Evaluation of Management Practices of Textile Industries

Evaluation of Management Practices
of
Textile industries in Bangladesh
Submitted by
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Chapter: 1
Introduction
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1.1 INTRODUCTION OF THE STUDY
The perfect coordination between theory and practice is of paramount importance in the
context of the modern business world in order to resolve the dichotomy between the
theoretical and practical areas. Any academic course of the study has a great value when
it has particular application in the real life. Only theoretical knowledge bears little
importance unless it is applicable to the practical life. So we need the proper application
of our knowledge to get some benefits from our theoretical knowledge and to make it
more fruitful. Such application is made possible through thesis. For the completion of this
report, we chose a reputed Textile Company in Bangladesh namely, “Dacca Dyeing &
Manufacturing CO. Ltd (DDMCL)”. It brought us closer to the real life situation and
thereby helps to launch a career with some prior experience. Our report is on an overall
performance evaluation of DDMCL mainly focused on management practices.
1.2 STATEMENT OF THE PROBLEM
The report mainly focused on the overall performance of DDMCL. As a management

student, we have mainly focused on management practices prevailing in the DDMCL.
We have also focused on the risk factors of this suggested company which may face by
them.
1.3 OBJECTIVES OF THE STUDY
The objectives of the study are mentioned below:

 To study the present scenario of management practices in the textile industries of
Bangladesh.
 To examine the overall performance of DDMCL.
 To assess management policies and practices of DDMCL.
 To identify several risk factors prevailing in the DDMCL.
 To analyze the SWOT Analysis of this company.
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 To evaluate the problems related to different departments of DDMCL.
 To evaluate necessary suggestions to overcome the problems of DDMCL.
1.4 METHODOLOGY
At the time of preparing report, we tried to collect both primary and secondary data that
we have gathered from different sources. For preparing this report, primarily we got some
data from face to face interviewing of different employees of DDMCL and some from
various reports and features of this suggested company.
1.5 SOURCES OF INFORMATION
Primary data
The primary data have been collected by oral interviewing with the responsible officers
and staffs of the DDMCL by using a questionnaire.
Secondary Information/data
The secondary information comes from annual report of the DDMCL, relevant
papers/books and periodicals publication and manual of different departments.
1. Annual report of DDMCL
2. Published Documents
3. Official files
4. Relevant papers, newspaper and journals.
1.6 METHODS OF DATA COLLECTION & INSTRUMENTS USED
Correct and smooth completion of research work requires adherence to some rules and
methodologies. In order to conduct the report, the decision had been taken to collect
various types of primary data and secondary data. After collecting data from the
interview and material provided by them, data were first carefully scrutinized. Then the
data were organized as required. In order to make the study effective and efficient, both
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these two above-mentioned sources of data and information have been widely used. I
used a formal questionnaire for collecting relevant data.
1.7 LITERATURE REVIEW
Evaluation is the assessing and judging the value of a piece of work, an organization or a
service. Its main purpose is to help an organization reflect on what it is trying to achieve,
assessing how far it is succeeding, and identify required changes (Wikipedia). Self
evaluation is a type of evaluation which is owned, controlled, and often carried out by the
project‘s participants, primarily for their own use, as an integral part of the organization’s
life. It is a learning process which actively involves participants in reflecting critically on
their organization, and the issues to which it is responding (Prasana Chandra).
Performance is the accomplishment of a given task measured against preset known
standards of accuracy, completeness, cost, and speed. In a contract, performance is
deemed to be the fulfillment of an obligation, in a manner that releases the performer
from all liabilities under the contract (Wikipedia). Management is the process of getting
activities completed efficiently and effectively with and through other people
(Wikipedia). A manager is a person who works through other people (subordinates), and
"brings together" their efforts to accomplish goals (Dr.M. Thenmozhi). Industry is a basic
category of business activity. The term industry is sometimes used to describe a very
precise business activity (e.g. semiconductors) or a more generic business activity (e.g.
consumer durables). If a company participates in multiple business activities, it is usually
considered to be in the industry in which most of its revenues are derived (Dr.M.
Thenmozhi). The textile industry is primarily concerned with the production of yarn, and
cloth and the subsequent design or manufacture of clothing and their distribution. The
raw material may be natural or synthetic using products of the chemical industry
(Wikipedia). Research is the systematic process of collecting and analyzing information
to increase our understanding of the phenomenon under study. It is the function of the
researcher to contribute to the understanding of the phenomenon and to communicate that
understanding to others (Kothari). Research comprises defining and redefining problems;
formulating hypothesis or suggested solutions; collecting, evaluating and formulating
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data; making deductions and reaching conclusion and at last carefully testing the
conclusions (Clifford woody). Report is a self-explanatory statement of facts relating to a
specific subject and serves the purpose of providing information for decision making and
follow up actions (Wikipedia). It is a systematic presentation of ascertained facts about a
specific event / subject. Report is a summary of findings and recommendations about a
particular matter / problem. Report is for the guidance of higher authorities including
company executives and directors. Report facilitates timely decisions and follows up
measures (Kothari).
1.8 LIMITATIONS OF THE STUDY

We tried our best to make the report complete. But while conducting the report, we have
faced the following limitations:
 It is very difficult to collect all the required information in such a short period.
 The employees are very busy with their jobs, which lead a little time to consult
with.
 Lack of knowledge of the response was the major problem.
 Lack of available up-to-date information
 As Dacca Dyeing & Manufacturing Co. Ltd. is one of the largest textile
companies; it is very difficult to understand each and every aspect of its operation
within a very short period of time.
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Chapter: 2
Scenario regarding the main topic of the report

in Bangladesh
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Today the textile and clothing industry is a sector which is determined by the huge brand-
name companies operating on a worldwide scale. It plays a leading role in the economy
of Bangladesh, and now accounts for some 40% of the total manufacturing, and about
50% of the industrial workforce. The sector is sub-divided between readymade garment
(RMG) and textile segments. Most of the 3,000 RMG factories are located in and around
Dhaka and Chittagong, and 95% of them are entirely owned by Bangladeshi companies
or families Bangladesh has now become a significant supplier to both North America and
Europe. More than 50% of Bangladesh’s garment exports go to the countries of the
European Union, and 44% to the United States.
Ali Hossain Textile Mills Private Limited
Ali Hossain Textile Mills Private Limited a prominent and modern project of woolen
carding spinning and yarn dyeing is an exceptional name of quality both for local supply
& export scenario, started with a moderate production capacity & will be going to toll
manufacturing. It was establishes in 1989. Its product range includes Dyed & Undyed
Fancy Yarn, Normal Wool Acrylic Yarn, Cotton Yarn, Polyester Yarn etc. Its product
used for Sweaters, Carpets, Ropes, Clothes, Fashion Textiles, Shirting, Suiting, Hosiery
& Home textile. It can offer products with good quality, competitive prices & timely
delivery. Its main business is yarn manufacturer and other area of business is importer of
fibre, manufacturer of garment, manufacturer of yarn.
Abed Textiles Processing Mills (P) Limited
The Abed Textiles Processing Mills Limited is one of the pioneers of textile products in
Bangladesh, which processes fabrics for print, finish and package products to garments.
Started its production since 1980 under the direct leadership of Mr. Hazi Abed Ali Mia,
Chairman & CEO of the company having the objective of ‘To obtain global recognition
as a supplier of world class product and be a market leader’. It has already obtained
National recognition in its performance. It is a rapidly growing manufacturer of Textiles
in the country. Within a very short time, it installed the ‘State- of -Art’ technology to its
vertically integrated manufacturing units, which have already drawn the attention of
world renowned retailers of textile products.
Bangladesh Dyeing and Finishing Industry Limited
Bangladesh Dyeing and Finishing Industry Limited is one of the pioneers of textile
products in Bangladesh. It was established in 1978 with a little objective of becoming
most important dyeing and finishing industry in both Bangladesh and abroad. Mission of
this company is striving to provide quality services in time, based on best practices for
the satisfaction of our Partners & Stakeholders. It foster friendly working environment
through open communication and mutual respect. It encourages initiative, innovation and
teamwork. Workers welfare and right is its premier focus. It is committed for cleaner and
greener environment. It is driven by its responsibility to the society as a Corporate Body.
Main products of this company are Jackets, Searafino, and Trousers etc.
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Chapter: 3
Organizational Profile
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3.1 BACKGROUND OF DDMCL
The Dacca Dying & Manufacturing Company Limited was incorporated on 31 st

December 1963 as a public limited Company with an authorized capital of TK.1.25 crore
divided into 12.50 lac shares of TK. 100 each. The company was nationalized in 1972
and again returned back to previous shareholders in 1977. The company is taken over by
the present sponsors on 8th August1995 by share transfer. Subsequently the authorized
capital was increased on July 26, 1996 to TK. 100 crore, comprising 10.00 crore ordinary
shares of TK. 10.00 each. As on 30 th June 2008 the paid-up capital of the company had
stood at TK. 23.00 crore comprising 2.30 crore ordinary shares of TK. 10.00 each that
includes 30.00 lac bonus shares of TK. 10.00 each. Then the company issued 50.00 lac
right shares of TK. 10.00 each amounting to TK. 5.00 core on 10 th July 2008 among its
existing shareholders. Finally the company raised paid-up capital through IPO; issued
1.70 crore ordinary shares of TK. 10.00 each amounting to TK. 17.00 crore on 30 th
September 2009. Considering the above events, the present paid-up capital of the
company stood at TK. 45.00 crore. The shares of the company were listed in October
2009 with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited
under “N” category.
The company is now operating under the companies’ act 1994. The registered office f the
company is situated at sharif Mansion, 56-57 Motijheel C\A (3 rd & 4th Floor), Dhaka-
1000 and the factory was located at QC Nagar, Pager, Tongi, Gazipur on 11 acres of land
and the total covered area is approximately 5,00,000 sft.
The Dacca dying is the pioneer and one of the successful venture in home textile sector of
the country and the recipient of the president Award for quality export in 1969-70, 1977-
78 and the prestigious international Award in 1980. The Dacca dying is an ISO 9001-
2000 certified company issued by Moody international. The scope of certificate is
manufacturer and exporter of home textile products i.e. bed linen, table linen and tarry
items. The Dacca dying also is an Oeko-Tex Standard 100 certified company.
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3.2 Institutional Overview
Registered Office : Sharif Mansion, 56-57, Motijheel C/A, Dhaka
Authorized Capital : Tk.1,000,000,000
Paid Up Capital : Tk. 450,000,000
Profit (As on 30.06.2010) : Tk. 54,705,195
Total Assets (As on Tk. 1,895,502,412

30.06.2010)
Total liabilities ( As on Tk.1,246,597,410

30.06.2010)
Total Human Resource : 1625
Number of Zonal Office : 2
Membership : Dhaka Stock Exchange & Chittagong Stock Exchange

Ltd.
Web Site : www.dacca-dyeing.com
Name : Dacca Dyeing & Manufacturing Co. Ltd.
Legal Status : Public Limited Company
Date of incorporation : 31st December 1963
3.3 OWNERSHIP
As on 30.06.2010, Sponsors & Directors occupy about 52.65% of shares. Local

individuals capture 39.90% of the total shares. Non-resident Bangladeshis and corporate
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bodies have 1.01% and 6.44 % of the total shares respectively. It is to be noted that no
percentage of the share has been occupied by the govt. and foreign individuals.
3.4 VISION
To maintain market leadership of home textile for providing products and integrated
services with special focus on creating value for buyers, shareholders, employees and
communities.
3.5 MISSION
To achieve corporate vision with special focus on creating values by:
 Partnering with buyers/client to understand and fulfill their needs through

a diverse range of products and services.
 Maximizing shareholder’s value through strong performance.

 Rewarding employees to effectively developing buyers/clients
relationship.
 Serving diligently our communities with integrity and pride.
3.6OBJECTIVES
 Consistently improve product line and provide service to buyers and
clients.
 Create sustainable economic value shareholders, buyers/clients.
 Provide motivating work, extensive opportunities for learning and carrier
development.
 Conduct business in a socially responsible manner
 Improve ethical and business standard of corporate governance.
 Childcare, social responsibility, environmental control
 Complete International standard of compliance as per ISO 9001:2000
 Develop appropriate leading risk assessment system.
 Develop a plan for recruitment, compensation, training and approaches.
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 Develop appropriate met, structure, systems, procedures and approaches.
 Develop scientific MIS to monitor company’s activities.
3.7 NATURE OF THE BUSINESS
The company owns and operates one composite textile plant at Tongi, Gazipur having
preparatory weaving, dyeing, finishing, and printing facilities producing high quality of
bed sheet, napkin, table cloth, shirting fabrics, towel bath linen, kitchen linen, and all
shorts of home textile products for marketing in Europe and North America. To some
extent the company’s products penetrate into the local market.
3.8 PRINCIPLE PRODUCTS
The company owns and operates one composite textile plant having preparatory,
weaving, dyeing, finishing and printing facilities producing high quality of following
products under two categories:
1) Fabrics
Bed Sheet, Bed Cover, Pillow Case, Table Cloth, Shirting Fabrics, Napkin, Bath Linen,
Kitchen Linen
2) Towels
Bath Towel, Kitchen Towel, Fancy Towel
About 80% of DDMCL’s total productions are exported and rest is for local corporate
and retail sales. So, the world famous overseas buyers are the main group of customers of
DDMCL. In the last year the major buyers of DDMCL were:
- M/S. Koppermann co. Germany
- Little Woods Shop Direct Home Shopping Ltd., UK
- IKEA Trading (Hong Kong) Limited
- Heritage Linen craft Inc, Canada
- Ellos AB, Sweden
- Dorma Group Ltd., UK
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Furthermore, the brand Dacca Dyeing is known in the country. The Company has major
corporate clients namely Pan Pacific Sonargaon Hotel, Sheraton Hotel, Radisson Water
Garden Hotel, Apollo Hospital, United Hospital, Square Hospital, and ICDDRB.
3.9ASSOCIATES, SUBSIDIARY/ RELATED HOLDING COMPANY
The Company does not have any subsidiary/related holding company except the
following associate company.
The Dacca Yearn Dyeing Limited: The Company is incorporated as private limited
company on 07.07.2006. The Company has not yet started its operation. However, The
View of the company is to set up a project of yarn dyeing of 5-ton capacity per day.
3.10 DISTRIBUTION OF PRODUCTS
The Company has 2 (two) outlets for retail sale of which one is situated on a rented place
at HBFC Building (Ground Floor), 22 Puranpalton, in Dhaka and another one is situated
on a own possession at Sanman Ocean City (Ground Floor), Shop no. 23/D, 997 CDA
Avenue, East Nasirabad in Chittagong. As on 30.06.2008 there exists 160 nos. of dealers
through out Bangladesh who are selling the company’s products. Sales to corporate
customers are delivered from factory premises. On the other hand exporting products are
distributed through Letter of credit or sale contract.
3.11 COMPETITIVE CONDITIONS IN THE BUSINESS
The following companies can be considered as competitors of the company:
 Altex Fabrics Limited

 Apex Weaving and Finishing Mills Ltd.
 Zaber and Zubair Fabrics Ltd.
 Saad Musa Fabrics Ltd.
3.12 SOURCES AND AVAILABILITY OF RAW MATERIALS AND THE NAMES
OF THE PRINCIPAL SUPPLIERS
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The main raw materials of the products are yarn/fabric and chemical, which are procured
from both locally & globally. The names of principal suppliers are as follows:
SI. Name & Address SI. Name & Address SI. Name & Address
NO. NO. NO.
1 Mahmud traders 4 Benevolent Textile services 7 A R Traders
43/1, Naya Palton Concord plaza 15/A Mymensingh
(1st Floor) (1st Floor) Bara Mogbazar, Road, Bangla Motor,
Dhaka-1000. Dhaka-1217. Dhaka.
2 UP Thread Industries 5 BASF, HR Bhaban 8 IMMCO
49, Motijheel (3rd Floor) (4th Floor) 143/1, Arambag
Room No. 408, Dhaka-1000 26/1, Kakrail Road, (1st Floor), Dhaka.
Dhaka-1000
3 Sheba chemical company 6 Chemitek Services 9 Allied Chemicals
22, Syed Aulad Hossain 331, Tongi Diverson Road 7, K. M. Das Lane
Lane, Dhaka-1000 Moghbazar, Dhaka-1217 (1st Floor)Tikatoly,
Dhaka-1203
3.13 SOURCES OF, REQUIREMENT FOR, POWER GAS AND WATER
Power : The company meets up its required power for production from own source of
three gas-based generators. The capacity of generators is as follows:
 1100 KVA
 1100 KVA
 600 KVA
Gas : Titas Gas Transmission and Distribution Co. Limited supplies required gas for
the operation of the company.
Water : Required water for operation of the company is supplied from its own source of
deep tube well.
Designation Name
Chairman Saifuddin Quader Chowdhury
Managing Director Giasuddin Quader Chowdhury
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Director Jamaluddin Quader Chowdhury
Mrs. Meena Parveen Quader Chowdhury
Mr. Sameer Quader Chowdhury
Mrs. Samihah Quader Chowdhury
Md. Amirul Islam FCS, FCA
(Nominated by BDBL)
Md. Nurul Haque
(Nominated by Agrany Bank Ltd)
Chairman
3.14 CORPORATE DIRECTORIES
Managing
BOARD OF DIRECTORS Director
Director
Executive Director Deputy General Manager

(Factory) (Head office / Finance &
Acc)
General Manager Assistance General

(Admin & Compliance) Manager
(Accounts)
Executive
G.M (Weaving) G.M (Dyeing) G.M (Marketing) G.M (Garments)
P.M D.G.M A.G.M A.G.M

(Weaving)
P.O P.M D.M P.M
3.15 ORGANGRAM OF DACCA DYEING & MANUFACTURING CO. LTD.
/Executive
Supervisor P.O Executive A.P.M
Line man Supervisor P.O
A.P.O
Operator Operator
Supervisor
Helper Asst.
Operator Line man
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Chapter: 4
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Management Practices of DDMCL
4.1 INTRODUCTION
Dhaka Dying and Manufacturing Company Limited, (DDMCL), is one of the oldest
and most reputed Home textile companies of Bangladesh. This company started its
journey in 1963 and since then it did not look back. During the last 45 years by dint of its
commitment to quality and wide range of innovative products, it has gained the
confidence of unlimited buyers both at home and abroad.
The company owns and operates one composite Textile plant at Tongi, Gazipur. It has
preparatory, weaving, dyeing, finishing and printing facilities producing high quality of
bed sheet, bed cover, napkin, table cloth, shirting fabrics, towels, bath linens, kitchen
linen and all sorts of home textile products for marketing in Europe and North America.
To some extent the company’s products penetrate into the local market as well. The
company is by far the largest supplier f linens to the major institution of Bangladesh like
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Pan Pacific Sonar gong Hotel, Dhaka Sheraton Hotel Radisson Water Garden Hotel,
Apollo Hospital, Square Hospital, United Hospital, ICDDRB etc.
There are six departments in this company. They include Admin department, Weaving
department, Dyeing department, Stitching Department, Maintenance Department, and
Marketing Department. The production units of the company are CAD & LAB, Weaving
Section, Dyeing and Finishing Section, Printing Section, and Stitching Section.
We prepared our report on the performance of Dacca Dyeing and manufacturing

Company Limited. We have acquired some pragmatic information about it. Here we
derive necessary information about the management practices carried out by it notably on
inventory handling, human resources handling, assembly line arrangement, accounting
system working, customization with standardization and cost control mechanism. We
have decided to focus on some major overall management practices of the production
units because the whole is better than small part in one hand and management practices
generally change as a whole to ensure fairness in other hand. With ask-and-answer
knowledge and personal observations we have found out the following management
practices going on our focus topic:
4.2 INVENTORY HANDLING
An inventory is a stock of materials used to satisfy customers’ demand or to support the

reduction of goods and services. It consists of raw materials, work in progress, and
finished goods. The Dacca Dyeing and manufacturing has been handling its inventories
in an effective and efficient way. Its management practices in regard to inventory
handling include:
 Row materials are purchased from both inside and out side the country based on
orders kept in a central store after matching with the invoices on the basis of
production units and making entry in the store ledgers. It is noted that materials
were only purchased from abroad in the past.
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 Each production unit keeps the records of their work in progress inventories and
report in a proper time period to the store.
 Finished goods are kept in a well-neat and well-protected warehouse in their

order-delivery sequence along with proper recording of in and out. And
Marketing Department is strong enough not to leave finished goods in the
warehouse.
The company has been maintaining perpetual inventory system. Although at first it was
manual, today the system is computerized. The store is to report to the accounts section
of Admin department for all types of inventories.
4.3 HUMAN RESOURCE HANDLING
Basically, human resources are the sum total of skills, abilities and aptitudes of the labor
force employed by the company or an organization. It is said that The Dacca Dyeing and
Manufacturing has more machines than employees. Notwithstanding, it employs as many
as 1625 employees. DDMCL is a fully compliant in regard to labor dealings since its
operations. The management practices of Dacca Dying and Manufacturing in the field of
human resources handling involve:
 Workers are paid monthly to create the feeling of job security
 Working hours are strictly enforced, 8 hours for each shift with half an hour
break.
 Entrance room into the plant is closely guarded to ensure safety.
 Work environment is employee-friendly involving adequate ventilation, lighting,

well space between machines, clean sanitation, first aid facility, clear do and don’t
do sign, and the like.
 Bonus, incentives and paid vacations are provided to motivate the employees.
 Indoor training facilities are provided to increase the skills of the present work
force and in turn their productivity.
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 Child labor is totally banned.
4.4 PRODUCTION UNIT ARRANGEMENT
Production unit is that segment of a manufacturing concern where the production related
activities are carried out. The Dacca Dyeing & Manufacturing has five production units.
Those production units are CAD & LAB, Weaving Section, Dyeing and Finishing
Section, Printing Section, and Stitching Section. All these units are operated with highly
sophisticated and state-of-the-art machinery and equipments and by adequately skilled
workers as well. All machinery and equipments as well as the production units are
arranged on the basis of line flow. But the uniqueness of this kind of arrangement is that
both customized and standardized products are being produced at comparatively least
cost of resources.
4.5 ACCOUNTING SYSTEM WORKING
The Dacca Dying Manufacturing Company Limited was incorporated on 31.12.1963 as a

public limited company. The company was nationalized in 1972 and again returned back
to previous shareholders in 1977. The company is taken over by the present sponsors on
8th August 1995 by share transfer. Since it is a public limited company, it has to keep the
records of its all transactions in journals and ledgers according to GAAP and prepare and
publish financial statements to fulfill company act requirement. Previously the
accounting system was manual but today it is a computerized one. Besides, all journals
ledgers and financial statements were prepared following British accounting system but
today all these are done following American accounting system. Above all, earlier
duplicates were prepared along with original documents for safety purpose and future use
where a separate computer has been maintained for the same purpose.
4.6 CUSTOMIZATION WITH STANDARDIZATION
Customization refers to satisfying the unique needs of each customer by changing service
or product design. On the other hand, standardization means to produce identical products
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or services to satisfy the needs of market as a whole. The Dacca Dying and
Manufacturing Company Limited is highly customized in case of its foreign markets. On
the contrary, the company is both customized and standardized in case of local market.
This dual manufacturing with a single process obviously helps the company to be a
pioneer in its business.
4.7 COST CONTROL MECHANISM
Cost control is the ways and means of minimizing cost of products or services. It can be
done by increasing productivity, increasing negotiation power, and reducing wastages
and shrinkages. There is no denying the fact that the Dacca Dying and manufacturing
Company Limited strives to minimize its cost to be competitive. But this is the only point
of discussion where I did receive serious reservation. But with my determination and
willingness to learn, I was able to identify some cost control mechanisms. They are-
 More capital intensive than labor intensive
 The arrangement of indoor training to increase productivity
 Outsourcing some of its products from other manufacturers within the country.
RISK FACTORS
Any investment always associates with risks. Among those risks some can be averted,
others are beyond control, which may causes of loss. Before making any investment
decision, Investors should take the risk factors into consideration. Major such factors are
described in brief as under:
(a) Interest rate risk
Interest/financial charges are paid against any kind of borrowed fund. Volatility in money
market and increased demand for loan presses on interest rate structure to be fixed in
high. Raising of interest rate increases the cost of fund for a company, which have
borrowed fund, and consequently profit is squeezed.
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Management view:
The management of the company is always aware of interest rate, which is concerned to
the cost of fund of the company. The management prefers in procuring of the long-term
fund with minimum fixed interest rate and the short-term fund with reasonable
competitive rate. On the other hand management of the company is emphasizing on
equity based financing.
(b) Exchange Rate Risk
The company is 80% export oriented. The products of the company are sold against
foreign currency and payments for raw material are also made in foreign currency. If
exchange rate is increased against local currency opportunity is created for getting more
revenue against sale in local currency. On the other hand if exchange rate goes down
margin is squeezed in local currency.
Management View:
The exchange rate of the country is traditionally witnessed of upward trends, which
makes ample opportunity of export. On the other hand, management perceives
revaluation of local currency i.e. down trend of exchange rate will have little impact on
profitability of the company.
(c) Industry Risk
Textile is the largest industrial sub-sector in Bangladesh. It contributes highest in the

country’s total export earnings, gives employment to over four million people meets the
second basic need for clothing of the country and contributes around 50% of the
industrial value addition. But, after phasing out of the MFA, the global textile trade is
now free from quota restriction. The phasing out of MFA has created a tough competitive
environment, where Bangladesh is now competing the countries like China, India
Pakistan, Indonesia, Thailand, Vietnam etc. countries that are very strong in production
of textile goods.
Management View:
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The textile industry has successfully coped with the post MFA competitive situation. The
force, which is helping the sector for its strong existence, is emergence of backward
linkage industry. Backward linkage industries are supporting for minimizing lead-time
and cost of production.
(d) Market and Technology related Risk
1) Market Risk:
Among the functional areas in a textile company, marketing exerts the sheer part of the
importance. Proper implementation of the marketing tools as well as identifying new
clients will ensure the success of the project. The continuous changes on preference in the
yarn market will force the company to catch the trend. For which the company has to
produce goods for international demand.
Management View:
The company sets its focus only export market through inland back-to-back letter of
credits. The management is trying to sell through direct contact with the customers in the
selected regions understanding their needs. The company also has established
relationship with potential buyers across the world and expects to find market for its
capacity despite competition prevailing in the sector. Further, the commercial banks and
financial institutions provide a thrust in the textile sectors as they provide credit facilities
to textile industries to acquire the yarn for their final products.
2) Technology related Risk
The production facilities of textile sectors are based on high-tech machineries. So any
invention of new and more cost effective technology may cause functional obsolescence
resulting in further substantial capital investment.
Management View:
The Dacca Dying and Manufacturing Company Limited are equipped with the most
modern technologies. As per previous experience no frequent technological change has
taken place in this industry so far. Furthermore according to feasibility study report as
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well as in practice this projects earning capacity is satisfactory and payback period is
short. So investment in the machineries will be recovered before any major technological
change becomes commercially effective. In addition the project is capable to absorb any
small technological changes.
(e) Potential or existing government regulation:
The company operates under companies act, taxation policy adopted by NBR, Security
and Exchange Commission (SEC)’s rules and rules adopted by other regulatory
organizations. Any abrupt changes of the policies formed by those bodies will impact the
business of the company adversely.
Management View:
Unless any adverse policies are taken, which may materially affect the industry as a
whole; the business of the company will not be affected. Government emphasizes on the
growth of textile industry to boost up the export of home textile goods. Yet the promoters
and the sponsors have endeavor to convince the policy makers for adopting favorable
terms& condition, which will eventually help the home textile manufacturers of
Bangladesh to compete with low cost locations in the global arena.
(f) Potential changes in global or international polices
The performance of the company may be affected by the political and economical
instability both in Bangladesh and worldwide. Any instance of political turmoil and
disturbance in the country may adversely affect the economy in general.
Management View:
The company can prosper in a situation of political instability and a congenial business
environment. Political turmoil and disturbance are bad for the economy and so also for
us.
g) Operational Risk
Page | 25
Shortage of power supply, labor unrest, unavailability or price increase of raw material,
natural calamities like flood, cyclone, earth quack etc. may disrupt the production of the
company and can adversely impact the profitability of the company.
Management View:
The compensation as well as benefit package will restrain the employees to leave their
assignment and go for any employee movement for higher benefit package. The project
of the company is situated at a high land where less record of flood. The factory building
has strong RCC foundation, RCC floor, pre-fabricated steel structure to withstand wind,
storm, rain etc. along with good drainage facility. The risks from these factors are also
covered through Insurance. The company is also facilitated to keep a rational reserve for
any future price escalation of the raw materials.
SWOT ANALYSIS OF DDMCL
The acronym for SWOT stands for Strength, Weakness, Opportunity, and Threat. The
SWOT analysis comprises of the Organization’s internal strength and weakness and
external opportunities and threats. SWOT analysis gives an organization an insight of
Environmental Scan
what they can do in future and how they Environmental
can Scan
compete with their existing competitors.
sssScan
sssScan
This tool is very important to identify the current position of the organization relative to
others, who are playing in the same field and also used in the strategic analysis of the
Internal Analysis External
organization. Internal Analysis Externalanalysis
analysis
Strengths Weaknesses Opportunities Threats

Strengths Weaknesses Opportunities Threats
Page | 26
SWOT
SWOTMATRIX
MATRIX
SWOT Analysis Framework.
SWOT ANALYSIS OF DDMCL: A POINT OF VIEW
I. Strength of DDMCL:
 High quality products with reasonable cost.
 Highly sophisticated machines with skilled operators.
 As a prime textile company, it has a large number of qualified and experienced

professionals.
 Structural set-up and business location is strategic.
 DDMCL asset position is quite satisfactory and its strength and opportunity to
sustain is challenging to the market.
 The strong relationship between the all departments to top level management.
II. Weakness of DDMCL:

 Normally in DDMCL mid and low-level personnel are less qualified and
experienced.
 Bureaucracy official hampered the daily internal workflow.
 Absence of teamwork because of interpersonal clash.

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 Management-employee relation is bad in some cases.
 Over dependence on imported raw materials.
III. Opportunity of DDMCL:
To make the company an outstanding one, a pragmatic business program is now under
implementation. The main features of the plan are as under:
 Creation of innovative products to fulfill ever growing demands.

 Expansion of new area of investment.
 Decreased product cost through economy of scale.
 Full computerization of company’s activities.
 Company has planed diversification in the produce high quality products that
have a good demand in international market.
IV. Threats of DDMCL:
 Future / potential competition from an already established market participant.

 A slump in the economy that could have a negative impact on the company.
 Credit Recovery systems are very weak.
 Introduction of certain related harder companies.
 Many new companies are coming with new product and new technology.
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Chapter: 5
Findings, Recommendations, and Conclusion
Page | 29
FINDINGS
There are some problems involved in the business dealings of DDMCL. Some of them
relate to DDMCL’s own institutional weaknesses and some of them relate to the clients.
From the above discussion we obtain the following findings:
 The DDMCL follows antique management system.
 Market and Financial Know-How is not sophisticated.
 Technological Know-How is also poor.
 There is uneven relationship between management and employees.
 On the whole, employees are not satisfied as they are poorly paid.
 Employee turn over rate is extremely high.
 Because of a slump in the economy over the past few years, the company fails to
gain desired target.
 There is improper adjustment between man and machine.
 The present financial condition is not strong enough to compete in the market.
 The overall organizational process is not environment friendly.
 The working condition in the factory is not conducive to the employees.
 Lack of on-time delivery is another shortcoming of DDMCL.
 Inconsistent profit margin hinders the overall organizational progress.
Page | 30
RECOMMENDATIONS
It is very difficult to give any recommendation about the operation of DDMCL, because
we are not an efficient appraiser. However, so far we understand, going through various
textile related books and journal we can give some suggestions that how to recover
existing problems of DDMCL.
 A plan at all levels of the organization, not just at the aggregate level should be
established.
 The process that would foster consistent and open communication should be
formed.
 Clear and measurable team and individuals goals should be settled down.
 Persons involved in the day to day operations should have more expertise and
practical knowledge.
 All departments should be well informed regarding their goal and objectives. It
is essential to execute company objective into individual target.
 Employees should be properly trained-up in order to cope up with changing
technologies.
 Harmonious and cordial relationship should be formed between employers and
employees.
 Poor working condition should be substituted by agreeable working condition.
 Technological Know-How should be learnt in a continuous basis.
 JIT (Just in time ) method should be incorporated in the delivery process
 The company should introduce more promotional activities.
 Existing management practices should be modernized.
Page | 31
CONCLUSION
Textile is the largest industrial sub-sector in Bangladesh. It contributes highest in the

country’s total export earnings, gives employment to over four million people, meets the
second basic need for clothing of the country and contributes around 50% of the
industrial value addition. There are approximately 36 textile mills operating in our
country. Amongst the largest textile mills, the Dacca Dyeing & Manufacturing Co. Ltd. is
one of them. It is one of the oldest and most reputed Home Textile Company of
Bangladesh. It is a public limited company. This company started its journey in 1963 and
since than it did not look back. During the last 45 years by dint of its commitment to
quality and wide range of innovative products, it has gained the confidence of unlimited
buyers both at home and abroad. We tried to our best to find out the actual scenario of
management systems of this reputed textile company.
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Page | 33

Evaluation of Management Practices of Textile Industries

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Evaluation of Management Practices

1.2 STATEMENT OF THE PROBLEM

The report mainly focused on the overall performance of DDMCL. As a management

1.3 OBJECTIVES OF THE STUDY

The objectives of the study are mentioned below:

1.5 SOURCES OF INFORMATION

1.6 METHODS OF DATA COLLECTION & INSTRUMENTS USED

1.7 LITERATURE REVIEW

1.8 LIMITATIONS OF THE STUDY

Scenario regarding the main topic of the report

Ali Hossain Textile Mills Private Limited

Abed Textiles Processing Mills (P) Limited

Bangladesh Dyeing and Finishing Industry Limited

The Dacca Dying & Manufacturing Company Limited was incorporated on 31 st

Registered Office : Sharif Mansion, 56-57, Motijheel C/A, Dhaka

Authorized Capital : Tk.1,000,000,000

Paid Up Capital : Tk. 450,000,000

Profit (As on 30.06.2010) : Tk. 54,705,195

Total Assets (As on Tk. 1,895,502,412

Total liabilities ( As on Tk.1,246,597,410

Total Human Resource : 1625

Number of Zonal Office : 2

Membership : Dhaka Stock Exchange & Chittagong Stock Exchange

Web Site : www.dacca-dyeing.com

Name : Dacca Dyeing & Manufacturing Co. Ltd.

Legal Status : Public Limited Company

Date of incorporation : 31st December 1963

As on 30.06.2010, Sponsors & Directors occupy about 52.65% of shares. Local

To achieve corporate vision with special focus on creating values by:

 Partnering with buyers/client to understand and fulfill their needs through

 Maximizing shareholder’s value through strong performance.

3.7 NATURE OF THE BUSINESS

3.8 PRINCIPLE PRODUCTS

3.9ASSOCIATES, SUBSIDIARY/ RELATED HOLDING COMPANY

3.10 DISTRIBUTION OF PRODUCTS

3.11 COMPETITIVE CONDITIONS IN THE BUSINESS

The following companies can be considered as competitors of the company:

 Altex Fabrics Limited

3.13 SOURCES OF, REQUIREMENT FOR, POWER GAS AND WATER

Executive Director Deputy General Manager

General Manager Assistance General

G.M (Weaving) G.M (Dyeing) G.M (Marketing) G.M (Garments)

P.M D.G.M A.G.M A.G.M

Line man Supervisor P.O

We prepared our report on the performance of Dacca Dyeing and manufacturing

4.2 INVENTORY HANDLING

An inventory is a stock of materials used to satisfy customers’ demand or to support the

 Finished goods are kept in a well-neat and well-protected warehouse in their

4.3 HUMAN RESOURCE HANDLING

 Workers are paid monthly to create the feeling of job security

 Entrance room into the plant is closely guarded to ensure safety.

 Work environment is employee-friendly involving adequate ventilation, lighting,

4.4 PRODUCTION UNIT ARRANGEMENT

4.5 ACCOUNTING SYSTEM WORKING

The Dacca Dying Manufacturing Company Limited was incorporated on 31.12.1963 as a

4.6 CUSTOMIZATION WITH STANDARDIZATION

4.7 COST CONTROL MECHANISM

 More capital intensive than labor intensive

 The arrangement of indoor training to increase productivity

(a) Interest rate risk

(b) Exchange Rate Risk

(c) Industry Risk

Textile is the largest industrial sub-sector in Bangladesh. It contributes highest in the