Starting a sewing thread manufacturing business

Its a complete guideline for whom who wants to start a sewing thread manufacturing plant. Although the legal context is Bangladesh based, but others would be used globally. It also could be used for yarn dyeing.

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MD. FAKHRUL ISLAM

[email protected]

[phone]
ID# 2016-3-5-001
4
TH
BATCH, MBA IN
TEXTILES


BANGLADESH UNIVERSITY
OF TEXTILE.






DR. MD. RAKIBUL HAQUE
ASSISTANT PROFESSOR
DHAKA UNIVERSITY.
DEAR DR. MD. RAKIBUL HAQUE SIR,
IT IS A GREAT PLEASURE TO ME TO PREPARE AN
ASSIGNMENT ON YOUR SUBJECT NAMED
“TEXTILE PROJECT MANAGEMENT” ON A PRE-
SELECTED TOPICS SUBJECTED “HOW TO START
A SEWING THREAD MANUFACTURING
BUSINESS”.

IT IS BASICALLY A MAJOR ACCESSORIES ITEM OF
GARMENTS. ALTHOUGH, SOME MNC COMPANIES
ARE HEADING THE SECTOR, LOCAL PRODUCERS
HAVE GREAT OPPORTUNITY TO GRAB THE
MARKET. THE DOCUMENTS WILL HELP ANY
LOCAL ENTREPRENEUR TO HAVE A 360˚ VIEW
TO START A SEWING THREAD MANUFACTURING
BUSINESS.
SINCERELY,
MD. FAKHRUL ISLAM




TEXTILE PROJECT MANAGEMENT
“How to Start a Sewing Thread Manufacturing Plant”

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Table of Contents

1. EXECUTIVE SUMMARY ....................................................................................................................................................................... 4
BUSINESS OFFER - ESTABLISHMENT OF SEWING THREAD MANUFACTURING COMPANY .............................................. 4
OPPORTUNITY AND PROSPECTS ...................................................................................................................................................... 5
TOTAL ESTIMATED COST- $3,395,870.00 ......................................................................................................................................... 6
TOTAL TIME TO BE TAKEN – 270 DAYS (GANTT CHART) .......................................................................................................... 6
PAYBACK PERIOD – 5.7 YEARS ........................................................................................................................................................ 6
2. PRODUCT SPECIFICATION .................................................................................................................................................................. 7
WHAT IS SEWING THREAD? .............................................................................................................................................................. 7
FACTORS THAT AFFECT FUNCTIONS OF A SEWING THREAD? ................................................................................................ 8
FACTORS AFFECTING PERFORMANCE ........................................................................................................................................... 8
WHAT IS 'SEW ABILITY'? .................................................................................................................................................................... 8
SEW ABILITY PARAMETERS ............................................................................................................................................................. 9
THREAD CLASSIFICATION ................................................................................................................................................................ 9
MANUFACTURING OF POLYESTER FIBER ....................................................................................................................................13
3. BACKGROUND OF THE BUSINESS ...................................................................................................................................................17
4. CUSTOMER PROFILEING ....................................................................................................................................................................19
GEOGRAPHICAL BASED CUSTOMER SEGMENTATION .............................................................................................................19
LIST OF POTENTIAL KNIT GARMENTS ..........................................................................................................................................20
LIST OF POTENTIAL WOVEN GARMENTS .....................................................................................................................................22
CUSTOMER GRADING LIST ON THEIR PERFORMANCE .............................................................................................................23
LIST OF PREMIUM CUSTOMER ........................................................................................................................................................27
CUSTOMER ORDER TREND ..............................................................................................................................................................29
5. LONG AND SHORT TERM CORPORATE OBJECTIVES ..................................................................................................................30
BOARD OBJECTIVE .............................................................................................................................................................................30
SPECIFIC OBJECTIVES .......................................................................................................................................................................30
6. MARKET ANALYSIS ............................................................................................................................................................................31
MARKET SIZE ......................................................................................................................................................................................31
CHIEF INFLUENCERS & PLAYERS AND THEIR MARKET SHARE .............................................................................................32
REASONS FOR STARTING BUSINESS IN A PARTICULAR MARKET .........................................................................................34
MARKET CONSUMPTION PATTERNS (SEASONAL INDEX) ........................................................................................................34
7. FINANCIAL ASSESSMENT ..................................................................................................................................................................35

3. 3
INVESTMENT EXPENDITURE AND VALUE OF THE ENTIRE PROJECT ....................................................................................35
METHODS OF INVESTMENT .............................................................................................................................................................37
8. MARKETING ASSESSMENT ...............................................................................................................................................................38
PRODUCT CLASSSIFICATION ...........................................................................................................................................................38
PRODUCT STANDARIZATION ..........................................................................................................................................................38
PRICE .....................................................................................................................................................................................................39
9. OPERATIONAL PLAN ..........................................................................................................................................................................41
SUPPLIER DETAILS .............................................................................................................................................................................41
YARN SUPPLIER .............................................................................................................................................................................41
DYES AND CHEMICALS ................................................................................................................................................................41
MACHINERIES…………………………………………………………………………………… ………………………………...42
LAY OUT PLAN ...............................................................................................................................................................................43
MANAGEMENT STRUCTURE ............................................................................................................................................................44
ORGANOGRAM ...............................................................................................................................................................................44
10. SWOT ANALYSIS ................................................................................................................................................................................45
STRENGTH ............................................................................................................................................................................................45
WEAKNESSES ......................................................................................................................................................................................46
OPPORTUNITIES ..................................................................................................................................................................................47
THREATS ...............................................................................................................................................................................................47
11. APPENDICES .......................................................................................................................................................................................49
BREAK-EVEN ASSESSMENT .............................................................................................................................................................49
12. TIME FRAME .......................................................................................................................................................................................51
TASK SCHEDULING ............................................................................................................................................................................51
GANTT CHART .....................................................................................................................................................................................51
13. PAYBACK PERIOD .............................................................................................................................................................................52
CASH FLOW ..........................................................................................................................................................................................52
14. LEGAL CERTIFICATION…… ………………………………………………………………………………………………………..52
15. CONCLUSION ......................................................................................................................................................................................54

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EXECUTIVE SUMMARY
BUSINESS OFFER - ESTABLISHMENT OF SEWING THREAD MANUFACTURING COMPANY
 PURPOSE: AS WE ARE ONE OF THE RMG INTENSE EXPORT LEADERS IN THE WORLD,
ANY ATTEMPT TO PROMOTE RMG CAN STIMULATE OUR EXPORT EFFORT. BACKWARD
LINKAGES OF RMG LIKE ACCESSORIES INDUSTRIES PLAY THE VITAL ROLE IN THE
FIELD. SEWING THREAD IS THE MAIN ACCESSORIES OF GARMENTS.

 BY PROPOSING THIS BUSINESS PLAN, A SEWING THREAD MANUFACTURING PLANT
CAN BE ESTABLISHED WHICH WILL BE ABLE TO UNVEIL NEW POTENTIAL MARKET
LYING IN NEAR FUTURE.

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OPPORTUNITY AND PROSPECTS
IF WE ANALYZE THE LAST TWO DECADE RMG EXPORTS OF OUR COUNTRY, WE WILL FIND
THAT IT IS INCREASING AT AVERAGE 12% RATE IN EVERY YEAR. BUT THE RECENT DATA
FORECASTS 5-6% GROWTH FOR NEAR FUTURE. THE DEMAND OF SEWING THREAD IS ALSO
INCREASING AT THE SAME RATE. AT PRESENT, 2800 MILLION PIECES OF SEWING THREAD
CONE ARE BEING CONSUMED IN A YEAR. IN 2020, THIS DEMAND WILL GROW UP TO 3600
MILLIONS. EXISTING SEWING THREAD MANUFACTURING COMPANIES ARE MEETING UP THE
EXISTING DEMAND. AND MOST OF THEM AREN’T LIKELY TO EXPAND THEIR CAPACITY.
ULTIMATELY IN 2020, AN 800 MILLIONS CONE SCARCITY WILL BE THERE. THOUGH SOME OF
NEW COMPANIES WILL BE INTRODUCED TO MEET UP THE NEW DEMAND; THERE WILL BE A
SIGNIFICANT SCOPE TO GRAB THE MARKET.



428459
531
600
738
861
1,000
1,1541,168
1,674
1,784
2,011
2,289
2,382
2,6252,631
2,800
3,006
3,208
3,409
0000 M
0500 M
1000 M
1500 M
2000 M
2500 M
3000 M
3500 M
4000 M
Jul-01 Mar-04 Dec-06 Sep-09 Jun-12 Mar-15 Dec-17 Aug-20 May-23
THREAD FORCAST

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TOTAL ESTIMATED COST- $3,395,870.00
 MACHINERIES COST - $1,895,870.00
 LAND COST- $500,000.00
 INFRASTRUCTURE & ERECTION APPROXIMATE COST- $1,000,000.00
TOTAL TIME TO BE TAKEN – 270 DAYS (GANTT CHART)

PAYBACK PERIOD – 5.7 YEARS
YEAR
EXPECTED SELLS (AVG
@ $0.55)
NET INCOME (CASH
FLOW)
CUMULATIVE CASH
FLOW
INITIAL INVESTMENT $ (3,395,870.00)
INTEREST EXPENSE (180 DAYS) (@17%) $ (288,648.95) $ (3,684,518.95)
YEAR STARTED FROM 01/07/2017
YEAR-2018 (6
MONTHS) $ 1,402,500 $ (629,449) $ (4,313,968)
YEAR-2019 $ 6,732,000 $ 326,182 $ (3,987,786)
YEAR-2020 $ 7,293,000 $ 552,622 $ (3,435,164)
YEAR-2021 $ 7,854,000 $ 1,012,781 $ (2,422,383)
YEAR-2022 $ 8,415,000 $ 1,307,153 $ (1,115,230)
YEAR-2023 $ 8,976,000 $ 1,601,525 $ 486,294
YEAR-2024 $ 9,256,500 $ 1,748,711 $ 2,235,005
YEAR-2025 $ 9,537,000 $ 1,388,075.13 $ 2,530,356.98
12-Sep-1712-Oct-1711-Nov-1711-Dec-1710-Jan-189-Feb-1811-Mar-1810-Apr-1810-May-189-Jun-18
COMPANTY REGISTRATION
ENVIRONMENTAL PERMIT
GAS LINE
INFRASTRUCTURE PERMIT
OPENING LC FOR MACHINE
OPENING LC FOR GENERATOR
EMPLOYEE RECRUITEMENT

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PRODUCT SPECIFICATION
WHAT IS SEWING THREAD?

SEWING THREAD IS A SPECIAL TYPE OF YARN USED TO SEW ANY TEXTILE FABRICS. ITS
HIGH LEVEL PROPERTIES HAS MADE IT SUPER PERFORMED SEWING MATERIAL IN APPAREL
INDUSTRIES. NOW A DAY, IT IS CONTRIBUTING IN DIFFERENT FIELDS LIKE MEDICAL,
AEROSPACE AND LATHER ETC.

SEWING THREADS ARE SPECIALLY ENGINEERED AND DESIGNED YARN TO PASS
THROUGH A SEWING MACHINE RAPIDLY. THEY FORM EFFICIENT STITCHES WITHOUT
BREAKING OR BECOMING DISTORTED DURING THE USEFUL LIFE OF THE PRODUCT. THE
BASIC FUNCTION OF A THREAD IS TO DELIVER AESTHETICS AND PERFORMANCE IN
STITCHES AND SEAMS.

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FACTORS AFFECT FUNCTIONS OF SEWING THREAD
COLOR, LUSTER AND FINENESS SHOULD BE CONSIDERED WHILE SELECTING A THREAD
FOR DECORATIVE PURPOSES SUCH AS TOP STITCHING OR EMBROIDERY. OTHER
IMPORTANT CONSIDERATIONS ARE:
 HUE AND SHADE MATCHING
 COLOR FASTNESS
 STITCH SELECTION
 UNIFORMITY OF STITCH FORMATION

FACTORS AFFECT PERFORMANCE
THREAD USED IN GARMENTS MUST BE DURABLE ENOUGH TO WITHSTAND THE
ABRASION AND NEEDLE HEAT THAT OCCUR WHILE SEWING, GARMENT FINISHING,
STRETCHING AND RECOVERY DURING WEAR. THREAD PERFORMANCE IN GARMENTS CAN
BE EVALUATED FROM ITS

 SEAM STRENGTH
 ABRASION RESISTANCE
 ELASTICITY
 CHEMICAL RESISTANCE
 FLAMMABILITY
 COLOR FASTNESS
WHAT IS 'SEW ABILITY'?
'SUABILITY' OF THREAD IS A TERM USED TO DESCRIBE A SEWING THREAD’S
PERFORMANCE. A THREAD WITH GOOD SEW ABILITY IS UNIFORM IN DIAMETER WITH A
GOOD SURFACE FINISH. LONGITUDINAL UNIFORMITY OF THREAD CONTRIBUTES TO
UNIFORM STRENGTH AND REDUCED FRICTION, AS IT PASSES THROUGH THE STITCH
FORMING MECHANISMS. IT ALSO MINIMIZES THREAD BREAKAGES AND THE ASSOCIATED
COSTS INCURRED FROM RETHREADING MACHINES, REPAIRING STITCHES AND PRODUCING
INFERIOR QUALITY PRODUCTS.

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SEW ABILITY PARAMETERS
THE PARAMETERS THAT DEFINE THE SUPERIOR SEW ABILITY OF THREAD ARE:

 NO BREAKAGES IN HIGH-SPEED SEWING
 CONSISTENT STITCH FORMATION
 NO SKIPPED STITCHES
 EVENNESS, TO PREVENT CHANGES IN TENSION DURING SEWING
 A HIGH LEVEL OF ABRASION RESISTANCE
 SUFFICIENT SURFACE SMOOTHNESS, TO PASS EASILY THROUGH THE MACHINE GUIDES

THREAD CLASSIFICATION
THREAD CAN BE CLASSIFIED IN DIFFERENT WAYS. SOME COMMON CLASSIFICATIONS
ARE THOSE BASED ON:
1. SUBSTRATE
2. CONSTRUCTION
3. FINISH
CLASSIFICATION BASED ON SUBSTRATE
NATURAL
THE USAGE OF THREAD MADE FROM NATURAL SUBSTRATES IS NOW MINIMAL IN
INDUSTRY APPLICATIONS. HOWEVER, THE MOST COMMONLY USED NATURAL THREAD
IS COTTON THREAD.

SYNTHETIC
DUE TO THE LIMITATIONS OF NATURAL FIBERS, THREAD USERS HAVE TURNED TO
THREADS MADE FROM SYNTHETIC FIBERS AS THEY HAVE DESIRABLE PROPERTIES OF
EXCEPTIONALLY HIGH TENACITY, HIGH RESISTANCE TO ABRASION AND GOOD
RESISTANCE TO CHEMICALS. THEY ARE ALSO NOT SIGNIFICANTLY AFFECTED BY
MOISTURE, ROT, MILDEW, INSECTS OR BACTERIA.

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CLASSIFICATION BASED ON CONSTRUCTION THRE AD STRUCTURE












A. SPUN THREAD IS MADE USING NATURAL OR SYNTHETIC FIBERS. SPUN
POLYESTER IS ONE OF THE MOST WIDELY USED THREADS. IT IS STRONGER
THAN COTTON THREADS OF A COMPARABLE SIZE, AND IS AVAILABLE IN A WIDE
VARIETY OF SIZES AND COLORS.









B. CORE SPUN THREAD IS A COMBINATION OF STAPLE FIBERS AND FILAMENTS.
THE MOST COMMONLY USED CORE SPUN THREAD HAS MULTIPLE-PLY
CONSTRUCTION, WITH EACH PLY CONSISTING OF A POLYESTER FILAMENT CORE
WITH COTTON OR POLYESTER FIBERS WRAPPED AROUND THE CORE.

THIS THREAD STRUCTURE INFLUENCES THE STRENGTH OF FILAMENT
POLYESTER AND THE SEW ABILITY OF COTTON OR POLYESTER FIBER WRAP.
CORE SPUN THREAD IS GENERALLY USED FOR THE HIGH-SPEED SEWING OF
MANY GARMENT TYPES, ESPECIALLY THOSE REQUIRING HIGH SEAM STRENGTH.

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C. FILAMENT THREADS ARE STRONGER THAN SPUN THREADS OF THE SAME FIBER
AND SIZE.
THREE TYPES OF FILAMENT THREADS ARE COMMONLY USED:






A. MONOFILAMENT THREAD IS MADE FROM A SINGLE CONTINUOUS FIBER WITH A
SPECIFIED THICKNESS. THOUGH MONOFILAMENT IS STRONG, UNIFORM AND
INEXPENSIVE TO MAKE, IT LACKS FLEXIBILITY AND IT IS STIFF AND SCRATCHY
IN FEEL. AS A RESULT, USAGE IS NORMALLY RESTRICTED TO HEMS, DRAPERIES,
AND UPHOLSTERED FURNITURE.






B. SMOOTH MULTIFILAMENT THREAD IS USUALLY MADE FROM NYLON OR
POLYESTER AND IS USED WHERE HIGH STRENGTH IS A PRIMARY REQUIREMENT.
IT CONSISTS OF TWO OR MORE CONTINUOUS FILAMENTS TWISTED TOGETHER.
IT IS COMMONLY USED TO SEW SHOES, LEATHER GARMENTS, AND INDUSTRIAL
PRODUCTS.

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C. TEXTURED FILAMENT THREAD IS USUALLY MADE FROM POLYESTER AND IS
USED PRIMARILY AS THE LOOPER THREAD FOR COVER STITCHES. TEXTURING
FILAMENTS GIVES THE YARN MORE COVER AND HIGH EXTENSIBILITY, BUT
MAKES THE THREAD MORE SUBJECT TO SNAGGING.

CLASSIFICATION BASED ON THREAD FINISH
FINISHES ARE GIVEN TO A THREAD FOR TWO PURPOSES

A. TO IMPROVE SEW ABILITY
SOME FINISHES INVOLVE INCREASING STRENGTH, ABRASION RESISTANCE
AND LUBRICATION OF THE THREAD.

B. TO ACHIEVE A SPECIFIC FUNCTIONAL REQUIREMENT
SOME FINISHES INCLUDE BONDING, NON-WICK, ANTI-FUNGAL, FIRE
RETARDANT, AND WATER REPELLENT AND ANTI-STATIC FINISHES.

BASICS OF THREAD CONSTRUCTION
ALL CONVENTIONAL SEWING THREADS BEGIN THEIR PRODUCTION CYCLE AS SIMPLE
YARNS. THESE BASIC YARNS ARE PRODUCED BY TWISTING TOGETHER RELATIVELY SHORT
FIBERS OR FINE CONTINUOUS FILAMENTS.

SOME TERMS USED IN THE CONTEXT OF THREAD CONSTRUCTION ARE:

1. TWIST – TWIST IS SIMPLY THE NUMBER OF TURNS PER UNIT LENGTH. A THREAD
WITH TOO LITTLE TWIST MAY FRAY AND BREAK, ONE WITH TOO MUCH TWIST CAN
CAUSE SNARLING, LOOPING AND KNOTTING. BALANCE IS THE KEY AND A GOOD
SEWING THREAD HAS IT.

2. TWIST DIRECTION – THE DIRECTION OF THE FINISHING TWIST IS IMPORTANT,
TWIST CAN BE INSERTED IN EITHER DIRECTION OR THIS IS DESCRIBED AS EITHER
Z OR S TWIST. MOST COMMON MACHINES USE A Z TWIST THREAD. THERE ARE
OTHER DESCRIPTIONS OF TWIST WHICH WERE USED IN THE PAST BUT THESE

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SHOULD NOT BE USED TO AVOID CONFUSION. DIRECTION OF TWIST DOES NOT
AFFECT THE STRENGTH OF THE THREAD, BUT IT CAN SERIOUSLY IMPAIR ITS
PERFORMANCE WHEN IT IS USED ON A MACHINE FOR WHICH IT IS NOT SUITED.

3. PLY AND CORD – YARNS WITH MANY COMPONENTS ARE TWISTED TOGETHER TO
FORM PLY THREAD. MOST COMMONLY USED ARE 2, 3 OR 4 PLY THREADS.
THREADS ARE TWISTED TOGETHER TO GIVE CORDED THREAD. MOST COMMONLY
USED ARE 4, 6 OR 9 CORD THREAD.














4. SIZE – THE OVERALL THICKNESS OF THE FINAL THREAD IS REFERRED TO AS
‘GRIST’, ‘TICKET NUMBER’, ‘TEX’ OR ‘COUNT’. THREAD SHOULD BE AS FINE AS
POSSIBLE DEPENDING ON THE REQUIRED STRENGTH OF SEAM. GENERALLY,
THICKER THREADS HAVE GREATER STRENGTH, GIVEN THE SAME FIBER
CONTENT AND YARN STRUCTURE. FINER THREADS TEND TO BLEND INTO THE
FABRIC SURFACE AND ARE LESS SUBJECT TO ABRASION THAN SEAMS WITH
HEAVIER THREADS. FINER THREADS PERFORM BETTER WITH FINER NEEDLES
AND PRODUCE LESS FABRIC DISTORTION THAN HEAVIER NEEDLES.

MANUFACTURING OF POL YESTER FIBER
CHEMICAL COMPOSITION: PET POLYESTER FIBRES ARE PRODUCED COMMONLY IN ROUND
CROSS-SECTION, BUT FIBRES OF SPECIAL CROSS-SECTION ARE NOW AVAILABLE FROM A
NUMBER OF MANUFACTURERS. PET POLYESTER FIBRES ARE THERMOPLASTIC, AND LEND
THEMSELVES WELL TO PHYSICAL MODIFICATION ASSOCIATED WITH THIS PROPERTY.
CRIMPED AND TEXTURED YARNS OF ALL FAMILIAR TYPES ARE AVAILABLE.

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POLYETHYLENE TEREPHTHALATE IS MADE BY THE CONDENSATION OF TEREPHTHALIC ACID,
OR A DERIVATIVE SUCH AS DIMETHYL TEREPHTHALATE, WITH ETHYLENE GLYCOL.



1. ETHYLENE GLYCOL: IT IS MADE BY THE CATALYTIC OXIDATION OF ETHYLENE, WHICH
IS OBTAINED FROM PETROLEUM CRASHING. ETHYLENE OXIDE IS PRODUCED.
HYDRATION OF THIS YIELDS ETHYLENE GLYCOL.

2. TEREPHTHALIC ACID; DIMETHYL TEREPHTHALATE: PARA-XYLENE OBTAINED FROM
PETROLEUM IS OXIDIZED
3
, FOR EXAMPLE WITH NITRIC ACID OR WITH AIR IN THE
PRESENCE OF CATALYST.
TEREPHTHALIC ACID IS ESTERIFIED WITH METHYL ALCOHOL
4
TO FORM DIMETHYL
TEREPHTHALATE.
POLYMERIZATION: POLYETHYLENE TEREPHTHALATE IS MADE BY CONDENSING ETHYLENE
GLYCOL WITH EITHER TEREPHTHALIC ACID ITSELF OR WITH DIMETHYL TEREPHTHALATE.
CONDENSATION OF ETHYLENE GLYCOL WITH TEREPHTHALIC ACID IS AN ESTERIFICATION
REACTION, WATER BEING ELIMINATED AS THE REACTION TAKES PLACE. CONDENSATION OF
ETHYLENE GLYCOL WITH DIMETHYL TEREPHTHALATE
2
IS AN ESTER INTERCHANGE
REACTION, METHYL ALCOHOL BEING ELIMINATED AS THE REACTION TAKES PLACE. THE
POLYMER OBTAINED IN THIS WAY WOULD BE EXPECTED TO HAVE ESTER END GROUP
INSTEAD OF THE CARBOXYLIC ACID END GROUP IN THE CASE OF THE POLYMER OBTAINED BY
THE TEREPHTHALIC ACID ROUTE.

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IN EITHER CASE, THE CONDENSATION IS CARRIED OUT BY HEATING THE ETHYLENE GLYCOL
AND TEREPHTHALIC ACID OR DIMETHYL TEREPHTHALATE AND REMOVING THE WATER OR
THE METHYL ALCOHOL IN VACUUM. WHEN THE DESIRED DEGREE OF POLYMERIZATION HAS
BEEN REACHED, THE CLEAR, COLOURLESS POLYESTER IS EXTRUDED THROUGH A SLOT ON TO
A CASTING WHEEL. THE POLYMER SOLIDIFIES INTO AN ENDLESS RIBBON, WHICH IS FED TO A
CUTTER AND CUT INTO CHIPS IN THE FORM OF CUBES WITH 3-6MM SIDES.


MELT SPINNING
POLYETHYLENE TEREPHTHALATE MELTS AT ABOUT 260
0
C, AND THE MOLTEN POLYMER IS
STABLE SO LONG AS OXYGEN IS RIGOROUSLY EXCLUDED. EVERY CARE IS TAKEN DURING
MELT SPINNING, AS IN THE POLYMERIZATION PROCESS, TO PREVENT AIR COMING INTO
CONTACT WITH THE MOLTEN POLYMER.
IN THE SPINNING BUILDING, THE CHIPS OF POLYMER ARE DRIED TO REMOVE TRACES OF
MOISTURE, AND THEN PASSED TO STRONG HOPPERS. FROM THE HOPPERS THE CHIPS ARE
FED AS REQUIRED TO THE SPINNING MACHINES.
THE MOLTEN POLYMER BEING PUMPED THROUGH HOLES IN A SPINNERET. AS THE
FILAMENTS EMERGE, THEY SOLIDIFY AND ARE WOUND INTO PACKAGES OF UNDRAWN YARN.

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THE UNDRAWN YARN IS STRETCHED TO ABOUT FIVE TIMES ITS ORIGINAL LENGTH ON
DRAW-TWIST MACHINES, THE STRETCHING BEING CARRIED OUT USUALLY AT ELEVATED
TEMPERATURE. IF HIGH TENACITY YARN IS BEING MADE, THE FILAMENTS ARE DRAWN TO
HIGHER DEGREE THAN IN THE MANUFACTURE OF REGULAR TENACITY YARN.
IT IS NORMAL PRACTICE FOR PET POLYESTER YARNS TO BE DRAWN HOT, AS THIS GIVES A
MORE UNIFORM PRODUCT THAT COULD DRAW. THE STRETCHING OF HEAVY DENIER YARNS
AND MONOFILAMENTS MAY, HOWEVER, BE CARRIED OUT AT ROOM TEMPERATURE, AS THE
POOR HEAT CONDUCTIVITY OF THE FIBER MAKES FOR IRREGULARITIES IN THICK FILAMENTS
WHICH ARE DRAWN HOT.

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BACKGROUND OF THE BU SINESS

 SEWING THREAD IS THE OUTPUT PRODUCT OF YARN MANUFACTURING INDUSTRY,
MOSTLY KNOWN AS SPINNING INDUSTRY .IN FACT IT IS A BACKWARD LINKAGE
INDUSTRY OF READY MADE GARMENTS (RMG) INDUSTRY .THE RMG INDUSTRY IS
HIGHLY GLOBALIZE INDUSTRIES BECAUSE OF ITS LOW TECHNOLOGY AND LABOR
INTENSIVENESS. THIS INDUSTRY MIGRATES FROM HIGH-WAGE TO LOW-WAGE
COUNTRIES LIKE A “FLYING GOOSE”. ANY SLOWDOWN IN THIS SECTOR WILL SLOW
THE ECONOMIC PROGRESS OF BANGLADESH. THE RECENT CHANGES IN GLOBAL
ENVIRONMENT HAD ADVERSELY AFFECTED THE RMG INDUSTRY IN BANGLADESH. THE
NATURE OF COMPETITIONS HAS CHANGED. AS YARN IS A FUNDAMENTAL RAW
MATERIAL OF GARMENTS INDUSTRY SO ANY BENEFICIAL FINDINGS ON POLYESTER
YARN MARKETING COULD PLAY A POSITIVE ROLE IN RMG INDUSTRY. THE FUTURE OF
THIS INDUSTRY IS NOW THREATENED BY A NUMBER OF FACTORS. THE PHASING OUT
OF MFA HAS BECOME A MATTER OF CONCERN. BANGLADESH IS STRUGGLING TO
FORMULATE STRATEGIES THAT WILL ENABLE THE COUNTRY TO RETAIN ITS GOOD
POSITION IN THE GLOBAL EXPORT MARKET OF READYMADE GARMENTS DURING THE
POST MFA ERA. SO AN ATTEMPT TO STUDY ON THE ABOVE-MENTIONED TOPIC IS A
VERY IMPORTANT TOPIC IN PRESENT SITUATION.

 SEWING THREAD IS THE PRIME ACCESSORIES FOR GARMENTS INDUSTRY. THE
QUALITY OF THE FINISHED APPAREL IS PARTIALLY DEPENDS ON THE QUALITY OF
SEWING THREAD. SO SEWING THREAD MARKETING PLAYS A VITAL ROLE IN THE
GARMENTS BUSINESS FIELDS. BANGLADESH HAD A GLORIOUS PAST IN THE FIELD OF
PRODUCTION OF QUALITY FABRICS. ITS MUSLIN WAS ONCE CONSIDERED AS THE
FINEST FABRICS IN THE WORLD. EXPORT ORIENTED KNITWEAR AND READY-MADE
GARMENT (RMG) INDUSTRY WITH THEIR PHENOMENAL EXPANSION IS A BIG SUCCESS
STORY OF BANGLADESH. IT IS THE LARGEST MANUFACTURING SECTOR
CONTRIBUTING AROUND 82% OF TOTAL EXPORT EARNING OF COUNTRY. FROM THE
MODEST BEGINNING IN 1978 AS AN INSIGNIFICANT IN SIGNIFICANT NONTRADITIONAL
ITEMS ON EXPORT FACING ONLY US$6.4 M IN 1981, GARMENTS SECTORS OF
BANGLADESH HAS NOW BECAME A US$29.0 BILLION FOREIGN EXCHANGE EARNER
ENJOINING THE STATUS OF SECOND LARGEST GARMENTS EXPORTERS TO USA AND

18. 18
FIRST TO EU. HOWEVER, TOTAL THREAD DEMAND OF THE COUNTRY’S EXPORT
ORIENTED INDUSTRIES IN 2016-2017 WAS AROUND 290 MILLION CONES PER YEAR.
OUT OF THIS, MORE THAN 36% ARE BEING SUPPLIED BY DIFFERENT MNC AND JOINT
VENTURE COMPANIES IN THE COUNTRY. THE DEMAND OF 100% POLYESTER YARN
FOR RMG INDUSTRY IS GROWING UP. THERE ARE A LOT OF 100% POLYESTER YARNS
MANUFACTURING COMPAN IES IN BANGLADESH. AMONG THEM COATS BANGLADESH
LTD, A & E, AMANN BANGLADESH, K.D.S., WELL THREAD, SIMTEX INDUSTRIES LTD,
APEX THREAD, ETAFIL THREAD, NASSA SEWING THREAD LTD ETC. ARE THE MAJOR
COMPETITORS IN THE THREAD MANUFACTURING MARKET. SO IT IS REQUIRED
EFFECTIVE MARKETING PLAN FOR FIGHT WITH COMPETITORS IN THREAD MARKET.
SO, BY STUDYING THE MARKET DEMAND OF THREAD MANUFACTURING, I THINK THAT
IT IS POSSIBLE BY SOMEONE TO PLAY AN IMPORTANT ROLE IN THREAD MARKETING.
AS BANGLADESH HAS BEEN ENTERED INTO THE GLOBAL MARKET AND OUR
GARMENTS INDUSTRIES NOW IN FRONT OF A GREAT CHALLENGES AND
OPPORTUNITIES, WE MUST HAVE TO ANALYZE THE SITUATION WITH A GREAT
PRUDENT. IN THE MEANTIME, OUR COMPETITORS HAS BEEN REORGANIZING
THEMSELVES WITH THIS CHANGING BUSINESS ENVIRONMENT.

19. 19
CUSTOMER PROFILING

 CUSTOMER SEGMENTATION
O GEOGRAPHICAL BASED
O PRODUCT BASED
 LIST OF KNIT GARMENTS AND THEIR APPROXIMATE ORDER PER MONTH.
 LIST OF WOVEN GARMENTS AND THEIR APPROXIMATE ORDER PER MONTH.
 CUSTOMER GRADING LIST
 LIST OF PREMIUM CUSTOMER
 CUSTOMER ORDER TREND

GEOGRAPHICAL BASED CUSTOMER SEGMENTATION

GARMENTS MANUFACTURING INDUSTRIES CAN BE SEGMENTED INTO TWO MAJOR
GEOGRAPHICAL ZONE.
1. DHAKA ZONE INCLUDES
A. DHAKA
B. GAZIPUR
C. NARAYANGONJ
D. MAYMANSHINGH
E. TANGAIL
F. NARSHINGDI
G. MANIKGONJ
2. CHITTAGONG ZONE INCLUDES
A. CHITTAGONG
B. COMILLA
OUR ALL DISCUSSION WILL FOCUS ON DHAKA ZONE’S CUSTOMER
THE GARMENTS ALSO CAN BE SEGMENTED INTO TWO MAJOR TYPES OF PRODUCT
MANUFACTURER.

20. 20
1. WOVEN GARMENTS
2. KNIT GARMENTS

LIST OF POTENTIAL KNIT GARMENTS

SERIAL NO CUSTOMER NAME ORDER/MONTH
(CONE)
1 ABONI KNITWEAR LIMITED 20850.75
2 ARABI FASHION LIMITED 21683.85
3 AST KNITWEAR LTD 33529.8
4 AUKO-TEX GROUP 10431.95
5 AVANT GARDE FASHION LTD. (RING SHINE) 36444.05
6 BIRDS GROUP 22821.15
7 CHORKA TEXTILE LTD 9735.65
8 COMFIT COMPOSITE KNIT LTD 13195.6
9 DBL GROUP 71131.4
10 DEBONAIR GROUP 19884.9
11 EVER SMART BANGLADESH LTD. 22350.05
12 FASHION KNIT GARMENTS (HR TEXTILE) LTD. 7456.9
13 GIANT GROUP 25133.35
14 GRAMEEN FABRICS & FASHION LTD 10792.1
15 GRAMTECH KNIT DYEING FINISHING. 8753.05
16 HAMS GARMENTS LIMITED 9898.55
17 IMPRESS-NEWTEX COMPOSITE TEXTILE LTD. 29489.75
18 INTERSTOFF APPARELS LTD. 60853.8
19 JANN COMPOSITE MILLS LIMITED 9206.45
20 KNIT LUSTRE 3953.95
21 LIBAS TEXTILE LTD 26744.05
22 LOGOS APPARELS LTD. 5046
23 M. M CORPORATION 4007.8

21. 21
24 MAGPIE COMPOSITE TEXTILES LTD 1377.05
25 MASCO GROUP (UNIT-2) 4912.05
26 MEEK KNIT LIMITED 6368.8
27 MEGHNA KNIT COMPOSITE LTD. 21414.45
28 METRO KNITTING & DYEING MILLS LIMITED. 2309.4
29 MONDOL GROUP 31849.65
30 MUAZUDDIN LTD. 5391.85
31 MULTIFABS LIMITED 5510.85
32 NABA KNIT COMPOSITE LTD 6656.9
33 NAZ BANGLADESH LTD 6562.05
34 NORBAN COMTEX LIMITED 15569.05
35 NORTHERN GROUP 8349
36 NOVEL HURRICANE KNIT GARMENTS LTD. 11943.5
37 P.N. COMPOSITE LTD. 6562.65
38 PACIFIC COTTON LIMITED 6712.8
39 RADIANCE KNITWEAR’S LTD. 5258.75
40 RENAISSANCE APPARELS LTD. 43998.1
41 S M KNITWEAR’S LIMITED 69719.4
42 S.P GROUP 13609
43 SAG FASHION LTD 2758.05
44 SAIHAM KNIT COMPOSITE LTD. 13543.1
45 SHASHA GARMENTS LIMITED. 6971.65
46 SKYLINE GROUP 20291
47 TEXEUROP(BD)LTD. 20933.8
48 TURAG GARMENTS & HOSIERY MILLS LIMITED 44367.1
49 UNION GARMENTS LIMITED 16868.55
50 URMI GARMENTS LTD 11433.7
51 VERSATILE ATTIRE LIMITED 5160.55

22. 22
LIST OF POTENTIAL WOVEN GARMENTS


SERIAL NO CUSTOMER NAME ORDER/ MONTH (CONE)
1 A & A GR0UP 15230.9
2 ABA GROUP 96347
3 ADS LTD (A CONCERN OF ALIF GROUP) 10601.95
4 BANDO DESIGN LIMITED 18971.45
5 CONFIDENCE INTERNATIONAL LTD 62525.35
6 DEKKO GROUP UNIT -1 9286.05
7 DESIGNER JEANS LIMITED 8453.25
8 DOREEN ATTIRE LTD 12835.15
9 E.H FABRICS LIMITED 24443.4
10 ELEGANT FASHION 85535.05
11 EXPERIENCE GROUP 53277.5
12 FASHION FLASH LTD(JCL GROUP) 37672.3
13 FORTUNEX LIMITED 28952.75
14 GEMTEX LIMITED. 19205
15 IMPRESSIVE GARMENTS(PVT) LIMITED 37604.35
16 JOY AUTO GARMENTS LTD. 1679.15
17 KIMS CORPORATION LTD 9910.8
18 KS APPARELS LIMITED 6183.65
19 LENNY FASHIONS LTD 10822.45
20 MAJUMDER GROUP 19057.9
21 NATURAL GROUP 8258.15
22 NEW LINE CLOTHING LTD 26101.6
23 PADMA LIMITED. 11668.4
24 PRINCE GROUP 6577.2
25 RABAB FASHION INDUSTRIES LTD 9920.5
26 SHABAB FABRICS LTD 4029.3
27 SHADE BUSINESS LINE LTD. 13731.65
28 SHAGORE GARMENTS LIMITED 13194
29 SHARMIN GROUP 22958.65

23. 23
30 SPEEDWELL LTD 2188.65
31 STERLING CREATIONS LIMITED 13583.65
32 STERLING STYLES LTD. 1134.4
33 SUAD GARMENTS INDUSTRIES LTD. 2970.4
34 TM DESIGNERS LIMITED 47267.05
35 TOPS & BOTTOMS 8568.65


CUSTOMER GRADING LIST ON THEIR PERFORMANCE
NAME OF CUSTOMER VOLUM
E/MON
TH
VOLU
ME
POINT
AVG
PRICE/U
NIT
PRIC
E
POI
NT
PAYME
NT
GRADE
PAYME
NT
POINT
CUSTOM
ER
COMPLAI
NT
QUALI
TY
POINT
REPUTATI
ON POINT
TOT
AL
POIN
T
GRA
DE
25 20 25 20 10 100
A & A GR0UP 15.2 K 15 0.75 20 B 20 3 12 8 75 B
ABA GROUP 96.3 K 25 0.92 20 A 25 122 20 10 100 A
ABONI KNITWEAR
LIMITED
20.9 K 15 0.52 14 A 25 32 17 8 79 B
ADS LTD (A
CONCERN OF ALIF
GROUP)
11.2 K 15 0.85 20 B 20 1 12 7 74 B
ALKANTEKS
APPAREL
11.0 K 15 0.64 14 A 25 4 12 7 73 B
APPARELS
VILLAGE LTD
26.9 K 15 0.66 17 D 5 22 14 7 58 D
ARABI FASHION
LIMITED
21.7 K 15 0.34 12 C 15 32 17 9 68 C
AST KNITWEAR
LTD
33.5 K 20 0.52 17 C 15 9 12 9 73 B
AUKO-TEX GROUP 10.4 K 15 0.46 12 A 25 15 12 10 74 B
AVANT GARDE
FASHION LTD.
(RING SHINE)
36.4 K 20 0.52 14 B 20 3 12 10 76 B
BANDO DESIGN
LIMITED
19.0 K 15 0.73 17 A 25 5 12 8 77 B
BIRDS GROUP 22.8 K 15 0.44 12 C 15 11 12 7 61 C
CHORKA TEXTILE
LTD
9.7 K 5 0.49 12 C 15 3 12 10 54 D

24. 24
COAST TO COAST
GROUP LTD.
10.2 K 15 0.63 14 B 20 31 17 8 74 B
COMFIT
COMPOSITE KNIT
LTD
13.2 K 15 0.53 17 A 25 2 12 10 79 B
CONFIDENCE
INTERNATIONAL
LTD
62.5 K 25 0.70 14 B 20 7 12 6 77 B
DBL GROUP 71.1 K 25 0.44 20 A 25 4 12 10 92 A
DEBONAIR GROUP 19.9 K 15 0.51 14 D 5 24 14 7 55 D
DEKKO GROUP
UNIT -1
9.3 K 5 0.70 14 A 25 17 12 9 65 C
DESIGN & SOURCE
LTD.
34.9 K 20 0.57 12 B 20 19 12 8 72 B
DESIGNER JEANS
LIMITED
8.5 K 5 0.72 17 D 5 0 12 8 47 D
DOREEN ATTIRE
LTD
12.8 K 15 0.76 20 D 5 6 12 8 60 D
E.H FABRICS
LIMITED
24.4 K 15 0.68 14 D 5 13 12 8 54 D
ELEGANT
FASHION
85.5 K 25 0.74 17 D 5 3 12 10 69 C
EVER SMART
BANGLADESH
LTD.
22.4 K 15 0.60 20 A 25 8 12 10 82 A
EXPERIENCE
GROUP
53.3 K 25 0.68 12 B 20 13 12 10 79 B
FASHION FLASH
LTD(JCL GROUP)
37.7 K 20 0.72 14 C 15 5 12 7 68 C
FASHION KNIT
GARMENTS (HR
TEXTILE) LTD.
7.5 K 5 0.52 14 C 15 59 20 8 62 C
FORTUNEX
LIMITED
29.0 K 15 0.72 14 B 20 2 12 10 71 B
GEMTEX LIMITED. 20.2 K 15 0.71 14 B 20 1 12 7 68 C
GIANT GROUP 25.1 K 15 0.50 14 D 5 20 14 8 56 D
GRAMEEN
FABRICS &
FASHION LTD
12.0 K 15 0.52 14 D 5 4 12 7 53 D
GRAMTECH KNIT
DYEING
FINISHING.
17.5 K 15 0.51 14 B 20 3 12 8 69 C
HAMS GARMENTS
LIMITED
19.8 K 15 0.49 12 B 20 2 12 9 68 C
IMPRESSIVE
GARMENTS(PVT)
LIMITED
37.6 K 20 0.72 17 D 5 6 12 9 63 C

25. 25
IMPRESS-NEWTEX
COMPOSITE
TEXTILE LTD.
29.5 K 15 0.53 17 B 20 15 12 10 74 B
INTEGRA
APPARELS(BD)LT
D.
7.4 K 5 0.67 20 A 25 2 12 7 69 C
INTERSTOFF
APPARELS LTD.
60.9 K 25 0.41 17 B 20 18 12 10 84 A
JANN COMPOSITE
MILLS LIMITED
14.2 K 15 0.57 20 C 15 0 12 7 69 C
JOY AUTO
GARMENTS LTD.
8.4 K 5 0.70 14 A 25 0 12 7 63 C
KIMS
CORPORATION
LTD
9.9 K 5 0.73 17 A 25 14 12 7 66 C
KNIT LUSTRE 6.6 K 5 0.50 14 D 5 1 12 7 43 D
KS APPARELS
LIMITED
6.2 K 5 0.75 20 A 25 6 12 7 69 C
LENNY FASHIONS
LTD
14.4 K 15 0.74 17 A 25 1 12 10 79 B
LIBAS TEXTILE
LTD
33.4 K 20 0.55 20 A 25 7 12 8 85 A
LOGOS APPARELS
LTD.
12.6 K 15 0.49 12 B 20 1 12 8 67 C
M M
CORPORATION
6.2 K 5 0.47 12 C 15 10 12 7 51 D
MAGPIE
COMPOSITE
TEXTILES LTD
9.2 K 5 0.49 12 A 25 1 12 7 61 C
MAJUMDER
GROUP
19.1 K 15 0.68 12 B 20 9 12 7 66 C
MASCO GROUP
(UNIT-2)
9.8 K 5 0.50 14 B 20 6 12 9 60 D
MEEK KNIT
LIMITED
7.1 K 5 0.50 12 C 15 6 12 6 50 D
MEGHNA KNIT
COMPOSITE LTD.
21.4 K 15 0.37 12 B 20 51 20 10 77 B
METRO KNITTING
& DYEING MILLS
LIMITED.
11.5 K 15 0.55 A 25 3 12 10 62 C
MONDOL GROUP 31.8 K 20 0.37 12 C 15 21 14 10 71 B
MUAZUDDIN LTD. 9.8 K 5 0.52 17 B 20 1 12 8 62 C
MULTIFABS
LIMITED
8.5 K 5 0.48 12 C 15 15 12 8 52 D
NABA KNIT
COMPOSITE LTD
6.7 K 5 0.58 20 A 25 10 12 8 70 C
NATURAL GROUP 20.6 K 15 0.72 17 A 25 8 12 10 79 B

26. 26
NAZ BANGLADESH
LTD
10.1 K 15 0.56 20 D 5 2 12 10 62 C
NEW LINE
CLOTHING’S LTD
26.1 K 15 0.68 12 C 15 2 12 8 62 C
NORBAN COMTEX
LIMITED
15.6 K 15 0.50 14 D 5 27 14 9 57 D
NORPKNIT
INDUSTRIES LTD.
18.5 K 15 0.69 20 B 20 42 20 10 85 A
NORTHERN
GROUP
8.3 K 5 0.50 14 C 15 15 12 8 54 D
NOVEL
HURRICANE KNIT
GARMENTS LTD.
12.6 K 15 0.49 12 C 15 4 12 10 64 C
P.N. COMPOSITE
LTD.
6.9 K 5 0.57 20 B 20 12 12 8 65 C
PACIFIC COTTON
LIMITED
13.4 K 15 0.51 14 B 20 2 12 8 69 C
PADMA LIMITED. 12.3 K 15 0.73 17 C 15 6 12 7 66 C
PRINCE GROUP 13.2 K 15 0.81 20 D 5 0 12 8 60 D
RABAB FASHION
INDUSTRIES LTD
10.4 K 15 0.79 20 B 20 0 12 8 75 B
RADIANCE
KNITWEAR’S LTD.
5.3 K 5 0.55 20 B 20 18 12 8 65 C
RENAISSANCE
APPARELS LTD.
44.0 K 20 0.33 12 C 15 25 14 8 69 C
S M KNITWEAR’S
LIMITED
69.7 K 25 0.44 12 A 25 2 12 9 83 A
SAG FASHION LTD 7.9 K 5 0.52 14 B 20 1 12 7 58 D
SAIHAM KNIT
COMPOSITE LTD.
15.9 K 15 0.51 14 A 25 4 12 10 76 B
SHABAB FABRICS
LTD
7.3 K 5 0.65 20 C 15 10 12 10 62 C
SHADE BUSINESS
LINE LTD.
22.9 K 15 0.83 20 B 20 1 12 7 74 B
SHAGORE
GARMENTS
LIMITED
13.2 K 15 0.68 12 A 25 6 12 8 72 B
SHARMIN GROUP 23.0 K 15 0.69 14 B 20 9 12 10 71 B
SHASHA
GARMENTS
LIMITED.
7.0 K 5 0.75 20 B 20 5 12 7 64 C
SILKEN SEWING
LTD.
17.8 K 15 0.51 14 C 15 9 12 7 63 C
SKYLINE GROUP 20.3 K 15 0.60 12 B 20 14 12 8 67 C
SP GROUP 27.2 K 15 0.52 17 A 25 2 12 8 77 B

27. 27
SPEEDWELL LTD 2.3 K 5 0.77 20 B 20 10 12 8 65 C
STERLING
CREATIONS
LIMITED
16.0 K 15 0.70 14 B 20 9 12 10 71 B
STERLING STYLES
LTD.
5.7 K 5 0.72 17 A 25 0 12 10 69 C
SUAD GARMENTS
INDUSTRIES LTD.
5.4 K 5 0.82 20 B 20 1 12 10 67 C
TEXEUROP(BD)LT
D.
20.9 K 15 0.50 12 A 25 8 12 7 71 B
TM DESIGNERS
LIMITED
47.3 K 20 0.70 14 B 20 12 12 8 74 B
TOPS & BOTTOMS 9.0 K 5 0.73 17 D 5 3 12 7 46 D
TURAG
GARMENTS &
HOSIERY MILLS
LIMITED
44.4 K 20 0.51 14 A 25 16 12 10 81 A
UNION GARMENTS
LIMITED
16.9 K 15 0.55 17 D 5 12 12 8 57 D
URMI GARMENTS
LTD
14.3 K 15 0.50 12 B 20 7 12 10 69 C
VERSATILE
ATTIRE LIMITED
10.3 K 15 0.45 12 B 20 0 12 8 67 C






LIST OF PREMIUM CUSTOMER

SERIAL NO CUSTOMER NAME GRADE
1 ABA GROUP A
2 DBL GROUP A
3 EVER SMART BANGLADESH LTD. A
4 INTERSTOFF APPARELS LTD. A
5 LIBAS TEXTILE LTD A

28. 28
6 NORPKNIT INDUSTRIES LTD. A
7 S M KNITWEAR’S LIMITED A
8 TURAG GARMENTS & HOSIERY MILLS LIMITED
A
9 A & A GR0UP B
10 ABONI KNITWEAR LIMITED B
11 ADS LTD (A CONCERN OF ALIF GROUP)
B
12 ALKANTEKS APPAREL B
13 AST KNITWEAR LTD B
14 AUKO-TEX GROUP B
15 AVANT GARDE FASHION LTD. (RING SHINE)
B
16 BANDO DESIGN LIMITED B
17 COAST TO COAST GROUP LTD. B
18 COMFIT COMPOSITE KNIT LTD B
19 CONFIDENCE INTERNATIONAL LTD
B
20 DESIGN & SOURCE LTD. B
21 EXPERIENCE GROUP B
22 FORTUNEX LIMITED B
23 IMPRESS-NEWTEX COMPOSITE TEXTILE LTD.
B
24 LENNY FASHIONS LTD B
25 MEGHNA KNIT COMPOSITE LTD. B
26 MONDOL GROUP B
27 NATURAL GROUP B
28 RABAB FASHION INDUSTRIES LTD
B
29 SAIHAM KNIT COMPOSITE LTD. B
30 SHADE BUSINESS LINE LTD. B
31 SHAGORE GARMENTS LIMITED B
32 SHARMIN GROUP B
33 SP GROUP
B
34 STERLING CREATIONS LIMITED B
35 TEXEUROP(BD)LTD. B
36 TM DESIGNERS LIMITED B

29. 29
CUSTOMER ORDER TREND


0
10000
20000
30000
40000
50000
60000
70000
80000
ABONI KNITWEAR…
ARABI FASHION LIMITED
AST KNITWEAR LTD
AUKO-TEX GROUP
AVANT GARDE…
BIRDS GROUP
CHORKA TEXTILE LTD
COMFIT COMPOSITE…
DBL GROUP
DEBONAIR GROUP
EVER SMART…
Fashion Knit Garments (HR…
GIANT GROUP
GRAMEEN…
GRAMTECH KNIT…
Hams Garments Limited
IMPRESS-NEWTEX…
INTERSTOFF APPARELS…
JANN COMPOSITE MILLS…
KNIT LUSTRE
LIBAS TEXTILE LTD
LOGOS APPARELS LTD.
M M CORPORATION MAGPIE COMPOSITE…
MASCO GROUP (UNIT-2)
MEEK KNIT LIMITED
MEGHNA KNIT…
METRO Kniting & Dyeing…
MONDOL GROUP
MUAZUDDIN LTD. MULTIFABS LIMITED
Naba Knit Composite Ltd
NAZ BANGLADESH LTD
NORBAN COMTEX…
NORTHERN GROUP NOVEL HURRICANE…
P.N.COMPOSITE LTD.
PACIFIC COTTON LIMITED
RADIANCE KNITWEARS…
RENAISSANCE APPARELS… S M KNITWEARS LIMITED
S.P GROUP
SAG FASHION LTD
SAIHAM KNIT…
SHASHA GARMENTS…
SKYLINE GROUP
TEXEUROP(BD)LTD.
Turag Garments & Hosiery…
UNION GARMENTS…
URMI GARMENTS LTD
VERSATILE ATTIRE LIMITED
CUSTOMER WISE AVERAGE ORDER QUANITY (KNIT)
0
20000
40000
60000
80000
100000
120000
CUSTOMER WISE AVERAGE ORDER QUANITY (WOVEN)

30. 30
LONG AND SHORT TERM CORPORATE
OBJECTIVES

BOARD OBJECTIVE
 TO ANALYZE AND TO EVALUATE THE OPPORTUNITY OF ESTABLISHING SEWING
THREAD INDUSTRY IN BANGLADESH.




SPECIFIC OBJECTIVES
 TO DETERMINE THE EXPORT TREND OF SEWING THREAD AS AN ACCESSORIES ITEM OF
APPAREL GOODS.
 TO DETERMINE THE REQUIREMENT OF THREAD FOR GARMENTS INDUSTRY.
 TO DETERMINE THE MARKET SHARE OF DIFFERENT SEWING THREAD FACTORY.
 TO PROVIDE THE BEST SERVICE TO THE BUYER. ANALYSIS OF THE PRODUCTION COST
OF DIFFERENT COUNT OF SEWING THREAD REDUCE THE PRODUCTION COST PRICE BY
INTRODUCING MODERN TECHNOLOGY.
 TO DETERMINE THE FUTURE PRODUCTION FACILITIES IN CONNECTION WITH FUTURE
DEMAND.
 TO DETERMINE MARKET CHARACTERISTICS AND PRESENT DEMAND.
 TO ANALYZE THE MARKETING FUNCTION OF THREAD INDUSTRY.

31. 31
MARKET ANALYSIS
MARKET SIZE
WOVEN KNIT TOTAL/AVERAGE
TOTAL EXPORT
2016-17 (EPB)
$
14,392,000,000.00
$
13,757,000,000.00
$
28,149,000,000.00
AVERAGE GMT
PRICE (7 BUYERS
DATA)
$
6.63
$
2.82
$
4.73
NUMBER OF GMT
SOLD 2170739065 4878368794 7049107859
AVERAGE THREAD
CONSUMPTION (A
& E) (METER) 150 150 150
TOTAL THREAD
REQUIRED(METER) 325610M 731755M 105737M
AVERAGE CONE
LENGTH (SIMTEX) 3650 3650 3650
TOTAL REQUIRED
CONES 89208454.72 200480909.4 289689364.1
AVERAGE CONE
PRICE (GMO) 1 1 1

32. 32


CHIEF INFLUENCERS & PLAYERS AND THEIR MARKET SHARE

THERE ARE SEVERAL MULTINATIONAL, JOINT VENTURE AND LOCAL COMPETITORS EXISTED
IN THE FIELD. BGAMPEA REGISTERED SEWING THREAD MANUFACTURING COMPANIES ARE
80.



SERIAL NO
NAME OF THE
COMPANIES
APPROXIMATE
MARKET SHARE
MONTHLY
SALES IN CONES
YEARLY SALES
IN CONES
1
COATS
BANGLADESH 20.7% 5000000 60,000,000
2 A & E 8.3% 2000000 24,000,000
3
AMANN
BANGLADESH 6.2% 1500000 18,000,000
4
SIMTEX
INDUSTRIES LTD 8.6% 2000000 24,000,000
5 WELL THREAD 6.2% 1200000 14,400,000
6 KDS 6.2% 1200000 14,400,000
7 APEX 4.1% 1000000 12,000,000
8 ETAFIL 4.1% 1000000 12,000,000
9 BASIC THREAD 4.1% 1000000 12,000,000
10
NASSA SEWING
THREAD LTD. 2.9% 700000 8,400,000
11 FABIAN 2.9% 700000 8,400,000
12 ANANTEX 2.9% 700000 8,400,000
13 GUNZEE 1.7% 400000 4,800,000
14 QUEEN SOUTH 1.7% 400000 4,800,000
15 OTHERS 19.3% 5340780 64089364
100.0% 24140780 289689364

33. 33



UPCOMING COMPETITORS
O DBL
O PRAN RFL
O KDS (UNIT-2)







20.7%
8.3%
6.2%
8.6%
6.2%6.2%
4.1%
4.1%
4.1%
2.9%
2.9%
2.9%
1.7%
1.7%
19.3%
COATS BANGLADESH
A & E
AMANN BANGLADESH
SIMTEX INDUSTRIES LTD
WELL THREAD
KDS
APEX
ITAFIL
BASIC THREAD
NASSA SEWING THREAD LTD.
FABIAN
ANANTEX
GUNZEE
QUEEN SOUTH
OTHERS

34. 34


REASONS FOR STARTING BUSINESS IN A PARTICULAR MARKET

 MAXIMUM MNC MARKET SHARE CAN BE REPLACED BY LOCAL COMPANIES.
 MAIN STRENGTH OF THE LOCAL COMPETITORS IS PRICE.
 EMPHASIS ON QUALITY CAN DISCLOSE NEW POTENTIALITY.



MARKET CONSUMPTION PATTERNS (SEASONAL INDEX)
NAME OF
MONTH
20/2
50/2 40/2 20/3 20/4
JAN
102%
105% 111% 101% 132%
FEB
113%
107% 107% 108% 101%
MAR
133%
111% 115% 133% 123%
APR
90%
98% 111% 89% 79%
MAY
76%
89% 80% 73% 85%
JUN
69%
82% 66% 72% 38%
JUL
77%
76% 75% 77% 73%
AUG
107%
104% 99% 107% 133%
SEP
94%
105% 95% 103% 89%
OCT
109%
104% 106% 111% 89%
NOV
122%
115% 124% 122% 147%
DEC
108%
103% 111% 103% 111%

35. 35
FINANCIAL ASSESSMENT
INVESTMENT EXPENDITURE AND VALUE OF THE ENTIRE PROJECT

REQUIREMENTS


MACHINERIES LIST FOR CALCULATED 11 TONS DYEING AND 66K CONES PRODUCTION PER
DAY

SERIAL
NO
NAME AND CAPACITY OF THE
MACHINE
QUANTITY UNIT PRICE TOTAL
1 DYEING M/C- 500 KG 1 $ 64,350.00 $ 64,350.00
2 DYEING M/C- 300KG 3 $ 48,910.00 $ 146,730.00
3 DYEING M/C- 200 KG 3 $ 39,730.00 $ 119,190.00
4 DYEING M/C- 100 KG 1 $ 29,500.00 $ 29,500.00
5 DYEING M/C- 50KG 3 $ 19,300.00 $ 57,900.00
6 DYEING M/C- 30 KG 3 $ 15,700.00 $ 47,100.00
7 DYEING M/C- 20 KG 2 $ 13,800.00 $ 27,600.00
8 DYEING M/C- 10 KG 2 $ 12,900.00 $ 25,800.00
9 DYEING M/C- 5 KG 3 $ 11,600.00 $ 34,800.00
10 DYEING M/C- 3 KG 3 $ 10,600.00 $ 31,800.00
11 DYEING M/C- 1 KG 1 $ 10,200.00 $ 10,200.00
12 DE- WATER 2 $ 26,500.00 $ 53,000.00
13 RF- DRYER 2 $ 85,300.00 $ 170,600.00
14 CONNING 126 $ 1,550.00 $ 195,300.00
15 LAB DYEING MACHINE 3 $ 3,000.00 $ 9,000.00

36. 36
16 LAB HYDRO MACHINE 1 $ 400.00 $ 400.00
17 LAB DRYER MACHINE 1 $ 400.00 $ 400.00
18
ELECTRONIC WEIGHING MACHINE
(1mg)
2 $ 800.00 $ 1,600.00
19 STEEL DYE TUBE 70000 $ 5.00 $ 350,000.00
20 PH METER 2 $ 300.00 $ 600.00
21 TROLLEY 20 $ 500.00 $ 10,000.00
22 STEAM BOILER (9 TONS) 1 $ 80,000.00 $ 80,000.00
23 GENERATOR (1 MW) 1 $ 150,000.00 $ 150,000.00
24 WTP (1.6 M LITER/DAY) 1 $ 60,000.00 $ 60,000.00
25 ETP (1.6 M LITER/DAY) 1 $ 60,000.00 $ 60,000.00
26 COMPRESSOR 1 $ 10,000.00 $ 10,000.00
27 SOFT WINDING MACHINE 2 $ 75,500.00 $ 151,000.00
$1,896,870.00

37. 37

O MACHINERIES COST - $1,895,870.00

O LAND COST- $600,000.00 (3 ACRES)

O INFRASTRUCTURE & ERECTION APPROXIMATE COST- $900,000.00 (TOTAL 65,000 FT²,
@$13.75/FT²)

TOTAL ESTIMATED COST- $3,395,870.00


METHODS OF INVESTMENT


1. BANK LOANS AT 17% INTEREST
2. SELF INVESTMENT

38. 38
MARKETING ASSESSMENT

PRODUCT CLASSIFICATION

O SSP – 50/2, 40/2, 20/2, 20/3, 20/4
O PPC - 50/2, 40/2, 20/2, 20/3, 20/4
O TXP – 150/D
O PCC - 50/2, 40/2, 20/2, 20/3, 20/4
O TFP – 150/D
O NYLON – 100/D, 150/D

PRODUCT STANDARDIZATION

39. 39

O PRICE

THOUGH, PRICE VARIES COMPANY TO COMPANY, A PRICE CHART FOR LOCAL
MANUFACTURER (BASIC THREAD) IS AS FOLLOWS.
BASIC THREAD INDUSTRIES LTD
SL. COUNT LENGTH/ WEIGHT COLOR UNIT PRICE /US$
1 50/2 4000 M/CONE WHITE US$ 0.55
2 50/2 4000 M/ CONE COLOR US$ 0.55
3 40/2 4000 M/ CONE WHITE US$ 0.64
4 40/2 4000 M/ CONE COLOR US$ 0.64
5 20/2 3000 M/CONE WHITE US$ 0.75
6 20/2 3000 M/ CONE COLOR US$ 0.75
7 20/3 2000 M/ CONE WHITE US$ 0.75
8 20/3 2000 M/ CONE COLOR US$ 0.75
9 20/4 1500 M/CONE COLOR US$ 0.85

40. 40
ANOTHER PRICE QUOTATION OF NASSA SEWING THREAD




COUNT WISE PRICE QUOTATION OF SIMTEX INDUSTRIES LTD.
SIMTEX IND. LTD.
COUNT WISE AVG PRICE
COUNT AVG UNIT PRICE
20/2 0.77
20/3 0.76
40/2 0.64
50/2 0.51
AVERAGE 0.67




IT IS TO BE CONSIDERED THAT THE PRODUCT PRICE FOR LOCAL AND MNC COMPANIES
VARIES SIGNIFICANTLY.

41. 41
OPERATIONAL PLAN
SUPPLIER DETAILS
YARN SUPPLIER

YARN, USED IN SEWING THREAD INDUSTRIES, IS WIDELY IMPORTED FROM CHINA. THERE
ARE MANY POTENTIAL SEWING THREAD SUPPLIER IN CHINA WHO ARE DOMINATING THE
MARKET. BRANDS EXAMPLE

WUHAN
DERRONS
HONEST CHANNEL
COMPASS
HUBEI

DYES AND CHEMICALS

DYES AND CHEMICALS, ANOTHER MAJOR RAW MATERIALS, ARE ALSO REQUIRED TO IMPORT
MOSTLY FROM CHINA, TAIWAN, INDONESIA, AND SOUTH KOREA. SOME BRANDS ARE

RCHROMA
HUNTSMAN
DYESIN
DYESTAR
MATEX
TNT

42. 42

MACHINERIES
CALCULATED DYEING CAPACITY – 11 TONS AND CONING CAPA CITY 66K PER DAY


SERIAL NO TYPE OF MACHINE QUANTITY PRODUCTION CAPACITY
01 DYEING MACHINE 18 11,000 KG
02 HYDRO EXTRACTOR 2 10,000 KG
03 RF DRYER 2 12,000 KG
04 SOFT WINDING MACHINE 2 11,000 KG
05 CONE WINDING MACHINE 1512 SPINDLES 66,000 CONES
06 LAB DYEING MACHINE 50 POTS 100 COLORS
07 LAB AUTO PIPETTING MACHINE 1
08 SPECTROPHOTOMETER 2
09 LIGHT CABINET 2
10 YARN STRENGTH TESTING MACHINE 1
11 COLOR FASTNESS TESTING MACHINE 1
12 FINENESS TESTING MACHINE 1
13 SAMPLE HYDRO EXTRACTOR 1
14 SAMPLE DRYER MACHINE 1
15 OTHERS ACCESSORIES

43. 43
LAY OUT PLAN

44. 44
MANAGEMENT STRUCTURE
ORGANOGRAM

45. 45
SWOT ANALYSIS

O THE SWOT ANALYSIS OF THE MARKETING DEPARTMENT CAN BE DONE, BUT MUST
ALSO TO SOME EXTENT INCORPORATE THE SWOT OF THE COMPANY AS A WHOLE, THE
REASON BEING THAT THIS COMPANY IS MARKET ORIENTED AND THE MAIN MEANS OF
GETTING AND RETAINING CLIENTS IS THROUGH THE USE OF RELATIONSHIP
MARKETING. THUS SOME OF THE SWOT ANALYSIS OF THIS DEPARTMENT ALSO IS THE
SWOT ANALYSIS OF THE COMPANY.

STRENGTH
O THE STRENGTHS OF THE DEPARTMENT ARE AS FOLLOWS:
O AN EFFICIENT SALES FORCE: THE MARKETING DEPARTMENT SHOULD HAVE A SALES
FORCE WHICH IS YOUNG AS WELL AS EFFECTIVE IN MARKING SALES CALLS. THESE
SALES PEOPLE HAVE TO BE EQUIPPED WITH MOTORCYCLES FACILITATING THEIR
SALES CALLS. ALSO THE FACT THAT THEY HAVE A SPECIFIC CLIENT LIST; THEY ARE
EXPECTED TO MAKE FREQUENT CALLS THUS IMPROVING THE RELATIONSHIP
BETWEEN THEM AND THEIR CLIENTS.
O EXCELLENT CUSTOMER SERVICE: THE INCREASE IN CUSTOMER SERVICE HAS BEEN
THROUGH COORDINATION BETWEEN THE CSO, CO AND SO WITH DEPARTMENTS
LEADING TO LOWER LEAD TIMES AND EFFECTIVE MEANS OF PROVIDING SERVICE. THE
CONCEPT UNDER PROMISING BUT OVER DELIVERING CAB HELP THIS DEPARTMENT TO
MAINTAIN A SOLID CLIENT BASE THUS MAKING THE COMPANY A MARKET LEADER IN
THIS COMPETITIVE ENVIRONMENT. THE IMPROVEMENT IN THE CUSTOMER SERVICE
CAN BE THROUGH THE DECREASE IN THE TIME NEEDED TO CATER AN ORDER OF THE
CUSTOMER.
O LOW EMPLOYEE TURNOVER: IN THIS DEPARTMENT, TURNOVER OF EMPLOYEE WHICH
IS AS LOW AS 5% ONLY, HAS MEANT THAT THE PEOPLE IN THIS DEPARTMENT ARE
WILLING TO SERVER THEIR CUSTOMER.

46. 46
O SKILLS: THE HUMAN ASSETS IN THIS DEPARTMENT ARE DEEMED TO BE HIGH DUE TO
THEIR SKILLS AND THE INCREASED COMPETITION FOR ACHIEVING SALE TARGET
ASSIGNED TO EACH AREA.

WEAKNESSES
O THE WEAKNESSES OF THE DEPARTMENT ARE AS FOLLOWS:
O THE DEPARTMENT LACKS STRATEGIC THINKERS AT PRESENT AND AS A RESULT THE
VISION IS NOT LONG TERM. THIS EVIDENT WITH THE FACT THAT THE CUSTOMER
MARKET IS IGNORED EVEN THOUGH THE PROSPECTS ARE BRIGHTER. ALSO THE FACT
THAT THE COMPANY IS YOUNG MEANT IT NEEDED DRIVERS INITIALLY, BUT NOW IT
NEEDS PEOPLE WHO CAN FORM STRATEGIES IN THE LONG RUN. UNFORTUNATELY
THE TUNNEL VISION THERE AS BECAUSE THE MARKET ANALYSIS IN TERMS OF
INTRODUCING NEW PRODUCT LINES SUCH AS INTERLINING AND ZIPPERS WERE
IGNORED EVEN THOUGH THEY WOULD HAVE PROVEN SUCCESSFUL IN THE LONG RUN.
O THE DEPARTMENT IN TIMES IS PRONE AS IS THE WHOLE COMPANY TO LABOR UNREST
AS WELL AS INDUSTRIAL PROBLEMS. BEING A PRODUCTION ORIENTED COMPANY; ANY
DISRUPTION IN THE PROCESS CAN LEAD TO STOPPAGE IN PRODUCTION. SINCE THE
MARKETING FUNCTION IS BASED ON CUSTOMER SERVICE DELIVERY IN TERMS OF
LOWER LEAD TIMES, THIS DISRUPTION CAUSES THEM DAMAGES AS THEY FAIL TO
DELIVERY ON TIME LEADING TO LOSS IN RELATIONSHIP MARKETING. SINCE THE
COMPANY DOES NOT OUTSOURCE, THE DEPARTMENT IS PRONE TO THESE UNRESTS
AND DISRUPTIONS.
O ONE OF THE MAJOR WEAKNESSES OF THIS DEPARTMENT IS THAT IT HAS THE LACK OF
COORDINATION WITH OTHER DEPARTMENTS. DUE TO THE VIGOR OF ITS SALES TEAM,
IT PURSUES SALES WHICH IN SOME CASES LEAD TO CONFLICT WITH THE
MANUFACTURING DEPARTMENT OVER SCHEDULING OF THE ORDER, WITH THE
FINANCE DEPARTMENT DUE TO CREDIT LIMIT OFFERED TO THE CLIENTS AND THE
SUPPLY CHAIN DEPARTMENT OVER PRIORITIZING THE SALES ORDER. THIS LEADS TO
CONFLICT WITH OTHER DEPARTMENTS AND AFFECTS THE COMPANY AS A WHOLE.
ALSO THE MEANS OF SELLING IN CREDIT PRACTICED IN THIS DEPARTMENT HAS
MEANT THAT THE COMPANY HAS INCREASED RISK OF HAVING HIGH AMOUNT OF
DEBTORS.

47. 47
OPPORTUNITIES
O AFTER THE INTERNAL ANALYSIS OF THE COMPANY IN RETROSPECTIVE OF THE
DEPARTMENT IS DONE, THE EXTERNAL ANALYSIS WILL SHED LIGHT INTO THE
OPPORTUNITIES OF THE DEPARTMENT. THE OPPORTUNITIES OF THIS DEPARTMENT.
THE OPPORTUNITIES OF THIS DEPARTMENT ARE:
O INCREASE IN NEW OPPORTUNITIES FOR THE MARKETING TEAM TO EXPLORE NEW
MARKETS OVERSEAS. FOR THE INDUSTRIAL SECTOR, THE OPENING OF NEW MARKETS
LIES IN THE REMOVAL OF TRADE BARRIERS ON MYANMAR. THIS HAS OPENED OF THE
MARKET FOR SELLING BOTH IN TERMS OF INDUSTRIAL AS WELL AS CONSUMER
SECTOR.
O ALSO THE CONSUMER MARKET IS LOOKING AT OPPORTUNITIES TO TAKE ADVANTAGE
OF ITS LOW COST PRODUCTION FACILITY TO EXPLORE AT NEW MARKETS SUCH AS
SRILANKA AS WELL AS MALAYSIA WHICH HAVE HIGHER COST OF PRODUCTION.
O THERE IS A GREAT OPPORTUNITY FOR THE DEPARTMENT IN TRYING TO USE ITS
SKILLS IN TRYING TO SELL THE NEW PRODUCTION OFFERINGS THE COMPANY IS
INTRODUCING IN THE MARKET, NAMELY, INTERLINING, ZIPPERS AND INDUSTRIAL
THREADS. THIS HAS GIVEN THE DEPARTMENT NEWER OPPORTUNITIES TO CREATING
RELATIONSHIP MARKETING.

THREATS
O THE DEPARTMENT IS NOT WITHOUT FACING ANY FORMS OF THREATS. THE MAIN
THREATS FACED BY THE COMPANY ARE NAMELY:
O INCREASED COMPETITION FROM NEW MULTINATIONAL, JOINT VENTURE AS WELL AS
LOCAL THREAD PRODUCERS NAMELY A&E, WELL THREAD HAS MEANT THAT THE
MARKETING TEAM HAS IMMENSE PRESSURE TO MAINTAIN THEIR CURRENT
CUSTOMER BASE AND MAINTAIN MARKET SHARE.
O THE INCREASE IN COMPETITION IS DUE TO THE FACT THAT THERE ARE NO ENTRY
BARRIERS DUE TO LACK OF ANY REGULATIONS IN THIS INDUSTRY BY THE
GOVERNMENT WHICH PROMOTES EXPORT.
O ALSO THE CAPITAL INVESTMENT IS SO HIGH THAT ONCE A COMPANY ENTERS THIS
INDUSTRY IT FACES BARRIERS TO EXITING THIS INDUSTRY THIS INDUSTRY THUS
CAUSING THEM TO REMAIN IN THIS INDUSTRY.

48. 48
O ALSO AS THERE ARE NO SUBSTITUTES FOR THREAD AS A WHOLE, THE INDUSTRY IS
ATTRACTIVE TO THE NEW POTENTIAL ENTRANTS.
O ALSO THE FACT THAT THERE ARE NO EXISTING AGGRESSIVE COMPETITORS MEANS
THAT THE INDUSTRY IS ATTRACTIVE.
O THESE ARE SOME OF THE REASONS WHY THE COMPETITION IS INTENSE. AS ALL THE
PEOPLE OF THIS DEPARTMENT ARE BECOMING SENIOR AND ARE GETTING PROMOTED,
IT IS BECOMING DIFFICULT FOR THE DEPARTMENT TO REPLENISH ITS HUMAN
RESOURCE BY LOOKING FOR NEW PEOPLE WHO POSSESS THE NECESSARY SKILLS.
O REGULATORY ISSUES ISSUED BY THE GOVERNMENT HAMPER THE LEAD TIME AS WELL
AS SERVICE OF THE COMPANY.
O THE BACKWARD LINKAGE WHICH SUPPORTS THE FORWARD INDUSTRY IS HAMPERED
BY THESE ISSUES SUCH AS CUSTOMS CLEARANCE, BOND ISSUES LEADING TO IMMENSE
PRESSURE ON THE MARKETING DEPARTMENT TRYING TO MAINTAIN THE CUSTOMER
RELATIONSHIP AND MANAGEMENT

49. 49
APPENDICES

BREAK-EVEN ASSESSMENT
TOTAL SALES





FIXED COST




SALARY & OVERTIME



2,500,000.00 $ 31,250.00
DIRECTOR
REMUNERATION



1,200,000.00 $ 15,000.00
BANK INTEREST @ 17%



3,848,653.33 $ 48,108.17
7,548,653.33 $ 94,358.17
VARIABLE COST



- $ -
FURNACE OIL - FOR
BOILER 120 LTR/HR 74,880.00 56.00

4,032,000.00 $ 50,400.00
DIESEL- FOR GEN 100 LTR/HR 62,400.00 56.00

3,360,000.00 $ 42,000.00
COST FOR DYES @ / KG 10.00

1,866,666.67 $ 23,333.33
COST FOR CHEMICAL /KG 5.00

933,333.33 $ 11,666.67
RAW YARN 180.00

33,600,000.00 $ 420,000.00
OTHER EXPENSES



1,000,000.00 $ 12,500.00
44,792,000.00 $ 559,900.00
TOTAL COST 52,340,653.33 $ 654,258.17
DAILY MONTH TOTAL

$ -
SALES (CONES) 56,000.00 1,400,000.00

56,000,000.00 $ 700,000.00
DYEING (KG) 7,466.67 186,666.67

$ -


$ -


$ -




$ -
56,000,000.00 $ 700,000.00
186,666.67 3,659,346.67 $ 45,741.83

50. 50
DATA OF BREAK EVEN ANALYSIS


AVG @ $0.55
SALES UNIT SALES REVENUE FIXED COST VARIABLE COST TOTAL COST PROFIT
100000
$ 55,000.00 $ 94,258.00 $ 137,566.67 $ 231,824.67 $ (176,824.67)
200000 $ 110,000.00 $ 94,258.00 $ 170,233.33 $ 264,491.33 $ (154,491.33)
300000 $ 165,000.00 $ 94,258.00 $ 202,900.00 $ 297,158.00 $ (132,158.00)
400000 $ 220,000.00 $ 94,258.00 $ 235,566.67 $ 329,824.67 $ (109,824.67)
500000 $ 275,000.00 $ 94,258.00 $ 268,233.33 $ 362,491.33 $ (87,491.33)
600000 $ 330,000.00 $ 94,258.00 $ 300,900.00 $ 395,158.00 $ (65,158.00)
700000 $ 385,000.00 $ 94,258.00 $ 333,566.67 $ 427,824.67 $ (42,824.67)
800000 $ 440,000.00 $ 94,258.00 $ 366,233.33 $ 460,491.33 $ (20,491.33)
900000 $ 495,000.00 $ 94,258.00 $ 398,900.00 $ 493,158.00 $ 1,842.00
1000000 $ 550,000.00 $ 94,258.00 $ 431,566.67 $ 525,824.67 $ 24,175.33
1100000 $ 605,000.00 $ 94,258.00 $ 464,233.33 $ 558,491.33 $ 46,508.67
1200000 $ 660,000.00 $ 94,258.00 $ 496,900.00 $ 591,158.00 $ 68,842.00
1300000 $ 715,000.00 $ 94,258.00 $ 529,566.67 $ 623,824.67 $ 91,175.33
1400000 $ 770,000.00 $ 94,258.00 $ 562,233.33 $ 656,491.33 $ 113,508.67



THE BREAKEVEN POINT IS 900,000. IT MEANS THAT MINIMUM 900,000 CONES HAVE TO BE
SOLD TO COVER EXPENSES.
$-
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
BREAK EVEN GRAPH
SALES REVENUE FIXED COST TOTAL COST

51. 51
TIME FRAME
TASK SCHEDULING
SERIAL NO NAME OF TASK START END DURATION
1 COMPANY REGISTRATION 1-OCT-17 15-DEC-17 75
2 LEGAL PERMIT 1-DEC-17 31-JAN-18 61
3 ENVIRONMENTAL PERMIT 20-DEC-17 15-JAN-18 26
4 BOND LICENSE 1-DEC-17 1-MAR-18 90
5 GAS LINE 15-DEC-17 1-MAY-18 137
6 LAY-OUT FORMATION 9-OCT-17 10-NOV-17 32
7 INFRASTRUCTURE PERMIT 15-NOV-17 31-DEC-17 46
8 ERECTION 1-JAN-18 1-JUL-18 181
9 OPENING LC FOR MACHINE 1-FEB-18 1-MAY-18 89
10 OPENING LC FOR BOILER 1-JAN-18 30-APR-18 119
11 OPENING LC FOR GENERATOR 15-JAN-18 30-APR-18 105
12 RAW MATERIAL IMPORTING 1-APR-18 25-MAY-18 54
13 EMPLOYEE RECRUITMENT 1-APR-18 31-MAY-18 60
14 LOAN SANCTION 15-SEP-17 15-DEC-17 91
GANTT CHART

12-Sep-1712-Oct-1711-Nov-1711-Dec-1710-Jan-189-Feb-1811-Mar-1810-Apr-1810-May-189-Jun-18
COMPANTY REGISTRATION
LEGAL PERMIT
ENVIRONMENTAL PERMIT
BOND LICENCE
GAS LINE
LAY-OUT FORMATION
INFRASTRUCTURE PERMIT
ERECTION
OPENING LC FOR MACHINE
OPENING LC FOR BOILER
OPENING LC FOR GENERATOR
RAW MATERIAL IMPORTING
EMPLOYEE RECRUITEMENT
LOAN SANCTION

52. 52
PAYBACK PERIOD
CASH FLOW
TARGETED SALES PRICE AVERAGE $0.55
YEAR
CAPACITY
(CONES)

EXPECTED
SELLS
(CONES)

EXPECTED
SELLS
(AVG @
$0.6)
VARIABLE
COST
FIXED
COST
GROSS
INCOME
INTEREST
EXPENSE
TAX
NET
INCOME
(CASH
FLOW)
CUMULATIVE
CASH FLOW

INITIAL INVESTMENT

$(3,395,870)
INTEREST EXPENSE (180 DAYS) (@17%) $(288,649)

$(288,64
9) $(3,684,519)
YEAR STARTED FROM 01/07/2017
YEAR-2018
(6
MONTHS) 5100000 2550000
$
1,402,500
$
1,465,800
$
277,500
$
(340,800)
$
(288,649)
$
-
$
(629,449)
$
(4,313,968)
YEAR-2019 20400000 12240000
$
6,732,000
$
5,273,520
$
555,000
$
903,480
$
(577,298)
$
-
$
326,182
$
(3,987,786)
YEAR-2020 20400000 13260000
$
7,293,000
$
5,608,080
$
555,000
$
1,129,920
$
(577,298)
$
-
$
552,622
$
(3,435,164)
YEAR-2021 20400000 14280000
$
7,854,000
$
5,942,640
$
555,000
$
1,356,360
$
(577,298)
$
233,719
$
1,012,781
$
(2,422,383)
YEAR-2022 20400000 15300000
$
8,415,000
$
6,277,200
$
555,000
$
1,582,800
$
(577,298)
$
301,651
$
1,307,153
$
(1,115,230)
YEAR-2023 20400000 16320000
$
8,976,000
$
6,611,760
$
555,000
$
1,809,240
$
(577,298)
$
369,583
$
1,601,525
$
486,294
YEAR-2024 20400000 16830000
$
9,256,500
$
6,779,040
$
555,000
$
1,922,460
$
(577,298)
$
403,549
$
1,748,711
$
2,235,005
YEAR-2025 20400000 17340000
$
9,537,000
$
6,946,320
$
555,000
$
2,035,680
$
(577,298)
$
437,515
$
1,895,897
$
4,130,902


PAYBACK PERIOD = 5.7 YEARS

53. 53
LEGAL CERTIFICATION

THERE ARE SEVERAL CERTIFICATES THOSE ARE REQUIRED TO START UP A MANUFACTURING
PLANT.


o TRADE LICENSE
o ENVIRONMENTAL CLEARANCE
o FACTORY LAY OUT PLAN LICENSE
o IMPORT REGISTRATION CERTIFICATE
o EXPORT REGISTRATION CERTIFICATE
o INSPECTION CERTIFICATE BY BOARD OF INVESTMENT
o VAT REGISTRATION PAPER
o INCOME TEX CERTIFICATE
o FIRE LICENSE
o GAS LICENSE
o PERMISSION OF ROAD CUTTING FOR DRAIN
o MACHINERY INSTALLATION CERTIFICATE
o ELECTRIC APPROVAL

54. 54
CONCLUSION
Bangladesh is a very densely populated country but have not enough natural
resources. But god has given us plenty of labor resources. For survival we have the only
alternative to use the labor force properly. At present we don’t have the ability to
establish heavy industry but we have enough opportunity to establish medium and small
scale industry which needs huge manpower with less investment and high profit.
Garments industry is such a type of industry which needs less investment, lot of quality
or skilled people and gives high return. That is why garments industry is increasing in
Bangladesh rapidly and contributing to the economy in a big volume. But now after
lifting the quota, garments markets become more competitive and at this stage it has
been difficult to uphold the trend in garments industry though it is not impossible.
Bangladeshi garments industry can fight in the world market if it can reduce or
minimize its manufacturing cost. Any finish garments need 25 to 40 accessories items.
Among all the items sewing thread is the most important. After studying the whole
situation we can firmly say that the demand of the sewing thread will further increase.
As a result if we don’t established new modern sewing thread factory then garments
owners will have to import the thread from abroad. This will increase the cost price
rather than reduce. So, for the betterment of the garments industry as well as our
economy we should invest more money in sewing thread industry as early as possible.