History of The Nayyer Group: N G I P - L

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.
 Bilal synthetics Pvt. Ltd – Lahore- Pakistan.
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 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.
MANAGEMENT HIERARCHY
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VISION STATEMENT
The management is putting its best effort and is enthusiastic and

determined to achieve the organizational goals.
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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
Quality Control refers to setting certain standards for production and

matching production with those standards. Management of every company is
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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:
Design: Irish
Technical specification:
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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
Constriction: 1/8 cut pile
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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
Pile means the fiber used on the carpets and its design. Pile can be
classified by:
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 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.
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So the production department is divided into five further departments.
 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
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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
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:
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 Action Backing
 Primary Backing
 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
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examined the production throughout the process to meet the required quality
standards.
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:
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 UKAS QUALITY MANAGEMENT
 ISO 9001
 ISO 2000
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

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 Their rates
 The estimated number of rolls which is to be sold in the next
month
PROCESS MANAGEMENT
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.
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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
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
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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
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.
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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.
 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:
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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.
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
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supplier for the acquisition of inventory. Nayyer Carpets has different lead-time
for different suppliers.
Lahore = 2-3 days
Imported = 120 days
SAFTEY STOCK
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.
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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
The distribution Channel of the Nayyer Carpet is shown in the following

diagram.
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FORECASTING OF DEMAN
Forecasting in Nayyer Carpets follows some concepts regarding

forecasting which are being explained below.
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
22
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
This approach incorporates important factors like decision maker’s

intuition, emotions, experience and judgment. This approach includes following
techniques:
 Executive opinion
 Sales force composite
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 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:
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
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forecasting they are leading the market today. And they have bright future
ahead too.
REFERENCES:
MR. MUHAMMAD ASLAM

General Manager
Ph # +92-42-5716806-7-8, 5873050
Email: aslam@nayyergroup.com
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MR. QADDAFI SAFDER CHEEMA

General Manager Sales
Cell No # 0321/0300-8400079
Email: dd_e_p@yahoo.com
MR. MUHAMMAD SALEEM ABBASI

Assit. G.M. Marketing & Non-woven
Cell No # 0300-4666292
Email: abbasi_1436@yahoo.com
MR. MUHAMMAD SHARAFAT

Inventory Manager
Cell No # 0333-4306388
Email: sharafat82@hotmail.com
INTERNET RESOURCES
www.nayyergroup.com
www.google.com
26
ANNEXURES
(DOCUMENTARY PROOF, SOURCE)
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NAYYER GROUP OF INDUSTRIES PVT. LTD.

HISTORY OF THE NAYYER GROUP

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

The Nayyer group comprises of :

 Empire carpets – Kortrijk – Belgium.

BUSINESS IN THE GROUP

PLANTS AND THEIR LOCATIONS

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

The management is putting its best effort and is enthusiastic and

We aim and view:

 To make the company a leading carpet manufacturing organization

The management set certain missions to achieve the organizational goals

 To produce quality oriented carpets for the best satisfaction of

 To produce quality oriented carpets for the best satisfaction of

QUALITY CONTROL MANAGEMENT

Quality Control refers to setting certain standards for production and

PRODUCT AND DESIGN

Some designs are named below:

Constriction: 1/10 loop

Design: New Twinkle

Constriction: 1/8 cut pile

Pile height: 8mm

Backing: Action back

Color may differ

Constriction: 1/8 cut pile

Pile height: 10mm

Backing: Action back

Color may differ

FEATURES OF THE PRODUCTS

The pile heights usually used by the Nayyer Carpets are:

WIDTH OF THE CARPET

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

They have three production units in Pakistan those are:

 Bilal Synthetic (kotlakpat Lahore)

RAW MATERIAL OF THE NAYYER CARPETS

So the production department is divided into five further departments.

POLYESTER FIBER PRODUCTION

Polyester Fiber produces as per requirement of carpet Incharge or out

MATERIAL REQUIRED FOR FIBER PRODUCTION

CHROMO JET DEPARTMENT

QUALITY CONTROL PROCESS DURING PRODUCTION

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

During backing and tufting departments the inspection is also made to

After being manufactured and before delivery, finished product is once

 UKAS QUALITY MANAGEMENT

Nayyer Carpets use two strategies those are:

MAKE TO ORDER STRATEGY

MAKE TO STOCK STRATEGY

 All the products which is sold by the customer

PROCESS CHOICE- BATCH PROCESS

There is moderate involvement of customers in the production of carpets

FLEXIBLE OR PROGRAMMABLE AUTOMATION

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

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

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

Inventory management is very important, inventory management

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

PURCHASE AND STORAGE DEPARTMENT