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Chapter: 3

About the company

OUR POLICY
The company's policy is to provide world class quality yarn at a
competitive price to cater to the domestic as well as international
markets and also to build and maintain long term relationship with
customers by offering good service.
COMPANY BELIEVES
The company believes in constant upgrading of technology by
replacement if old equipment with modern equipment and adoption of
new and scientific management techniques from time to time, which in
return increases the productivity and helps in growing the exports. The
company believes in maintaining the established high reputation in the
industry, customer and among banks and financial institutions. A
strong presence has been established by delivering world class quality
products, the sound marketing network backed by a team of
professionals has further added to the company's performance.
OUR EXCELLENCE

entering customer feedback and suggestion


regular replacement of old machineries with new ones
developing innovative and consumer friendly products on a
regular basis
our ability to cater to domestic and international markets such as
Vietnam, Cambodia, Turkey, Europe, Iran etc
Highly renowned clients like Marks & Spencer, GILDAN, Ralph
Lauren, Tommy Hilfiger and others

MANAGEMENT

The functions in the company are managed by team of professional


members under the advice of the board of directors. Operations are
regularly monitored and controlled by the technical team with the
supporting services from outside agencies as well as our customers
themselves help to have continuous development in line of best to the
industry.
LEGACY
When you inherit such a prized heritage, you have to work that much
harder to make sure that you leave behind another legacy.
"Inheritance is never an easier option"
At Saiham Group, we believe that evolution is the only constant. It is
what makes us completely revolutionize our lines of business, products
and more importantly our thoughts. Our growth is defined by being
open to break away from our comfort zone and tread on new paths.
From spinning to manufacturing garments, we have also diversified
into real estate to keep ourselves aligned with our policy of being a
dynamic business group.

Saiham Textile Mills Ltd is promoted by Saiham Group and its family members, who have been
in the textile business over a period of time. We surpassed 35 years milestone with the
knowledge and experience of the promoters.
The company has two manufacturing units located at Saiham Nagar, Habiganj. Both units are
well connected and are only three hours away from Dhaka. Presently, the company has a
capacity of 57216 spindles producing 109,183 lbs daily of yarn and equipped with the latest
state of art machinery.
Saiham Textile is an ISO 9001 certified organization and is managed by a highly qualified team
of professionals. The company is well established in the domestic and export market with a
wide product range from 100% polyester and viscose spun yarns which are used for knitting.
Our management team at Saiham Textile brings performance and positive results. They are the
seasoned veterans of the sales and yarn industry, bringing unparalleled, unrivaled experience
to our efforts.

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 itll 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 clothings can be consider as a basic need of human being. Thats why itll 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.

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. Online training also the latest conceopt 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
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.
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,
Sardaganj, 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.
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 multifiber
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.

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.