History of Qarshi

Qarshi Industries (Pvt.) Ltd. is one of the largest natural products companies in Pakistan. It is a
modern and progressive facility that manufactures and markets leading brands that have become
household names. As a leading manufacturer of Natural Products, Qarshi is engaged in promoting
healthy living for over seven decades. It has been offering blend age-old Oriental and Greek herbal
preparations with the latest advancements in science and technology to provide safe and effective
products to its customers.
From humble beginning in 1968, Qarshi Industries (Pvt.) Ltd. is now Pakistan's largest herbal
pharmaceutical company. It was conceptualized 75 years ago by the venerated eastern poet Allama
Muhammad Iqbal. Its inception was in the shape of a clinic at Beadon Road in the city of Lahore, in
the heart of Punjab, which was opened by Shifa-ul-Mulk Hakim Muhammad Hassan Qarshi, He was a
practitioner of herbal medicine and health supplements. The clinic was started with a view to provide
pure and effective herbal medicines to the general populace.
In 1968 the youngest son of Shifa-ul-Mulk, Mr.Iqbal Ahmed Qarshi after completing M.S.C in Chemical
Engineering, laid the foundations of Qarshi Dawakhana that has now evolved into Qarshi Industries, a
modern and successful company that outweighs by far, the expectations of its original founder.
Qarshi Industries is highly rated company in its category in Pakistan. It has consolidated its image as a
quality-conscious company and has, over the year, demonstrated its firm commitment to quality and
strict adherence to international standards. Qarshi takes pride in maintaining a high quality in its
products and superior skills and acquiring the latest in advanced technology.
Approximate annual sales : USD$50,000,000
Percentage of exports : 10%
USA , Europe and Middle East

Company Profile
Nishat Mills Limited is the flagship company of Nishat Group. It was established in 1951. It is one of
the most modern, largest vertically integrated textile company in Pakistan. Nishat Mills Limited has
198,120 spindles, 655 Toyota air jet looms. The Company also has the most modern textile dyeing
and processing units, 2 stitching units for home texitle, one stitching unit for garments and Power
Generation facilities with a capacity of 89 MW. The Companys total export for the year 2011 was Rs.
36.015 billion (US$ 416 million). Due to the application of prudent management policies, consolidation
of operations, a strong balance sheet and an effective marketing strategy, the growth trend is
expected to continue in the years to come. The Company's production facilities comprise of spinning,
weaving, processing, stitching and power generatio
Nishat Mills the flagship company of the Nishat Group reported a profit of Rs2.86 billion in the July
to December period of the fiscal year 2012-13, up 50.5% from Rs1.9 billion in the corresponding half
of fiscal 2012 on back of stronger margins and higher exports where rupee depreciation played its
part.
On a consolidated basis, the company managed to double its profits to Rs4.91 billion in the period.
The result was above analyst expectations due to higher than estimated revenue growth, reported
Zeeshan Afzal, analyst at Topline Securities.
According to a notice sent to the Karachi Stock Exchange, the textile companys revenue clocked in at
Rs26.32 billion in the period, up 22% compared to Rs21.62 billion in the corresponding half of
previous fiscal, attributable to stable cotton prices and 9% depreciation in rupees value as 80% of its
sales are in the export market.
Increased demand of yarn from China had been the major catalyst in driving textile exports in fiscal
2013. Textile exports in the first six months of current financial year touched $6.46 billion, depicting a
growth of 8.6% year-on-year. International cotton prices averaged Rs6,525 per maund in the period,
whereas local prices averaged Rs6,000 per maund. One maund is equal to 37.325 kilogramm

Trade reports:
According to a trade report the profit of the NTM after tax deduction in the nine months period ended
March 31, 2010 has raised to Rs 1,810.674 million as compared to Rs 1,100.421 million in the
related period ended March 31, 2009, showing an increase of 64.54 %. It shows the good reputation
of the company but still has problems of high prices which need to be solved
Swot analysis:
The SWOT analyses are of great importance and helps in decision-making for all sorts of situations
in business and organizations. The swot analysis for nishat mills limited is as follows. (Kotler et
al...2005) "SWOT is a practice which helps to analyse the internal and external environments of an
organisation through the classification and judgement of its Strengths, Weaknesses, Opportunities,

and Threats. SWOT analysis shows an image of the results of an internal and external audit which
draws attention, from a strategic point of view, to the organisations critical strengths, weaknesses,
the opportunities and threats facing the organisation."
Strengths:
1) ISO 9001-2000:
Nishat textile has the certification of ISO 9001-2000 which means its quality standards are its major
strengths and hence it also fulfils the requirement of international standard and has a great
importance in the industry internationally as well.
2) OKTEX 100:
Nishat also has the certification of oktex100 with itself which insures that it doesn't use any harmful
chemicals.
3) Computerized machinery:
This textile giant is using the latest technology for the production of the highly quality products which
also enhances the production capacity of employees.
4) Skilled management:
The highly skilled management from all over the country has been hired by Nishat and especially the
foreign graduate people in their management contributing a lot in the success of the NTM.
5) Financial position:
The owner of the NTM is one of the richest people in Pakistan and has the adequate financial
resources which mean the back of the NTM is very strong.
6) MIS:
NTM is fully equipped with the management information system through which the employees and
various departments are connected with each other and share the data with the top management.
So it is a very appreciable system.
7) Power generation plant:
The electricity power is a very immense issue in Pakistan so NTM has its own power generation
plants and producing the power not for itself only but also selling it to the WAPDA.
Weaknesses:
1) High production cost:
The resources are not being use properly and due to the economic crisis the rates are going up
rapidly and hence cost of production is increasing as well.
2) Bureaucratic organisation:

Another weakness is the bureaucratic environment within the organisation. The upper management
takes all decision ignoring the employee's suggestions.
3) International market:
NTM has week international market because of china that is very well known in the cost reduction
and creating a big problem in the industry for the NTM internationally and the market share price has
gone down as well.
4) Employee benefits and rewards:
Nishat is not providing any kind of benefits or rewards even the medical allowance and transport
facilities are not given to their employees and this put the productivity down and therefore there is
the lack of motivation in the NTM.
Opportunities:
1) Product expansion:
The very important opportunity for the nishat mill is that it should expand its products in the form of
knitwear. As NTM has plants, good market position and strong financial back so it should avail this
opportunity by dealing in knitwear.
2) Low cost production:
The NTM should use the resources in a good way so that the production can be reduced to a great
extent and can maximum the profit ration.
3) International market:
NTM should take the benefits of global recession and has a chance to increase its market share
price internationally.
Threats:
1) Political instability:
This is the threat which cannot be ignored due to the current circumstances of Pakistan and the
export of the products may affect in account of this.
2): Government policies:
As the political instability is in Pakistan and every new government imposes its own rules and
regulations and especially the sudden increment in the taxes is not affordable for the NTM.
3) Buyer needs changing:
The NTM has a great threat from international market because of its satisfactory design and
competitors providing the latest ones which can put the NTM reputation down.
4) Global instability:

The global instability is still in operation for this industry. Any unusual incident can happen as 9/11
was happened so still that kind of threats are able to disturb the company performance.

INTRODUCTION TO SHAN FOODS

ORGANIZATIONAL HISTORY

Shan Foods came into existence in 1981 when it began operations from a single room. Shan
Masala as it was back then, launched full range of spices to cater to local public, due to its
popularity. Shan started exporting after a few years due to increased international popularity. But
after sometime, the need to reposition the brand was felt. It needed to be repositioned as a food
brand rather than a spice brand. Re-imaging the organization became necessary for re-positioning
of the brand; it was a job well done and led to continued success of Shan on national and
international fronts. Now, Shan Foods is well known as a brand of easy to cook mixes for
Pakistani food. The name of Shan Foods has become synonymous with highest quality and
exquisite taste. It continues to carry on, the tradition of authentic cuisine to farthest parts of the
world. There are six broad categories of varieties Shan deals in including recipe mixes, plain
spices, dessert mixes, basmati rice, pickles and salts.
Today, Shan Foods has presence in 60 countries. The brand is exported to UK, USA, and Middle
East and now to Far East regions as well.

COMPANY MISSION AND VISION

Shan Foods mission explains its success, To continuously develop and produce
quality products that meet the customers and markets demands, compatible with
applicable regulatory requirements. To be a consumer oriented company with
keen insigne of food products ensuring quality panty consistency and authentic
taste to operate with state of the art technology to obtain optimum results and
retain highest quality standard thrived efficient and motivation human resource

and inculcate in them a sense of participation and proved for personal goals and
development. (Shan Foods, 2008)

Shan Foods vision is to be a dominant global player in food products and socially
responsible company that attains its quality standards so that Shan stands for
tradition, trust and good taste.
A few years later it started exporting to Europe, United Kingdom, United States and the Middle East.
Within a decade, Shan was exporting to 25 countries

Shan Food exports at $3.15 billion in July-February FY14 (8MFY14)

are 9pc higher than those in 8MFY13
SWOT ANALYSIS SHAN FOODS

Strengths :

Shan food has a very strong heritage and legacy behind it which has given it
a strong goodwill in households.

Shan foods enjoys an approximately 50% market share in the recipes mixes
category.

Shan foods is a leading exporter of food items from Pakistan providing it an

opportunity to tap the large global market which helps it to expand at a rapid
pace.

Shan has a wide range of products and SKUs available consolidating its
presence in various niches and keeping its customers loyal to the brand.

Weaknesses :

Shan is not present in Jams and marmalades, Ketchups categories like

National foods thereby loosing an opportunity market. Many loyal Shan

customers purchase National products in these categories which is causing

loss of potential sales.

Shan has a low market share outside Karachi in the Punjab market where
National enjoys market leadership. This is due to weak distribution of Shan
products in Punjab market which is causing loss of potential sales.

Opportunities :

Shan can vertically integrate to produce its own raw materials which will not
only reduce costs but will also provide it more control over the quality of
input.

Shan currently has a very low advertising spend in the FMCG industry. It can
deploy

brand

activations

and

other

innovative

campaigns

to

switch

customers from the loose/ unbranded segment to Shan products.

Shan can also horizontally expand its scope like national foods and enter the
other related food categories where it can tap its loyal customers with
minimal extra efforts.

Threats:

The biggest threat to Shan is the high inflation in Pakistan coupled by a

global recession which is putting pressure on the profits and sales.

The prevalence of counterfeit products is also threat to Shan causing loss

in goodwill and potential sales.

The emergence of newer brand with deep pockets can also damage
Shans market share due to heavy advertisement while keeping the
product quality close to that of Shan.