1:INTRODUCTION

Nishat (Chunian) Limited was incorporated in 1990 as a public limited company with

an equity investment of Rupees100 million. A spinning mill having a capacity of

14,400 spindles was established at Bhai Pheru, Tehsil Chunian. It started

commercial production on 10 March 1991. The capacity was enhanced to 19,200

spindles in 1998. In 1998, the Company diversified its business interest by

venturing into a weaving project with the installation of 99 air jet looms.

A new state of art spinning unit started production in November 2000, increasing

the total spinning capacity to about 40,872 spindles. Subsequently weaving

capacity was increased to 212 air jet looms while the spinning capacity was

increased to 50,952 spindles. During the period ended 30 June 2005, the Company

enhanced its spinning capacity substantially by acquiring the operating assets of

Umer Fabrics Limited comprising of 38,544 spindles and by addition of a new

spinning unit with 40,128 spindles. In 2006, the Company also diversified into Home

Textile Business. The

Company is currently operating with 149,948 spindles, 293 looms, a modern dyeing

and finishing plant having capacity of 101,370 meters per day and captive power

plants with a total capacity of 29MW.Nishat Chunian Power Limited (NCPL)

incorporated on 23 February 2007, is a subsidiary of Nishat (Chunian) Limited. The

gross capacity of the NCPL is 200MW and is operating as an independent power

producer, selling its electricity to National Transmission & Dispatch Company

Limited. The Company successfully commenced commercial operations on 21 July

2010.

Vision Statement

 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 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.

 

Mission Statement

 

To provide quality products to customers and explore new markets to promote/expand sales of the

Company through good governance and foster a sound and dynamic team, so as to achieve optimum

prices of products of the Company for sustainable and equitable growth and prosperity of the Company.

Objective of Study in the Organization

The objective of this project is to conduct investment management of Nishat Chunian Ltd in order to

know the current position of Nishat Chunian Ltd for investment purpose and to suggest the following

persons in taking their decisions.

Investors

Creditors

Corporate Overview:

Nishat Chunian Group has an enviable business history of over two decades. From a modest start in 1990

with a spinning mill of only 14,400 spindles, the group today has a vertically integrated textile company

which prides itself of being the fourth largest textile company in Pakistan (in terms of turnover). In 2007,

the group diversified into the power sector by setting up a 200 MW Independent Power Producer. Today,

Nishat Chunian Group contains two companies – Nishat Chunian Limited (a textile company) and Nishat

Chunian Power Limited (a power generation company).

Brief History 1990    Nishat Chunian Limited (NCL) incorporated as a public limited company

1991    First spinning unit started commercial production

1998    Diversified into Weaving Business

2005    Acquired operating assets of Umer Fabrics Limited

2006    Diversified into Home Textiles Business

2007    Diversified into Power Business with the incorporation of Nishat Chunian Power Limited (NCPL)

2010    NCPL started commercial operations

Nishat Chunian Group is strongly committed to minimizing the adverse processing effects on the

environment. Nishat Chunian has the first dyeing unit in Pakistan to have all Size recovery, Caustic

recovery as well as a Waste Water Treatment System.

Size recovery

Reduces the overall environment impact by recycling the sizing agents from waste water thus reducing

effluent generation. This also reduces the need to manufacture these chemicals, which further reduces

emissions. 

Caustic recovery

Reduces the overall environmental impact by recycling the caustic material used in fabric processing.

This set up not only reduces the emission of pollutants in waste water but also provides cost savings in

chemical and water recovery as well as energy savings through the recovery of hot water. It reduces water

usage and the need to manufacture these chemicals, which further reduces emissions. 

Waste Water Treatment System

In our efforts to make the lives of our employees safe and more enriching, we have set up a Water

Effluent Plant at our Dyeing & Printing unit. This plant recycles the water to reduce the effluent load in to

the drainage system, thereby not only ensuring security  for our employees but also for the society at

large. 

Corporate Governance

Proper books of financial accounts are kept by the group.

Appropriate accounting policies are consistently applied in preparation of annual, half yearly and

quarterly financial statements. Accounting estimates used in the preparation of these financial

statements are based on reasonable and prudent judgment.

The international accounting standards, as applicable in Pakistan are followed by the group

companies in the preparation of published financial statements. 

The system of internal controls at the group companies is sound in design and is effectively

implemented and monitored regularly.

The group companies are in compliance with the best practices of corporate governance as

detailed in the listing regulations of the stock exchanges in Pakistan.

Social responsibility

We are committed to contributing and caring for the community in which we operate. In this regard,

Nishat is well aware of its social responsibility for employee welfare and development. The group covers

housing and medical expenses for its employees and also provides schooling for their children. The group

also provides recreational and sports facilities for the resident employees at production premises.

Nishat has also established a school and a hospital under the Mian Mohammad Yahya Trust, at a cost of

around US$ 700,000. The trust is sponsored by Nishat Chunian Limited and members of the sponsors’

family.

The high school opened in 2000 for the employees’ children and general public of the area; has a staff of

around 40 teachers and offers education to 400 students.

The hospital has also been constructed in the vicinity of the plant; enabling local population to get

immediate medical attention instead of traveling to the nearest city. Around 80 patients are treated daily

in the hospital by a staff of around 30 people which includes 6 qualified doctors.

In 2009, our employees set up a fund of US $ 35,000 with their donations for setting up a relief camp for

about 500 internally displaced people of Swat. The camp was managed with the help of Pakistan Army

and locals of the area. We provided tents, water supplies, washrooms, food storage and all basic

necessities of life. The camp continued for almost 3 months and was regarded one of the best managed

facilities for the internally displaced people.

After the floods of 2010 in Pakistan, our employees took active part in the relief efforts for the

rehabilitation of flood victims. The relief efforts included a medical camp at Kot Adhu plus a month’s

supply of basic necessity goods for about 100 families. These goods were distributed in the areas that

were cut off from other parts of the country due to excessive flooding and the aid was flown into those

areas through helicopters provided by the Pakistan Army. Bedding Supplies were also provided for about

80 families. Total donations amounted to approximately US $ 25,000.

Spinning Profile

Nishat Chunian Limited has a Ring-spinning capacity of 150,000 spindles producing 50,000 tons of

greige yarn per annum. Our state of the art machinery, technical expertise and careful selection of best

available raw material result in the finest quality of yarn. NCL has a wide range of brand loyal customers

all over the world which comes as a result of consistency in quality, reliability and diversity of the yarns

that we produce. We make yarns for multiple end-uses including Denim, Apparel, Shirting, Home Textile

and Technical Fabrics. Our major markets include Hong Kong, Mainland China and Europe. Our focus is

to maintain consistent quality, on time delivery, after sale service and prompt response to all customer

needs.

Spinning Products

NCL covers a broad range of Ring-spun yarns from Ne 6/1 – 135/1 for multiple end products &

applications. We are a market leader in coarse yarns including plain, Slub, Siro and Core-spun stretch

yarns for denim and bottom weight fabrics. Our fine Compact Yarns cater to high thread count Sheeting

and fine quality Shirting Fabrics. We also produce yarn for work wear, technical fabrics, towels and

knitted fabrics. Depending on count and customer requirement, yarns are available in a wide range of

local and imported cottons including US Pima, Egyptian, CIS ELS, Australian, Indian, Brazilian & US

cottons. We are Supima® and Cotton USA® certified and Lycra® accredited.

Spinning Machinery

The spinning facility consists of five mills with a capacity of 150,000 spindles producing 50,000 tons of

yarn per annum. It includes 42,000 spindles with compact attachments from Toyota and Sussen; 26,000

spindles producing Amsler slub yarns and 14,000 spindles equipped with core-spun stretch yarn

attachments from Pinter. All mills are equipped with modern Japanese and European machinery, which is

regularly upgraded to make use of the latest available technology. Each mill is specially designed to

produce its specific count range resulting in unmatched control over yarn quality.

Weaving Profile

Established in 1998, the weaving department consists of 293 air jet looms producing 3 million yards of

greige fabric per month. With a combination of state of the art weaving equipment, technical know-how

and managerial expertise, NCL Weaving has developed a reputation for quality service and products

worldwide.

Our in-house spinning helps maintain a better control over quality and facilitates innovative product

development, greater product flexibility and shorter lead times. At NCL we cater to the demands of both

the local and the international markets. Apparel fabric is exported to the Far East , Europe and North

America , whereas the sheeting fabric is mainly exported to high-end US and European buyers. In terms

of sales, Nishat Chunian is one of the largest Pakistani exporters of sheeting products to the US.

Weaving Machinery

The weaving mill consists of state of the art Picanol Omni Plus, Picanol Omni Plus 800 and Toyota jet

710 Air jet in various widths ranging from 110 – 150 inches, providing greater flexibility in catering to

customer needs. The Sizing and Warping machinery is manufactured by the renowned European

company Benninger-Zell.

 Highlights

Warping Bendirect-1000-2400-GV/OPTOSTOP-1152

Sizing Ben-Sizetec ZB32 MWKVDMW CTA4/4/6 PW BBe

Looms Picanol Omni Plus, Picanol Omni Plus 800 and Toyota jet 710 Air jet

No. Of Looms 293

Model 2003-2010

Widths 280cm, 340cm, 380cm

Special Features Dobby Attachments, Batching Motions, 4 Color Insertion, Multiple Pick insertion till 8PI.

Compressor Atlas Copco, Cooper Air Compressor

Air Conditioning Luwa, Air Plus

 Product Development

At NCL, we believe in experimentation and exploration of new dimensions. Our product development team carries out extensive research to keep updated on new market trends and to stay one step ahead of the competition. We constantly work hard to translate our novel and creative ideas into attractive products. 

Usage of Special FibersThe flexibility in our product range allows us to use various types of fibers. Some of the fancy yarns we use include blends of Cool Max, Nylon, Modal, Tencel, Bamboo, Pearl, Soyabean Fiber, Milk Fiber, Silver, Cashmere and Amicor.

Innovation in Fabric Construction

Our innovations in fabric construction have resulted into several noteworthy products. High thread count sheeting fabrics of unmatched quality have been produced as far as 1000 thread count using single ply yarn till Ne 150. Fabrics can be produced using multiple pick insertion upto 8PI. Some fancy dobby fabrics with intricate designs have also been manufactured using 12-16 frames.

Home Textiles Profile

The dyeing and printing plant has a capacity of 4.0 million yards per month with an equivalent stitching

capacity. These plants are equipped with state of the art machinery specially designed to cater to high

thread count fabric. 

During the dyeing, printing, finishing and stitching processes, several measures are taken to ensure timely

delivery of high quality fabric. This includes special care in fabric handling, full width rail stitching, PVA

based size recovery, various devices to avoid creases and band mark variation, special unwinding devices,

efficient squeezers, a computerized dye dispensing system and an on-line measurement and storage of

data at every machine. 

We have implemented a wide range MIS system that efficiently links all the processes. This information

system is installed to minimize idle machinery time, increase productivity and reduce costs, affirming our

position as a leading and cost effective supplier.

Home Textiles Products

The dyed and printed Sheeting range comprises of high density fabrics of unmatched quality with widths

up to 340 cm and yarn count range of Ne 20/1 – 100/1. This includes Percales up to 400 thread count and

Sateens up to 1000 thread count. Other products in this range include fabrics with upto 6 pick insertion,

dobby fabric with intricate designs using 12-14 frames and fabrics made using plied, slub and fancy

yarns.

In addition to 100% cotton, a number of fibers in various blends are used including Polyester, Viscose,

Modal, Tencel, Bamboo, Soyabean, Milk Fiber, Lycra, Cool Max, eVAP, Nylon, Amicor, and Pearl

Fiber.

Dyes & Finishes

We offer a wide range of dyes and finishes which can be adapted in accordance with customer

requirements. The various dyeing options include Pigment, Vat, Reactive and Disperse. In printing we

have the option of doing Pigment, Soft Pigment, and Reactive Prints.

Some of the various finishes we can do are Water Repellant, Soil and Stain Resistant, Wrinkle Free, Anti-

microbial, Fragrance, Bleach Resistant, Ultra Soft Hand Feel, Anti-Dustmite and Fire Resistant. 

Stitching Products

Bed Linen

Products in this category include Flat Sheets, Fitted Sheets, Pillowcases, Pillow Shams, Dec Pillows, Bed

Skirts, Duvet Covers and Comforter Shells.

Curtains

The product range also includes 100% Cotton & Cotton Polyester Blended Window and Shower Curtains.

Some of the different styles that we offer are Tab Top Curtains, Rod Pocket Curtains, Back Tab Curtains,

Grommet Curtains and Tie Backs.

Table Linen

We produce Table cloth, Table Runner, Napkins and Ruffles Round.

Home Textiles Machinery

The dyeing and finishing plant is equipped with the latest machinery from Kuesters and Monforts, market

leaders in processing technology for wet and dry processes respectively.

  Highlights

Singeing and Bleaching Kuesters

Mercerizing Kuesters

Pad Steam Range Kuesters

  Highlights

Thermosol Range Monforts

Stenter Range Monforts

Printing Machine Reggiani

Sanforizing Range Monforts

Calender Kuesters