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Different Types of Yarn Marketing in Bangladesh,
A Case Study of Tamijuddin Textile Mills Ltd.
1. Executive Summary:
Chapter 01:
1.1 Objectives of the Report:
· To depict the standard features of a yarn manufacturing company.
· To explore the Departments, Divisions and its functions of a spinning company.
· To analyze the performance of the Company.
· To find out the way of developing relationship among management, officers, workers, external suppliers and the buyers of the organization.(Human Resource)
· To improve the quality of yarn and compare it with User statistics for getting marketing advantage (product development).
· To find out the way of optimum uses of machines and superior technologies for the better yarn (technology).
· To implement the superior marketing techniques ( marketing technique)
· To reduce the transportation cost, office expenses, wages and other casts (cost reduction)
1.2 Sources of Information
Information is collected to furnish this report from both primary and secondary sources.
The primary sources are:
· Practical Deskwork.
· Face to face conversation with the employees.
· Face to face conversation with the Suppliers
· Face to face conversation with the Buyers.
· Analyzing marketing follow up of yarn orders.
The secondary sources are:
· Different Manuals published by “The Textile Today”
· Business Reports of “Tamijuddin Textile Mills Ltd.”
· Journals, published by different economics related organizations of our country and abroad.
· Publications, obtained from different libraries and from Internet.
· Library research
1.3 Methodology
The information for the Yarn Manufacturing Organization of the report was collected from primary and secondary sources like practical experience, books, publications, Web Pages, and annual reports of Tamijuddin Textile Mills Ltd”. For detail concept development about the organization, short interviews and discussion session were taken as primary source.
The information for the Project “Different Types of Yarn Marketing in Bangladesh” has been collected from primary and secondary sources. For gathering concept of yarn marketing, different quality related local as well as international journals, periodicals, manuals, and industry related aspects were thoroughly analyzed. Beside this observation, discussions with the Buyers and consumers of the organization were also conducted.
1.5 Limitation:
The major limitations faced during the preparation of this report are as follows –
· A period of ……. weeks is not sufficient to collect and understand the insights of organization.
· Textile yarn manufacturing factory policy does not permit to disclose various data and information related to their inventory and management policy.
· Most spinning factory owners are ignorant about the importance of relationship between buyers and producers.
Chapter 02:
2.1 Over View of Yarn manufacturing organization-“Tamijuddin Textile Mills Ltd.”
A Chronicle of Growth
The company is producing and selling cotton, polyester, Mélange and Modal yarn for export market as well as local market. The company is exporting yarn under back-to-back LC to the local knitwear and woven industries.
From the begging of the factory it was the number one in yarn manufacturing up to 1990 in terms of quantity and quality. At that time its yarn demand was very high. After 1990 many spinning industries were established with latest technology. So the company faced huge challenge to exist in yarn market. To cope with the growing demand and increasing quality consciousness of yarn by the customer the company then started to change old machineries with latest technologies and still now it is going on. Most of the machineries are made in Germany and Japan. At present the company is producing high quality yarns of different types.
The company is purchasing raw materials such as cotton, polyester, viscose and rayon fibers from various countries around the world. Cotton is being perched mainly from Uzbekistan, Kazakhstan, Tajikistan, Pakistan and India. Polyester, viscose and rayon are mainly purchased from India, Indonesia, China, Taiwan and Thailand. Raw material is purchased through LC.
In case of local selling company is selling yarns to brokers in Madhobdi-Narshingdhi and Narayangonj local yarn market. Local brokers are buying the yarns from the company by cash money.
2.2 Business Objectives:
· Tamijuddin Textile Mills (TTML) Ltd strives to exceed the needs and demands that customers have. TTML is committed to achieve results and customer satisfaction by deploying skills and techniques designed to put our customers in front.
· TTML, develop, and maintain skilled and pro-active professionals to bridge the cultural, commercial and technical barriers. TTML is committed to constant improvement of processes to achieve shorter reaction time and constant high quality.
2.3 Corporate Commitment
· To be a leading manufacture of quality yarn in Bangladesh for fulfilling customer needs with professionalism and integrity.
· To maintain an environment that attracts, develops, retains, rewards and motivates talent and productivity.
· To establish environmental excellence in it’s all steps of production and actively promote environmentally responsible behavior at all levels of the organizations, in customers and suppliers.
· To strive for an outstanding corporate and individual behavior to maintain lasting trust and confidence of our customers, employees and suppliers.
· To maintain a level of profitability that sustains growth, ensures quality and provides generous rewards to staff and adequate return to shareholders.
2.4 Vision, Mission and objectives of the company:
Vision of the corporate company is “To become an environmentally excellent group, promoting environmentally superior products in an environmentally superior manner.”
As a company led by business ethics it stresses more on environment friendly product. In order to meet the always growing demands of a global market, the company has, apart from providing and distributing goods, to guarantee a reliable service for customers and suppliers.
The mission of the Tamijuddin Textile Mills Ltd is to maximize profit with superior quality and to be competent in all aspects of yarn manufacturing featuring cutting edge technology.
The primary aim of TTMl is to become the best specialist yarn manufacturer, meeting and exceeding our buyer’s demand. TTML hires, develops, and maintains skilled and pro-active professionals to overcome the technical barriers. It is committed to a constant improvement of processes to achieve shorter reaction time and consistent high quality.
TTML strives to add further value to the high level of services that it already offers to customers. Towards this end, TTML continuously monitors the changing market and maintain sharp lookout for new opportunities.
Nowadays yarn market is more unpredictable. Dramatic changes are occurring in market place. These radical changes are creating new sets of challenges for all of the players in the industry.
2.5 Management
A management with a clear strategy and concrete aims for the 21st century as well as a clearly defined company policy, together with a highly motivated staff, is the basis for the efficiency and the success of TTML.
Managing Team of TTML at a Glance ( A sample of a yarn manufacturing organization):
| Chairman/Director | ||||
| General Manager –Head office | ||||
| General Manager –Technical | ||||
| Administration | Deputy General Manager | |||
| Officer | ||||
| Production & Quality | Deputy General Manager | |||
| Manager | ||||
| Sr. Officer | ||||
| Officer | ||||
| Maintenance & Electrical | Deputy General Manager | |||
| Manager | ||||
| Officer | ||||
| Marketing | Assistant General Manager | |||
| Manager | ||||
| Officer | ||||
| Commercial &Accounting | Assistant General Manager | |||
| Officer | ||||
| Purchase | Officer | |||
| Security | Officer | |||
2.6 Departments of a Yarn Manufacturing Organization (TTML):
For the ease of work procedure, TTML departmentalized itself by functions. The main departments are Production, Quality, Maintenance, Electrical, Administration & Human resource, Marketing and Financial
a) Production Department:
Min functions of the department relate to
i. Allocate the machines based on products type.
ii. Keep good relation with the workers to maximize their efficiency.
iii. Maximize the production.
iv. Maintain the online yarn quality.
b) Quality Department:
i. Raw material selection.
ii. Choosing the quality parameters.
iii. Monitoring and controlling the off line quality of the yarn.
iv. Providing the all the machine settings.
c) Maintenance Department:
i. Keep the machines in good operating condition by doing schedule maintenance.
ii. Attend any unwanted breakdown in the machine.
iii. Keeping working environment unchanged based on Relative Humidity (RH%) and Temperature continuously.
d) Electrical Department:
i. Keep the machines electrically in good operating condition over a long period of time.
ii. Maintaining the power generator properly and distribute the load to the machine as per requirement.
e) Administration and Human Resources (HRD)Department:
HRD performs all kind of administrative and personnel related matters. The broad functions of the division are as follows:
i. Selecting & Recruitment of new Personnel.
ii. Prepare all formalities regarding appointment and joining of the successful candidates.
iii. Placement of Manpower.
iv. Deal with the promotion, and leave of the employees.
v. Training & Development.
vi. Termination and retrenchment of the employees.
vii. Keeping records and personal file of every employee of the organization.
viii. Arranges workshops & training for employee & executives.
f)Financial Division
Financials Department mainly deals with the account side of the TTML. It’s functions are as follows
i. Salary & Wages of the Employee.
ii. Rentals, maintenance and leases.
iii. Travel, conveyance, entertainment, medical etc.
g) Marketing Department:
Details have been discussed in project part.
2.7 Technology:
World sophisticated technologies have been used to produce high quality yarn.
2.8 Machineries of the Yarn Manufacturing Organization (Here Tamijuddin Textile Mills td):
| SL.NO | Name of the Machinery brand & Origin | Type / Model | Mfg. Year | Com. Date | Qty. |
| 1 | Blow Room Line 1 – (Ohtory Trutzschler / Trutzschler) | 1987-96-97 | 1998 – 2004 | 1 | |
| {1 Scutcher SME, Axiflo, MPM – 6 (Made of Japan)} | |||||
| Bale opener(BO), CVT- 3 , Dustex ( Made of Germany) | |||||
| Blow Room Line 2 – (Ohtory Trutzschler / Trutzschler) | 1987-96-97 | 1998 – 2004 | 1 | ||
| {1 Scutcher SME (Made of Japan)} | |||||
| Bale opener, MPM-4, CLC- 1, Dustex (Made of Germany) | |||||
| 2 | Blow Room Line 3 – ( Trutzschler Germany) | 2003 | 2003 | 1 | |
| Bale opener – BX, Maxiflo MFC, Securomat SCB, Fan TV, | |||||
| Multimixer MPM – 8, Cleanomat CVT – 1, Material separator | |||||
| MAS, Foreign fiber separator SCFO. VT 2, Dosing feeder MSL | |||||
| Fan TVD 425, Electrical installation EAS, T – Distributor T – 2 | |||||
| 3 | Blow Room Line 4 – ( Trutzschler – Germany) | 1996 – 97 | 2004 | 1 | |
| Bale opener – BO, Maxiflo AFC, Cleaner RST. Cleaner LVSAB | |||||
| Fan TV, PWSE – 1 | |||||
| SL.NO | Name of the Machinery brand & Origin | Type / Model | Mfg. Year | Com. Date | Qty. |
| Blow Room Line 5 – ( Trutzschler – Germany) | 1996 – 97 | 2004 | 1 | ||
| Bale opener – BO, Procupine opener (Japan) RK, Fan TV | |||||
| PWSE – 2, Multimixer MPM – 8, Fine opener – FO, Transport | |||||
| Fan TVD. | |||||
| 4 | Carding | ||||
| [a] Howa card with autoleveler (Japan)Lap feed | CMK – 3 | 1987 | 1988 | 17 | |
| [b] Howa card with autoleveler (Japan) Lap feed | CMK – 3 | 1992 | 1992 | 6 | |
| [c] Trutzschler card with autoleveler (Germany) Chute feed | DK – 903 | 2003 | 2003 | 8 | |
| [d] Trutzschler card with autoleveler (Germany) Chute feed | DK – 903 | 2000 | 2004 | 6 | |
| 5 | Drawing | ||||
| [a] Howa 2 – Delivery [ Japan ] | DFK – 2 Ps | 1987 | 1988 | 7 | |
| [b] Cherry 2 – Delivery [ Japan ] With autoleveler | DX – 500 | 1989 | 1992 | 2 | |
| [c] Trutzschler 1 – Delivery [Germany] With autoleveler | HSR – 1000 | 2001 | 2001 | 2 | |
| [d] Trutzschler 1 – Delivery [Germany] With autoleveler | HSR – 1000 | 2003 | 2003 | 1 | |
| [e] Trutzschler 1 – Delivery [Germany] With autoleveler | HSR – 1000 | 2000 | 2004 | 4 | |
| [f] Trutzschler 1 – Delivery [Germany] | HS – 1000 | 2000 | 2006 | 4 | |
| 6 | Comber | ||||
| [a] Howa [ Japan ] | Cartory – K | 1987 | 1988 | 3 | |
| [b] Howa [ Japan ] | 178 | 1972 | 1990 | 1 | |
| [c] Tokiyu [ Japan ] | THC – 100 | 1989 | 2006 | 7 | |
| SL.NO | Name of the Machinery brand & Origin | Type / Model | Mfg. Year | Com. Date | Qty. |
| 7 | Simplex | ||||
| [a] Howa 120 Spindles [ Japan ] | RMK – 2 | 1987 | 1988 | 4 | |
| [b] Toyoda 120 Spindles [ Japan ] | FL – 16 | 1989 | 1990 | 2 | |
| [c] Toyoda 96 Spindles [ Japan ] | FL – 16A | 1983 | 2006 | 6 | |
| [e] Howa 120 Spindles [ Japan ] | RME | 1987 | 2003 | 3 | |
| [e] Howa 96 Spindles [ Japan ] | RME | 1987 | 2003 | 1 | |
| 8 | Ring | ||||
| [a] Howa 456 Spindles [ Japan ] | UA – 27E | 1987 | 1988 | 31 | |
| [b] Ishikawa zinsei 488 Spindles [ Japan ] | Type – 317 | 1972 | 1992 | 10 | |
| [c] Toyoda 456 Spindles [ Japan ] | RY | 1974 | 1990 | 26 | |
| [d] Howa 960 Spindles [ Japan ] | UA – 33E | 1989 | 2004 | 10 | |
| [e] Toyoda 456 Spindles [ Japan ] | RY | 1972 | 2006 | 23 | |
| 9 | Cone Winnder | ||||
| [a] Murata Manual cone winder 120 Drum [ Japan ] | Type 14 – 11 | 1987 | 1988 | 2 | |
| [b] RT Manual cone winder 120 Drum [ Japan ] | Type – 14 | 1976 | 1990 | 1 | |
| [c] Kamitsu Manual cone winder 120 Drum [ Japan ] | Type – 14 | 1990 | 1 | ||
| [d] Murata auto coner 60 Drum [ Japan ] | 7- ii | 1990 | 1990 | 2 | |
| [e] Murata auto coner 50 Drum [ Japan ] | 7- ii | 1988 | 2003 | 2 | |
| [f] Murata auto coner 50 Drum [ Japan ] | oo7 | 1985 | 2003 | 2 | |
| [g] Murata auto coner 60 Drum with auto dofer [ Japan ] | 21 – C | 2002 | 2002 | 1 | |
| [h] Murata auto coner 60 Drum with auto dofer [ Japan ] | 21-C | 2003 | 2003 | 3 | |
| [i] Murata auto coner 60 Drum with auto dofer [ Japan ] | 21 – C | 2007 | 4 | ||
| [j] Murata Link coner 24 Drum with auto dofer [ Japan ] | 7- ii | 1989 | 2004 | 10 |
| SL.NO | Name of the Machinery brand & Origin | Type / Model | Mfg. Year | Com. Date | Qty. |
| Doubler & TFO | |||||
| [a] Murata Doubling Machine 120 Drum [ Japan ] | NO – 23 | 1987 | 1988 | 1 | |
| [b] Murata two for one twisting 120 Drum [ Japan ] | NO – 363 | 1987 | 1988 | 2 | |
| [c] Leewha Doubling Machine 120 Drum [ Korea ] | LW – 102D | 1996 | 2004 | 1 | |
| [d] Leewha two for one twister 156 Drum [ Korea ] | LW – 560SA | 1996 | 2004 | 10 | |
| 10 | Reeling Machine | ||||
| [a] Janata power Reeling Machine 2 – Side [ Bangladesh ] | 1987 | 1988 | 20 | ||
| [b] Yamedatekko auto Reeling Machine 2 – Side [ Japan ] | 4MR-W | 1989 | 1990 | 3 | |
| 11 | Bundling | ||||
| [a] Kyontsu Bundling Press [ Japan ] | 1987 | 1988 | 2 | ||
| [b] Kasturi Bundling Press [ India ] | 1991 | 1991 | 2 | ||
| 12 | Bailing Press | ||||
| [a] Koninami Bailing Press [ Japan ] | 1987 | 1988 | 1 | ||
| 13 | Air Conditioning Plant | ||||
| [a] Luwa AC Plant [ Japan ] | 1987 | 1988 | 2 | ||
| [b] Batliboi AC Plant [ Inida ] | 1990 | 1992 | 2 | ||
| [c] Luwa AC Plant [ Switzerland ] | 2004 | 2004 | 2 | ||
| 14 | Fiber Deposited Plant | ||||
| [a] Luwa FDP for Blowroon [ Switzerland ] | 2003 | 2003 | 1 | ||
| [b] Luwa FDP for Blowroon [ Switzerland ] | 2004 | 2004 | 2 | ||
| [c] Luwa Overhead Blower cleaner for Ring [ Switzerland ] | 2000 | 2000 | 16 | ||
| [d] Electrojet Overhead Blower cleaner for Ring [ Spain ] | 2004 | 2004 | 30 | ||
| [e] Magitex Overhead Blower cleaner [ Italy ] | 2006 | 5 | |||
| SL.NO | Name of the Machinery brand & Origin | Type / Model | Mfg. Year | Com. Date | Qty. |
| 15 | Compressor | ||||
| [a] Kaesar Compressor BS – 61 [ Germany ] | BS61 | 2001 | 2001 | 2 | |
| [b] Kaesar Compressor BSD – 72 [ Germany ] | BSD72 | 2003 | 2003 | 2 | |
| [c] Kaesar Compressor BSD – 72 [ Germany ] | BSD72 | 2004 | 2004 | 2 | |
| [d] Dryer [ Germany ] | TF 201 | 2001 | 2001 | 1 | |
| [e] Dryer [ Germany ] | TF 201 | 2003 | 2003 | 1 | |
| [e] Dryer [ Germany ] | TF 203 | 2004 | 2004 | 1 | |
| 16 | Yarn Conditioning Plant | ||||
| [a] Siger (1000 kg / Batch) [ India ] | DUAL HTG | 2003 | 2003 | 1 | |
| [b] Siger (1000 kg / Batch) [ India ] | LPG HTG | 2005 | 1 | ||
| 17 | Auxiliary Machine ( For Trutzschler Card DK – 903) | ||||
| [a] Flat control TC – FCT [ Germany ] | TC – FCT | 2004 | 1 | ||
| [b] Cylinder wire grinding Machine [ Switzerland ] | TSG | 2003 | 1 | ||
| [c] Flat grinding Machine [ Switzerland ] | TC – GD | 2003 | 1 | ||
| [d] Mounting Machine [ Switzerland ] | GAV | 2003 | 1 | ||
| [f] Licker in mounting Machine [ Switzerland ] | Rod – 35 | 2002 | 1 | ||
| [e] Neps control Machine [ Germany ] | NCT | 2003 | 1 | ||
| Auxiliary Machine For Howa Card CMK – 3 | |||||
| [a] Cylinder Wire grinding Machine [ Japan ] | 1987 | 1988 | 1 | ||
| [b] Flat grinding Machine [ Japan ] | 1987 | 1988 | 1 | ||
| [c] Licker – In mounting Machine [ Japan ] | 1987 | 1988 | 1 | ||
| [d] Mounting Machine for Dofer & Cylinder [ Japan ] | 1987 | 1988 | 1 | ||
| [e] Cylinder Grinding Machine [ Japan ] | 1987 | 1988 | 1 | ||
| [f] Flat clipping Machine [ Japan ] | 1987 | 1988 | 1 | ||
| [g] Tig Welding Machine [ Japan ] | 1987 | 1988 | 1 |
| SL.NO | Name of the Machinery brand & Origin | Type / Model | Mfg. Year | Com. Date | Qty. | |
| 18 | Roller Cover | |||||
| [a] Cot Grinding Machine [ Switzerland ] | BG/U | 2003 | 2003 | 1 | ||
| [b] Berkolizing Machine [ Switzerland ] | 2003 | 2003 | 1 | |||
| [c] Burkolub Machine [ Switzerland ] | 2003 | 2003 | 1 | |||
| [d] Spindle Oil Refilling Machine [ Switzerland ] | 1254106 | 2001 | 2001 | 1 | ||
| [e] Cot Surface Chemical Treatmet Machine [ Japan ] | 208B | 1987 | 1988 | 1 | ||
| [f] Cutter Grinding Machine [ China ] | 2004 | 2004 | 1 | |||
| [g] Cot Grinding Machine [ Japan ] | 1987 | 1988 | 1 | |||
| [h] Flyer Washing Machine [ Germany ] | 2006 | 2006 | 1 | |||
| [i] Cot Mounting Machine [ Japan ] | 1987 | 1988 | 1 | |||
| SL.NO | Name of the Machinery brand & Origin | Type / Model | Mfg. Year | Com. Date | Qty. | |
| 19 | Power Station | |||||
| [a] Genset Waukesha [ USA ] | VHP 7100 GSI | 1989 | 1 | |||
| [b] Genset Waukesha [ USA ] | VHP 7100 GSI | 1995 | 1 | |||
| [c] Genset Waukesha [ USA ] | VHP 5904 GSID | 2003 | 2003 | 1 | ||
| [d] Genset Waukesha [ USA ] | VHP 5904 GSID | 2004 | 2005 | 1 | ||
| [e] Transformer 1250 KVA ( 11000 V – 415 V) | 1987 | 1988 | 1 | |||
| [f] Transformer 750 KVA ( 415 V – 575 V) [ Bangladesh ] | 2003 | 1 | ||||
| [g] LT Panel Board Siemens [ Germany ] | 1987 | 2003 | 5 | |||
| [h] HT Panel Board Siemens [ Germany ] | 1987 | 1 | ||||
| [i] PFI Panel Board | 1987 | 2003 | 5 | |||
| [j] Syncronizing Panel | 2003 | 1 | ||||
| [k] LT Panel Board (REB) | 2003 | 1 | ||||
| 20 | Invertor | |||||
| [a] Invertor 18.5 KW [ Taiwan ] | 40 | |||||
| [b] Invertor 55 KW [ Taiwan ] | 5 | |||||
| [c] Invertor 55 KW [ Japan ] | 5 | |||||
| SL.NO | Name of the Machinery brand & Origin | Type / Model | Mfg. Year | Com. Date | Qty. |
| 21 | AC ( Invertor ) | ||||
| [a] Split Type AC 5 Ton | 4 | ||||
| [b] Split Type AC 1 Ton | 3 | ||||
| [c] Split Type AC 1.5 Ton | 1 | ||||
| [d] Window Type Ac | 3 | ||||
| 22 | Work Shop Machinery | ||||
| [a] Lathe Machine 6′ | 1 | ||||
| [b] Lathe Machine 10′ | 1999 | 1 | |||
| [c] Shaper Machine 18” | 1 | ||||
| [d] Drill Machine 1” | 1987 | 1 | |||
| [e] Welding Machine – 220 V | 1987 | 1 | |||
| [f] Welding Machine – 440 V | 2003 | 1 | |||
| [g] Hammer Drill Machine 13mm | 2003 | 1 | |||
| [h] Hand Drill Machine 12m | 2003 | 1 | |||
| [i] Gas Welding Machine (set) | 1 | ||||
| [j] Welding Glass Set | 1 | ||||
| 23 | Transport | ||||
| Fork Lift (Big) | 1 | ||||
| Fork Lift (Medium) | 1 | ||||
| Cover van Big ( 10 Ton ) | 1 | ||||
| Cover van Small (5 Ton ) | 1 |
| SL. | Name of the Machinery brand & Origin | Type / Model | Mfg. Year | C/D | Qty. | |
| 24 | Quality Machin Equiptment | |||||
| [1] Zweigle Fast Count System ( With Printer ) | 2002 | 1 | ||||
| [2] Zweigle Hairness Tester | G – 566 | 2002 | 1 | |||
| [3] Zweigle OASYS ( Yarn Semulation System) | G – 588 | 2002 | 1 | |||
| [4] Zweigle Twist Tester | D 314/1 | 2002 | 1 | |||
| [5] Zweigle Electronic Moisture meter | Tem – 1 | |||||
| [6] Uster Tester | 4 SE | 2002 | 1 | |||
| [7] HVI Spectrum | 2003 | 1 | ||||
| [8] AFIS Pro | 2003 | 1 | ||||
| [9] Single Yarn Strength Tester | 1 | |||||
| [10] Lee Strength Tester | 1 | |||||
| [11] Wrap Seal | 1 | |||||
| [12] Wrapping Drum | 1 | |||||
| [13] ASINO Twist Tester | 1 | |||||
| [14] Electronic Scale (Bolamce) Without Machine | 1 | |||||
| [15] Parth Meter | 1 | |||||
| [16] Simplex Pressure Arm Check Equipment [ India ] | 1 | |||||
| [17] Comb Sorter | 1 | |||||
| [18] Hand Techo Meter ( Manual ) | 2 | |||||
| [19] Electronic Techo Meter | 1 | |||||
| [20] Splicing Strength Test Meter ( Murata ) | 2 | |||||
| [21] Hardness Tester Meter [ India ] | 1 | |||||
| [22] Computer | 1 | |||||
| [23] Movistrop (Troroscot ) Big / Small | 3 | |||||
| [24] Stop Watch | 1 | |||||
| [25] Magnifing Glass | 1 | |||||
| [26] Uster HVI Calibration Cotton – Short Week, Long | 4 | |||||
| Strong, Mic (High Fine) | ||||||
| [27] HVI Afis Excessories | 2 | |||||
| [28] Uster – 4 , Progorm Graphics CD | 8 | |||||
| [29] Zweigle Fast Count Hairness, OASYS Program CD | 3 | |||||
| [30] UPS | 2 | |||||
| [31] Uster Micronire Tester | 1 | |||||
| [32] Cot’s Hardness Tester | 1 | |||||
| [33] Electronic Vernear Scale | 1 | |||||
| [34] Kaisoki Measusing Printer | 1 | |||||
2.9 Production Flow Chart of a Yarn Manufacturing Factory:
|
2.9 Production Flow Chart
(For Combed Yarn) (For Karded Yarn)
Chapter 03:
Yarn Marketing in Bangladesh:
3.1 Introduction:
Since the global yarn market has become competitive, domestic consolidation and regional adjustments are anticipated. In a quota-free world, it is anticipated that relatively low priced textile products will reduce the demand for domestic yarn in some countries and reverse action will be shown in third world countries. As apparel production is moving to certain countries, with the closing of their operation, spinning manufacturers are moving in the same direction to become yarn suppliers and to gain a competitive advantage in speed to market strategy for global market place.
The key drivers determining the competitive advantage in producing textile items are many factors such as labor, energy, capital/infrastructure, technology, raw materials, interest rate etc. Labor competitiveness is defined in terms of labor cost per unit of output or called unit labor cost. Capital/infrastructure is the money available to build upon an existing base. Technology is the process of incorporating the best available expertise equipment in to the production. Raw materials are considered to be a key driver when there is a cost difference between competitors.
To understand global dynamics of yarn market we have to obtain a meaning full measurement for the consumption by consumers in each country, the import and export trade of yarn must be evaluated. Knowing where and what are being consumed by whom, always yarn production and future growth to be more understandable and predictable. Therefore this report will emphasize yarn production and consumption, and the factors likely to affect the competition in the global yarn market.
3.2 Regionalizing production networks in the textile and apparel industry:
Several broad regional shifts have occurred in the global yarn and apparel industry since 1950’s. The relocation of production is smoothly dominant in the yarn industry. Some researchers think that the internationalization of yarn manufacturing began earlier and has extended further than that of any other industry. Textile firms have relocated their labor-intensive manufacturing operations from high wage region to low-cost production region in industrializing nations. It has been shown below graphically
1950 1960 1970 1980 1990 2000
In the 1950’s and 1960’ In the 1970’s and 1980’ In the late 1980’s and Now ?
North America and Western from Japan to Hong Kong, 1990’s Hong Kong, modify the
Europe to Japan Taiwan and South Korea Taiwan and South Korea position of to China East Asia
Figure: Movement of manufacturing,
Source: Author (Tangboonritruthai,s.,2005)
3.3 SWOT Analysis of Bangladesh Spinning & RMG Industry
a) Strength:
# Advantage over China, Pakistan & India
# Adequate supply of labour force of both sexes, attributed with less attitudes problem (less absenteeism and, aptitude for learning, and loyal) and high morale
# Cheaper labour cost
# Low cost of captive power generation using gas as fuel
# GSP facility up to 2015
b) Weakness
# Bangladesh produce mostly basic products- which are low cost items; the share of fashion products i.e., high value added product is very low.
# Bangladesh does not produce the basic raw materials (only a negligible quantity of cotton but no manufactured fiber) and as such has to depend totally on sensitive global market.
# Because of inadequate backward linkage, lead-time happens to be long, nearly 3 months.
# Public power supply is erratic.
# Bank interest rate is still high enough, particularly of private sector bank, for investment of export oriented high value project.
# HRD facility, productivity and quality support, testing and accreditation support, design support and compliances are yet to be enhanced.
# Cost of doing business is high because of under table money
c) Opportunity:
# Bangladesh has now a scope to go for more fashion oriented products deserving high price in the global market.
# With the help of further increase of productivity & quality and design support, Bangladesh can minimize cost and maximize profit and export value.
# Bangladesh, as a proven experienced RMG & Textile manufacturer, can expand share in the existing market (USA, EU, Australia, Canada, etc.) and can also explore opportunity in Japan & CIS countries.
# In the long run, Bangladesh has a scope to target huge populated country like China and India- where demand as well as cost of manufacturing will be wider.
d)Threat:
# Unless new strong market is explored in home or abroad, any non-cooperation from USA & EU may jeopardize the whole Bangladesh RMG export business and consequently the textile manufacturing.
#Sudden price hike of cotton in the global market may push Bangladesh to a very awkward situation to devastate the business.
# The type of labour and political anarchies of the recent days if prevails in the future, Bangladesh may lose the business in the way Srilanka has lost.
# Growing terrorism, or its false/amplified propaganda, is also a big threat
The Demand-Supply Gap:
The growth of domestic consumption depends upon a set of complex factors that include among others, the growth of population, per capita income, growth of foreign exchange remittance, change of tastes etc. Some of these are not well graspable factors for future demand estimation through dependable prediction models. Similar is the case with the export-oriented RMG growth, which is more complicated as access to international market depends not only upon the scale of demand or competitiveness but also on global trade policies, regional treaties, bilateral relations, non-tariff barriers, image of exporters, etc.
The major factors, which influence the growth of Yarn Market are :
Domestic Consumption of apparels, home
textiles and technical textiles.
Growth of RMG export from Bangladesh and
direct export of various textile products
(finished fabrics, saris, lungis,
etc.)
Importing countries’ market
characterizations, which is highly influenced
by demand trend, visible and invisible
regional factors and bilateral or multilateral
trade pacts.
Domestic factors of production (cost of
production, local export enabling factors,
etc.) and socio-political issues
Table:
| Actual and Projected Demand of Yarn for the Domestic and Export Through RMG Industry: (2004-05 to 2009- 10): In Million | |||||
| Growth RateYear | Projected Demand of Yarn in Kgs | Total Yarn in Kgs | |||
| Domestic Market (Growth Rate 4.75%) | Export through RMG | ||||
| Knit | Woven | Total | |||
| 2004/05 | 326 | 357 | 290 | 646 | 973 |
| 2005/06 | 342 | 445 | 298 | 744 | 1086 |
| 2006/07 | 358 | 535 | 308 | 843 | 1201 |
| 2007/08 | 375 | 620 | 317 | 937 | 1312 |
| 2008/09 | 393 | 700 | 327 | 1027 | 1420 |
| 2009/10 | 412 | 770 | 337 | 1107 | 1519 |
Chart: Growth of Demand of Yarn in Domestic , Knit and Woven Market.
Chart: Growth of Total Demand of Yarn
| Estimated New Capacity to be Created in the Private Textile sector by 2009-10 | ||||
| Type of Textile Processing Industry | Present production capacity | Demand by 2009-10 | Demand Supply Gap by 2009-10 | Number of units to be Built Up |
| Spinning Unit(25,000spindles /Unit with 4.6 million kgs capacity each | 600 Million Kgs | 1,519 Million Kgs | 919 Million Kgs | 200 |
| Weaving (120 shuttle less looms /un | ||||