garments
-Another example is of Hytex Group: Vertically integrated
-Other includes DNP Garment Manufacturing: consisting of six manufacturing facilities- Worlds
leading fashion label.