Report on Business Plan of

Golden Jute Bangladesh

Submitted by
 Shak Maruf Billah (191010068) [L]
 Mir Shakur Ahmed (191010063)
 Md. Zamirul Alam Khan Raz (191010074)
 Muid Hossain Fahim (191010077)
 Md. Nafis Rahman (191010075)

Submitted to
 Moushumi Haque (Lecturer, Notre Dame University Bangladesh)

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 EXECUTIVE SUMMARY

Jute diversified products industry of Bangladesh is an informal, unstructured and niche market
compared to the competitive countries like India. Having the second position among jute
production countries, the country’s JDP industry is under privileged. The sector contributes
about 5% to total foreign exchange earnings and 4% to country’s GDP. Bangladesh produces the
world's best quality jute, and for many years jute had been the largest contributor to the
country’s export earnings. However, in the 1980s/90s the emergence of cheaper synthetic
substitutes caused the world market for jute to shrink. Domestic demand also declined because
of the inefficiency of state-owned jute mills & the absence of government policies to encourage
domestic consumption. In recent years, increasing concern with environmental issues and
volatile price of petroleum based raw materials have opened up new market opportunities for
jute products; consequently Bangladesh jute sector has seen a slight revival.

In spite of having low shares in JDP sales revenue, some diversified jute products are recently
coming forth likely to be potentially high selling items in the near future. Those are jute fiber
reinforced sheet, jute geo-textile such as nursery/plantation pot etc.

Constraints in this subsector are Lack of availability in smaller unit of inputs causes to lower
quality JDP which is not competent enough to international market; Insufficient supply of large
volume inputs, Higher input costs leading to high cost of JDP; Lack of knowledge on product
development techniques leads to manufacturing limited variation of JDP products;
Unavailability of skilled labor in JDP industry results in low quality products and leads to lower
market price; Unavailability of dedicated training service providers in JDP industry results in
unskilled workers and entrepreneurs to run their business efficiently; Infrequent orders for JDP
products results in high cost for retaining workers round the year; JDP MSMEs get order
sporadically as they have no established forward market from which they can get product order
round the year.

The study identified opportunities to promote sub-contracting between large buyers and
MSMEs. Few enterprises are practicing outsourcing especially when they have large product
order. MSMEs are interested to be part of sub-contracting with large JDP buyers or exporters.
The present out-sourcing model is informal and unstructured. So, there is opportunity to
promote sustainable sub-contracting model between large buyers and MSMEs.

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 Current Market Situation
The contribution of jute sector to economy of Bangladesh is enormous. This
sector has been generating employment to a large segment of total population of
the country, directly and indirectly over the years. Bangladesh produces 5.5-6.0
million (55-60 lakh) bales of raw jute every year of which some 3.2 million (32
lakh) bales are used in the existing 148 jute mills. The country exports 2.4 million
(24 lakh) bales of jute. Some 1,60,000 employees of the country are directly
employed in the jute mills. The total demand for jute goods in the international
market is 0.75 million (7.50 lakh) tonnes. Bangladesh exports 0.46 million (4.60
lakh) tonnes of jute goods while India enjoys a share of 0.285 million (2.85 lakh)
tonnes in the international market. Dhaka controls 62 per cent share of the total
jute goods market of the world and earn Taka 20.125 billion (2012.5 crore) by
exporting jute goods. Bangladesh is the lone exporter of raw jute. In recent year
the country exported 2.4 million (24 lakh) bales of raw jute valued at Taka 9.77
million (977 crore). In total Bangladesh fetched Taka 29.395 billion (2939.5 crore)
by exporting raw jute and jute goods. (Yusuf, 2007)

As jute industry is economically an important industry of Bangladesh, any

problem this industry faces should be studied carefully and should be removed as
early as possible. At present, the industry faces some serious problem both in
public and in private sector. Some of these problems are; ever-increasing need of
subsidies and rise in cost of production, share increased in idle looms, managerial
vacuum, lack of effective operating policies, alleged gross mismanagement in
procurement of raw jute, shortage of varied nature of orders received from the
buyer, imbalance, obsolete and worn out equipment’s and some other problems
like these. All these problems have converted this industry into a heavily loosing
industry and hence needed generous subsidies from government. But it is being
observed that recently different organizations organizing seminars, symposium
etc. and publishing various articles in newspaper regarding present ailing situation
on jute industries. All are concerned how to overcome this situation and salvage
the jute industry (Yusuf, 2007). So the authors of this paper make a study on the
jute industry of Bangladesh.

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 Description of Business

Name of business : Golden Jute Bangladesh

Nature of Business : Manufacturing and Trending
Sector/Industry : Partnership
Corporate office : Savar, Dhaka
Factory office : Faridpur, Dhaka

Strength
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1. Eco-friendly products.
2. Products with exclusive quality and cheapest price.
3. Skilled man power with low cost.
4. Enough raw materials and good communication facilities.

Opportunity

1. Providing more greener solution.

2. Increasing market demand.

Weakness

1. Capital constraint.
2. Less famous
3. Jute products are not sustainable like plastic or polypropylene
products.

Threat

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 1. Abundant supply of plastic or polypropylene products.
2. Political instability.
3. Huge competition.

Objectives

 To create pollution free environment by manufacturing and

marketing eco- friendly jutes and products.
 Making low cost fashionable jute products mainly, jute bags, jute
handicrafts, and jute apparels.
 To make jute products as a part of our daily living.
 Creating awareness about jute products.
 To earn profit.

Mission and Vision

The current mission of is to manufacture and marketing eco-friendly

jutes products in the market of Bangladesh. The key vision is to gain
market leadership in high value added jute products in Bangladesh as
well as to export high quality jute products in USA and Europe.

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 Advantages of Jute Products

1. Jute products are made from 100% organic materials not using
any harmful artificial chemicals.
2. Jute products are not able to decay naturally overtime causing no
damage to the environment.
3. The production of polypropylene fiber, the main synthetic
competitor of jute, requires 10-20 times more energy
consumption than does the production of jute.

Disadvantages of Jute Products

1. The crease resistance of jute is very low.

2. Create shade effect and becomes yellowish if sunlight is used.
3. If jute is wetted it lose its strength.
4. Jutes products are not sustainable like plastic or polypropylene
products.

Price of the Products

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 Serial Product categories Size Unit price
(BDT)
1 Promotional bags H : 36cm 150

W : 13cm

2 Cane Handle Jute Bag H : 40 cm 250

W : 35 cm

3 Bamboo handle jute bag H : 30 cm 100

W : 20 cm

4 Multi-Color jute bag H : 40 cm 100

W : 40 cm

5 Jute shopping bag Normal 150

6 Exclusive sling bags Normal 200

7 Jute table mats Normal 100

8 Jute carpets H : 10 m 250

W : 12 m

9 Jute wallet Normal 100

10 Jute footwear Normal 150

11 Jute nags for ladies Normal 300

12 Jute school/college bags Normal 200

Selling forecasting

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year Projected Sales
Description of Quantity(AG) Unit Total Taka
products(combined
Price(AVG)

2016 Eco friendly jute 100000 150/- 30000000/-

products

2017 Eco friendly jute 150000 150/- 37500000/-

products

2018 Eco friendly jute 200000 150/- 30000000/-

products

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 Marketing Stratigy

Requirement of raw materials

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 Fine jute fabric
 Cane handle
 Bamboo handle
 Draw stick handle
 Velcro
 Zipper
 Others

Organization and
Management plan

Chairman of the management board

CFO CPO COO

Business Social Responsibility

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 Build an Orphanage for orphan.
 Social program arrangement (i.e 1st Boishakh, 1st Falgun etc.)
 Eid and other religion program.
 Build hostel foe women worker.
 Tree plantation.
 Indoor games arrangements.
 Annual compliance.
 Provide compliance facility.

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