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NAYYER GROUP OF INDUSTRIES PVT. LTD.

HISTORY OF THE NAYYER GROUP

Mr. Nayyer is the founder of the company. He started business from the

low level just like a home industry. There he has to face Venus Carpets and

Olympia Carpets as competitors. At that time Olympia was holding 90% market

share. But Nayyer group make its position in no time and start capturing the

valuable customers by providing better quality and services. In 1984 the Nayyer

group is registered as a Pvt. Ltd company. Now they are not only dealing in

Pakistan but also doing their business at international level.

INTRODUCTION

Nayyer group is leading business group in Dubai and Pakistan. Nayyer

group have manufacturing facilities in Lahore, Gujarat and Jabel Ali free zone,

Dubai.

Nayyer carpets is a household name as it is the largest manufacturer of

wall to wall carpets and non woven technical textiles in Pakistan and is

renowned for its products quality for last 25 years. It has more than 400 outlets

selling its products.

The group is working in Dubai since 1992 and entered property business

in 2004 and has skills and established group companies of carpets, furniture,

logistics and warehousing in UAE.

The Nayyer group comprises of :

Nayyer carpet industries ltd- Jabel Ali free zone – Dubai

Era Europe FZC – Jabel Ali free zone – Dubai

Gallian logistics llc – Dubai

Nayyer holdings FZC- Saif zone – Sharja.

Nayyer industries Pvt. Ltd- Gujrat – Pakistan.

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Bilal synthetics Pvt. Ltd – Lahore- Pakistan.

Empire carpets – Kortrijk – Belgium.

BUSINESS IN THE GROUP

Tufted Carpets

Non-woven Products

Geo textile

Golden Height

Shopping Malls

PLANTS AND THEIR LOCATIONS

Nayyer Carpets starts its business in Gujrat. At that time they are

producing carpets and purchase fiber as a raw material from the market. But

when it starts earning handsome profit it integrated its business backward and

established Bilal Synthetics in Kotlakpat Lahore and fine fibers in Quaid-e-

Azam industrial area Lahore. Now fiber is manufacture in Lahore then it is sent

to the Gujrat for the production of the carpet. But there is a lot of cost of the

transport so now management of the Nayyer Carpet is now shifting their Lahore

plants in Gujrat to eliminate this transportation cost.

Moreover, Nayyer Carpet also dealing in the international market. At

early stage Nayyer carpet was exporting their products but in no time they

established their manufacturing facilities in Dubai-Jabl Ali free zone and

Empire Carpets Belgium-Kortrijk. As Belgium and Dubai are the largest export

areas for the Nayyer Carpets.

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MANAGEMENT HIERARCHY

VISION STATEMENT

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Cheif Exective

Director Marketing

Marketing Manager

Assitant Manger

Sales Officer

Sales Officer

Director Finance

Finance Manger

Assitant Manger

Accounts Officer

Accounts Officer

Director Production

Production Manger

Assitant Manger

Supervisor

workers

supervisor

workers

Director import & export

Impprt & export

Manger

Assitant Manger

clerks


The management is putting its best effort and is enthusiastic and

determined to achieve the organizational goals.

We aim and view:

To make the company a leading carpet manufacturing organization

equipped with the best technology and effective human resources.

To play a dynamic role in the sustained economic growth of Pakistan

To achieve and maintain our status as industry leader

MISSION STATEMENT

The management set certain missions to achieve the organizational goals

and they are putting their best to achieve them; these are: To produce quality

oriented carpets for the best satisfaction of our customers.

To produce quality oriented carpets for the best satisfaction of

our customers.

To enhance the profitability of the company by optimal mix of

available resources.

To provide healthy environment to our stakeholder.

QUALITY POLICY

The Nayyer Carpets do not compromise on quality they are getting the

good repute and market share because of their quality and unique designs. The

quality policy of the Nayyer Carpets is:

To produce quality oriented carpets for the best satisfaction of

our customers.

QUALITY CONTROL MANAGEMENT

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Quality Control refers to setting certain standards for production and

matching production with those standards. Management of every company is

specially committed to the good quality both in production and end results. It is

Nayyer Carpets answering commitment to quality that characterizes every stage

of the vertical production process. This can be demonstrated by the company’s

usage of the most modern and fully computerized equipment. The laboratory is

fully equipped to handle and conduct testing to most relevant international

standards at all stages of manufacturer from polyester chips to finished product.

This includes testing of shrinkage pile height, constriction, color fastness, light

fastness etc. The result is that customers benefit from a top quality end product

and Nayyer Carpets reputation is further enhanced.

PRODUCT AND DESIGN

Nayyer carpet is dealing with the carpets, non woven and Geo textile.

They are designing their products according to the demand of the customers. A

meeting is conducted every month where all the employees of marketing

department are called by the CEO. And in this meeting all the issues regarding

quality, design and rate of the products are discussed. Nayyer Carpet has dozens

of the designs of the carpet they are manufacturing carpets to all kind of the

customers.

Some designs are named below:

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Design: Irish

Technical specification:

Constriction: 1/10 loop

Pile height: 4mm

Yarn: polyamide.6

Width: 12 feet

Backing: Action back

Color fastness: A+

Note: Color may differ

Design: New Twinkle


Constriction: 1/8 cut pile

Pile height: 8mm

Yarn: polyester

Width: 12 feet


Color fastness: A+

Note:

Color may differ

Design: Indigo

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Constriction: 1/8 cut pile

Pile height: 10mm

Yarn: polymide.6

Width: 12 feet


Color fastness: A+

Note:

Color may differ

These are only some designs and there specification Nayyer Carpet is

dealing dozens of designs with different specifications according to the demand

of the customer.

FEATURES OF THE PRODUCTS

Nayyer Carpets are very much possessive about the quality and designs

of their products there are different features and specification available for

customers these are:

CONSTRICTION

Constriction means the total thickness of the carpet. There are following

constriction provided by the Nayyer Carpets:

1/10th

1/8th

5/32th

5/31th

PILE TYPE

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Pile means the fiber used on the carpets and its design. Pile can be

classified by:

Pile design

Pile height

PILE DESIGN

Following are some designs of the piles used by the Nayyer Carpets:

CUT PILE

o Cut pile straight

o Cut pile cross over

o Scroll cut pile

o Graphic cut pile

LOOP PILE

o Loop pile straight

o Loop pile cross over

o Scroll loop pile

o Graphic loop pile

PILE HEIGHT

The pile heights usually used by the Nayyer Carpets are:

4mm

8mm

10mm

YARN TYPE

Nayyer Carpets it self made the yarn to manufacture carpets two types of

yarn is produced by the Nayyer Carpets these are:

Fiber

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Polymide

WIDTH OF THE CARPET

The carpet usually made by the Nayyer Carpets is of 12 feet wide.

BACKING

Nayyer Carpets using three type of backing of the carpets that are:

Primary Backing

Secondary Backing

Action Backing

PRODUCTION PROCEDURE

Nayyer Carpets has its own manufacturing unit in Gujrat Pakistan and in

Sharja. In Pakistan it is the only organization who owes chromo jet; with the

help of this machinery they can produce carpets in thousands of designs.

They have three production units in Pakistan those are:

Bilal Synthetic (kotlakpat Lahore)

Nayyer carpets (Gujrat)

Fine Fiber (Quaid-e-Azam industrial area Lahore)

RAW MATERIAL OF THE NAYYER CARPETS

Fiber is the main raw material that is used to manufacture carpets. But

they are not only producing fiber for their own need but also earning a lot of

profit by selling in the market. They are producing fiber in Fine Fiber Lahore.

So the production department is divided into five further departments.

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Fiber Department

Tufting Department

Backing Department

Dying Department

Chromo Jet Department

FIBER DEPARTMENT

Fiber is produced in the Fine Fiber and Bilal Synthetic Lahore then this

fiber is sent to the Gujrat for further manufacturing.

POLYESTER FIBER PRODUCTION

Polyester Fiber produces as per requirement of carpet Incharge or out

parties. First we received production order from our other factory of different

color and denier then produced polyester fiber at our factory. First of all we

checked our stock level of raw material if material in hand as per production

order then ok other wise we also make purchase indent for raw material to head

office and head office staff purchases raw material as per our requirement, then

we start production of polyester fiber production.

MATERIAL REQUIRED FOR FIBER PRODUCTION

1. Polyester Chips

2. Master Batches (various color)

3. Spin Finish oil

First polyester section issue raw material from store section which is

mentioned above, this raw material use in extruder section in this section

polyester, there is mixing unit, polyester and master batches mix in this unit as

per color specification this mixing unit connected with extruder, these extruder

melt these mixture with the help of electric heaters, we set heaters temperature

about 250 ~ 300 F. melted mixture come in to liquid form and this liquid cross

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with dies, these dies change this liquid in to yarn and this yarn we store on cone

shape at down winder section. One extruder one day produce yarn about 1000

Kg. in 12 hrs.

In winder section various cones of yarn we make it and these cones after

forward to cutting and dryer section where we cross this yarn and other process.

A numbers of cone we sets on kreel machine at one time about 50 ~ 60 cones

set on this machine. In this process yarn cross into water and spin finish oil

mixture this mixture temperature about 150 ~ 160 F. there is yarn tension also

check and after cross this yarn in dryer for dry, in dryer moisture reduce after

yarn cutting with cutting machine this cutting yarn come into fiber shape. This

fiber we stock in bales shape one bale weight about 250kg per bale.

After these bales we dispatch to our other factory for carpet production as

per demand.

TUFTING DEPARTMENT

The fiber is sent to the tufting department in this department the upper

portion of the carpet is manufactured. In this department the fiber is punched on

a carpet base. The size of the fiber depends on the fiber design and

requirements. In short raw carpet is manufactured in this department. Then this

department sells this raw carpet to the backing department for further process.

BACKING DEPARTMENT

The raw carpet is purchased from the tufting department. Then the

backing of the carpet is fixed by this department. Different types of backing are

made in the Nayyer Carpet, some backing styles are:

Action Backing

Primary Backing

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Secondary Backing

After backing the carpet the carpet is sold to the next department that is

dying department.

DYING DEPARTMENT

Then the carpet is sent to the dying department where the carpets are died

in different colors. Nayyer Carpets are manufacturing carpets in thousands of

colors.

CHROMO JET DEPARTMENT

Nayyer Carpets is the only manufacturer of the carpets that have chromo

Jet Machine in Pakistan. With the help of that machine many designs can be

produced. This machine is used for making designs in texture colors and self

colors.

NOTE:

The daily production report is sent to the head office. So that sales persons can perform their

work efficiently

QUALITY CONTROL PROCESS DURING PRODUCTION

Their process of quality control starts from the suppliers and ends at

customer. Nayyer Carpets purchase polyester chips, master batches and

spinning oil from the market for the production of the fiber. The quality control

process starts from purchase of raw material. Inspection is made to see whether

the purchased material is up to required quality standard or not. If not, it is

rejected. If accepted, then this material is sent to the store room and store keeper

issued Goods Receipt note. The quality control process is continuously

examined the production throughout the process to meet the required quality

standards.

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Dyes and chemicals are also examined for their brands, proper

combinations, quality, colors and other characteristics.

Inspection for quality standards is made throughout the step by-step

manufacturing process, especially in CHROMO JET Department; to check the

color fastness and designs.

During backing and tufting departments the inspection is also made to

assure that the products are up to the mark and ready for further process.

SAMPLING

Nayyer Carpets use sample of products to check the quality and the

product to be produced in bulk. For this purpose, samples of the carpets are

made and then it is checked by the management and customers as well. If both

the parties approve the sample for quality, only then they start production of that

particular product.

After being manufactured and before delivery, finished product is once

again checked for quality standards.

COMPUTERIZATION

All the machinery used by the Nayyer Carpets are computerized they

automatically detect the defects and stop processing if there is any defect.

QUALITY STANDARDS

Nayyer Carpet is leading the market because of its quality and unique

designs. Nayyer Carpets do not compromise on the quality of their products

they are certified with international quality standards such as:

UKAS QUALITY MANAGEMENT

ISO 9001

ISO 2000

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MANUFACTURING STRATEGIES

Nayyer Carpets use two strategies those are:

Make to order

Make to stock

MAKE TO ORDER STRATEGY

Nayyer Carpets receives orders from its local or foreign customers and

manufacture carpets according to their specifications this strategy usually used

for the foreign orders and expensive carpets.

MAKE TO STOCK STRATEGY

Nayyer Carpet also manufactures carpets for the purpose of stock. This

strategy is used to fulfill the orders on time. For this purpose each sales person

is said to submit monthly projection repots at the start of the month.

PROJECTION REPORT

All the sales officers have to make the projection report and then submit

it to the Sales Manager every month and then he forwards it to the CEO and to

the Production Department so that they can manufacture the listed products

according to requirements. In this report the sales officers estimates the sales of

the products during the proceeding month. This report consists of:

All the products which is sold by the customer

Their rates

The estimated number of rolls which is to be sold in the next

month

PROCESS MANAGEMENT

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PROCESS CHOICE- BATCH PROCESS

Because there is too much variety in carpets like constriction, yarn type,

pile designs, pile height and backing type etc. So machines are adjusted for the

production of particular variety of carpets.

CUSTOMER INVOLVEMENT

There is moderate involvement of customers in the production of carpets

because it is the customer gives the carpets specification and designs then

Nayyer Carpets produces the carpets according to the customer’s requirements.

TYPE OF AUTOMATION

FLEXIBLE OR PROGRAMMABLE AUTOMATION

There is flexible or programmable type of automation. They can change

or program the automatic function of machines according to their requirements.

CAPACITY UTILIZATION

It is difficult to measure to describe precisely the production capacity in

Nayyer Carpets since it fluctuates widely depending on various factors such as

count of yarn spun, spindle speed, nature and design of the carpets, raw

materials used etc. it also varies according to the pattern of production adopted

in a particular year.

The company is over utilizing its production capacity. The aim of

management is to spread fixed cost by producing more rolls of carpets and

cutting cost by purchasing large quantity of materials. Normally they are

producing 6000 to 7000 rolls of the carpets daily. And the extruder can made

1000 K.gs of fiber in 12 hours.

MATRIAL MANAGMENT

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INVENTORY MANAGEMENT

Inventory management is very important, inventory management

concerns short term decision about supplier’s inventories, productions level,

staffing pattern distribution & schedule. Nayyer Carpets held the inventory

according to their requirements but there are certain factors that influence the

management’s decisions about inventory like, fluctuation in the prices of raw

material and short supply of the raw material etc. So management keeps all

these factors in mind while ordering for the raw materials. Recently Nayyer

Carpet makes an order for the polyester chip ten times more than E.O.Q due to

fluctuations in the prices. And after some time there is an increase in the prices

of the polyester chips as it was forecasted.

Types of inventories

Raw material

Work in process

Stores & spares

Furnished goods

Inventory is managed by the purchase department. The functions of the

purchase department are described below.

PURCHASE AND STORAGE DEPARTMENT

The company has purchase department. All the purchases are conducted

by this department. The department is headed by a purchase officer. There is

also a store keeper in this department to keep the records of the purchase.

Whenever any particular department requires any kind of material, its head

makes a demand note of items to be required. These demand notes contain the

information like, items description, quality, quantity and others. The demand

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note is signed by the departmental head and then recommended by the

Production Manger, and is then sent to the purchase section.

The purchase officer has the list of preferable suppliers of the certain

items. He selects the supplier from the list. Then he visits personally to the

market and given the purchase order. The officer has been provided a van, he

himself or through some other sources makes the arrangement to bring the

purchased material in the Factory premises.

The procedure to make any purchases

When these goods inter in the factory on the gate INTER GATE

PASS is issued against these goods.

Then store keeper issued a GOODS RECIPT NOTE.

Then this entry is passed in the factory and all the documents are sent

to the head office.

The account officers in the head office verify all the documents then

they enter this entry in JV (Journal Voucher).

Then he attaches the copy of that voucher with all the documents and

sends it to the auditor.

Auditor verify all the documents and then send it to G.M he signed the

verified document.

Then these documents are passed through filing system for future use.

When any sales are made by the company then there is also a decrease in

the inventory of the finished goods that is also control by the store keeper. The

procedure of sales and interaction of the store keeper is given below:

The orders are received by the sales officers.

Then they made sales orders.

These orders are signed by the manager.

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There are three copies of these orders one is sent to the factory for the

delivery of the order.

One copy is sent to the accounts department.

One copy remains in the sales department for the record.

Then the goods are delivered from the factory according to the

specifications of the order.

The store keeper issued goods issued note.

And then OGP (Outward Gate Pass) is issued against goods.

All these documents are sent to the head office.

And account office verifies all the supporting documents and then

records this entry in JV (Journal Voucher).

Then sent it to the auditor he singed it and sent it back to the accounts

department.

Accounts department keeps all these documents in record.

INVENTORY CONTROL METHOD

There are two methods to control the inventory:

Perpetual inventory system

Periodic inventory system

PERPETUAL INVENTORY SYSTEM:

In this system, a complete and continuous record of movement of each

inventory item is maintained. Perpetual records are useful in preparing monthly

quarterly or other financial statement. Record used is normally a “store ledger

card” specifying quantity wise receipt, issue and balance together with values in

chronological sequence.

Nayyer Carpets is also practicing Perpetual Inventory System.

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ADVANTAGES:

It helps in reducing wastages and spoilages.

Inventory levels can be fixed and observed.

It serves as a moral check.

It helps in highlighting slow moving and obsolete inventory.

It helps in frequent physical counting.

PERIODIC INVENTORY SYSTEM

In this system, the value of inventory is determined at the end of the year

through a physical count of inventory in store/warehouse. It does not maintain a

continuous record of movement of each inventory item.

ADVANTAGES

It is very cheap.

No calculations required.

No technical knowledge required.

LEAD TIME

Nayyer carpet has manufacturing facility of carpets in Lahore and Gujrat.

But carpet is produced in Gujrat plant while in Lahore fiber is produced for the

production of carpets in Gujrat. Lead-time is a time which is required from 1

supplier for the acquisition of inventory. Nayyer Carpets has different lead-time

for different suppliers.

Lahore = 2-3 days

Imported = 120 days

SAFTEY STOCK

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Safety stock means the stock which fulfills the requirements of the

production during lead time. Nayyer Carpets also keeps safety stock while

making a new order.

FINISHED GOODS INVENTORY PLACEMENT

There are two type of placement.

Forward placement -Near to customer

Backward placement -Near to plant.

Nayyer Carpets is using backward placement. Nayyer Carpets has

warehouses in their manufacturing facilities, all the finished goods are stores

there after production is completed till these are sold.

SUPPLY CHAIN THE FINISHED GOODS

Nayyer Carpets has its own 400 outlets in many cities to facilitate the

customer and eliminate middle men cost or distribution cost. They have their

own transportation facilities to deliver the goods to outlet or the dealers.

TRANSPORTATION

Nayyer Carpets is using different type of transposition.

For export: They are using containers.

For local: They are using vans, delivery trucks etc.

Nayyer Carpets are dealing almost all the cities of Pakistan. And they

have dealers in all the cities where their own outlets are not available they made

agreement with the dealer that they will deal only with that particular party in

the specified region. Nayyer Carpet follows the following distribution channel.

DISTRIBUTION CHANNEL

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The distribution Channel of the Nayyer Carpet is shown in the following

diagram.

FORECASTING OF DEMAN

Forecasting in Nayyer Carpets follows some concepts regarding

forecasting which are being explained below.

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Facrtory

Dealers

Retailers

Final consumers


SHORT TERM FORECASTING

It has a time span of 3 months to 1 year. It is used to plan purchases, job

scheduling and production levels. For this purpose all the sales persons are

asked to submit the projection repots in this report sales persons forecast the

sales of particular products in 3 months to 1 year. Usually all the sales persons

have to submit monthly projection repot to the CEO then CEO forwards these

projections to the production department.

MEDIUM TERM FORECASTING

Its planning period is from 3 months to 3 years. It is used to plan sales

and production.

LONG TERM FORECASTING

It covers the time period of 3 years or more, and is used to plan capital

expenditure, facility location and expansion. While performing forecasting

activities, the Nayyer Carpets Management also considers:

The major emphasis is given to demand forecasts to adjust the production

according to expected sales.

Forecasting Approaches:

Generally, two approaches are used for forecasting activities. These

approaches are:

QUALITATIVE APPROACH

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This approach incorporates important factors like decision maker’s

intuition, emotions, experience and judgment. This approach includes following

techniques:

Executive opinion

Sales force composite

Consumer market survey

Past experience

QUANTITATIVE APPROACH

This approach employs a variety of mathematical models that use

historical data or casual variables to forecast demand.

Techniques used under this approach are:

Time Series Models

Moving averages

Trend projection

Casual Model

Linear regression

Nayyer Carpets uses a combination of both the qualitative and

quantitative forecasting approaches which is the most effective method to get

accurate forecasts. However, their main tools for this purpose are of qualitative

nature.

Forecasting of demand is based on previous data, behavior of people and

change in taste of the people, economic situation and their purchasing power.

CONCULSION:

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After the completion of this project and visit of the Nayyer Carpet we

conclude that Nayyer Carpets is managing their operations quite efficiently,

whether it is quality check, production procedure or supply chain of the

products they have a managed system. And because of their operations and

forecasting they are leading the market today. And they have bright future

ahead too.

REFERENCES:

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MR. MUHAMMAD ASLAM

General Manager

Ph # +92-42-5716806-7-8, 5873050

Email: [email protected]

MR. QADDAFI SAFDER CHEEMA

General Manager Sales

Cell No # 0321/0300-8400079


MR. MUHAMMAD SALEEM ABBASI

Assit. G.M. Marketing & Non-woven

Cell No # 0300-4666292


MR. MUHAMMAD SHARAFAT

Inventory Manager

Cell No # 0333-4306388


INTERNET RESOURCES

www.nayyergroup.com www.google.com

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http://www.google.com/

http://www.nayyergroup.com/


ANNEXURES

(DOCUMENTARY PROOF, SOURCE)

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