Nomen group of companies

Supervise by

AHMED, DR. A. N. NEAZ

Prepared by

Debashish karmaker

Hossain, Md. Imran

Islam Md. Saihanul

ACKNOWLEDGEMENT

Thanks to Al-mighty Allah for Blessing in completing the report within the scheduled time. We are indebted to a number of persons for their kind recommendation, co-operative, submission, direction and their collaboration.

We have the unique opportunity to apply my theoretical & practical knowledge in this assignment. It’s my obligation to disclose the name of all who have contributed in many ways to complete my assignment on the selected topic entitled “S.W.O.T analysis of Noman group of companies”

First, we would like to remember the contribution of general manger MR. & our course teacher AHMED DR A.N.NEAZ guidance & help was very much required prepare the report successfully

We are grateful to the Management of Nomen group for providing us all sorts of facilities requested from time to time. This practical working knowledge in this garment sector helped us a lot. We are lucky and feel proud to get this opportunity for preparing this assignment. We learned many things from this reputed organization in a short time

Yours sincerely

Debashish karmaker

Hossain, Md. Imran

Islam Md. Saihanul

Executive summary

Noman has grown from a cotton export house into the premier business group of Bangladesh. Today, Padma is considered to be at par with multinationals operating locally in terms of its quality products and management skills.

We recently have done our survey Padma Textile, in which I got training from each of its department. The internship basically revolved around the product knowledge training. The system, the style of working & the commitment of the employees in Padma is really exemplary.

The difference between the success & failure is doing things right and doing things nearly right, & Noman has always tried for success & that is why it is known to be one of the leading organizations in Bangladesh. Irrespective of all these positive points of padma, I have noticed a few areas where the improvement can really increase the efficiency of Nomen.

In this report we have given a very brief review of what I have seen during our research we have mentioned all these as we have made an internship as according to the schedule. We also mentioned about the Textile industry in Bangladesh and vision of its industry. Then we have done a detailed SWOT analysis as well as PEST Analysis.

Then we have discussed about my learning in the whole internship that is all about the Textile Terminologies and process of the productions. we have made it possible to write each and every thing that we have learnt there. I have all my practical efforts in the form of this manuscript that’s the asset for our future career.

Letter of transmittal

Date 2/10/13

Department of Business Administration,

American international university of Bangladesh (AIUB)

Subject: Submission of assignment on “Noman group of companies S.W.O.T analysis”

Dear Sir:

Here is the assignment that we assigned on the topic as per your request. The assignment has

been completed by the knowledge that we have gathered from the course “Financial

Management”.

We are thankful to all those persons who provided us important information and gave us

valuable advices. We would be happy if you read the report carefully and we will be trying to

answer all the questions that you have about the assignment.

We have tried our label best to complete this assignment meaningfully and correctly, as much

as possible. We do believe that our tiresome effort will help you to get ahead with this sort of

venture. In this case it will be meaningful to us. However, if you need any assistance in

interpreting this assignment please contact us without any kind of hesitation.

Thanking you.

Yours obediently,Debashish Karmaker

Hossain, Md. Imran

Islam Md. Saihanul

No Subject page

Chapter 1

1.1 Introduction

1.2 Origin of report

1.3 Objective of the study

1.4 Scope of the study

1.5 Limitations of the Report:

1.6 Analysis Technique & Report Writing:

1.1 Introduction

The tremendous success of readymade garment exports from Bangladesh over the last two decades has surpassed the most optimistic expectations. Today the apparel export sector is a multi-billion-dollar manufacturing and export industry in the country. The overall impact of the readymade garment exports is certainly one of the most significant social and economic developments in contemporary Bangladesh. With over one and a half million women workers employed in semi-skilled and skilled jobs producing clothing for exports, the development of the apparel export industry has had far-reaching implications for the society and economy of Bangladesh.

1.2 Origin of report

This report is prepared as a requirement of our LEADERSHIP & MANAGEMENT OF ORGANIZATION course for Master of Business Administration (MBA) program of American International University Bangladesh.

1.3 Objective of the study

In this report we are trying to S.W.O.T analyze nomane group of companies and on those finding we recommend some steps. That may be helpful to them.

1.4 Scope of the study

This study has focused upon the various problems regarding with the nomen groupies of companies and the prospect of garment industries. We have taken garments sector to gather data on the present situation of the garments industries as well as problem regarding and the future of the industries.

1.5 Limitations of the Report:

Since our study is based on both primary and secondary data, there is a possibility of getting

fake information. If the surveyed personnel provide us with any fabricated information about

their opinion of their organization, then the report findings may be erroneous. Above all, this

study is weak in some points. The notable ones are as under: The survey was conducted in a very short time so we were not able to collect more

information. This survey made on crisis situation of Bangladesh, so it was difficult to collect more

samples. Only the big and the reputed Garments Company consider here as sample. The questionnaire contains some questions that, if answered properly, might damage the

company’s image. In this type of questions, the respondents might provide socially acceptable answers. This risk was unavoidable.

Another limitation of this study is the person’s private information were not disclosing some, data and information for obvious reasons, which could be very much useful.

Lack of experience in this field. Lack of proper authority to conduct the interview program.

1.6 Analysis Technique & Report Writing:

At first, we went to Garments Company and collect information from the personnel. In

preparing this report, we approached according to the following procedure:

2.1 Overview of the company

Leading textile manufacturer Noman Group is investing some Taka 10.00 billion in new spinning, dyeing and woven and knit garment units to emerge as the country’s biggest exporter in 2010, its owner said. The group currently ranked as the third largest exporter with annual shipment of around $200 million says its export will double next year, cashing on the windfall of the global economic meltdown. “The global downturn has prompted many top low cost retailers to search for thriftier supply sources,” said Nurul Islam, chairman of Noman Group early this week.

“Since we operate on economy of scale and with a very low profit margins, we are receiving increased orders from top retailers like Asda, Wal-Mart, Target,” Islam said The company is expanding its woven and knit garment units, adding a new 75,000 spindle spinning mill and an additional 100,000 square meters fabrics dyeing and finishing units, he said. It is also investing in new poplin, bed-net, terry towel and home textile facilities, spreading its wings in almost every segment of textile business.

The company is at present one of the world’s largest bed-net producers and the country’s largest bed sheet exporter. “We are adding new lines in almost every factory we have in Sreepur, Tongi and Narayanganj. As a result, our monthly export will grow from US$17 million at present to $32-35 million in January 2010,” the former Islampur clothing merchant said. Islam claimed he would invest about Tk15.00 billion this year, making him the biggest local investor in the textile and garment sectors.Bankers have differed the figure, saying it would not be more than Tk10.00 billion. “No doubt Noman is the most active investor this year, as it has hardly been affected by Indian yarn invasion or the global economic crisis. It business outlook remains bouyant,” said a leading banker who knows Noman’s investment portfolio. “But his total investment this year won’t cross the amount he claims,” he added. Still with $400-$420 million export in 2010, Noman is poised to emerge as the country’s biggest exporter, ending a long-held domination by Opex Group owned by Anisur Rahman Sinha.Opex exports some $250 million a year and next year it expects the tally to surpass $300 million .Nassa Group, the second largest export with over $200 million annual shipment has been cautious in new investment. Bangladesh’s more than 2500 active garment and textile manufacturers last year exported $11 billion worth of knit, woven and home textile items, with only a handful exporting over $100 million or more.

2.2 Mission Statement

Noman Group is founded on and committed to a sustainable corporate concept of concomitant prosperity. Our mission consists of 3 intertwined parts:

Consumer Mission: To manufacture and supply the finest quality textile products on time with a continued commitment to compliance.

Social Mission: To act responsibly as a global corporate citizen and ensure the well-being and growth of our employees and all other stakeholders.

Environmental Mission: To foster a sustainable future through collaborating with area businesses, community leaders and neighbors with the end of goal environmental well-being

2.3Production Facts

SPINNING Largest in Bangladesh45 million spindle7500 ton year of monthSpin 6s to 100s in Cotton and Blend

WEAVING Largest in Bangladesh45 million spindle7500 ton year of monthSpin 6s to 100s in Cotton and Blend

PRINTING Largest in Bangladesh45 million spindle7500 ton year of monthSpin 6s to 100s in Cotton and Blend

STITCHING Largest in Bangladesh45 million spindle7500 ton year of monthSpin 6s to 100s in Cotton and Blend

EMBROIDERY 250 Stitched per month

2.4Two major subsidiaries of Noman Group are:

NOMAN TERRY TOWEL MILLS: Noman Terry Towel Mills manufactures products such as various kinds of Towels, Robe, Mitten and Rug. Its daily capacity includes 70 Tons of Terry and 25 Tons Dyed Yarn.

Noman Terry Towel Mills Ltd. was incorporated in 2012. It offers vertical integration from Cotton Procedure to Delivering the Product to the port. It has recently invested in 87 Tsodakoma Looms with Terry Motion.

2.5Products:

- Terry In Dobby And Jacquard- Bath Rob In Terry And Velour- Baby Kimono And Bib, Beach Towel- Kitchen Towel And Apron- Washing Gloves- Towel With Embroidery- Barmop- Terry Towel in Zero Twisted Yarn

2.6Workforce: 3000

Registered Capital: Above US$100 MillionAnnual Sales: Above US $50 Million Export Percentage: 91% - 100%Factory Size: Above 100,000 square metersCapacity: 70 Tons of Terry per day & 25 Ton Yarn Dyed CapacityFactory Location: Vawal, MirzapurManagement Certification: BSCI, IWAYContract Manufacturing: OEM Service Offered

Clients: IKEA, H&M, Target, ASDA, Big W, Rusta, HEMA, Tesco, La Redoute, SOL'S, OTTO Group, Sobel Westex

ZABER & ZUBAIR FABRICS

Zaber & Zubair Fabrics is a renowned manufacturer of fabrics, home textile and apparels with annual sales of $312 million in 2012.

Zaber & Zubair Fabrics was incorporated in 1997 with a mission to grow as an internationally recognized home textile manufacturing company, by meeting day to day market requirement and achieving customer satisfaction.

2.7Frabric Product Range:

- Cotton poplins, Cambic and Voiles- Cotton Twills, Chinos and Satins- CVC and Poly Cotton Blends- Heavy and Denser Bottoms wear fabrics- Dobby Woven Fabrics- Rib stop Fabrics- Bedford cord Fabrics- Waffle Fabrics- Slub Yarn Fabrics- High Quality Stretch Poplins (Lycra)

2.8Workforce: 7500

Annual Sales: USD 312 Million (2012)Achievements: GOTS, OEKOTEX, BRC, ISO9001:2000Factory Location: Pagar (Tongi)

Clients: H&M, Walmart, GAP, Target, PVH, Otto, Nike, Levi's, M&S, UNIQLO, ZARA,Express, ALDI, Next, Abercrombie & Fitch, ESPRIT, G-Star, American Eagle

3.1 Strength:

More than 60 countries Noman Group of Industries are supplying to the top brands of the world and are actively seeking new markets in other continents.

They have over 50,000 employees in Bangladesh with diverse backgrounds. They are pride on having very employee low turnover and excellent rapport between management and workers. According to ILO, they are the third largest employer in Bangladesh.

In 2012, they collectively achieved sales over $930 million (BDT 75 Billion). In the process, they became the highest exporter in the country. Their revenue accounted for nearly 1% of the nation's GDP while its exports accounted for 4% of the total.

They have 33 subsidiaries with the most prominent one being ZABER & ZUBAIR Fabrics Ltd. In the woven segment, Z&Z is currently the largest in the world.

Revenue Growth

3.2 Opportunity:

• A new international market Bangladesh is best placed in the region for textiles and garments industry due to cheap labor and favorable trade status with the EU. There is huge yarn and fabric demand supply gap in the RMG industries which is presently met by imports. Thus the potential for backward linkage industry is enormous Prospect for a huge textile industry capable to supply over 3 billion yards of fabrics a year to the export oriented garment industry has also been developed by the industry. Presently, about 85%-90% of this demand is met by import from countries like China, India, Hong Kong, Singapore, Thailand, Korea, Indonesia, Taiwan, etc. Fabric requirement is increasing at 20% per annum. This offers a tremendous opportunity for further investment.

• Organization can expand product lines. Currently the Noman not dealing in knitwear they can expand their product line by producing knitwear. They have plants and the extra cost for the production will be low for Noman. And they also have better market repute.

• Organization can reduce the cost by proper utilization of resources. If the cost of different matters which is not utilizing properly is controlled by the Noman management they can produce more in a few costs. It has to develop a further systematic process for controlling and managing resources.

• Organization can hire more well-educated and experienced person. They can take advantages by hiring more skilled people and they should hire young, fresh and energetic staff for their betterment.

• Mergers, joint ventures or strategic alliances. They can merge or do joint venture with other company to capture more market area to make more profit.

• Moving into new market segments that offer improved profits. Bangladesh has now a scope to go for more fashion oriented products deserving high price in the global market.

• A market vacated by an ineffective competitor.

• With the help of further increase of productivity & quality and design support, Noman can minimize cost and maximize profit and export value.

• Bangladesh, as a proven experienced RMG & Textile manufacturer, If Noman 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, they have scope to target huge populated country like China and India- where demand as well as cost of manufacturing will be wider.

3.3Weaknesses:

High cost of production

•The production cost is high because of not properly utilization of its resources.

Centralized decision making

•The decisions are made by the upper management which is weakness of the Padma because they have no proper idea about the situation and their decision can be not fruitful for the company.

Weak image in the international market

•Because of the other textile specialized countries like China, India etc. the international image in the textile sector is very weak. Those countries providing cheap product to the market then Bangladesh’s textile industries.

Small international market share

•Although Padma has very strong in the national wide but it has small market share in the global textile industry due to the sound competitors like china, and India etc

Less promotional activitie

•The advertising and promotional cost of the Padma textile is very low it can take advantage for more turnouts.

Lack of benefits and rewards for the employees

•Some facilities that other providing to their employees like Transport and medical fee etc Padma not providing to their employees because of which the productivity of the employees decrease

3.4 Threats:

Buyer needs demands changes

Because of the research and development the design and the product of Noman is just satisfactory as compare to competitors in the globally and they are not fulfilling the demand of customer.

Political instability

Political instability effects the Noman because of the quota system the company can be restrict by the government to export.

Changed of government policies

Government policies are changing day to day so it is a threat for the Noman to survive in such a changeable situation.

Globally Economic instability

Because of the economic instability the Noman affected a lot. Dumping system which is rising on daily basis in the world can create many problems for the company and any uncertainty in the world like 9/11 may affect also the overall export.

Other Threats:

Price changes Cash flow Financial capacity Increasing rates of interest Technological problems etc.

3.5 Recommendations:

Utilizing the property properly and reduce the production cost:

company have to reduce the production cost. To reduce the cost it should utilize the property

properly. If the production cost is high it will be difficult for the company to earn profit and

compete in the international market. So to fulfill the target Noman Group of industries should be

careful about this.

Talking to employees before taking and decision: All the decisions of the company are made

by the upper management of the company. But this is weakness for the company. Members of

the Management committee don’t deal in the real world. So they don’t know the current situation

of the market. So whatever decision they make those can’t fulfill the demand of the company. So

before taking any decision management should talk to other employees of the company who

have the proper knowledge about the market situation. Then they will be able to take right

decision for the company.

More advertising and promotional activities should be done: The advertisement and

promotional cost of Padma textile is very low. As they are competing with the textile industries

of India, China they should do more promotional activities. For promotional activities they can

take the help of print media like newspaper, magazine etc. television, and billboard are also good

medium for promoting a product or brand.

Company should give more incentives and opportunity to employee: To motivate the

employee company must give some incentives and opportunity to employees. For example

transport, bonus etc. These incentives motivate employees and reduce turnover of employees. As

a result production increase and company can achieve the goal.

Company can do some CSR activities: Padma Textile Company can do some CSR activities for example job opportunity for women of rural area, giving scholarship to girls etc. these will create a different image about the company in customers mind.