A Report on Factory Visit

of

NIAGARATEXTILESLTD

Submitted To: Jb. Rezaul Karim, VP & Faculty Member, IBTRA

Submitted By: Group-4, Foundation Course For the probationary
Officers, (Phase-II)
Group Members:
Sl No. ID Name Branch
1 217922 Md. Hafiz Uddin Dhanmondi
2 218002 Md. Nahid Shah Masum (Group Leader) Faridpur
3 217996 Tanbir Hossain Farmgate
4 217940 Md. Nurul Kaisar Badda
5 217984 Moudud Ahmed Chapainawabganj
6 217912 Md. Khorshed Alam Chandanaish
7 217980 Nayem Uddin Eidgaon
8 217958 Saidul Islam Bank Road

Date of Submission: 21.05.2023

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 Table of Contents

Chapters Contents Page No

1 Introduction 3
2 Overview of the firm 4
3 Operational Process 6
4 Financial Issues & commercial Structure 13
5 Marketing Structure 14
6 SWOT Analysis 16
7 Future Prospects 18
8 Observations 19
9 Findings and Learning 20
10 Conclusion 21

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 Chapter-1: Introduction

1.1 Background:

In the "Foundation Training Course for Probationary Officer (Phase-II)", IBTRA arranges an
industrial factory visit to expand the practical knowledge by implementing theoretical knowledge
through factory visiting program. By doing this, a banker can identify, assess, a potential
investment client. We have visited NIAGARA Textiles Ltd., one of our valuable corporate client
with VIP Road Branch, on 13th May 2023 with the leadership of our course coordinator Jb.
Mohammad Rezaul Karim, VP and Faculty Member, IBTRA and Jb. Abdul Hamid Miah, SVP
and Faculty Member, IBTRA. NIAGARA stands a prominent name in Textiles industry. This
visit will increase our knowledge and expertise in appraising corporate finance projects and this
experience will surely help us in our future career.

1.2 Objectives of the visit:

This factory visit has the following objectives:

 To experience the real investment client.

 To get a detailed knowledge of a corporate project visit.
 To fulfill the requirement of training Program.

1.3 Methodology of the study:

Primary Data: Primary data collected from face to face conversation during physical visit.

Secondary Data: Secondary data collected from company website (https://www.niagaratex.com)

and the presentation given by the company officials.

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 Chapter-2: Overview of the firm

2.1 Overview of the firm:

Corporate Name Niagara Textiles Limited
Type of ownership Private Limited Company
Nature of the Project 100% Export Oriented Company
Number of Owners 04
Motto Niagara is committed for excellence
Total Area 314,454 (Sqf.)
Workforce 4500 (Approx.)
Membership BGMEA – Registration No.: 4570
BKMEA – Membership no: 594-A/2001
Year of the establishment 2000
Year of the Operation Started 2001
Bankers Islami Bank Bangladesh Ltd.
Shahjalal Islami Bank Ltd.
Bank AL Falah Ltd.
Dutch Bangla Bank Ltd.
Wings Knitting
Dyeing
Printing
Garments
- Cutting
- Sewing
- Finishing
Mission Providing Excellent Quality with competitive price with
ensuring Environmental issues and Customers Satisfaction.
Vission Niagara is committed to excellence.
Objective Customer’s Satisfaction
Responsibility Maintain Sustainability
Awards and Achievements One of the best compliant factories by the Ministry of Labor
and Employment of Bangladesh Govt. and Bangladesh
Knitwear Manufacturers and Exporters Association
(BKMEA) for fulfilling major compliance issues.
Certifications WRAP, BSCI, SEDEX, GOTS, OCS 100, OCS Blended,
BCI and Oekotex 100
Factory Address Niagara Textiles Ltd.
Chandra
Kaliakair PS,
Gazipur-1750, Bangladesh
Head Office Niagara Textiles Ltd.
27, Bijoy Nagar, Suite No. C-1 (1st Floor)
Dhaka-1000, Bangladesh

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2.2 Input Output details:
Input:

Niagara Textiles Ltd is a composite factory. It has various types of inputs. Yarn is the very
beginning input but based on different technical units it has different types of inputs i,e yarn for
Knitting; Color, chemicals, fabrics for dyeing; Colorful fabrics for Cutting. Its ultimate final
output is ready made garments.

Output:

T-shirt, polo shirt and different types of Men’s, lady’s & kid’s wear in varies kinds of knit fabric.

2.3 Management Structure:

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 Chapter-3: Operational Process

Niagara Textiles Ltd. produces best quality textile products at an optimum price through efficient
utilization of available resources. They manufacture and export high quality textile products at an
affordable price produced in an environment-friendly process and practice high level of integrity
and fairness in dealing with our stakeholders

3.1 Technical Units:

Niagara Textiles Ltd. Emphasized that quality is the shared responsibility of its entire staff. The
company ensures that all personnel are familiar with, and work to the company's work practices
as well in conformity with the legal and other obligatory requirements and are determined to
comply with the requirements of Buyer's expectation. Niagara Textiles Limited has two technical
divisions comprising some subdivision headed by those. These are shown in graphically.

Merchandising

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3.2 Production Process
Niagara Textiles Limited has a structured production plan and control system. Its basic working
procedure is as follows.

 Taking order form marketing division

 Analyzing the orders
 Knitting the fabric
 Dyeing the fabric
 Cutting the fabric
 Sewing the fabric
 Finishing the fabric

It is only a basic procedure. It may change according to the type of order.

Niagra Textile Limited is Garments Factory with area of total 2,65,000 Sft. The detail area
description of the factory is following:

Textiles Division Area (Smt) Area (Sft)

Knitting 1394 Smt 15,000 Sft
Dying 3716 Smt 40,000 Sft
Total 5110 Smt 55,000 Sft

Garments Division Area (Smt) Area (Sft)

Sewing 5574 Smt 67000 Sft
Cutting 1858 Smt 20000 Sft
Finishing 1858 Smt 20000 Sft
Sample 186 Smt 2000 Sft
Office 465 Smt 5000 Sft
Store 604 Smt 6500 Sft
Total 10454 Smt 1,20,500 Sft

Area (Smt) Area (Sft)

Bonded Warehouse 3716 (Smt) 40,000 Sft
Free Space 2787 (Smt) 30,000 Sft
Gross Total 22067 (Smt) 2,45,000 Sft

New Addition in Dyeing 20,000 Sft

Finishing
Grand Total 2,65,000 Sft

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3.2.1 Knitting:

The process sequences are listed below

3.2.2 Dyeing

The process sequences are listed below.

Fabric Scouring & Dewatering/

receiving Bleaching Squeezing

Fabric Drying &

Dyeing
inspection Compacting

Fixing After
Final
Batching treatment &
Inspection
Softening

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3.2.3 Cutting

The process of cutting is as follows:

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3.2.4 Sewing

The sewing process is as follows:

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3.2.5 Finishing

The finishing process is as follows:

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3.2.6 Merchandising

The merchandising process is as follows.

Negotiation &
Final Inspection
collect order

Production
Costing Banking
Monitoring
Merchandiser

Sample making Line Balancing Shipment

Get approval & Collect Material

order place for production

3.3. Production Capacity:

Section Capacity

Textile Division 25,000 kg fabric / day

Knitting 12,000 kg / day

Dyeing & Finishing 25,000 kg / day

Garment Division 60,000 pcs /day

Cutting 65,000 pcs/ day

Printing Division 50,000 pcs/ day (One color basic rubber print items)

Sewing 60,000 pcs/ day (based on basic items)

Finishing 60,000 pcs /day

Production Lead Time 45 - 90 Days

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 Chapter-4:Financial Issues & commercial Structure
4.1 Owner’s equity:
Owner's equity refers to the residual claim on assets that remain after all liabilities have been
settled. It is the amount of money that belongs to the owners or shareholders of a business. As
per information provided to us we came to know that owner’s equity of Niagara Textile Ltd is
approximately Tk. 800 Crore.

4.2 Bank Finance:

Bank Finance means a syndicated loan to be extended by the banks in a particular project. For
helping the Niagara Textiles Mills ltd, IBBL came forward by contributing 200 crore in its
various long term and short term investment mode.

a) HPSM: Basically in this mode Bank provide long term investment to purchase capita.
Machinery to run smooth production of the project. Bank invested almost 100 crore in
capital machinery.
b) Back to Back L/C: Back to Back L/C may be local or foreign. Bank allows this facility
against the master work order; it covers almost 60% of work order. IBBL provided
almost 50 crore back to back facility to Naigara Textile mills ltd.
c) Bai-salam: Actually bank invests in this mode to provide salary, electricity.

4.3 Term Finance

A term loan provides borrowers with a lump sum of cash upfront in exchange for specific
borrowing terms. Term loans are normally meant for established small businesses with sound
financial statements. As per information provided to us we came to know that term finance of
Niagara Textile Ltd is approximately Tk. 150 Crore.

Working capital
Working capital is a measure of a company’s liquidity and short-term financial health. As per
information provided to us we came to know that working capital of Niagara Textile Ltd is
approximately Tk. 100 Crore.

Particulars Amount (BDT)

Owner’s equity 800 Crore. (approx.)
Bank Finance Islami Bank Bangladesh Limited -200 crore.
Shahjalal Islami Bank Limited-50 Crore.
Dutch-Bangla Bank Limited-90 Crore.
Bank Al-Falah- 60 Crore.
Term Finance 150 Crore (approx.)
Working capital 100 Crore (approx.)

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 Chapter-5:Marketing Structure
5.1 Major Buyers
As Niagara Textiles Ltd is 100% export oriented composite textile product manufacturing
companies in Bangladesh; it has some buying destination in the world. Major Buyer of Niagara
Textiles Limited is:

 Next
 H&M
 Kappa
 Fila
 Demix
 4F
 Okaidi
 Renner
 Target
 Big Star
 New Wave
 Firetrap
 Donnay
 Lazy Jacks
 Sears

5.2 Major Suppliers

Major suppliers of yarn for knitting of Niagara Textiles Limited are as follows

 Sinha rotor Spinning Ltd.  Shohagpur Textile

 Arif textile  Jamuna Spinning
 HK Spinning  Shamim Spinning
 Padma Textile  Amber Textile
 Prime Textile  Yasmeen spinning
 Kader Synthetic  Square Textile

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5.3 Exporting countries
Niagara Textiles Limited exports their products in the following countries.

 European Union
 Japan
 Canada
 Middle East
 United States of America
5.4 Marketing Strategy
Marketing Strategy is very much crucial factors to sale the products to the buyers. If the
marketing strategy is not so developed, it will be very hard to reach the goal. In the case of
garments marketing the dealings with the buyer is a very important factor.

In Niagra Textile Ltd. mainly senior marketing officers, merchandiser and high officials deal
with the buyer. There are some fixed buyer of the industry . H&M is the mother buyer of Niagra.
The buyers give the order continuously all over the year. The senior marketing officers &
marchendisers communicate with the buying house to collect the orders. By both side
understatnding the rate & quantity and quality are fixed.

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 Chapter-6: SWOT Analysis

SWOT analysis is a framework for identifying and analyzing an organization's strengths,

weaknesses, opportunities and threats. The primary goal of SWOT analysis is to increase
awareness of the factors that go into making a business decision or establishing a business
strategy. To do this, SWOT analyzes the internal and external environment and the factors that
can impact the viability of a decision. Now we would like to demonstrate the SWOT Analysis of
Niagara Textiles Limited.

6.1 Strengths of Niagara Textiles Limited:

1. The Capital weightage of the company is sound.

2. By low labor cost, they can produce products and the labor is available always.
3. Their production system is automated system with modern machineries with updated
technologies for quality based production.
4. Their position in a convenient place that’s why they have low supply costs.
5. Eco friendly established infrastructure.
6. Management Level is skilled for the competitive market and they also have skilled &
dedicated manpower.
7. In house Printing facility & own carrying facility.
8. Training & development wing works for the development of working skills and dedication.

6.2 Weaknesses of Niagara Textiles Limited:

1. Niagara depends on external factors for demand & supply like import raw materials &
export the finished goods.
2. Their products diversification is limited.
3. Market is very competitive in this sector.
4. Their compliance and safety issues are not fully maintained like medical services, fully
eco-friendly, ETP plant, working area etc.
5. There is no existence of labor union where the workers may express their voice for legal
rights.
6. Located in long distance from Chittagong Sea Port from where the maximum shipments
of the company made from.

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6.3 Opportunities of Niagara Textiles Limited:

1. They may be able to create market in China & USA where market is spread.
2. As composite factory the backward linkage is strong here.
3. Niagara textile is capable to increase production level as per order and demand.
4. The possibility of growing the market abroad with quality products with competitive
prices.
5. They have opportunities of diversifying the productions.
6. Quick mitigation of the funding requirement.
7. Business Expansion in African Sub Continent.

6.4 Threats of Niagara Textiles Limited:

1. In 2026 we will complete the quota of LDC (Least Developed Country) what will
make absence of export advantages.
2. Day by day the competition is going to be intense.
3. World Economic recession for Russia-Ukraine war and before COVID-19.
4. Political uncertainty in national and abroad.
5. Challenges for growing world with changeable fashion trade.
6. Gradual Increasing of the Bargaining Power of the Buyers.
7. Gradual Increasing of the Bargaining Power of the Suppliers.

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 Chapter-7: Future Prospects

We have given some future prospects of the company on the basis of our personal observations,
data analysis as well as considering the global demand and Supply Scenario of the RMG Market.
Some of the future prospects of the company are as follows:

 As the demand for export quality RMG items is increasing within the home country too,
the company may consider establishing a separate production line for supplying nearly
export quality RMG products in the local market with a view to maintain a stable cash
flow all-round the year.

 The company is likely to hire more people and technical staffs if it decides to expand its
production capacity by setting up more production units and lines to positively respond to
the needs and demands of the foreign buyers as in this way the company is likely to
generate more employment in future.

 The company will likely to draw the attention of more foreign buyers as they are quite
serious about the compliance and welfare issues and as the company is a fully compliant
and employee welfare oriented company, they will likely to get more orders from the
buyers of different foreign countries.

 There is a possibility that the company might has to expand its total operational area to
setup new machineries and production lines with a view to positively respond to the
excess and diversified demand for the RMG products from the part of foreign buyers.

 The company is likely to hire more people and technical staffs if it decides to expand its
production capacity by setting up more production units and lines to positively respond to
the needs and demands of the foreign buyers as in this way the company is likely to
generate more employment in future.

 The company is likely to enrich its existing LAB facility by introducing new technology
quality checking machineries to test the quality of various export related items within a
short time and thus reduce the lead time.

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 Chapter-8: Observations

We have observations regarding the improvement of the overall working environment of Niagara
Textiles Limited. We would like to present those in a sequential manner below:-

 A good capital structure is followed by this company (8:2), given that that the company
has enough opportunity to be a highly leverage one such as (3:7), by expanding its debt
ratio in the form of loan or investment from bank, to enjoy tax shield benefit, as the
company shows a tremendous financial performance amid covid 19 pandemic and recent
Russia Ukraine war.
 The company may consider transforming the Semi-Pacca prayer space that is reserved for
the employees and workers into a prayer space with a concrete ceiling with a view to use
the prayer space all-round the year.
 The company may consider introducing profit sharing facility for the workers and
employees to ensure more job satisfaction and loyalty. The company may pay it to the
workers and employees in the form of profit bonus whenever the company reaches to its
desired profit level.
 The company may consider setting up a modern technology driven Research And
Development Center with a view to scientifically collect and analyze various forms of
data related to products, competitors, Buyers and Suppliers with a view to identify
various present and potential Strengths, Weaknesses, Opportunities And Threats of the
company.
 The company may consider introducing modern technology equipment at its training
center to enhance the effectiveness of the trainings that are being arranged for the
workers and employees.
 The company may consider introducing profit sharing facility for the workers and
employees to ensure more job satisfaction and loyalty. The company may pay it to the
workers and employees in the form of profit bonus whenever the company reaches to its
desired profit level.
 The company may consider arranging various ideal safety measures for the workers
working at different level of production to ensure the workplace hygiene for the workers.

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 Chapter-9: Findings and Learning

9.1 Findings:
 Niagara Textiles ltd is a fully complied 100% Export Oriented Textile Company that has
almost all of the compliance ensuring components working at a time round the clock to
maintain the complied status of the factory.
 The company has enough opportunity in short term profit maximization & long term
wealth maximization, shown in its robust financial performance in terms of sales
turnover, Account Receivable, turnover Account Payable turnover, Asset turn over, gross
profit and net net profit.
 The company has arranged adequate safety measures for the workers like Ensuring the
availability of enough firefighting tools, ensuring the availability of safe drinking water,
providing appropriate PPE to the workers, ensuring hygienic at the wash rooms etc.
 The company is providing Transportation and Day care facility for the workers.
 The company has its own transportation Vehicles to transport Raw Materials And
Finished Goods which helps it to reduce its total production cost.
9.2 Learning:
Industrial Visit always helps the visitors to gain some valuable Insights about the factory as well
as about the total industry. We would like to point out some of those below in a sequential
manner:-

 The nature of a composite factory.

 Learned about the wings, Divisions and Production Lines of the company such as
Knitting Division, Weaving Division, Cutting Division, Washing Division, Printing
Division, Packaging Division, Quality Control Division etc.
 The compliance ensuring process of the company.
 The operational process of ETP (Effluent Treatment Plant).
 Quality ensuring process of the company.
 Various facilities provide by the company to its workers such as transportation, pure
drinking water and day care facility.
 Funding Flexibility of the company.
 Compliance status of the company.

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 Chapter-10: Conclusion

As Niagara Textiles Ltd is evolving for future prospect with having ample market share in
readymade garments, Bank and non-Banking financial institution may disburse fund, desired by
its management. Through this Industrial Visit, we have come to know a lot of practical aspects of
a 100% Export oriented RMG factory. From the procurement of raw materials to the shipment of
the finished goods, in every process there involves man, money, management, material and
machine. So each of the process involves a number of vital decision makings like the sourcing
and pricing aspects of the raw materials to be used in the production process, the types of
technical skills and abilities required to have by the workers involved in the production process,
the source of financing for the Long term and working capital, the types of skills and decision
making capability needs to have by the management officials, the types of machineries to be
used in the production and distribution process and many more like these.

References:

 Primary data collected from face to face conversation during physical visit.
 Secondary data collected from company website.
 Secondary Data collected from the presentation given by the company officials.

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