foreign direct investment by nishat group
TRANSCRIPT
27 January 2016Foreign Direct Investment In USA By Nishat Group 1
Textile Industry’s Economic Contribution To Pakistan
Introduction to Nishat Group
SWOT Analysis Of Nishat Group
Why to enter USA
Political, legal , and Economic Conditions of USA
Overall Attractiveness
Marketability in USA
Conclusion
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Textile is the backbone of Pakistani industry and economy.
Contributions of Textile to Pakistan
Pakistan is 3rd Biggest Producer Of Fabric
Pakistan is 4th Biggest Producer Of Raw Cotton and 9.5% of worlds raw cotton
Source: Pakistan Economic Survey, SBP, TDAP
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Founded By Father of “Mian Muhammad Mansha” in 1951
Leading Groups Of South East Asia
Assets Of More Than Rs.300 Billion (US$ 5 Billion) Consisting Of
Textiles And Textile Products: Nishat Mills LTD & Nishat Group of Chunian
Cement: “D.G Khan Cement”
Banking: “Muslim Commercial Bank”
Insurance: “Adamjee Insurance”
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Vision
To transform the Company into a modern and dynamic yarn, cloth and processed cloth and finished product manufacturing Company
Mission
To provide quality products to customers and explore new markets to promote/expand sales of the Company through good governance
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The 4th Largest Textile Company In Terms Of Turnover
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SWOT Analysis is structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture.
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Strong financial positions.
Certified product.
Quality management
Environment friendly production.
Emphasis on product development and R&D.
Latest technology.
Own power generation.
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Centralized management.
Import of machinery.
A high net operating cycle.
High production cost.
Availability of skilled labor force
Opportunity to build economies of scale
Advancements in weaving, spinning, & dyeing technologies.
Growing Asian consumer markets
Restructuring of global textiles - industry moving from EU & USA to Asia
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Unstable law & order situation.
Exchange rate fluctuations.
Reducing consumption especially in US & Europe.
Expectation of world wide recession & depression.
Increase in input costs and interest rates are making the textile sector unattractive internationally.
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FOREIGN DIRECT INVESTMENT
GREEN FIELD ACQUISITON
Basic entry decisions:
What is the purpose of the entry.
Which markets to enter.
When to enter these markets
What scale should the firm enter.
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1) Education.
2) Language.
3) Religion.
4) Beliefs.
5) Moral values.
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Traditions.
Customs.
Trends.
Individualism.
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Economic freedom.
Low rate of inflation.
High growth rate.
Currency rate stability.
Industrialized economy.
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Political Stability.
Democratic Government.
Check On Terrorism.
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Civil law.
Sound law and order.
Equality and justice.
Requirements of regulations and standards.
Protection of property rights
Enforcement of contracts.
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Highly Educated and Productive Work Force
Political Stability.
USA is largest trading Nation.
Research and development.
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Protection of Intellectual Property.
Legal system is transparent and predictable.
Sound infrastructure.
High purchasing power.
Sound banking system.
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High legal cost.
Expensive land.
Expensive labor.
Requirement of regulations and standards.
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Warehouse Leases. You may need a warehouse for your goods
You will need certain types of insurance for business operation in U.S.
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Sudden Competition.
Subsequent restrictions on direct investment by home country.
Currency Risk.
Interest Rate Risk.
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Religious conflicts.
Wear Americans.
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Leader in R&D
Invested 16.5 Billions From 2001 to 2010
Increased Productivity By 45%
Exports Grew in 13.4% in 2011
Attracted FDI 225 billions in 2011
One textile job supports 3 other jobs
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Benefits not only decreases the risk premium but also reduce cost.
We strongly recommend that Nishat invest in USA textile sector.
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Who was the founder of Nishat Group?
a) Mian Nawaz Shareef
b) Mian Muhammad Mansha
c) Mr. Abul Razaq
d) Mian Amir
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Q. If the rate of wages is high in USA then why Nishat industry will prefer to invest in USA?
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THANK YOU
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