Foreign direct investment proposal for Nishat group of industries

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2.  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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3.  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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4.  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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5.  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.

11.  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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12.  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

14. 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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15. 1) Education.
2) Language.
3) Religion.
4) Beliefs.
5) Moral values.
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16.  Traditions.
 Customs.
 Trends.
 Individualism.
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18.  Economic freedom.
 Low rate of inflation.
 High growth rate.
 Currency rate stability.
 Industrialized economy.
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19. Political Stability.
Democratic Government.
Check On Terrorism.
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20.  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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22.  Highly Educated and Productive Work Force
 Political Stability.
 USA is largest trading Nation.
 Research and development.
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23.  Protection of Intellectual Property.
 Legal system is transparent and predictable.
 Sound infrastructure.
 High purchasing power.
 Sound banking system.
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24.  High legal cost.
 Expensive land.
 Expensive labor.
 Requirement of regulations and
standards. 27 January 2016 24Foreign Direct Investment In USA By Nishat Group

25. 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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27. Sudden Competition.
Subsequent restrictions on direct
investment by home country.
Currency Risk.
Interest Rate Risk.
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28.  Religious conflicts.
 Wear Americans.
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29.  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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30. 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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31.  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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32. Q. If the rate of wages is high in USA then why Nishat
industry will prefer to invest in USA?
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33. THANK YOU
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