Expanding the business operation of a Bangladeshi Textile Company. Case company: Shimul Textile Mills Limited
Bhuiyan, Al-Amin (2016)
Bhuiyan, Al-Amin
Laurea-ammattikorkeakoulu
2016
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201601211520
https://urn.fi/URN:NBN:fi:amk-201601211520
Tiivistelmä
This thesis describes a business proposal of expanding for Shimul Textile Mills Ltd. The objectives of the plan are improving the internal management of the company, building the expansion strategy, and financing the new business with the projected sales.
The case company is located in Bangladesh which is the second biggest country of exporting garment products after China. Cheap labour, increasing demand on textile products, and duty-free on raw materials and equipment allow the Bangladeshi manufacturers to diversify their business. However, the high inflation rates and interest rates are the hindrances to achieve high profit margins.
Shimul Textile Mills is located in Narayanganj, the focus area of textile factories in Bangladesh. The company has nearly 20 years of experience in grey fabrics weaving process and good connections with major suppliers and wholesalers in the region. Noticing the capacity and the opportunity of growth, the company’s manager decided to invest 90,000€ on new machinery for dyeing and printing. From January 2016, Shimul Textile will provide printed products instead of weaved products.
Besides expanding to a new sector, Shimul Textile will also work on the sustainability of the business. The application of quality control, staff training, and opening showrooms are expected to increase the productivity and the company’s image.
The predicted turnover and profit margin of Shimul Textile will be prepared for two years (2016 and 2017). As estimated, the company will lose of 3% in profit margin due to the huge investment on machinery in 2016. However, the situation can get improved in 2017 with the forecasted profit margin of around 4%.
The case company is located in Bangladesh which is the second biggest country of exporting garment products after China. Cheap labour, increasing demand on textile products, and duty-free on raw materials and equipment allow the Bangladeshi manufacturers to diversify their business. However, the high inflation rates and interest rates are the hindrances to achieve high profit margins.
Shimul Textile Mills is located in Narayanganj, the focus area of textile factories in Bangladesh. The company has nearly 20 years of experience in grey fabrics weaving process and good connections with major suppliers and wholesalers in the region. Noticing the capacity and the opportunity of growth, the company’s manager decided to invest 90,000€ on new machinery for dyeing and printing. From January 2016, Shimul Textile will provide printed products instead of weaved products.
Besides expanding to a new sector, Shimul Textile will also work on the sustainability of the business. The application of quality control, staff training, and opening showrooms are expected to increase the productivity and the company’s image.
The predicted turnover and profit margin of Shimul Textile will be prepared for two years (2016 and 2017). As estimated, the company will lose of 3% in profit margin due to the huge investment on machinery in 2016. However, the situation can get improved in 2017 with the forecasted profit margin of around 4%.