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Shafaq Mustafa

Khan

NISHAT MILLS LIMITED

INTERNSHIP REPORT
SPRING:

2014

NISHAT MILLS LIMITED BHIKKI


SUBMITTED BY
STUDENT ID: MC120401511
STUDENT NAME: SHAFAQ MUSTAFA KHAN
SESSION
SUBMISSION DATE 18TH August, 2014

VIRTUAL UNIVERSITY OF PAKISTAN

Shafaq Mustafa
Khan

Shafaq Mustafa
Khan

First of all I want to say Thanks a lot to Almighty Allah who is


most beneficial and Merciful.

Dedication:
I want to dedicate my all achievements to my parents. I further want to dedicate my work
to all those persons including my teachers from my school level till university level and
then all the teachers at Nishat mills Limited who help me out throughout my life who
teach me that how to face the realities of life and attain your own goal by hard work, by
competing to others and by justice.

Shafaq Mustafa
Khan

Table of Content:

Acknowledgement . 08

Our Vision. 09

Our Mission ... 09

Executive summary .. 10

Introduction.... 11

Hierarchy...

Textile Export Review.17

Business Volume 13

Departments of NML ... 22

Textile Export Review .. 23

My internship branch.. 33

Learning Experience 34

My Internship Program. ..24

SWOT analysis40

Conclusion.44

Recommendations44

Annexesz45

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Shafaq Mustafa
Khan

Acknowledgement:
I want to explain that I have completed my internship at Nishat Mills limited which was
on 12th of May 2014 and completed on 27th of June2014 by the grace of Almighty
ALLAH. I am very much grateful to Almighty Allah that by the grace of Him I have
completed this internship and learn a many new, informative and many of activities
regarding office environment and practical work of all these working which I have done
during my study time period. I feel much obliged to Almighty Allah first of all then to my
Parents whose prayers and good wishes for me enabled me to gain this status. I am much
grateful to all my teachers for seeking guidance, advices and all the instructions during
my study time period over here.

I specially want to thanks a lot to the staff at Nishat

Mills limited that they enabled me to accomplish this task which are namely as.
Mr. Muhammad Amir Zaki
Accounts and finance manager
Nishat mills Limited Bhikki
Mr. Muhammad Javed Iqbal
Deputy Accounts manager
Nishat mills Limited Bhikki
Mr. Muhammad Afzal shaheen
Senior Accounts Officer,
Nishat mills Limited Bhikki

Shafaq Mustafa
Khan

Mr. Muhammad Abdul Hameed


Assistant Payroll

Our Vision:
To transform the Company into a modern and dynamic yarn, cloth and processed Cloth
and finished product manufacturing Company that is fully equipped to play a Meaningful
l role on sustainable basis in the economy of Pakistan. To transform the Company into a
modern and dynamic power generating Company that is fully equipped to play a
meaningful role on sustainable basis in the economy of Pakistan.

Our Mission:
To provide quality products to customers and explore new markets to promote/expand
Sales of the Company through good governance and foster a sound and dynamic Team,
so as to achieve optimum prices of products of the Company for sustainable and equitable
growth and prosperity of the Company.

Shafaq Mustafa
Khan

Executive Summary:
Nishat Mills Limited is the leading company in textile industry in Pakistan. Nishat has
grown from a cotton house, now days this is the leading company in Pakistan with 5
listed companies and these businesses are Textiles, Banking, Cement, Power Generation
and Insurance. Today, Nishat Mills Limited is at no.1 in Pakistan as growing and fastest
industry in Pakistan as it has a big name at international level.
I have completed my internship recently at Nishat Mills Limited and it was a good
experience for me to learn all these points practically which I have done during my
learning process at my university. I have done internship almost all the departments
related to my field. I got a lot of experience. Now I have understand the real putting and
usage of generally accepted rules regarding accounting, finance, payroll and excise etc.
The internship I have done at Nishat Mills Limited is basically related to gain knowledge
about doing business at different level and the way of enhancing your business at upper
level. In this report I have explained a brief description related to the mills working and
its operation.

During my internship I have gain knowledge about almost all the

departments of organization. I have also made a SWOT analysis.


In this report I have explained about my stay over here in this place and about my
learning and about my experience which I have gain from here. I have just tried to
explain all the information which I have gained from here in this report. I have putted all
my efforts, handwork, and all the knowledge which I have gained from here.

Shafaq Mustafa
Khan

I have discussed about my training thats all about planning, policies, procedures,
strategies and whole structure of the organization about which I have understands over
here.

Introduction of Nishat Mills Limited (Bhikki)


(Where I did Internship)
Recently I have completed my Internship at Nishat Mills Limited (Bhikki).This is namely
as 22 Unit (Weaving) of Nishat Group. This Unit is manufacturing Grey cloth which is
known as Raw Cloth. This section of Nishat Mills Limited is weaving unit and mostly
pay attention on manufacturing Raw Cloth. There are several departments which are
working under the rules and regulations. These departments are arranged according to the
needs and corporate culture. For each sector there is a separate department. These are the
Following Departments of Nishat Mills Limited:

General Manager Office

Weaving Unit

Folding Unit

Account Department

Human Resource Department

Admin Department

Payroll Department

Excise Department

Finance Department

There are Modern and well equipped Machines for each Department. The employees of
Nishat Mills limited, Bhikki are very trained, educated and highly profiled. They take
keen interest to their work. All the staff of NML Bhikki has learning and coordinating

Shafaq Mustafa
Khan

Behavior with their Colleagues and Internees. Their Behavior with me during My
internship was learning.

Introduction:
The Textile Industry:
At the time of partition there were only 16 companies only which 12 were open. In
Pakistan 1957 was the year of industrial revolution. But now days there are 596 textiles
mills out of which 442 Mills are in operation.
In Pakistans economy the share of textiles regarding foreign exchange, employment rate,
export, revenue generation, investments and regarding many of other factors is at top and
is the largest share in GDB. This leads to the growth of the country toward progress.
But in Pakistan, due to bad conditions of economy, terrorism, unstable political
conditions and many other bad factors leads this industry toward bad crises.

Textiles Exports from Pakistan:


In Pakistans economy the major export is the export of Cotton and textiles. Textiles total
earnings are about more then the 60% of total GDB. The major export items are Cloth,
bed sheets, towels and yarn. Our Pakistans textile Items are famous throughout the
world. The major buyers of these products are US, UAE, UK, Italy, Germany, Hong
Kong and some others. They really like Pakistani products.
Now in Pakistan the export of textiles can be improved by many of new techniques like:
Improved and modern marketing techniques can improve the textile export in many other
countries. The exporters of cotton must have to produce the best quality textiles products
so that many of new contracts can be gained.
All the major textiles industries whether they are doing work on national or on
international level they must has to implement the ISO9001 for the best quality standard
and ISO 14000 for the environmental standard for counting the globalization threats.

Shafaq Mustafa
Khan

Brief Introduction of Nishat Mills Limited:


Nishat Mills Limited is the leading company in Pakistan which was incorporated in
1951and listed in all Pakistani Stock Exchanges. Basically Nishat Mills Limited is
engaged in manufacturing Textiles. This Mill is Involved in the activities of Spinning,
Combing, Weaving, Bleaching, Dyeing, Printing, Stitching, and buying and selling of
textiles. Nishat Mills Limited is dealing with Yarn, Linen, cloth and other verities related
to textiles. There is no problem related to funds, power generation and other problems in
manufacturing Cloth. This Company is selling its products within and outside the
country. This company has its highest ranking in selling its products internationally.
The companys total exports for the year 2013 are. Due to the continuous hardworking
and best planning of employees of Nishat Mills Limited, this mill is here at this stage and
getting continuous progress.

Commencement of Nishat Mills Limited:

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Nishat Mills Limited started its business as partnership in 1951.

Then this company was incorporated as private limited in company in 1959.

Nishat Mills Limited was listed in Karachi Stock Exchange in 1961.

Nishat Mills Limited was listed in Lahore Stock Exchange in 1992.

211 Acquired the operating assets of Nishat Tek Limited and Nishat Fabrics in 1996.

137463 Acquired the Assets of Umer Fabrics in 2005

Shafaq Mustafa
Khan

The man of Vision, courage and integrity:


The Chief Executive Officer of Nishat Mills Limited is Mian Muhammad Mansha. He is
the man of great vision, great and feasible thinker who enables the Nishat group to this
state. He was born in Chiniot. During independence of Sub Continent; he was running the
business of Leather in Kolkata.
Mian Manshas life story is the story of much hard work, spirit to do work and feasible
thinking and the sincerity with his work. This is in the list of top five industries regarding
Assets having and shares in the market.
Textile Export Review:
The NML is the largest exporting and manufacturing unit in South Asia especially in
Pakistan as this mill has fantastic employees and perfect planning.
Main Business of Nishat Mills Limited:
Textiles
Power Generation
Banking
Cement
Insurance

Organizational Hierarchy Chart:

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Khan

CHIEF EXECTIVE

GENRAL
MANAGER

PA TO GM

MANAGER

MANGER

MACHANICAL

ENGINEERING

DEPUTY MANGER

ASSISTANT
MANGER

MACHANICAL

MANGER
ELECTRIC

DEPUTY MANGER
ELECTRIC

MACHANICAL
WORKERS
WORKERS

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WORKERS

Shafaq Mustafa
Khan

Finance Department:
Finance and accounting Department:

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Khan
CHIEF
FINANCE
OFFICER

ASSISTANT
MANGER
FINANCE

GENERAL
MANGER
FINANCE

MANGER
ACCOUNTS

DEPUTY
MANGER

DEPUTY
MANGER

DEPUTY
MANGER

ACCOUNTS

EXCISE

CASTING

ASSISTANT
MANGER
ACCOUNTS

ACCOUNT
S
OFFICER

MANGER
CASTING

PAYROLL
OFFICER

ASSISTANT
MANGER
PAYROL

COSTING
OFFICER

EXCISE
OFFICER

EXCISE
OFFICER

YARN

CLOTH

Comments on Organizational Structure:


As Nishat Mills Limited is amongst the largest organizations of Pakistan and it
has to pay much attention on its structure. Nishat Mills Limited is following the
Centralized system, each and every work is done by Head office. The sites offices can
not take any decision, all the decision are taken by head office. As in this Hierarchy, it is

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Khan

shown that there is a proper system of hierarchy. At each and every level there are
officers and performing their duties according to a complete format. There is a proper
hierarchy system and everyone is following this. So its a good point of Nishat Mills
Limited (Bhikki). But there must be Decentralized system to some extent.
As it is shown by this hierarchy that there is proper system of Officers working pattern.
As in this hierarchy, the chief Executive is at top then General Manager and then other
officers are performing their actions.

Textiles:
The Nishat textiles are further divided into two sub division:

Nishat Faisalabad

Nishat Chunion

The textile capacity of this unit is the largest in south East Asia. This
Nishat Groups limited has a brief capacity to produce many of
textiles products. They are producing grey cloth, bed sheets, baby
sets, garments, towels and other textile products.

The Textiles Export Review:


Nishat mill limited is the largest textiles unit in Pakistan and this unit
earns more than 55% of countrys total foreign earnings. The major
exports of this mill are cotton, cloth, blankets, bed sheets and other
textiles exports. This mill is fully equipped with well-established
environment whether related to labors, staff, technology, machines
and other facilities. This mill is operationally capable of gaining the
value added products and low end textiles production both at
national and at international levels. NML is the leading exporter of
the country with 3% share of total exports of Pakistan. During this
time period of June, 2014, it has shown a tremendous performance
in showing its financial records. However the weakening the
domestic prices of yarn and high prices of cotton has made a
tremendous effect on companys profit margin. However the

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Khan

reduction in the borrowing rates and better working capital


management has increased its profit margins.
NML s Dyeing and finishing unit is considered the most largest
dyeing plants located in South East Asia .Overall NML has 28
Manufacturing units.
NML has total plant capacity of
198,096 Spindles, 12 Sulzers, 653 Air jets looms, 3Rotatory
printing machinery and 5 Thermo sole Dyeing machines.
(Following information has extract from NML annual report 2013-14)
The total exports of Nishat Mills limited are $1.13 billion with an increase of 9.7%.
The export of bed wear fetched $918 Million against $745 million; it has shown the
growth of 23%.
While the towels exports increased by 12% with $ 270 million.
The export of Cotton, yarn, knitwear, canvas, art, silk, and other manufactures
declined during the period Cotton, yarn which earned $ 911 million.

Challenges:
For getting the maximum benefits from the quota regime, all our efforts regarding are
needed to boost our Textile exports and must has to gain an access to the international
markets. For boosting our textiles throughout the world, our government must have to
take some important steps to boost this sector. For boosting this sector there are lots
of challenges to this economy like:

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Shortage of funds.

Shortage of Skilled and according to international standard labors.

Lack of Funds.

No access to international markets.

Lack of Knowledge of International markets and their facilities.

Application of many of duties during the exports to other countries which


leads to high cost of selling products.

Shafaq Mustafa
Khan

Business Volume of Nishat Mills Limited:


These are Nishat mills limited plans and its projects throughout the
world.
Nishat Linen:
This is wholly owned subsidiary company of Nishat group. The basic
purpose of this subsidiary is to operate outlet retailer for the sale of
textiles and other sales textiles products. It was established for the
purpose of facilitating to the other manufacturers. It gets the semifinished goods from outsider manufacturer and makes facilities for
each other. It was established in July, 2011.
Nishat USA Inc.:
This is also a wholly owned subsidiary company of Nishat Group. It
was established in the state of USA, New York. The purpose of this
subsidiary is to provide easily and accessible information about US
market to the Nishat Group and to other sources.
Nishat Linen Trading LLC.
This subsidiary is a limited liability subsidiary company which is
established in UAE. But it is also wholly subsidiary of Nishat Groups.
This subsidiary is engaged in the selling of Blankets, cloth, towels,
linen and other textile products in Dubai. This subsidiary sells its
products at retailer shops and also provides warehouse facilities.
Nishat Hospitality private limited:
This is a wholly owned subsidiary of Nishat Group. This subsidiarys
purpose is to establish and run the chain of hotels throughout the
country. Presently a work is ongoing in Lahore on a Four Star Hotel
according to international standards with the name of The Nishat
St. James Hotel. Hope so this hotel will start providing its facilities
very soon.
Nishat International Free Zone Established:

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Khan

This is also a wholly owned subsidiary of Nishat Group. It has been


incorporated in as a free zone established in Dubai according to the
laws of United Arab Emirates. It is a limited liability company
established in Dubai. It has been registered under in FZE register in
February 7, 2013.
Nishat Power limited:
To fulfill the requirements of Power resources in Pakistan, this was
established. Nishat Group holds more than 50% of its shares. It has
been listed in Karachi stock exchange and in Lahore stock exchange
limited. This subsidiary started its working in June 09, 2010.
Home textiles:
There are 938 modern new generation sewing machines. There are
2 stitching units of NML. The total capacity of production of these
units is 24 million meters per annum. Here in this department the
stitching of cloth is made according to the wishes and demand of
local and international customers. The cloth is stitched according to
the volume and demand of retailer, wholesaler, customers and
contract textiles business.
Products of Nishat Mills Limited of Home Textiles:

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Quilt covers

Quilted Throw Over

Flat sheet

Fitted Sheet

Pillow Cases

Valances

Curtains

Baby Sets

Table Linen

Embroidery.

Shafaq Mustafa
Khan

Financial Highlights:

These are the financial Highlights:

Authorised share Capital:1,100,000,000 of 10 Each.


Total liabilities of NML:38,424,989
Total equity:73,100,052
Total Assets:111,525,041
Earning on Per share: 24.27
Profir after taxation:9,875,448
Total Comprehensive income for the year 30
June,2013:21,457,971
Net cvashed used in financing activities:4,378,319
Cash and cash equivalent at the end of the year June30,
20135,202,124

Nishats net sales increased significantly 52,426,030 to


44,924,101 in 2013. Sales of Nishat mills limited has increased
16.70% for the year ended 30th June, 2013as compared to previous
year. The company Sales grew 120% exponentially by last five
years. Performance of firms weaving division is especially
remarkable. Nishat Mills Limited profits after tax has increased
significantly by 47.89%.

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Khan

However the profitability for textiles and garments divisions of the


company depressed during this year. Its because of low sales in US
and European Unions region. In this Mill, improved methods of
production and efficiencies of labor have increased its Gross Profit
from PRs. 6,789,191 to 9,044,485Rs. The Gross profit has increased
33.22% over this year.
The total dividend of Nishat mills limited has also increased from
2,266,279PRs. to 2,226,339 PRs.
Operational highlights:
The cotton prices remained steady during the first month of current
financial year.
The folding department of NML has 100,000 meter production daily.
The total production of Grey cloth from NML Bhikki is 3 lac. meters
per day.

Department of Nishat Mills Limited:


(Where I did Internship)
Here in Nishat Mills Limited the Departments are mainly involve in
Manufacturing:

Per. Section:
Here in this first stage a pre plan is made and yarn warp on Beam and it starts its working
then that Beams taken to sizing, afterward chemical process is started. Chemicals are
applied on cloth for making it mare strong and impressive.
Weaving Section:
Folding

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Khan

Spinning Department:
Nishat Mills Limited has seven spinning units which are located in Faisalabad. These
units are furnished with latest and modern machines in all the sectors of company. In this
unit cotton is converted into yarn. As Yarn is considered very important for best quality
cloth. So spinning department pays a lot attention on the quality of cloth.
Basically spinning department is start from Mixing department. In mixing department
cotton bales are mixed and impurities are taken out, then they are blower and taken to
record room.
There are two kinds of yarns here, carded yarn and combed yarn. The combed yarn is of
better quality and its process is bigger and better then carded cloth. Here in this spinning
department there are many quality checkers who check the quality of cloth at each stage.
Important parameters for yarn and fiber.

Length

Strength

Micronaire value

Color grade

Trash percentage

The spinning unit has recorded the impressive profit ratio this year. There are lots of
reasons for getting higher profit this year by this department which are stable prices of
cottons, better services to customers and their trust and better quality of products. Due to
the continuous increasing importance of spinning division, NML is also paying much
attention on this sector.

Weaving department:
The weaving division sales increased by1570 Million during this year as compared to
previous year. This year the NML has increased its demand for weaving products not
only in Pakistani but also gained many orders from American brands. Now days the NML
has its key markets in Italy, Germany, UK, Japan and Far East.
This department is very similar to spinning unit. This department is also well equipped
with modern machinery and latest units installation for providing the best and optimum

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Khan

products to customers. In this department there are proper quality check departments
which check the quality of yarn at each stage this department use the end products of
spinning department. The cones of yarn are brought from spinning unit to weaving unit.

Warping unit:
Afterward it is taken to warping zone in which the beams are prepared. In this unit after
weaving the cloth is further processed for warping and after warping.

Sizing units:
Then these goods are taken to sizing department. In this sizing department there are
different kinds of chemicals are applied for better result of yarn quality. The chemicals
are applied for minimum yarn breakage.

Drawing department:
Afterward the next step is the drawing, in this sector the yarn is converted into fabric.
When the cones are designed on beams then yarn is taken to Sulzers room so that yarn is
converted in to weave goods. The yarn which is on weft, before weft it has to be makes
Drawing.
When the yarn is designed on beams and Grieg is made then its taken inspection
department.
In inspection department there are two kinds of cloth division:

A grade

B grade

A grade cloths process is bit longer then B grade.

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Khan

NML has biggest weaving unit in Bhikki which is equipped with latest and modern Air
jet rooms. This unit has following kinds of machines:

Spindles

198,096

Rotatory printing machines

Sulzers

12

Air jet machines

653

Thermo sole dyeing machines

Folding department:
Folding department is the last department of processing unit. Afterward the Fabric is
transferred to GSC. In folding department 4 methods are used for the inspection of
quality check.

Garments Division:
Garment division has gained good name in this division and earn a good name in this
sector. The sales volume increased by 14.98% during this year as compared to previous
year. The future of NML garments is bright and will get more progress. Pakistan makes
the best quality Garments throughout the world.

Fabric Quality Control:

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Shafaq Mustafa
Khan

Here is in this Mill there is a quality control section which control the quality and making
it sure that all the functions of production and all the procedures have been fully fulfilled.
The staff of quality check department first of all checks the quality of yarn before taking
into process. This is the surety that the faulted cloth has not produced. If there is any fault
at any stage so then they try to remove that and try to not repeat that mistake next time. If
there will occur any fault during production stage they try to eliminate that fault and
separate that cloth with insured quality cloth.
Following Important Parameters of Fabric,
1.

Length

2.

Strength

3.

Microniar Value

4.

Coloring Grade

5.

Neps/Gram

6.

Trash percentage

7.

Quality control department:

8.

During the manufacturing of textiles, the quality is checked at each stage for
ensuring that each and every process is performed well designed and every work
is done according to the standard of NML. These are the following checks are
held at different levels of manufacturing.

Checks while printing:

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Rubbing

Washing

Shafaq Mustafa
Khan

Dry Cleaning

Chlorine Test

Checks after curing:

Rubbing

Washing

Checks after stenter process:

Light fastness

Shrinkage

Rubbibg

Washing

Pilling checks after Raising:


o Quality check

Quality control LAB machines:


These are the machines which are used in quality checking process for ensuring highest
quality.

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Khan

Crock meter
Pilling machines
Garment washing machines
Dura wash
Wascator machine
Light box
Auto wash
Light fastener Tester
Air parameter
Data color visco meter.

Export Office:
In this Mill all the time a lots of orders which are in process or going to be accomplished
are there. Here all the machines are on working for 24 hours a day and for 365 days.
There are three shifts of working. But the shifts labors are replaced. But the working is
for 24 hours a day. So it can imagine that they have lots of orders. Marketing
departments Head office always is in touch with export department for making it
products worldwide advertisement and tries to get more and more new orders. The export
office department continuously in touch with other department for taking orders, making
plan to fulfill these orders on time and they try to issue production before the maturity
date. This is also the big mark of success of their contracts. For this purpose they give
tasks to labors by motivating them for incentives. They have to give a task if they will
complete before the timing then they have to give incentives.
Line staff or supporters of Production department:

Receipt Room:

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Khan

This department second name is store room. They keep the record and make a connection
between the departments for gaining and putting the accurate data.
They keep the records of some other things which are important for other departments for
making 100% insured data.

Yarn Quality Department:


In this department the quality of yarn is checked and insured that this is up to mark and
according to the quality of Nishat group.
They check the following things in yarn:

Important parameters of Yarn:


Yarn count
Strength LCSP
U percentage
Thin Places
Thick places
Neps
IPI (Imperfection)
Yarn Flexibility:
Single yarn strength
TPI
Twist multiplier

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Khan

Accounts department:
I spent most of my time in this department during my internship at Nishat Mills Limited.
The reason is that my professional working and my field is related to this department. In
this Department all the transactions takes place, from where Nishat Mills Limited has to
gain money, in which sector how much funds they have to transfer? The matters
regarding this are discussed over here. The Accounts department is further divided into
these categories.
Payroll Department
Cash Department
Productivity Department
These Departments are using following method of recording Transactions:
Journal Voucher
Cash Payment
Cash Receipt
Petty Cash Payment Voucher
Here in this Department I have learnt that:
How to make payment to Contractors (local or national)?
There is a proper system of record keeping of attendance of all employees and then at the
end of the month the salary is paid to employees. For this purpose there is a proper
Department of Payroll.
In accounts there are Payroll department and cash department and also work related to
other departments is discussed in this Department.

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Khan

Human resource department:


In this department the working related to recruiting, selection, transfer, promotion and all
the procedure related to human resource management is done. The staff of this
department is very competent; they know that which person is best for which job? They
have enough experience and know how in hiring matter.

Training department:
When new hiring procedure is started and the new persons are hired according to their
level, experience, qualification and other qualities. At the time of hiring they hired
according to their previous experience and qualification but afterward they have to learn
work according to the Nishat rules and policies. For that cause they have to turned to
training department for training.
Excise department.

Waste department:
This department is related to the record of wastage that how much material they have
utilized and how much material is waste? This department is purely related to the wastage
material and this department knows better about the utilization of this waste material.

Air conditioning department:

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Khan

This department is related to the air conditioning throughout the Mill and the housing
colonies of employees. This department is expert in this field.

Admin section:
This section appoints the persons on jobs, their salaries, bonuses, incentives, medication,
schooling and other faculties to the employees. This department provides all these
services to employees according to their level of job.

Textile Export Review:


Nishat Mills limited is leading export of cloth and cloth material in the countrys total
export with 3 % (FY12). This mill is engaged in the working of spinning, combing,
weaving, folding, bleaching, dyeing, printing and stitching. Its total plant capacity is:
As Nishat Mills Limited is amongst the leading companies in Pakistan its total assets are:

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Spindles

198096

Toyota Air Jet Looms

585

Picanol Loom

Zax Professional Machinery

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Thermosole Dyeing Machines

Shafaq Mustafa
Khan

Nishat Mills Limited dyeing and Finishing Unit is considered to be the largest dyeing
plan in South East Asia. Nishat Mills Limited has 28 manufacturing units overall the
country which are in Sheikhupura, Lahore and Fearoze Watwan.

Quality Policy:
IN this Mill all the management, staff, labors, working units and all other persons whether they
are directly related to this field or indirectly doing work for it, they cooperation and work just like
a team. This is also the biggest feature of this Mill. For that cause this mills production is of
higher quality.

Major Competitors:
These are the major Competitors of Nishat mills Limited:

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CRESCENT

CHENAB

ARZOO

ALKARMS

SITARA

KOHINOOR

BAREEZA

AMTEX

BAREEZA

Shafaq Mustafa
Khan

Gul Ahmed

The Branch of Nishat groups where I did Internship that is Nishat


Mills Limited (Bhikki)

I have started my Internship at Nishat Mills Limited (Bhikki) on 12th of May


2014 and have completed on 27th of June, 2014. Here in This Branch of Nishat Mills
Limited I have done internship for six weeks. This Unit of NML is engage in the
activities of producing grey cloth. This sector is manufacturing raw cloth then further
working is done means designing and dyeing. Forecasting the demands and increasing
and different needs of different customers they are upgrading their weaving unit. So that
they can get margin and more market share at international level especially in European
Countries. During October, 2013, new 77 Piconal Air Jet Looms are in operation. The
purpose of these installations is to focus on fashion and technical fabrics In European
markets.
During my internship period at Nishat Mills Limited (Bhikki) I did internship
in these departments.

Departments(where I did
internship)

Starting date of
Internship

Ending date of Internship

Pay roll

12th May, 2014

21st May, 2014

Excise

22nd May, 2014

1st June, 2014

HRM

2nd June, 2014

10th June, 2014

Account and finance

11th June, 2014

20th June, 2014

Yarn offices

21st June, 2014

27th June, 2014

My Internship program:
(Why I have chosen this Mill)

32

Shafaq Mustafa
Khan

To know about something new and to gain knowledge about many of many things, its
my craze. I have done a lot of search on many of organizations before starting internship
at Nishat Mills Limited. I have done a vide search on most of the biggest and growing
industries in Pakistan. Nishat Mills Limited is one of them. So I tried to do internship
over here. By the grace of Allah I succeeded to get training over here.
As I have explained that Nishat Group is among the largest groups of Pakistan, It is on
Textile base and my interest is in textile sector. I wanted to know about this sector a lot.
Thats why I did internship in Nishat Mills Limited (Bhiki).
During my training at Nishat Mills Limited I have learnt that how to produce cloth of
enough best quality. This mill is producing the Grey Cloth which may be primary
products for some other companies. Total production of Grey cloth of this Mill is 3 Lac.
meter per day.
Here in this organization, I have seen the best organizational environment which is
considered to be the most important and key area of success for any organization.

My Learning experience and Internship Program at Nishat mills Limited,


Bhikki.
Recently on 27th June, 2014, I have completed my internship at Nishat Mills limited,
Bhikki. During my internship, I have spent a splendid time in this mill. I have learnt a lot
about practical application of my education and knowledge which I have gain till Master.
During my internship, I have gain a lot of knowledge on different topics related to the
mills operation and its working and operations.
I have spent a splendid time in this mill because the Staff of this Mill really helps me in
knowing about these functions. I have spent my time in this Mill according to the
schedule which was provided me by my seniors.
(In Nishat Mills Limited I have done Internship in these Departments)
Yarn Godown:

33

Shafaq Mustafa
Khan

I started my internship from this department Yarn Godown. Here in this mill I have seen
that how the yarn has entered in the mill. What are the main methods of entering yarn in
the mill and then where it has to record and how? All this working I have learnt in this
department.

Learning From this department:

I learnt from this department is that there different kinds of Yarns in this
department and there are different codes are given to each Yarn quality. These
codes are called Counts of Yarn. The counts are started from the code of 3.25
to 300. Now one can easily imagine the variety of cloth. These codes are also
known by the name of Blends. There are more than 150 blends in single count.
More common blends areCMCDLYCPima and Denier. The quality of
these Blends determines quality of cloth and shine of cloth.

The receiving and issuance of Yarn is recorded in a Software namely as


ORACLE. This software was developed by NML.

When the yarn entered it is recorded then its taken to Godown and recorded.
Then its taken to weaving department and this department issue to warping
department and then further processing takes place.

Accounts Department:

I have spent most of my time in this account department of NML.I have learnt
about the practical operation Accounting and its effects on NML operations. Here
I have learnt the practical working which is much different from system which I
have learnt during my education. Here I have learned how payments are made?

34

Shafaq Mustafa
Khan

How the salaries are paid? What a good system of paying expense check system?
What are the methods of recording of expenses? How the cheques are received
and recorded?

In one account department there are some other departments like Payroll and
excise department etc.in this mill different department worked on different credit
parties and sent all the bills to Account section of NML. Then these bills are
checked and then recorded. But when these bills are approved by manager of
Accounts, then its impact is shown in Ledger of concerned party. Then from these
ledgers all the payments are made and tax is also deducted according to current
rate.

Payroll Section:

In payroll section of Accounts department I learn how the salaries are distributed
on time to labors. In this department i learn about salaries, Bonuses, Provident
fund, Employees old age benefits, Social security, loans and there are four special
cases each month that needs more amount loan.

In NML, the Time Office record the attendance of each employee and then this
record are transferred to Payroll section and then this department makes the
salaries of each employee.

The employees are given salaries according to their No. of working hours in a
month.

35

Shafaq Mustafa
Khan

I learned that 9.5% of gross salary is deducted as Provident fund from employee
and employer also contribute with same ratio as provident fund. But this fund plus
interest of whole period is paid after the retirement of employee.

Human Resource Department:

This department of NML is engaged in the activities of hiring and firing of


employees. This department is engaged in the activities of hiring new employees,
training of these employees, their wage rates and all the working related to
workers and staff. This department maintains the record of facilities which the
NML is providing and whose needs how many facilities?

This department issues the entrance cards to employees and keeps their records,
their working records and maintain better place for best employees. This
department also keeps the record of internees of each department and maintains
new training plans for new internees. They try to Keep their trainees and
employees satisfied with NML policies.

Training Program:

During my internship at NML I have learned much more and try to complete all
the assignments which were given to me.

During my internship at NML my supervisor had given me an assignment to


check that Truck of Yarn is unloaded. A truck which had to receive from Nishat
Mills Limited (spinning unit) Faisalabad to NML Bhikki. As my supervisor

36

Shafaq Mustafa
Khan

advised me to check the Bility and bility number of Transporter Company


Awasia .Then I checked the stamp of Nishat Mills Limited (spinning unit) and the
stamp of Gate entry. When I have checked all these things and then said to
workers for unloading of Truck. Then I called to labors to transfer these bags to
store room and place proper recording methods there.

Accounts Section:

As I have spent my most of time in this department, in this section there were
some tasks which were given to me.

In this section, my supervisor has given me a task to reconcile the bank statement
for the month of May2014.

I gathered all the information related to this I got the register where the entries
of cheques that are distributed to the parties are recorded. Then I got the Bank
statement of NML bank accounts which was104-9 at MCB bank which is near
NML Bhikki. I checked all the cheques those were presented in the bank. Here I
found the real difference between the unpresented and uncredited cheques. I
found some mistakes there in that register because the amount of cheques and the
amount on register were not similar. During this reconciliation I had also made
some mistakes but with the help of my supervisor (Mr. Javeid Iqbal Deputy
Accounts Manager)

Human resource Department:

37

Shafaq Mustafa
Khan

In this department I spent a little time but gain the experience regarding the working of
labors and employees. My supervisor had given me a task to fill the form of Workers
which are coming for new hiring. In NML Since 1 st date of each month to 18th date of
each month the new hirings open. I hired some labors and fill their forms. Get interviews
and hire them. Some of the labors were not up to mark so I could not hire them.
After few days a new task was given to me to check the total attendee of labors and
employees. It was easy but so lengthy work. But I had accomplished.

Payroll Section:

In this section my supervisor has given me few tasks. They had given me a task to
find the provident funds of each employee.

A few days later I prepared the accounts of labors regarding their salaries plus the
expenses which had to cut off regarding their expenses at NML.I found that
67%of the salary is given to Employees and 9.5% provident fund is cut off.

After 4 days a new task was given to me in whom I had to calculate the loan and
interest of employees.

I had also done work on welfare funds. I learnt that these welfare funds are nor
refundable. These are just given to employees for their welfare those are more
needy.

Learning Experience at Payroll:

38

Shafaq Mustafa
Khan

I have completed my internship at Nishat Mills limited, Bhikki, and District


Sheikhupura. During my internship in this mill I have gained lots of knowledge
regarding the working of each department. I have learned all the technical
knowledge practically. In which department I did internship, it was an excellent
experience for me. I gained much knowledge and difference between the practical
working and the working of accounting and working of other departments.

All the staff of NML is excellent. The Management of NML is quite well and
excellent of each Department. They were always ready to help me regarding each
of matters. They sorted out lots of my problems. Whenever my supervisor has
given me any task, they had given me lots of good advices regarding working of
NML rules.

They had given me lots of useful information regarding the working of NMLs
policies and had given me lots of advices regarding the working of office and
office environment.

I have learnt about new software which is Oracle. This is quite different and much
useful for those who really want to use them and want to use them in a right way.
There are lots of new features are installed in this software which are helpful for
staff.

Organizational Analysis:
Organizational analysis is as follows:
Market segmentation:
Market segmentation is explained as the Subdivision of Market into smaller units. The
market of NML is subdivided according to the customers and market share. It is helpful

39

Shafaq Mustafa
Khan

for creating the better ideas about the customers need, markets share and supply of
Products.
Customers:
As the customers are the key important for any Business. As Nishat Mills Limited is also
paying much attention on Buyers needs, Culture of customers, age, gender and all other
aspects of customers regarding their needs and likings. NML is engaged in different
sectors of Textiles.
Products:
Nishat Mills Limited is producing much higher quality products and therefore they have a
great reputation in the market at both national and at international level. Its working in
the sector of Spinning, weaving and home textiles, Bleaching, stitching and buying and
selling of yarn and other fabrics and many of other products they are producing with best
quality.
Competitors:
The major Competitors of Nishat Mills Limited are Chenab, Gul Ahmed, Arzoo and some
others. But the management of Nishat Mills Limited Is highly competitive, they are
innovative and they know that how to exist in the modern and competitive era.Prices of
Nishat Mills Limited are high because of their best quality products.
Brands:
All the products regarding Textiles and other sectors are superb and according to the
international standard. They are producing and selling their products at national and at
international level.
Sources:

40

Shafaq Mustafa
Khan

Nishat Mills Limited has wonderful sources whether they are financial or human
sources. They have wonderful sources and continuously increasing day by day.
Machinery:
Nishat Mills Limited is equipped with modern and up to date machinery and has many of
new machineries for different manufacturing purposes.
Human sources:
Nishat Mills Limited has highly qualified staff which is helpful in making its products
famous and highly qualified. Nishat Mills Limited is paying much attention on improving
the quality of their Human sources.
Centralized System:
In open System Thinking, each and everyone have right to speak and to do work. But
in Nishat mills limited, as the system is centralized so only Head Officers can take
actions and can make innovations. But the site officers can give their view points in
meetings.
Future Projects:
These are the projects of Nishat Mills Limited:

Fair Price shops at different Areas of country and at international level.

Further Investment is weaving Units and making their units up to grade and
Hiring of Qualified Labors.

41

Shafaq Mustafa
Khan

Much attention on increasing Market shares both at national and at


international level.

Making Investment In different Sectors like Electricity sources for textile


sectors.

SWOT:
AS each and every organization of the world have some plus point and some negative
points. Nishat Mills Limited also has some

Strength:
These are the strength of Nishat Mills Limited:

Up to mark and according to the international production methods are applied


during manufacturing cloth etc.

Modern machinery is applied for manufacturing cloth.

Qualified, experienced and technical knowhow staff.

Strong internal and external cooperate environment.

High share in markets at national and at international level.

Healthy flow of funds at each level.

Strong goodwill.

Strong financial sources and its generation.

42

Shafaq Mustafa
Khan

ISO9001-2000 certified.

High quality products re produced.

Staff is highly motivated by many of good opportunities.

Own power generation resources.

Best market information knowledge availability.

As Nishat Mills Limited is at top ranking in Pakistan so there is no need for this
Mill to buy Raw Material from Outsiders.

Nishats Management provides an excellent working environment to its


Newcomers employees.

Weaknesses:

This Mill has a good name in the market both at national and at international level but at
the same time this mill also has some weaknesses. These weaknesses area as follows:

No proper utilization of sources for that cause its cost of production is high.

Sometimes the decision and mostly the biggest decisions are made on upper level.
For that cause there is lack of lower level managements importance and they
prefer in this smatter to Centralized system.

No job security to employees they can be fired.

No proper relaxation time period for labors annually or periodically.

43

Shafaq Mustafa
Khan

Very low budget for advertisement.

Very low market share at international level because of lack of intention over this
sector.

Lack of other benefits to employees which can keep them on job for a long time
period.

Opportunities:
These are the opportunities, if the Nishat Mills Limited will adopt these so obviously it
would pass more successful stages. These are as follows:

Proper advertisement at both national and at international level will enhance its
productivity.

This organization can hire more educated and qualified staff for enhancing its
products.

If this organization would find more new and advanced markets it would be better
for increasing its sale to potential customers.

This organization can decrease its per unit variable cost by adopting new and
more productive methods of production.

There are lots of good and developing programs for Nishat Mills Limited for
increasing their Exports.

44

Shafaq Mustafa
Khan

Nishat can introduce a new unit at in their productions unit and that is the
Stitching Unit of Garments.

Nishat Mills Limited can make its environment of this type that it can involve its
precious employees into the development of exporting material in their local
areas.

Threats:

Following these are the threats to the Nishat Mills limited:

Threat of new entrants in the market.

As change in fashion can reduce its sale and share in market.

Change of Government policies regarding taxation and selling rules.

Load shedding of electricity reduces its products.

Degrade the value of money in Pakistan.

Fluctuation in the prices of raw material and other material which is used in the
production.

Conclusion:

45

Shafaq Mustafa
Khan

No doubt that Nishat Mills limited is the leading company in Pakistan. The functions,
technological system, management systems, its working areas, locations, Policies,
decentralized decision making all these points are outstanding and unpaid. In this report I
just tried to explain all these points and also defined those areas where more
improvement is necessary. In the modern world, the modern techniques of production,
uses of technology are very much important and lead toward progress. The overall
scenario which I want to explain and I have seen and observed over here is that this mill
is getting progress and improving its capabilities day and night. But still there are some
areas where this mill has to pay attention and government should also make enough
adequate facilities and policies for this sector. As this is the backbone of any country.

Recommendations:
These are some recommendations to this mill from me and these are as follows. The
organization should provide job security to its employees especially to labors. There is
also a big problem to employees is the working overload they are not following the rules
of labor Laws. They must have to adopt these rules. The special incentives on Muslims
religious festivals must be arranged by the mill and should provide discount to the
employees on buying dresses and other accessories.
Annexes:

Reference:

46

Nishat Mills. (1951). Annual report 2011. Available:


www.nishatmillsltd.com/nishat/pdf/annual11.pdf. Last accessed 25th July
2014.

Nishat Group. (1951). History & Development. Available:


http://nishatpak.com/history-and-development.html. Last accessed 22nd July 2014

Shafaq Mustafa
Khan

Nishat Group. (1951). Product and Business. Available:


http://www.nishatmillsltd.com/nishat/products.htm. Last accessed 22nd July 2014

Nishat Group. (1990). Nishat Chunian Details. Available: http://nishat.net/. Last


accessed 23rd July 2014.

Nishat Group. (22nd June 1995). Nishat Pakgenpower. Available:


http://pakgenpower.com/. Last accessed 20th July 2014

Nishat Group. (28th September 1960). Adamjee Insurance Details.Available:


http://www.adamjeeinsurance.com/index_home.aspx. Last accessed 20th
July 2014.

I encompass used lots of other documents for gain knowledge about the
organization like news papers, companionship files etc. I use a make a note of
pad throughout my internship that later on help me preparing my report.

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