Table of Content

Topic Name Page No.

Acknowledgement 02

Executive Summery & Introduction 03

Company Profile & Objectives 4-6

Segmentation & Customers 7-9

Company Position & Competitors 9-10

SWOT analysis & CSR 11-12

Communication system 13

Company Organogram 14-18

Conclusion 19

Reference 19

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Acknowledgement:

At first we want to offer our millions of heartful thanks to Almighty Allah that we
are going to submit our “Industrial Report” on Square Textiles Ltd.And then
We also express our deep gratitude to those friends who want our best and help us
to find many important information.

Overall ,We are really very indebted to Abdul Matin uncle for his kind
information about the all departments of Square Textiles Ltd. from his department
at the Head office at Mascot Plaza.
&
Also many thanks to Engr Azadul Islam vai for his special help to entrance &
visiting permission to Square Textile Mill at Sreepur, Gazipur.
These report contains too much relevant information about Square Textiles Ltd.
specially for those two person I had mention above.

Finally we also give our special thanks to our honorable advisor & Course faculty
Musaddika Ahmed Renesa for her important advises & direction which were
greatly help us to produce this report.

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Executive Summary
The report contains the Square textiles profile and data about the markets, products, and
company history. The report also outlines financial highlights & product analyzing company’s
long-term solvency. The report provides relevant news, an analysis of and HR Management
activities. The latter are correlated with pertinent news and press releases, and annual and
quarterly forecasts are given by a variety of experts and market research firms. The future plans
of the company are discussed which fills a strong positive attitude. This report also contain
objectives, values, business strategies, Infrastructural Development, segmentation, recruitment,
strategic group map & SWOT analysis of squire textile.

The strategic Goals and Objectives of Square textile are to strive hard to optimize profit though
conduction and transparent business operations and to create more competitive in the internal
and external market.

The export sells increased by 19% in 2003 over the previous year.
Competition level is increasing both in local and abroad market. Competition will be stiffer after
2005 when multi fiber agreement will be phased out. Among the other foreign competitors Sri-
lanka , China,Pakistan and India are prominent.

Square is one of the biggest employees in Bangladesh. It has a personnel and administrative
department . The total numbers of employees are 1223. For the employees there are systematic in
house training in home and abroad .

The managing director, the CEO is the head of the executive management team . Below in there
are directors , executive directors and general manager. Under the direct super vision of the
general manager a number of departments are controlled.

Introduction
Square Textile is a subsidiary company of Square Group. The Company was incorporated as a
public limited company in the year of 1994. . The operation was started in 1997. It was enlisted
in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. Within a very short time of
span the company achieved some significance success. Square Textile receives Oeko-Tex
standard 100 and ISO-9002 certificates in the year 2000. Authorized capital of the company is tk.
1000 million. It’s paid- up capital is tk. 251.90 million. 1,223 employees are working in this

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organization. The business lines of Square Textiles Limited are manufacturing and marketing of
yarn. The Net Profit after Tax is 207.29 Million BDT of Square Textile in March 2011.

SQUARE Textile Mills Ltd. ( Gazipur )

1. Name of the Company : SQUARE Textile Mills Ltd.

2. Status: Private Ltd. Company
3. Type : 100% Export oriented Readymade Garments Industry
4. Year of establishment : 1997
5. year of starting production : 1998
6. Location : Gazipur
7. Address :
Factory: Sreepur, Gazipur, Bangladesh
Head Office : Mascot Plaza (11th – 12th ) Floor,
Plot-107/A, Sector-7, Uttara, Dhaka,Bangladesh.
8. Contact: Tel: +8802 8963227
Fax: +8802 7701231
9. Product Mix: 100% cotton,
100% polyester
a) Spun
b) Filament
Nylon
Chief Value Cotton (CVC)

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10. Production Capacity:
a) Knitting section
b) Dyeing Section
c) Garments Section
11. Project cost:
12. Different Departments :
13. Supporting department:
Polyester Cotton (PC)
Grey melange (10% Voscose 90% cotton)
20% Voscose 80% cotton
30% Viscose 99% cotton)
Ash melange (4% Viscose 96% cotton )
20Tons per day (Body fabric)
24,000 pcs (Collar & Cuff)
32Tons per day
17 million pieces per year
22 million $
a) KNITTING SECTION :
 Knitting
 Inspection
b) DYEING SECTION:
 Batch section
 Dye house
 Dyeing lab.
 Quality control
 Finishing
c) GARMENTS SECTION
 Maintenance section
 Sample
d) Maintenance Section
 Electrical
 Mechanical
e) Store Section
a) Personnel administration
b) HRD
c) Marketing
d) Procurement
e) Finance and accounting
f) Security department
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 a) Personnel administration
b) HRD
c) Marketing
d) Procurement
e) Finance and accounting
f) Security department
13. Total Manpower: 8400
a) Knitting section 250
b) Dyeing Section Dyeing-300
Finishing- 250

Objectives
To strive hard to optimize profit through conduction of transparent business operations within
the legal & Social framework with malice to none and justice for all in respective of gender
disparity, caste, creed or religion or region.

 To Increase productivity.
 To create more jobs with minimum investments.
 To be competitive in the internal as well as external markets.
 To maximize export earning with minimum imported in-puts.
 To reduce the income gap between top & bottom categories of employees.

Values
Square Textile Ltd is a private limited company belonging to a leading industrial group based in
Bangladesh. It offers a wide range of textile products. Being a well-known textile company in
the Asia pacific region Square Textile has always kept its promise of delivering value to its
customers. Over the past fourteen years, we have offered superior quality products to our
demanding and quality conscious customers across the globe. As a result we have developed an
unmatched product range and earned the reputation of being (considered) market leaders.

Business Strategy
The strategic Goals and Objectives of the Company are to strive hard to optimize profit though
conduction and transparent business operations and to create more competitive in the internal
and external market.

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Infrastructural Development
Lastly, it was seen from one of the case studies that Square Textile Ltd. is contributing in the
infrastructural development of the country also by investing in the development of ports and
construction of roads in rural areas. Definitely this kind of initiative will help in the overall
economy of the country.

Segmentation of Square Textile

The Global Segment

In RMG sector it is a huge market for global market. Rise of China as economic power is a issue
in textile sector, cause China has a great market of textile industry. Rising global trade and WTO
can open doors for doing trade globally in smooth ways. Intellectual property protection is a big
issue for doing business and keep business safe from competitors. Important political events like
war can put some impact on this sector, but overall clothing is very necessary for people and it’ll
never be abolished. On the other hand low cost suppliers can be potential for marketers.

Economic Segment
Size and change in gross domestic product, Per capita income levels, Inflation rate, Interest rates,
Foreign trade deficit or surplus, Unemployment and Rates of saving and investment all together
makes mass impact on textile industry. Per capita income level can increase of decrease the
purchase level and it can be good for the textile industry. But after all clothing’s can be consider
as a basic need of human being. That’s why it’ll never lose its value if the price and quality can
be in controlled.

Demographic Segment
Size of population and growth rate is pretty good in this industry. Age distribution of population
also related and can make good impact. Cause target market of this industry can be the any aged
group. Education levels and income distribution also mass up with life style. Income distribution
and Ethnic diversity can be potential for this industry. Geographic distribution may potential for
this industry.

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Political/Legal Forces
In Bangladesh, Political and legal forces are flexible in RMG sectors. Government policies
toward business is very necessary for any industry. Tax free export makes good opportunity for
investors. Business regulation: labor, environment is also flexible in Bangladesh. It makes low
cost for producing products in Bangladesh. On the other hand in developed countries
unemployment rate is very low, and for that reason they prefer import rather than production for
large level of labor cost. So it is also a great opportunity for Bangladesh develop in textile
industry.

Socio-Cultural Segment
Socio-cultural segment is also very important for any industry. It can control the purchase
behavior of the buyer group. Family relationships can put impact on purchase behavior of an
individual or group as a whole. Attitudes about work and living arrangements also fact for
purchase behavior. Lower living arrangement cannot be the high purchase condition. Developed
countries are the main importer of RGM products, and it is also the great opportunities for
Bangladesh. Styles of entertainment and changing life style also makes variation for purchasing
habits and creates new position for this sector. Attitudes toward health makes impact in both
ways positively and negatively in this sector. Companies need to rethink about health care as
well as they can also introduce new organic clothing in the potential market.

Technological Segment
Technologies make the world closer and easier for everybody. Telecommunications and Internet
is the biggest issue for better communication. It also reduce cost of communication and the list
time consuming process. On-line training also the latest concept of trade in globally. R&D can
be very rich with new and innovative product and process become easier to innovations.

Recruitment and Selection process in Square Textile

Square Textile recruit there through every organization seeks applicants for potential
employment. Selection refers to the process by which it attempts to identify applicants with the
necessary knowledge, skills, abilities and other characteristics that will help the company achieve
its goals, companies engaging in different strategies need different types and numbers of
employees. The strategy a company is pursuing will have a direct impact on the types of
employees that it seeks to recruit and selection.

Source of recruitment
There are two kinds of source SQUARE uses for recruitment .They are

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External source

1 Walk-ins and Write-ins:

2 Advertising

3 Employee referrals:

4 Internet

Internal source

1Job-posting programs

2 Departing Employees

Primary Markets
The target market for products produced in Square Textiles Ltd. and Square Spinning Ltd. is
Export Oriented Readymade Garments Industry. Readymade Garments exporter that is Knit
Fabrics, Sweater and Denim manufacturer. In Bangladesh Beximco Knitting, Grameen Knitwear,
Shasha Denim, Knit Concern etc are the customers. Target market for products produced in
Square Fashion Ltd. is Europe and U.S.A. Square Textiles does not direct sales in overseas
market but sometimes India, Pakistan & other countries take their yarn.

Major Customers (current)

Square Partners with Major Retailers & International Brand. ARROW, JCPENNEY, H&M,
DECREE are some of the recognized brands to whom square supply their products. They are the
major customers of square. Square also export their products to the renowned buyers of UK ,
USA and some of the European countries.

Company Current Position

The turnover increased by 14.50% during 2010 over 2009 when it rose by 27.19% over 2008.
However, The gross margin increased by 66.25% during the year 2010 as against increased by
15.18% during the previous year. As the operating expenditure increased by 3.06% over previous
year, the operating income increased by 125% only over the previous year. The EPS is increased
by 116.82% in the previous year. The net profit of Tk. 564,769,143 earned during the year 2010.

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Financial Statement March 31, 2011 Dec. 31,2010
Asset Per Share 51.16 48.54
Earnings Per Share 2.55 2.08
Net Operating Cash flow per Share 2.91 4.45

Market Share and Position

Square Textiles Ltd has approved cash dividend at the rate of 16pc and Stock Dividend (Bonus
Share) at the rate of 20pc to its shareholders for the year ended December 31, 2010.

The approval came at the 16th Annual General Meeting of the company held at the Factory
Premises, Shardaganj, Kashimpur, Gazipur Thursday.

The gross profit, net profit (Before Tax) and net profit (After Tax) for the year 2010 were Tk.
886.75 million, Tk.676.17 million and Tk. 564.76 million respectively.

Some Major Player of this Industry (Bangladesh)

 Bextex
 Malek Spinning
 Makson Spinning
 Square Textile
 Prime Textile
 Saiham Textile
 Delta Spinning
 Al-Haj Textile
 Rahim Textile
 Apex Spinning
 Safko Spinning

Competitor Analysis
Only in few years back textile sector in Bangladesh was left behind but current scenarios is
different. In recent years a mentionable figure of money has been invested in this industry.
Government is also encouraging this sector. Government is making some favorable policies and
minimizing the regulations, so that this sector can be grown up.

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Among the domestic companies Square is one of the leading one. The other potential
competitors are Padma Textiles, Shamim Textile etc. Competition is now severed after 2005, that
is, during the post multi fiber agreement period. World market is now Quota free at this current
time. So Bangladesh is now competing with countries like Srilanka, China, Pakistan, Vietnam
etc.

SWOT Analysis of Square Textile Ltd

Strength
Square Textiles Ltd. is a rapidly expanding Company. After starting its journey in 1998 it has
already doubled the net turnover by the year of 2006. All the units of the factory enjoy higher use
of machinery that is imported from Germany, Switzerland, Italy & Japan. As a result it can
maintain a smooth rate of production. Well trained human recourses are strengths of the
company. They train up their key personal within the country and in abroad. In this way the
company can get some competitive advantages over the competitions. The HRM practice is also
remarkable in Square Textiles Ltd.

Weakness
Square Textiles Ltd. is highly dependent on Cotton. And raw materials of cotton are becoming
expensive. Sometimes transaction time at Ports and transportation time create many problems
there. And the higher taxes, power and interest rates are also included in weaknesses of this
textile company.

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Opportunity
There are bright opportunities for the Company in the overseas market. If it can communicate
well and capture a significant market portion in the Europe and USA market, it can be the leader
in textiles fields. Growth rate of Domestic Textile Industry is increasing. Besides this, Product
development and Diversification are also happening to cater global needs.

Threats
For Square Textiles Ltd. Competition level is increasing both in local and abroad market. And
the competition will be stiffer among the other foreign competitors like Srilanka, China, Pakistan
and India are prominent. To balance between demand & supply and price & quality are also
included in threats this company.

Corporate social responsibility

Social responsibilities get importance at SQUARE Textile as they try relentlessly to contribute to
the social development. SQUARE Textile is one of the leading textile mills for producing cotton
yarn, house textile and long cloth and garments. As a leading textile in that locality, they are also
providing job opportunity for both skilled and fresh qualified people.
Their responsibility to the society encourages them to go beyond the sphere of common practices
in creating better working environment. All the workers use safety procedures for minimizing
health hazards. Saline water is also supplied to the workers is not summer season.

MEDICEL FACILITIES:
Sufficient medical support is always available with highly qualified doctors, nurses and
medicines. The company also provides transportation and housing facilities for some employees.
They also contribute donation to the local poor meritorious students for higher study. Their
employees are also given training facilities at home to enhance their skills and knowledge. Thus
by developing human health and responding towards their welfare SQUARE Textile is
contributing to the society.

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Internal & External process of the company

Organizational chart bearing vital importance for a company, often represented by a schematic
diagram. The organizational chart of SQUARE Textile Ltd. is given below,

Board of Directors
Chairman

Managing Director Manager

(Marketing &
Procurement)
Chief Executive Officer
 Market Research
(CEO)  Input
DGM GM Operation, QC Procurement
& Maintenance  Product Selling
HR & Administration
Manager
 Policy farming  Operation
&  Quality Control/ (R & D) Manager
implementation Assurance  Process
(Accounts &
 Recruitment  Maintenance Research
 Training & Staff  Product Finance)
 Inventory  General
Development Planning &
Developmen accounts & MIS
t  Payroll
 Share issues

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 Company Organogram:

CHIEF EXECTUTIVE OFFICER (CEO)

HEAD OF HEAD OF HEAD OF HEAD OF HEAD OF

PRODUCTION DESIGN & QUALITY BU HRD COMMERCIAL &
PRDUCT ASSURANCE ACCOUNTS
DEVELOPMEN
T

Organogram of Finance

HEAD OF ACCOUNTS & COMMERCIAL

ACCOUNTS DEPARTMENT ACCOUNTS DEPARTMENT

FAVP

(Preparation of financial IMPORT DIVISION IMPORT DIVISION

Statement & Group cheque Issue) (In-Charge & FAVP) (In-Charge & FAVP)

PRINCIPAL OFFIER

PRINCIPAL OFFICER OFFICER Sr OFFICER SPO OFFICER

(Salary & Wages) (Petty Cash &

Jr OFFICER

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 Organogram of Knitting

DGM/AGM

Manager/Asst. Manager Manager/Asst. Manager Manager/Asst. Manager

(Store) (Prodn & Plan) (Technical)

Sr. Executive / Sr. Fitter / Fitter

n
Executive Sr. Executive (Prod . Knitting Master/
Plan & Sample Executive (Flat)
Asst. Fitter

Executive/Jr. Executive
Sr. Fitter/
Jr. Executive Jr. Executive n
(Prod , plan & Sample Needle man
Fitter
(Yarn) (Grey Fabric)
Operator/ asst.
Operator Servicing man
Store Asst. Store Asst.
(Grey Fabric) Sr. Sample
(Yarn)
Supervisor Supervisor
Helper Servicing helper
Loader (Yarn)
Batch
Helper/Load Sr. Operator Sample asst
/ Operator

Asst. Operator

Production
Helper

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 Organogram 0f Dyeing

DGM/AGM

Manager

Planning Production Store Washing

Asst. Manager Asst. Manager Asst. Manager Asst. Manager

Sr. Executive/ Sr. Executive/ Sr. Executive/ Sr. Executive/

Executive Executive Executive Executive

Jr. Executive Jr. Executive Jr. Executive Jr. Executive

Sr. Supervisor / Sr. Supervisor / Sr. Supervisor / Sr. Supervisor /

Supervisor Supervisor Supervisor Supervisor

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 Organogram of QAD & Finishing

DGM/AGM

Manager/Asst Manager

Sr. Executive/Executive

Finishing Finished fabric store QAD

Jr. Executive Jr. Executive

QAD (Knitting) QAD (Dyeing)

Jr. Supervisor/ Jr. Supervisor/

Executive Executive Jr. Executive
Online Offline
Sr. Operator / Store Asst.
Operator QAD Offline Sr. Supervisor Sr. Supervisor
Loader
Asst Operator Sr. Supervisor Sr. Supervisor Supervisor
Supervisor

Prodn Helper Supervisor Supervisor

QC

QC QC
AQC

AQC
AQC

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Organogram of Maintenance

Manager

Mechanical engineer Electrical engineer

Electrician
Mechanical Feeder Welder

Recent changes in company

Bangladesh’s textile industry, which includes knitwear and ready-made garments along with
specialized textile products, is the nation’s number one export earner, accounting for 80% of
Bangladesh’s exports of $15.56 billion in 2009. Bangladesh is 3rd in world textile exports behind
Turkey, another low volume exporter, and China which exported $120.1 billion worth of textiles
in 2009. The industry employs nearly 3.5 million workers. Current exports have doubled since
2004. Wages in Bangladesh’s textile industry were the lowest in the world as of 2010. The
country was considered the most formidable rival to China where wages were rapidly rising and
currency was appreciating.

After massive labor unrest in 2006 the government formed a Minimum Wage Board including
business and worker representatives which in 2006 set a minimum wage equivalent to 1,662.50
taka, $24 a month, up from Tk950. In 2010, following widespread labor protests involving
100,000 workers in June, 2010, a controversial proposal was being considered by the Board
which would raise the monthly minimum to the equivalent of $50 a month, still far below worker
demands of 5,000 taka, $72, for entry level wages, but unacceptably high according to textile
manufacturers who are asking for a wage below $30. On July 28, 2010 it was announced that the
minimum entry level wage would be increased to 3,000 taka, about $43.

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The government also seems to believe some change is necessary. On September 21, 2006 then
the government declared that on textile firms to ensure the safety of workers by complying with
international labor law at a speech inaugurating the Bangladesh Apparel & Textile Exposition
(BATEXPO). So it is in one of the best sector in BD.

Conclusion
The flourishment of any industry requires combined efforts and co-operation from several
parties. Social , political and macroeconomic environment play pivotal role in this regard .
Though Square Textile is a newly Ventured Company in the respective sector, its growth and
expansion is praiseworthy. Its contributing the country and serving the nation in different ways.
If it can up hold its much toward advancement, it will be able to set a role model in our country.

References
Md. Abdul Matin Azadul Islam
Senior Executive (Accounts) Executive Engineer
Square Textiles Ltd. Square Spinnings & Fashions Ltd.
Head Office, Mascot Plaza Uttara. Gazipur, Dhaka.
Cell : Cell : 01713274416
Email: azad_squaregroup@yahoo.com

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