Executive Summary

Square Textile Ltd. started its operation in 1997. It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. The business lines of Square Textile Ltd. are manufacturing and marketing of yarn. Its factory is located in Gazipur , Dhaka. The manufactures 100% Cotton Ring Span Yarn or Hosiery, 100% Cotton OE Rotor for Hosiery and Knit Fabrics for 100% export oriented readymade Garments Industry. The strategic Goals and Objectives of the Company are to strive hard to optimize profit though conduction and transparent business operations and to create more competitive in the internal and external market. In home, customer of Square Textile Limited is export oriented readymade Garments Industry. The Company also exports its products to the market of Europe & USA. The export sells increased by 19% in 2003 over the previous year. Competition level is increasing both in local and abroad market. Competition will be stiffer after 2005 when multifiber agreement will be phaced out. Among the other foreign competitors Srilanka, China Pakistan and India are prominent. Square is one of the biggest employees in Bangladesh. It has a personnel and administrative department. The total numbers of employees are 1223. For the employees there is systematic in house training in home and abroad. The managing director, the CEO is the head of the executive management team. Below in there are directors, executive directors and general manager. Under the direct super vision of the general manager a number of departments are controlled. The Company is going through continuous growth in production. The total production increased year on year basis at the rates of 0.43% and 1.467% during 2002 and 2003 respectively. The Companys operations are out on an aggregate basis and are managed as a single opportunity segment. The Company uses Computer Aided Design (CAD), Computer Aides Spreading (CAS) and Computer Aided Manufacturing (CAM) in its plant to increase the overall efficiency and productivity.

Introduction
Square Group is one of the most renowned pharmaceutical company in Bangladesh. This group inaugurated their journey through Square firm in 1958. This is the first medicine exporting firm in the country. Its contributing to the national economy by exporting medicine from 1987 to till now. Square group is no longer confined to medicine production. They have diversified their activities. In 1988 they established Square Toiletries. In 1997 they established Square Textiles. In 2000 Square spinning started exporting by satisfying the local market. In 2001 Square group lunched many other firms: Knit Fabrics, Square Fashions Limited, Square Informatics, Square Consumer Product and Square Hospital. Now their total asset is about $200 million. And, yearly investment is about $300 million. The companies of Square Group of Industries are:

Square Pharmaceuticals Ltd. Square Textiles Ltd. Square Spinnings Ltd. Square Toiletries Ltd. Square Consumer Products Ltd. Square Informatix Ltd. Square Health Products Ltd. Square Agro Ltd. Sheltech
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Pioneer Insurance Company Ltd. Mutual Trust Bank Ltd. National Housing Finance And Investment Ltd. Mediacom Ltd. Aegis Services Ltd. Maasranga Productions

These all following companies owner is Square Group of Industries. So, its too much tough to visit all companies within a day. So, we just visit their only textiles & fabrics company. In our report, we only present the details of these companies detail & their production possibility. And also know about how they help our country to improve our economic growth rate.

Organizational Chart
As we know that Organizational chart is the framework of an organization. It helps to accomplish the goals effectively and efficiently. It represents the organizational skills and also uniqueness in the 3

business world. Square Group also follows a realistic organizational chart. The chart is given in below:

Organizational Chart Managing director

General Manager
Manager (Export) Manager (Purchase) Manager (Production) Plant Manager Supervisor Operator Junior Operator Assistant Operator

Square Textiles Ltd.

ABOUT COMPANY:

Square Textiles Ltd. started its journey by establishing the first unit in 1997. One year later the second unit was established. Square Textile is a subsidiary company of Square Group .The Company was incorporated as a public limited company in the year of 1994. The operation was started in 1997.It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. Within a very short time of span the company achieved some significance success. Square Textile receives Oeko-Tex standard 100 and ISO-9002 certificates in the year 2000. Authorized capital of the company is tk. 1000 million. Its paid- up capital is tk. 251.90 million. 1,223 employees are working in this organization. The business lines of Square Textiles Limited are manufacturing and marketing of yarn. The factory is located in Saradaganj, Kashimpur, Gazipur, Bangladesh. Its office is located at Uttara in Dhaka MISSION STATEMENT: The mission statement of Square Textiles Limited is Our mission is realization of vision through maximum production of goods and services strictly on ethical and moral standards at minimum costs to the society ensuring optimum benefits to the shareholders and other stakeholders. This mission is envisioned by the concept of business which ensures well being of the investors, stakeholders, employees and members of the society which will create new wealth in the form of goods and services. KEY PRODUCT / SERVICES: As stated earlier the business line of the company is manufacturing and marketing of yarn. It manufactures: 100% Cotton Ring Span Yarn For Hosiery 100% Cotton OE Rotor Yarn for Hosiery Knit Fabrics for 100% export oriented readymade Garments Industry. It also performs the following services: Dying & Post Mercerization. Fabric Dying The final output is marketwise by Square Fashion Ltd. In Square Textile Limited two types of products are produced in two different units. These are as follows: Unit 1: Combed and Carded Yarn from a count range of Ne.10 to Ne.80. Unit 2: Combed Ring Yarn from a count range of Ne.20 to Ne.40. In Square Spinning Ltd. 100% Cotton Carded and Combed Yarn in the count range of Ne.16 to Ne.30 are produces. Finally in Square Fashions Ltd. Readymade Knit Apparels like T-shirts, Polo shirts, Tank tops, Pajamas, Sport wear, Under garments, Mens & Ladies fashion wear , Kids wear etc 5

STRATEGIC GOALS & OBJECTIVES: The company sets the following objectives for it to achieve: To strive hard to optimize profit through conduction of transparent business operations within the legal and social framework with malice to none and justice for all To create more jobs with minimum investments To be competitive in the internal as well as external markets To maximize export earning with minimum imported in-puts To reduce the income gap between top and bottom categories of employees. Thus the company focuses to pole-star its mission that fulfill the objective with emphasis on the quality of the product , process and services blended with good governance that help build the image of the most enable corporate citizenship at home and abroad . The company wants to produce such society friendly goods and services that go to satisfy the wants of all the relevant party without disturbing or damaging the socio- economic and ecological, balance of the mother earth and the process of human civilization leading to peaceful co-existence of all the leaving beings. The company always strives for top quality products at the least cost reaching the lowest rungs of the economic class of people in the country. The company values its obligation to the greater society as well as it strives to protect the interests of its shareholders and to ensure highest return and growth of their assets.

Square Textiles Limited - Marketing Overview

MARKETING OVERVIEW POTENTIAL CUSTOMER: The target market for products produced in Square Textiles Ltd. and Square Spinning Ltd. is Export Oriented Readymade Garments Industry. Readymade Garments exporter that is Knit Fabrics, Sweater and Denim manufacturer. In Bangladesh Beximco Kitting, Grameen Knitwear, Shasha Denim, Knit Concern etc are the customers. Target market for products produced in Square Fashion Ltd. is Europe and U.S.A. Square Textiles does not direct sales in overseas market but sometimes India, Pakistan & other countries take their yarn. SIZE & GROWTH OF MARKET: The Companys marketing operations continued its emphasis on export sales over the years as depicted below: Year - 2006 (a) Quality sold (Kg)

Year - 2005

Year - 2004

Local sales Export Sales Total Sales

99,800 (0.7%) 14,554,342 (99.3%) 14,654,142 (100%)

527,903 (3.7%) 13,817,314 (96.3%) 14,345,217 (100%)

539,417 (3.9%) 13,129,599 (96.1%) 13,669,016 (100%)

(b) Sales Revenue ( Taka )

Local Sales Export Sales Total Sales

9,455,588 (0.4%) 2,093,214,675 (99.6%) 2,102,670,263 (100%)

32,576,936 (1.8%) 1,756,441,450 (98.2%) 1,789,018,386 (100%)

46,956,494 (2.3%) 2,029,968,545 (97.7%) 2,076,925,039 (100%)

The above figures show that the export sales increased by 19% in 2006over the previous year with greater exposure to international market scenario and risk.

COMPETITOR ANALYSIS: Only in few years back textile sector in Bangladesh was left behind but current scenarios is different. In recent years a mentionable figure of money has been invested in this industry. Government is also encouraging this sector. Government is making some favorable policies and minimizing the regulations, so that this sector can be grown up. Among the domestic companies Square is one of the leading one. The other potential competitors are Padma Textiles, Shamim Textile etc. Competition will be severe after 2005, that is, during the post multifiber agreement period. World market will be Quota free at that time. So Bangladesh will have to compete with countries like Srilanka, China, Pakistan, Vietnam etc.

Square Textiles Limited - Management

MANAGEMENT Management: The entire management process comprises the following units: Executive Management: The Managing Director, the CEO is the head of the Executive Management Team which comprises senior members of the Management Apparatus. Within the limits of delegated authority and responsibility by the Board of Directors , Executive Management operates through further delegation of authority at every echelon of the line management . The executive Management operates within the framework of Policy & Planning strategies set by the Top Management with periodic performance reporting for guidance . The Executive Management is responsible for preparation of segment plans / sub segment plans for every profit centers with budgetary targets for every items of goods & services and are held accountable for deficiencies, with appreciation for outstanding and exceptional performances . These operations are continuously carried out by the Executive Management through series of Committees , sub Committees ,Committees & standing Committees assisting the line management . Management Committee: Comprising top executives , deal with entire organizational matters. Standing Committee: Standing Committee comprises the following committee: 8

Audit Committee: Internal Audit Committee ISO Audit Committee Social / Environment Committee Performance Evaluation Audit Committee Employment Relations Committee: Remuneration Committee Work Environment Committee Performance Evaluation Audit Committee Management Committee: Product Planning & Development Committee Quality Control & Research Committee Production & Inventory Management Committee Export Promotion Committee

Products:
In two units of Square Textiles Ltd. The following products are produced : In Square Knit Fabrics Ltd. Product range Engineering stripe and semi jacquard, plain , pique , Four Neddle structure , Crepe rib , Interlock , Drop needle , Crossmiss , Milano rib , etc. In Square Fashions Ltd. Following types of products are produced T-shirts & Poloshirts, Tank tops , Pajamas, Sport wear , Under garments , Mens & Ladies fashion wear , Kidswear etc. Price:
The unit selling prices over the years varied substantially as shown below: 2006 94.75 143.84 143.49 2005 61.71 127.12 124.71 2004 87.12 154.62 151.94

Local sales Export Sales Total sales (average)

The above indicate that the local and export selling prices increased by 53.54% and 13.14% respectively during the year 2006 over the year 2005after gradual decline during the years 2004 and 2003 over the year 2001. the increase is primarily ascribable to the international situation.

Place:

Export oriented ready made garments industry operating in Bangladesh are the main purchaser of products of Square Textiles Ltd. The size of export oriented RMG industry is fairly large in Bangladesh . So there is a huge market for Square Textiles Ltd. In Bangladesh. Moreover products of Square Fashions Ltd. Are exported to Europe and USA. Promotion: Square Textiles Ltd. Does not pursue any rigorous promotional activity . As most of the purchaser are export oriented garments , they dont need to be promoted . Infact, the buyers themselves are aware enough from where they will get quality products. So there is not much room to pursue. For the UK and USA based market this fact is true as well .

SWOT ANALYSIS:
SWOT analysis means the analysis of strength , weakness, opportunity and threats . For Square Textiles Ltd. It is given below: Strength: Square Textiles Ltd. Is a rapidly expending Company . Standing its journey in 1998 it has already doubled the net turnover by the year of 2006. All the units of the factory enjoy highly of machinery are imported from Germany, Switzerland , Italy & japan . As a result it can maintain a smooth rate of production. Well trained human recourses are another strength of the Company . They train up their key personally in the country and abroad . So that the Company can get some competitive advantages over the competitions. The HRM practice is also remarkable . Weakness: There are too many departments under the super vision of the general manager which can cause low productivity due to large span of super vision. Opportunity: There are bright opportunities for the Company in the overseas market . If is can communicate well and capture a significant market portion in the Europe and USA market, it can get scale of economic.

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