Square Textiles Limited

Industrial Study
Tour Report on

Square Textile & Fabrics

II

Prepared For
Mr. Ruhul Amin Associate Professor School of Business Studies Southeast University

Name

Prepared By Roll No
!"#""#""""""! !"#""#""""""3

Khandaker Zo aer Ahmed Adi a Arshi Shariar

Submission Date
December 25, 2013
3

Table of Contents

Title
Square roup of Industries
Organizational Chart

Page No.
"$ "% ## #! #3 #&

Square Textiles Ltd!

Introduction Unit Profile

Conclusion

&

"c#no$led%ement
'his re(ort is the result of many (eo(le)s contri utions and hel(. At this moment *e *ant to thank those (eo(le *ho e+tended their hel( (rovidin, su,,estions and advices. S(ecial thanks ,o to our honoura le -ourse Instructor Ruhul Amin Sir .ho hel(ed us ,ivin, ti(s/ su,,estions and valua le advices re,ardin, the re(ort0 he is also credited for her e+cellent teachin, in this course. .e also *ant to make thanks to those *riters *hose ooks hel(ed us to make this valua le re(ort. And also thanks S1uare 'e+tile ltd. to (rovide im(ortant information. 2ur friends *ho are in the follo*in, hel(ed us a lot.

&xecuti'e Summary
S1uare 'e+tile 4td. started its o(eration in #556. It *as enlisted in 7haka Stock 8+chan,e 9 -hitta,on, Stock 8+chan,e in !""!. 'he usiness lines of S1uare 'e+tile 4td. are manufacturin, and marketin, of yarn. Its factory is located in :a;i(ur / 7haka. 'he manufactures #""< -otton Rin, S(an =arn or >osiery/ #""< -otton 28 Rotor for >osiery and Knit ?a rics for #""< e+(ort oriented readymade :arments Industry. 'he strate,ic :oals and 2 @ectives of the -om(any are to strive hard to o(timi;e (rofit thou,h conduction and trans(arent usiness o(erations and to create more com(etitive in the internal and e+ternal market. In home/ customer of S1uare 'e+tile 4imited is e+(ort oriented readymade :arments Industry. 'he -om(any also e+(orts its (roducts to the market of 8uro(e 9 USA. 'he e+(ort sells increased y #5< in !""3 over the (revious year. -om(etition level is increasin, oth in local and a road market. -om(etition *ill e stiffer after !""3 *hen multifi er a,reement *ill e (haced out. Amon, the other forei,n com(etitors Srilanka/ -hina Pakistan and India are (rominent. S1uare is one of the i,,est em(loyees in Ban,ladesh. It has a (ersonnel and administrative de(artment. 'he total num ers of em(loyees are #!!3. ?or the em(loyees there is systematic in house trainin, in home and a road. 'he mana,in, director/ the -82 is the head of the e+ecutive mana,ement team. Belo* in there are directors/ e+ecutive directors and ,eneral mana,er. Under the direct su(er vision of the ,eneral mana,er a num er of de(artments are controlled. 'he -om(any is ,oin, throu,h continuous ,ro*th in (roduction. 'he total (roduction increased year on year asis at the rates of ".&3< and #.&$6< durin, !""! and !""3 res(ectively. 'he -om(any)s o(erations are out on an a,,re,ate asis and are mana,ed as a sin,le o((ortunity se,ment. 'he -om(any uses -om(uter Aided 7esi,n A-A7B/ -om(uter Aides S(readin, A-ASB and -om(uter Aided Manufacturin, A-AMB in its (lant to increase the overall efficiency and (roductivity.

Square Group of I !u"trie"

I tro!uctio
Square roup is one of the most reno*ned (harmaceutical com(any in Ban,ladesh. 'his ,rou( inau,urated their @ourney throu,h S1uare firm in #53%. 'his is the first medicine e+(ortin, firm in the country. It)s contri utin, to the national economy y e+(ortin, medicine from #5%6 to till no*. S1uare ,rou( is no lon,er confined to medicine (roduction. 'hey have diversified their activities. In #5%% they esta lished S1uare 'oiletries. In #556 they esta lished S1uare 'e+tiles. In !""" S1uare s(innin, started e+(ortin, y satisfyin, the local market. In !""# S1uare ,rou( lunched many other firmsC Knit ?a rics/ S1uare ?ashions 4imited/ S1uare Informatics/ S1uare -onsumer Product and S1uare >os(ital. Do* their total asset is a out E!"" million. And/ yearly investment is a out E3"" million. 'he com(anies of S1uare :rou( of Industries areC

Square Pharmaceuticals Ltd. Square Textiles Ltd. Square Spinnings Ltd. Square Toiletries Ltd. Square Consumer Products Ltd. Square Informatix Ltd. Square Health Products Ltd.

Square Agro Ltd. Sheltech Pioneer Insurance Company Ltd. Mutual Trust an! Ltd. "ational Housing #inance And In$estment Ltd. Mediacom Ltd. Aegis Ser$ices Ltd. Maasranga Productions

'hese all follo*in, com(anies o*ner is S1uare :rou( of Industries. So/ it)s too much tou,h to visit all com(anies *ithin a day. So/ *e @ust visit their only te+tiles 9 fa rics com(any. In our re(ort/ *e only (resent the details of these com(anies detail 9 their (roduction (ossi ility. And also kno* a out ho* they hel( our country to im(rove our economic ,ro*th rate.

#rga i$atio al %&art

As *e kno* that 2r,ani;ational chart is the frame*ork of an or,ani;ation. It hel(s to accom(lish the ,oals effectively and efficiently. It re(resents the or,ani;ational skills and also uni1ueness in the usiness *orld. S1uare :rou( also follo*s a realistic or,ani;ational chart. 'he %

chart is ,iven in elo*C

(r%ani)ational C*art Mana,in, director

:eneral Mana,er
Mana,er A8+(ortB Mana,er APurchaseB Mana,er AProductionB Plant Mana,er Su(ervisor 2(erator Funior 2(erator Assistant 2(erator

Square Te'tile" (t!.

C(+P",- (.&R.I&/ #"

"B(0T C(+P",-1 S1uare 'e+tiles 4td. started its @ourney y esta lishin, the first unit in #556. 2ne year later the second unit *as esta lished. S1uare 'e+tile is a su sidiary com(any of S1uare :rou( .'he -om(any *as incor(orated as a (u lic limited com(any in the year of #55&. 'he o(eration *as started in #556.It *as enlisted in 7haka Stock 8+chan,e 9 -hitta,on, Stock 8+chan,e in !""!. .ithin a very short time of s(an the com(any achieved some si,nificance success. S1uare 'e+tile receives 2ekoG'e+ standard #"" and IS2G5""! certificates in the year !""". Authori;ed ca(ital of the com(any is tk. #""" million. It)s (aidG u( ca(ital is tk. !3#.5" million. #/!!3 em(loyees are *orkin, in this or,ani;ation. 'he usiness lines of S1uare 'e+tiles 4imited are manufacturin, and marketin, of yarn. 'he factory is located in Sarada,an@/ Kashim(ur/ :a;i(ur/ Ban,ladesh. Its office is located at Uttara in 7haka +ISSI(, ST"T&+&,T1 'he mission statement of S1uare 'e+tiles 4imited is H2ur mission is reali;ation of vision throu,h ma+imum (roduction of ,oods and services strictly on ethical and moral standards at minimum costs to the society ensurin, o(timum enefits to the shareholders and other stakeholders.I 'his mission is envisioned y the conce(t of usiness *hich ensures *ell ein, of the investors/ stakeholders/ em(loyees and mem ers of the society *hich *ill create ne* *ealth in the form of ,oods and services. 2&- PR(D0CT 3 S&R.IC&S1 As stated earlier the usiness line of the com(any is manufacturin, and marketin, of yarn. It manufacturesC J #""< -otton Rin, S(an =arn ?or >osiery J #""< -otton 28 Rotor =arn for >osiery J Knit ?a rics for #""< e+(ort oriented readymade :arments Industry. It also (erforms the follo*in, servicesCG J 7yin, 9 Post Merceri;ation. J ?a ric 7yin, 'he final out(ut is market*ise y S1uare ?ashion 4td. In S1uare 'e+tile 4imited t*o ty(es of (roducts are (roduced in t*o different units. 'hese are as follo*sC Unit #C -om ed and -arded =arn from a count ran,e of De.#" to De.%".

##

Unit !C -om ed Rin, =arn from a count ran,e of De.!" to De.&". In S1uare S(innin, 4td. #""< -otton -arded and -om ed =arn in the count ran,e of De.#$ to De.3" are (roduces. ?inally in S1uare ?ashion)s 4td. Readymade Knit A((arels like 'G shirts/ Polo shirts/ 'ank to(s/ Pa@amas/ S(ort *ear/ Under ,arments/ Men)s 9 4adies fashion *ear / Kids *ear etc STR"T& IC ("LS & (B4&CTI.&S1

'he com(any sets the follo*in, o @ectives for it to achieveC J 'o strive hard to o(timi;e (rofit throu,h conduction of trans(arent usiness o(erations *ithin the le,al and social frame*ork *ith malice to none and @ustice for all J 'o create more @o s *ith minimum investments J 'o e com(etitive in the internal as *ell as e+ternal markets J 'o ma+imi;e e+(ort earnin, *ith minimum im(orted inG(uts J 'o reduce the income ,a( et*een to( and ottom cate,ories of em(loyees. 'hus the com(any focuses to (oleGstar its mission that fulfill the o @ective *ith em(hasis on the 1uality of the (roduct / (rocess and services lended *ith ,ood K ,overnance that hel( uild the ima,e of the most ena le cor(orate K citi;enshi( at home and a road . 'he com(any *ants to (roduce such society friendly ,oods and services that ,o to satisfy the *ants of all the relevant (arty *ithout distur in, or dama,in, the socioG economic and ecolo,ical/ alance of the mother earth and the (rocess of human civili;ation leadin, to (eaceful coGe+istence of all the leavin, ein,s. 'he com(any al*ays strives for to( 1uality (roducts at the least cost reachin, the lo*est run,s of the economic class of (eo(le in the country. 'he com(any values its o li,ation to the ,reater society as *ell as it strives to (rotect the interests of it)s shareholders and to ensure hi,hest return and ,ro*th of their assets.

#!

Square Textiles Limited 5 +ar#etin% ('er'ie$

+"R2&TI, (.&R.I&/

P(T&,TI"L C0ST(+&R1 'he tar,et market for (roducts (roduced in S1uare 'e+tiles 4td. and S1uare S(innin, 4td. is 8+(ort 2riented Readymade :arments Industry. Readymade :arments e+(orter that is Knit ?a rics/ S*eater and 7enim manufacturer. In Ban,ladesh Be+imco Kittin,/ :rameen Knit*ear/ Shasha 7enim/ Knit -oncern etc are the customers. 'ar,et market for (roducts (roduced in S1uare ?ashion 4td. is 8uro(e and U.S.A. S1uare 'e+tiles does not direct sales in overseas market ut sometimes India/ Pakistan 9 other countries take their yarn. SI6& & R(/T7 (F +"R2&T1

'he -om(any)s marketin, o(erations continued its em(hasis on e+(ort sales over the years as de(icted elo*C -ear 5 899: AaB Luality sold AK,B

-ear 5 899;

-ear 5 899<

4ocal sales 8+(ort Sales 'otal Sales

55/%"" A".6<B #&/33&/3&! A55.3<B #&/$3&/#&! A#""<B

3!6/5"3 A3.6<B #3/%#6/3#& A5$.3<B #&/3&3/!#6 A#""<B

335/&#6 A3.5<B #3/#!5/355 A5$.#<B #3/$$5/"#$ A#""<B

A B Sales Revenue A 'aka B

4ocal Sales 8+(ort Sales 'otal Sales

5/&33/3%% A".&<B !/"53/!#&/$63 A55.$<B !/#"!/$6"/!$3 A#""<B

3!/36$/53$ A#.%<B #/63$/&&#/&3" A5%.!<B #/6%5/"#%/3%$ A#""<B

&$/53$/&5& A!.3<B !/"!5/5$%/3&3 A56.6<B !/"6$/5!3/"35 A#""<B

'he a ove fi,ures sho* that the e+(ort sales increased y #5< in !""$over the (revious year *ith ,reater e+(osure to international market scenario and risk.

#3

. Financial Statements & Performance Data

2009 %&''(&)'*&)+, '&%..&.).&'.* *('&/-.&+%( %&%(.&.),&'.* +&-.%&%'*&,(. %&..'&'((&,+, '&'.%&//'&-,/&/,.&'.'&%+'&%..&.).&'.* (%%&/,)&,%% +'+&)%,&+/* '-,&-%(&,,' %&++*&(,(&,') +++./( %.-* ((.+* ),&/.(&,/% '+.&.+,&/-( %.+, 2008 %&(%)&,(*&)+( '&.(%&'/,&.-, +&'-)&)./&.*, '&/.*&,+*&)%+&-.*&-),&'.' %&,/'&'%/&-(, '&%),&.()&'/, /&.,)&.*-&*-( '&.(%&'/,&.-, %.)&'.'&)). +,*&),+&,(/ '%-&/'*&*,. '&*-(&-(-&+,( ++).% (.)+ /,.,( /.&.',&,(( ''%&/+-&+-) %.., Square Textiles Ltd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

Current Assets Current Liabilities Inventor C!"S A##ounts $e#eivable Sales %ixed Assets Total Assets Total &ebt '(IT Interest 'x)enses *et In#o+e Co++on 'quit ,ar-et .ri#e '.S (oo- /alue *o. o0 s1ares &ividend )a out &ividend )er s1are

2004 +&%/)&,*'&,,, +&+.)&.%*&,,, (,/&((*&.,* '&,.%&),'&/'% .%(&*.*&.%)

'&(/*&',+&,,, +&+.,&',%&,,, '&/%)&'*/&,,, +&+.)&.%*&,,, %,,&'*,&%(' ),&/%,&*%/ +*.&-.*&-). +&%(*&(/)&,,, +%..% /.,( (..) ')&),*&,,, ++,&.%-&,,, (.,,

FI,DI, S ",D R&C(++&D"TI(,S

Findin%s1 'e+tile industry is a com(aratively ne* in our country. 'he si;e of the industry is still ,ro*in,. S1uare 'e+tiles 4imited is one of the first movers in this sector. Startin, only in #556 / #&

it has mana,ed to e ,ro*n u( as one of the country)s leadin, 'e+tile -om(any . Its increase turnover has een si,nificantly increasin,/ since #556G!""6. It is (rovidin, em(loyment to a lar,e num er of skilled and unskilled (eo(le all over the country. 'he -om(any contri uted an amount of taka 36.%5! million to the national e+che1uer in different forms like -oo(erate Income 'a+/ Advance Income 'a+/ 8cise/ Mat/ Im(ort 7uties/ 'a+es/ :overnment 'a+es / Stam( 7uties/ 4icense ?ees etc. 'he -om(any contri uted su stantially to the ?orei,n 8+chan,e Reserve of the country throu,h its e+(ort marketin, o(eration. In !""6its net e+(ort earnin, *as taka #"!#.3$% million. Recommendations1 ?rom the analysis *ith the or,ani;ation structure *e have seen that its s(an of su(er vision is too lar,e. A num er of de(artments re(ort directly to the ,eneral mana,er. If the num er *ere less the efficiency and (roductivity of the or,ani;ation mi,ht e increased. Luality control de(artment should remain (rom(t al*ays. So that it can maintain a certain level of standard as (er the market demand to ca(ture the forei,n market share it should strive more.

C(,CL0SI(,
'he flourishment of any industry re1uires com ined efforts and coGo(eration from several (arties . Social / (olitical and macro economic environment (lay (ivotal role in this re,ard . 'hou,h S1uare 'e+tile is a ne*ly Mentured -om(any in the res(ective sector/ its ,ro*th and e+(ansion is (raise*orthy. Its contri utin, the country and servin, the nation in different *ays. If it can u( hold its much to*ard advancement/ it *ill e a le to set a role model in our country.

#3