Embed Size (px)
Citation preview
o
SWOT Analysis of Anlima Yarn dyeing limited
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. Here we have developed a SWOT analysis of Anlima Yarn Dyeing limited.
Strengths:
1) State of the art equipment
Anlima yarn dyeing limited have imported the latest machinery from Europe. Their machinery comprises of equipment used in spinning and weaving. They use the latest type of loom, called the shuttle-less loom in their operations which is the latest technology and which is capable of producing a very high thread count rate, in the range of 100 threads per sq inch (the normal is 30-40). Therefore, their products are capable of meeting international standards of weaving, dyeing and printing, for example using dyes that do not irritate the skin. This is being done to get a competitive edge over rival firms so that when the WTO promulgates free economy in the whole world, they will have no problem in competing with international competitors.
Anlima yarn dyeing has a policy of continuously upgrading its machines to remain among the most modern and efficient textile mills in the country.
2) Highly motivated workforce:
Anlima Yarn Dyeing limited employs about 9000 workers, who work in three shifts of eight hours each throughout the day. They are very motivated because they are paid better than other people in textile mills, and they like the atmosphere of working Anlima. There is a labor union in Anlima, but relationships between the union and the management is amicable and not acrimonious. The best indication of the amicable relationship is that that there has been not a single strike at Anlima since its inception.
3) Diverse product range
Anlima Yarn Dyeing limited have built a reputation for manufacturing high quality and diverse products and this is displayed in their product line. They have high-end products like bed-sheets, pillow cases, curtains, and fashion wear which are exported only, as well as medium-end clothing products.
4) Availability of cheap labor
o
Although their workers are paid better than other workers in the same industry, their wage rate is still much lower than what workers get in other countries. This, coupled with their modern machinery, gives them the competitive edge over rival firms in the global marketplace.
Weaknesses:
1) Weak Information SystemsAnlima is an established textile company, which has excellent production facilities. They have excellent machinery and CAD/CAM systems. But it is still conventionally operated – most of the emphasis is on machine and worker efficiency. They still have not progressed to the information systems, which can help their cause in the international arena. Due to the quickly changing market scenario currently, they need efficient and accurate ways of processing data into information by using different types of information systems like expert systems, knowledge based systems, sales management, and online systems so that customers can track their orders over the Internet.
2) Weak R&D facilitiesThere is hardly any investment in research and development in the Anlima Yarn dyeing limited, or indeed in any other Bangladesh industry, which puts Bangladesh textile companies at a significant disadvantage in the world forum. Bangladesh’s main competitors, India and China, on the other hand have been investing heavily in BMR for a longer period of time and so have infrastructure already in place to exploit the situation that is expected to arise in 2015 with the abolishment of quotas.
3) Lack of HR developmentModern technology in the textile sector requires educated and trained technicians. Similarly, modern management techniques are a major need, particularly in areas of Marketing, Finance and Human Resource Management.
Opportunities
Big opportunities in the local low-end market. International brand of designer wear. Risk of facing losses. Cannot match up with new technology. Lack of government initiative or incentives.
o
Threats:
Political/Economic Instability Piracy of designs Brand name infringement Tough international and national competitors Lack of conducive environment for business Anti-dumping laws Uncertainty of Cycle
Risk analysis:
Risk analysis part is divided in 3 parts. They are:
1) Business risk2) Financial risk3) Proportionate of debt.
1) Business risk:
Business risk=standard deviation of operatingexpense
meanof operatingexpense.
Business risk of Anlima yarn dyeing limited=10174219.62
11496280
= 0.885.
2) Financial risk:
Financial risk can be measured with interest coverage ratio, a ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period:
o
Calculation of interest coverage ratio:
year EBIT Interest expense Ratio09-10 18541913 17985291 1.0308-09 1006184 12255554 .08207-08 113885 16698116 6.8206-07 7842033 15036545 0.5205-06 8692687 14833141 0.58
The lower the ratio, the more the company is burdened by debt expense. When a company's interest coverage ratio is 1.5 or lower, its ability to meet interest expenses may be questionable. An interest coverage ratio below 1 indicates the company is not generating sufficient revenues to satisfy interest expenses. So , for Anlima the year 08-09, 06-07 and 05-06 was very risky, only in the year 07-08 was less risky.
3) Proportionate of debt ratio:
year debt equity Ratio(%)09-10 72045208 192429353 37.8508-09 9276412 190322179 48.207-08 14054910 183202903 76.706-07 35720032 175360870 20.3605-06 92765412 200507997 46.26
Other data:
rading Code: ANLIMAYARN Company No: 17441
PRINT COMPANY INFORMATION
Market Information:Last Trade 404.00
Last UpdateJun 28, 2011 at 17:04:30
Close Price 405.25 Day's Range 396.75 - 407.75
o
Change7.5 1.89%
Open Price 396.75 Yesterday Close 396.5
Volume 12950 Total Trade 157 Market Cap in BDT* 708.458 (mn)
Basic Information: Authorized Capital in BDT* (mn)
200.0
Paid-up Capital in BDT* (mn)
179.0 52 Week's Range 133 - 571
Face Value 100.0 Market Lot 50 Total no. of Securities 1786780 Business Segment Textile
VIEW CLOSE PRICE GRAPH FOR LAST ONE MONTH LAST ONE YEAR
VIEW TOTAL TRADES GRAPH FOR LAST ONE MONTH LAST ONE YEAR
Last AGM Held: 22/12/2010Bonus Issue
Right Issue
Year End 201006 Reserve & Surplus in BDT* (mn) 11.64
Interim Financial Performance: 2011
Particulars
Unaudited / Audited Q1(3
Months) Q2(6
Months) Q3(9
Months) Q4 (12 Months)
201009 201012 201103
Turn Over in BDT* (mn) n/a 125.07 186.65 n/a
Net Profit After Tax in BDT *(mn) (Continuing Operations)
n/a 9.13 16.14 n/a
Net Profit After Tax in BDT *(mn) (Including Extra-ordinary
n/a 0 0 n/a
o
Income) Basic EPS in BDT* (Based on continuing operations)
n/a 5.11 9.03 n/a
Diluted EPS in BDT* (Based on continuing operations)
n/a 0.00 0.00 n/a
Basic EPS in BDT* (Including Extra-ordinary Income)
n/a 0.00 0.00 n/a
Diluted EPS in BDT* (Including Extra-ordinary Income)
n/a 0.00 0.00 n/a
Profit Status :
Basic DilutedCurrent Price Earning Ratio (P/E)(Based on Continuing operation) 33.66
Current Price Earning Ratio (P/E)(Including Extra-ordinary Income)
* Note - Based on Annualized EPS of 2011 (Q3)
Price Earning Ratio Based on last Audited Financials:
Current Price Earning Ratio (P/E)(Based on Continuing Operation) 45.95
Current Price Earning Ratio (P/E)(Including Extra-ordinary Income)
* Note - Based on audited EPS of 2010
Financial Performance:
Year
Basic EPS Basic EPS (restated) Net Asset Value Per
Share
Restated Net Asset Value Per
Share
Net Profit After Tax (mn)Based on Based on
Continuing
operations
Including Extra-
Ordinary Income
Continuing
operations
Including Extra-
Ordinary Income
Continuing
operations
Including Extra-
Ordinary Income
2000 18.32 n/a n/a n/a
117.51
n/a 32.73 n/a
2001 20.99 n/a n/a n/a
126.50
n/a 37.51 n/a
o
2002 11.70 n/a n/a n/a
128.20
n/a 20.91 n/a
2003 4.89 n/a n/a n/a
128.10
n/a 8.75 n/a
2004 0.02 n/a n/a n/a
122.62
n/a 0.04 n/a
2005 -5.22 n/a n/a n/a
112.40
n/a -9.33 n/a
2006 -4.87 n/a n/a n/a
102.53
n/a -8.69 n/a
2007
-4.39 n/a n/a n/a 98.14 n/a -7.84 n/a
2008 0.05 n/a n/a n/a
112.22
n/a 0.10 n/a
2009 0.48 n/a n/a n/a
107.70
n/a 0.86 n/a
2010 8.82 n/a n/a n/a
106.52
n/a 15.76 n/a
All figures in BDT (Bangladeshi Taka)
Financial Performance (Continue):
Year
Year End P/E
% Dividend % Dividend Yield Based on
Continuing operations
Including Extra-Ordinary Income
2000 6.00 n/a 12.00 10.91 2001 5.07 n/a 12.00 11.27 2002 8.03 n/a 10.00 10.64 2003 14.20 n/a 5.00 7.19 2004 - n/a 5.00 7.09 2005 - n/a 5.00 12.42 2006 - n/a 5.00 13.00 2007 - n/a - - 2008 1060 n/a 5.00 9.43 2009 247.40 n/a 5.00 4.21 2010 n/a n/a 10.00 6.03
Details of Financial
o
Statement
Price Sensitive Information
Other Information of the Company: Listing Year 1997 Market Category A Electronic Share Y Share Percentage:
Sponsor/Director 49.89
Govt.0 Institute 0 Foreign 0Public 50.11
Remark N/A
Address of the Company: Address: Floor 15, Suite # 4/3, City Heart, 67, Naya Paltan, Dhaka-1000. Contact Phone: (8802) 9349881-4, 9341373, 8317216 Fax: 88-02-8317184 E-mail: [email protected] Web Address: http://www.anlima.com
