By Shams ul Nisa
ISLAMABAD– The Nishat Mills Limited has unveiled plans for a new corduroy fabric project as part of its strategy to expand into high-value markets.
According to the financial report for 1HFY25, this initiative aims to enhance product diversification, optimize production capacity during slow business cycles, and reinforce the company’s presence in the global premium textile industry.
Targeting the Global Premium Textile Market
Moreover, the project is a strategic step toward expanding its premium product range and reducing dependence on lower-margin domestic sales.
The company aims to capitalize on the rising global demand for high-end textiles by introducing this durable and versatile fabric.
Leveraging Textile Expertise for International Expansion
Therefore, the company aims to leverage its textile expertise to position itself as a leading supplier in premium segments, with global demand rising across fashion, upholstery, and industrial sectors.
Nishat Mills seeks to expand its international presence while reducing its dependence on traditional markets by targeting export opportunities in key regions like Europe, North America, and Asia.
Optimizing Production Efficiency with Advanced Machinery
Furthermore, the project aims to maximize production efficiency during slower business periods by utilizing existing infrastructure and integrating advanced machinery.
Additionally, incorporating corduroy into the company’s offerings will help balance production schedules across weaving, dyeing, and finishing units, ensuring consistent quality while enhancing overall productivity.
Financial Performance and Growth in Textile Exports
Nishat Mills demonstrated resilience in the 1HFY25, with revenue rising by over 16% to Rs89.4 billion, supported by strong sales performance. Despite a slight dip in gross profit margins, overall gross profit increased by 13% to Rs10.5 billion.
Favorable Economic Conditions Driving Industry Momentum
The company also saw a 10% boost in textile exports, driven by favorable exchange rates and shifting global demand. Despite a decline in net profit by 26% due to lower other income, Nishat Mills is confident for future profitability, supported by strategic initiatives such as its corduroy expansion.
Pakistan’s textile industry is gaining momentum due to favorable economic conditions, such as a stable rupee and lower interest rates, which have eased financial pressures on manufacturers. Additionally, the disruptions in competing markets like Bangladesh have redirected global orders to Pakistan.
Commitment to Sustainability and Innovation
Therefore, the company is integrating sustainability into its corduroy project by adopting energy-efficient production methods and sourcing eco-friendly raw materials.
As a result, the company plans to expand its product range by exploring additional high-value textile segments that align with market trends and evolving customer demands.
Nishat Mills Securing Long-Term Growth in a Competitive Market
Thus, the company aims to secure long-term growth in an increasingly competitive global industry by harnessing its textile expertise and commitment to innovation.
Nishat Mills remains at the forefront of Pakistan’s textile industry, continuously raising the bar for quality, sustainability, and operational efficiency as it navigates evolving market dynamics.
