Profile & Management System of Bextex Ltd

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Introduction:

A project is an investment activity where we expend capital resources to create a producing asset from which we can expect to realize benefits over an extended period of time. Or a project is an activity on which we will spend money in expectation of returns and which logically seems to lend itself to planning, financing and implementation as a unit. A project should have the following characteristics.

1. It should have a specific starting point and specific ending point.

2. Its major costs and returns are measurable

3. It should have a specific geographic location

4. It should have a specific clientele group

5. It should have a well-defined time sequence of investment and production activities.

Project Evaluation:

The methods/criteria more often used for evaluating a project are

(1) Simple rate of return (SRR)

(2) Payback Period (PBP)

(3) Benefit Cost Ratio (BCR)

(4) Net present Value (NVP) or Net Present Worth (NPW) and

(5) Internal Rate of Return (IRR).

The SRR and the PBP are the undiscounted measures while BCR, NPV and IRR are the discounted measures of project worth of Investment.

Types of project evaluation factors:

i. Production Factors

1. Time until ready to install.

2. Length of disruption during

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installation.

3. Learning curve- time until operating as desired.

4. Effects on waste & rejects.

5. Energy requirements.

6. Facility & other equipment requirement.

7. Safety of process.

8. Other applications of technology.

9. Change in cost to produce until output.

10. Change in raw materials usage.

11. Availability of raw materials.

12. Required development time & cost.

13. Impact on current suppliers.

14. Change in quality of quality.

ii. Marketing Factors

1. Size of potential market for output.

2. Probable market share of output.

3. Time until market share is acquired.

4. Impact on current product line.

5. Consumer acceptance.

6. Impact on consumer safety.

7. Estimated life of output.

8. Spin-off project possibilities.

iii. Financial 1. Profitability, net present value of the


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Factors investment.

2. Impact on cash flows.

3. Payout period.

4. Cash requirements.

5. Time until break- even.

6. Size of investment required.

7. Impact on seasonal & cyclical fluctuations.

iv. Personnel Factors

1. Training requirements.

2. Labor skill requirements.

3. Availability of required labor skills.

4. Level of resistance from current work force.

5. Change in size of labor force.

6. Inter-and intra-group communication requirements.

7. Impact on working condition.

v. Administrative & Miscellaneous Factors

1. Meet govt. safety standards.

2. Meet govt. environment standards.

3. Impact on information system.

4. Reaction of stockholders & securities markets.

5. Patent & trade secret protection.

6. Impact on image with customers, suppliers & competitors.

7. Degree to which we understand new technology.


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8. Managerial capacity to direct & control new process.

Company Background:

Bextex Ltd. (the "Company") was incorporated in Bangladesh as a Public Limited Company with limited liability on 8 March 1994 and commenced commercial operation in 1995 and also went into the public issue of shares and debentures in the same year. The shares of the Company are listed in the Dhaka and Chittagong Stock Exchanges of Bangladesh.

Bextex Ltd. is the most modern composite mill in the region. Bextex Ltd. has an installed capacity of 288 high-speed air-jet looms in its weaving section and a high-tech dyeing and finishing section with a capacity of 100,000 yards of finished fabric per day. This company is located at the Beximco Industrial Park.

Bextex Ltd. has a state of the art composite knit fabric production mill, which serves the growing needs of high-quality knit garments exporters in Bangladesh. The project was set up as a state of the art knit fabric knitting, dyeing and finishing facility. During the year the Company produced and sold high quality of knit fabrics and bringing forth all the latest in hard and soft technologies in knitting, dyeing and finishing of knit fabric.

Bextex Ltd. also has cotton and polyester blended yarn-spinning mill, with 122,000 spindles is one of the largest spinning mills of the country. The mill was set up to feed the country's export oriented industries.

Bextex Ltd. produces specialized finishes of denim cloth for export in finished as well as cloth only form.

Company Profile:

Corporate Headquarters

17 Dhanmondi R/A, Road No. 2, Dhaka-1205, Bangladesh

E-mail: [email protected]


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Web: www.beximco.com

Operational Headquarters

Beximco Industrial Park, Sarabo

Kashimpur, Gazipur, Bangladesh

Business Line

Manufacturing and Marketing of Yarn, Woven, Knit and Denim Fabrics

Date of Incorporation

13 May 1984

Commercial Production

1990

Listing Status

Public Listed Company

Stock Exchange Listing

Dhaka and Chittagong

Authorized Capital

3,000 Million taka

Paid-Up Capital

1,882.85 Million Taka

Number of Shareholders

37,216

Number of Employees

5,230

Number of Spindles Installed

119,520


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Number of Woven Loom Installed

293

Number of Circular Knitting Machine Installed

30

Number of Denim Looms Installed

56

Company Mission:

BEXTEX Ltd. is a full service vendor with strong vertically integrated production facilities as well as creative & analytical capabilities which clearly set us apart from most other South Asian vendors.

Company Vision:

• Gain market leadership in high value added apparel in USA & Europe.

• Use “Innovation” & “Speed” as prime drivers, rather than cotton & cheap labour.

• Dominate these markets in high quality:

Men's, Women's , Children

Shirts ( Dress & Casual )

Blouses ( formal & casual ) , Skirts, Jackets

Jeans & Casual non - denim bottoms

Knitted tops & bottoms

• Bextex Ltd. will soon establish its own server, which is now under construction. It will make so easy to communicate & control by its Beximco head office.

Company Commitment to the Environment:


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OperationQuality Control/ Assurance

MaintenanceInventory

GM Operation, QC & Maintenance

Process Research

Product Planning & Development

General accounts & MIS

PayrollShare issues

The company is very committed to preserve a healthy and pollution-free environment. It has a very efficient waste collection and disposal system. In order to reduce air pollution by exhaust of gas from engine-generators, it maintains a costly plant that uses the exhaust gas to generate steam for chilling unit. Above measures not only help keep the water & air free from pollution but also help save cost of water treatment & air conditioning. This company uses only AZO-free dyes and is dedicated to ensure a healthy and eco-friendly environment.

The organizational chart of the company:

Organizational chart bearing vital importance for a company, often represented by a schematic diagram. The organizational chart of Bextex Ltd. is given below,


Market ResearchInput ProcurementProduct Selling

Board of Directors

Chairman

Managing Director

Chief Executive Officer(CEO)

Policy farming & implementation

RecruitmentTraining & Staff Development

HR Control

DGMHR & Administration Manager

(R & D) Manager(Accounts &

Finance)

Manager(Marketing & Procurement)

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Bextex Limited

Board of Directors of Bextex Ltd.:

A S F Rahman - Chairman and Managing Director

Salman F Rahman - Vice Chairman

M A Qasem - Director

A B Siddiqur Rahman – Director

The board of directors controls their all companies from the head office. Here, this control system of all the companies is called internal communication. Directors do their business communication by email, telephone, cell phone, fax, visit in the company & meet in different meetings. Directors are also managed external business communication with the government, foreign buyer & management of the bank.

MANAGEMENT TEAM:

Syed Naved Husain - Chief Executive Officer

Sardar Ahmed Khan - Chief Operating Officer

Ajay Pratap Singh - Chief Financial Officer

Corporate Governance:

BEXTEX Limited is a trend setting pioneer in corporate governance in the country and enjoys reputation as a world class producer of yarn, fabric and apparel that is admired worldwide for their quality and design. A team of highly qualified and experienced and committed professionals under the guidance of top management of the company have achieved admirable


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measure of success in a short span of time. This has been possible because the company never compromises on quality and settles for nothing but the best.

Transparency and fair business practices coupled with strict quality control regimen have inspired the confidence of internationally reputed buyers like PVH, Perry Ellis, Wal-Mart, JC Penny, Philippine Van Heusen, Zara of Spain Kid Headquarter, to name a few, to enter into business partnership with BEXTEX.

The company, as part of its corporate responsibility, shares its experience with others, especially educational and training institutes like the National Defense College (NDC), Ordnance School, and Marine Academy which send trainees from time to time to visit the company’s plants, which stand as symbols of the nation’s march towards high-tech industries. BEXTEX also receives students from different institutions as interns and on industrial attachments to enable them to gain firsthand knowledge on corporate management practices. An important hallmark of the company’s policy is talent hunting. It goes for the best talents in the country and outside; and through intensive training programmed expands their perspectives and hones their thinking. Training programmers are specially designed to prepare them to take over and confidently discharge management responsibilities. Towards this end, BEXTEX has hired competent professionals from India, China, Pakistan, Sri Lanka, the Philippines, et al. All the efforts of BEXTEX in hiring best talents, providing best training and ensuring best quality production aim at one goal: put Bangladesh on the global map as the producer of quality goods. The export strategy of the company is not profit motive; it is geared to fostering economic growth of the country.

The company abides by all relevant Health, Safety and Environment Conservation Rules; Fire and Boiler maintenance instructions and all relevant policies of the government, as is


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evident throughout the entire Industrial Park where BEXTEX plants are located. Sufficient Personal Protective Equipment (PPE), Safety Equipment, signs and symbols etc. are made available throughout the plants. Necessary training is also imparted to all the workers on the use of this equipment so that they are able to use them, if required, and meet the health, safety & hygiene requirement properly. Necessary’ plantation, treatment, control measures etc. are also properly ensured as per the guidelines of the World Bank, Department of Environment and other concerned bodies. It also follows the Buyers’Code of Conduct and satisfactorily meets the buyers set standard of compliance. The certifications of compliance from internationally reputed companies bear testimony to BEXTEX’s compliance of global standard. BEXTEX Limited can confidently say that earning admiration from around the globe are the benchmarks of the success of the company. This success has been earned by ensuring the highest level of human resources management and conforming to various compliance issues at the level of international standard. BEXTEX’s Human Resources Team Management is way ahead of others in the industry. Herein lies the strength of the company and explains in no uncertain manner why it has achieved unparalleled success. The team of Human Resources Department in BEXTEX consisting of highly qualified and vastly experienced personnel having appropriate training at home and abroad, made the department equipped with necessary policies, guidelines, standard operating procedures (SOPs), job descriptions, training materials, code of conducts (COC). Continuous development of human resources is also taking place simultaneously in each and every section of the company.

Relations with shareholders:

The annual general meeting is used as an important opportunity for communication with both institutional and general


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shareholders. In addition, the Company maintains relations with its shareholders through the corporate affairs secretarial department.

The following information can be addressed through the secretarial department:

• Dividend payment enquires;

• Dividend mandate instruction;

• Loss of share certificate/dividend warrants;

• Notification of change of address; and

• Transfer of shares.

The board believes that it is important to respond adequately to all the queries of both institutional and general shareholders. At the AGM, the shareholders are offered an opportunity to raise with the board any specific question they have concerning the Company. In addition, meetings are also held between individual directors and institutional shareholders at various times during the year.

Production sector in Bextex:

Yarn Spinning- The spinning mill produces cotton , polyester , viscose yarns in special counts from 100,s, 80’s to coarser counts like 10’s , 16’s etc applied for super formal shirting products to heavy duty casual wear fabrics.

Multi twist, Multi count, Slub yarns, Grindle yarn and Melange yarns and stretch yarns using lycra are the special items required for fashion fabrics which are also produced in house and used for shirting’s, knist and bottom weight fabrics (both denim and non denim)

The flexibility to provide a variety of yarns leading to fashion products as an end product is the key focus of mill.


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Fabric Weaving- The Vertical infrastructure of Beximco allows the development of fabrics in a wide range of weights (counts and constructions), color combinations using 6 colors on the weft to create colorful patterns.

The highly sophisticated CAD software can replicate patterns, weaves and designs easily and fast. Dobbies, Voiles, Gauze fabrics, high density poplins and twills, double face colorful fabrics can all be produced in variety of loom combinations which are applied to the end product for feminine or masculine products and categories.

Processing and Finishing- In the fabric finishing stage they have facilities to produce post mercerized, aero-finished, denim and other bottom weight fabrics using Italian Biachilani machines as well as the facilities to produce over-dyed and coated fabrics.

Apparel Manufacturing- Beximco produces Men’s, Women’s and children’s garments in all fashion categories from superior dress shirts to regular formal shirts, casual styled garments with fashion silhouettes and details with prints, embroideries etc and also laces and high detail cut and sew styles.

Knit, Woven, Denim and Non Denims categories are all produced in specialized factories with complicated and detailed styles.

The well qualified industrial engineering in the garment factories controls the highly stylized garments which is a unique and special department for garment industry.

Sewing Thread & Labels Manufacturing- Beximco is one of the rare companies that also have in house manufacturing facilities for Label making, sewing thread making which gives it an edge for faster turn around and changes as per the customer requirement. The sewing thread ranges in diff counts and blends and this can be used for casual or formal clothing items.


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Printing- Beximco has its in house flat bed printing facility backed by screen exposing and screen making facilities. All designs and screens can be produced in house. The printing unit can do quality placement prints in foil, flock, plastisol, rubber printing, and embossed effects.

Embroidering- To further enhance the value addition with quality supervision of the fashion garments, the embroidery unit is encompassed within the infrastructure. Embroideries in many colors and stitch counts can be produced in special computerized machines with needles.

Washing- We have a large capacity washing plant, which was setup with German collaboration and special distressing and finishing capabilities. We can do garment dyeing, all types of whispering, three-dimensional effects using different resins, enzymes, bio-polishing, sandblasting, etc. We mostly produce very high fashion garments. Our technical washing experts have over the years been trained by Germans, Italians, Chinese, Turkish and Tunisian experts and have had a broad International exposure. Moreover, we have a close association with Italian washing experts, who work with us every season to develop new ranges of products.

Packaging- To complete the whole supply process from the yarn to the final garment, the packaging is an integral part at the end of the chain. Beximco has its own paper and carton making facility in order to provide the required sizes, qualities and other details that can be easily incorporated into the final shipments of the orders.

Marketing & Procurement Department:

Supply chain model based on a relationship of trust and simple, short procedures.

Marketing model based on affordable, quick change fashion.


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Clear projection or commitment and firm booking of capacity.

Maximize design, product development capability of manufacturer, in collaborative design process.

On-spot placement of order after reviewing of designs.

Focused product development. Higher adoption rate from collection.

Vertical facility enabling quick response, which allows us to produce from Yarn to Garment in fifty days and repeat orders in thirty days, leading to reduced markdowns.

Accounts & Finance:

The directors are responsible for the Company's system of internal financial control. Although no system of internal control can provide absolute assurance against material misstatement and loss, the Company's system is designed to provide the directors with reasonable assurance that problems are timely identified and dealt with appropriately. Key procedures to provide effective internal financial control can be described in following heads:

Management structure - The Company is operating through a well defined management structure headed by chief executive officers (CEO) under whom there are executive directors, general managers for various departments and according to hierarchy, various senior and mid level management staffs. The CEO and the executive directors, general managers meet at regular intervals represented also by finance, marketing and personnel heads.

Budgeting - There are comprehensive management reporting disciplines which involve the preparation of annual budgets by all operating departments. Executive management reviews the budgets and actual results are reported against the budget and revised forecasts are prepared at regular intervals.


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Asset management - The Company has sound asset management policy, which reasonably assures the safeguarding of assets against unauthorized use or disposition. The Company also follows proper records and policy regarding capital expenditures.

Functional reporting - In pursuance with keeping the reliability of financial information used within the business or for publication, the management has identified some key areas which are subject to monthly reporting to the chairman of the board. These include monthly treasury operations and financial statements. Other areas are also given emphasis by reviewing on a quarterly basis. These include information for strategy, environmental and insurance matters.

Research and Development (R & D):

Evolution in Progress

Beximco understands the need for continuous evolution. And highest importance is given to research and development.

With the help of cutting edge technology and a dedicated team of experts composed of members from marketing, merchandising and product engineering departments, Beximco ensures continuous development and sampling at every stage of dyeing, spinning and finished garments production.

Quality Assurance

An expert team of qualified persons is responsible to assure the quality of the materials to meet the international standards. In the garment-manufacturing unit we are following the quality standards within AQL Random Sampling Plan. In fabric production unit we are using various test methods according to AATCC, ISO & BS standards for checking the physical properties of fabric.


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Computerization and Automation in the different departments of Garment and Fabric manufacturing process and facilities like Central Dispensing System for Color & Chemical has made our manufacturing facilities more accurate and has minimized the possibility of human errors.

Human Resource Department:

The team of Human Resources and Compliance department in BEXTEX consisting of highly qualified and vastly experienced personnel having appropriate training from both home and abroad made the department absolutely equipped with all necessary policies, guidelines, Standard Operating Procedures (SOPs), Job Descriptions, training materials, Code of Conducts (CoCs) that the continuous development of human resources is also taking place simultaneously throughout each and every section of the company. The company, as invests for recruiting and retaining the qualified human resources, similarly spends a considerable amount of money and efforts after developing the skill levels and efficiencies of the human resources by arranging regular training courses and programs for the employees. A separate training section is also working with necessary logistics and accommodation for providing necessary training for both the workers and officers, which has already earned an envious reputation among the competitors and made us a different among others in regard to the methods and techniques of developing the human resources which contributes in achieving the market share and leadership in the industry.

The tangible and intangible benefits and facilities provided to the employees of BEXTEX including the working conditions, physical infrastructures, accommodations and dormitories, arrangements for leisure and amusements etc. in the Beximco Industrial Park made the company a completely different type of employer acknowledging which the employees are also devoting their whole hearted and sincere efforts for each and every step of the


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production starting from sorting of cotton up to the shipping of the RMGs. The transparency of management and the broad and open accessibility of employees enable both the parties to maintain a harmonious relationship and to reciprocally remain besides and make them feel a part of the team for the improvements of production in quality and quantity for the ultimate development of the company as well as the division which also increases the aptness of the employee in their work. The Human Resources Department of BEXTEX disseminates the achievements, recognitions, events & happenings within the company through publishing of Textalk, a monthly newsletter of the company. The Textalk ensures the communications between all concerned including the buyers community that has tremendously been acknowledged as the Spokesperson of the company.

Bextex Ltd. gives some facilities for their employees,

Dormitories for the work force and Residential Buildings for the management staff provide housing for the employees and Bextex is the first of our kind in Bangladesh to provide accommodation facilities for their employees.

A production and accommodation facility includes full time supply of safe drinking water, adequate lighting and ventilation facilities.

Free meals, Free transportation, 24-hour medical center, on-site sports and recreational facilities encourage our motivated team to serve our customers full heartedly.

ETI codes according to the Local Law (Bangladesh) are very well practiced in our manufacturing facilities.

· Freedom of Association· Safe Working Conditions


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· No Child Labor· No bonded Labor· Reasonable Working Hours· No Discrimination· Regular Employment· No Harsh Treatment

In Harmony with Nature:

Beximco believes in sustainable development and gives highest priority to preservation of nature and ecological balance. The entire industry site is harmoniously integrated with the surrounding landscape and the native ecosystem of the area has been delicately preserved.

Beximco have Biological Treatment and Energy Conservation Program. State-of-the-art technology has been used in the effluent treatment plant in their dye house for biological treatment of waste. Beximco also use comprehensive energy conservation program. This feeds back all recyclable energy into our various systems, especially for our air-conditioning purpose. Their investment in this program has made us energy efficient and environmentally conscious entity.

Feed Back:

Bextex Ltd. is the most popular company in Bangladesh. We try to describe about profile & management factors of this well


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known company. This assignment helps to know about Bextex Ltd. & its helps to know the present situation in textile sectors.

Conclusion:

Project evaluation factors are directly or indirectly related with the project. Without follow these factors it’s unable for us to run our project. Like Bextex Ltd. try to follow these evaluation factor when they take any new project.

Recommendation:

Without any reference no one can easily enter in Bextex Ltd.

Here internal labor politics is high.

Corruption level high.

In production section’s machine maintenance is very poor.

The labor cannot work properly.

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Documents

Profile & Management System of Bextex Ltd