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An assignment Prepared By N.D.B.Marambe BM/2008/178

Course: BMKT 11124 Soft Skills in Marketing Year 1, Semester 1


1. Da Vinci Computerized Labels (Pvt) Ltd

1.1 Sri Lankan Apparel Industry Sri Lankas apparel industry has developed to be one of the biggest contributors to the export revenue of the country. Being the individual largest employer in the manufacturing sector the apparel industry provides roughly 75% of Sri Lankas employment either directly or indirectly. Sri Lanka is also the only outsourced apparel manufacturing country in Asia having signed up to 30 of the International Labor Organization conventions. It leaps out as a dependable source that pays fair pays to its workers while discouraging sweat shops and child labor in its businesses. (Refer Table 1) The Industry itself, after decades of collecting apparels together is now going towards placing itself as a fashion industry. One of the key rewards of sourcing from Sri Lanka is the islands key and appropriate position which helps the shortest shipping time to Europe, which under normal circumstances takes less than 16 days. The Sri Lankan apparel industry is one of the largest contributors to the National Gross Domestic Product of this island nation. In Sri Lankan point of view the companies such as Avery Dennison and Davinci are suffering from the failures of worlds large scale companies but the overall apparel industry in Sri Lanka today is going well with every indication that this efficiency will continue to grow - especially with the more active participation of the government including its specialized agencies like the Export Development Board, and, industry initiatives championed by the industry in association with the state, and, a host of microinitiatives taken by the individual members / units of the apparel industry. The apparel trade has taken upon itself to meet any future changes it might face in the global scene, including the removal GSP +, formation of regional trading blocs, preferential trade agreements, changing trends in the global retail industry as well as Chinas apparel industry growth. The Sri Lankan apparel industry is ready to take the challenge of facing the after effects of the financial crisis. Indeed, some of the greatest entrepreneurs of Sri Lanka are

in the apparel industry that caters to a market that is very demanding. And, considering the importance of this industry to our economy, it is vital that they should succeed. 1.2 About Da Vinci Computerized Labels (Pvt) Ltd 1.2.1 Inception The company, Da Vinci Computerized Labels (Pvt) Ltd is a well named organization in the apparel industry. The company was established in 1993 with an issued capital of 10,000,000 as a private limited company. The company is specialized in manufacturing labels. The current owner of this company is Mr. K.P.J. Leonard De Silva. Da Vinci is on the second class in the Sri Lankan apparel industry. (First class goes to the company Avery Dennison which is founded by the BOI). Da Vinci Company can be categorized as a medium scale company which operates on 365 days of the year with 24 hours working. 1.2.2 Production and Communication Da Vinci is specialized in manufacturing labels such as T shirt back labels, Satin and Taffeta Woven Labels, Laser cut badges, Zipper Pullers, Woven photo quality promotional posters and Bar coded price tags. Company doesnt have a huge space but they are producing 250,000 labels per day. The products are mainly provided to the apparel industry. When it comes to the export market Da Vinci can be state as an indirect exporter since it is in the business to business market. 1%-2% they direct export. When it comes to the business communication they do not advertise on public but they manage to communicate through Personal Selling. 1.2.3 Work Strength and Technology The Company has more than 100 workers. Since it is a medium scale company it does not use very large complicated machines. But they use the best technology they can use in order to keep the quality of their products. For designing purposes they use latest computer softwares such as Auto Cad. When it comes to the machine technology the company uses various types of cutting machines and threading machines imported from various countries. 1.2.4 Client Base The company is based on large scale companies. It has a wide client base including large scale companies such as Brandix, Maliban Textiles, DSI, Hydramani.

Because of the financial crisis most of the large scale companies collapsed so Da Vinci is currently trying to move on to the local market client base. 1.2.5 Competition Since Sri Lanka is a small country Da Vinci Pvt ltd does not have very large amount of competitors. But according to the top level of the company there are 8 main competitors and the first place is going to the company Avery Dennison which is categorized as a first class in the apparel industry.

2.1 Coordinating Section When a purchase order comes, the coordination section will contact the customer and will get all the information needed for the production purposes. After that the section will make a Job Card which is the document including all the required information to perform the manufacturing of the particular item. Some of the information included in the job card is the name of the customer, the date of the purchasing order, which colour yarn to use etc. 2.2 Designing Section The designs will most of the time provided by the customers(large scale companies). If not, the company will design it to the customers taste. When the job card gets to the designing section the workers in that section will make a sample and send to the customer to get an approval. When the approval comes the production will start. When it comes to computer designing the main software is the Auto Cad. To set up the design, basically they use 2 methods. 1. Design using Auto Cad 2. Scan the original label The designing section of the Da Vinci Computerized Labels (Pvt) Ltd has worked with many popular brand designs in the world such as RBK(Reebok), Disney, United Rebels, NEXT, Cutters, Nike, Armani Jeans, Quick Silver, Vax-D. When we look at these brand names we can see the dependency of the company on the large scale

companies. Assume all the above Brands collapsed. The company will fail. This is a current issue coming up with financial crisis. 2.3 Production Section and Yarn Stores Most of the labels are made by Sating Fabrics. In the production section there are machines can work up to 8 colours. There are 16,000 thread machines also. There are 4 main machines including VAUPEL, MULLER, TONIER in the production section. Further in the production section we see these machines given below. TA-07 SA-01 112 Cutter SULZER RUTI G6100 Thread Machine MV GRIP 3 Thread Machine

Instructions followed by the production department when making labels.. i. ii. iii. iv. v. vi. Take the job card from the schedule Find the diskette and required colour yarn Insert the diskette and enter the file name Change the required information in the machine Switch on Set the cutter to the ideal label width

2.4 Cut and Fold Section The produced labels will be cut by this section. There are many types of machines to cut to the various ways as the customer needs. In the Da Vinci Company the labels are made using 4 main cut and fold methods. E.G. N Fold, Center Fold, Deep Cut 2.5 Packing and Finishing Section All the produced labels will go to the packing and finishing section. At there the Quality Assurance people will identify the faults and reject them. Quality Controllers will see if the labels are in to the standard quality and approve the products for exporting. There are 3 main delivery spots in Sri Lanka. Biyagama

Katunayake Maharagame

Da Vinci Computerised Labels (Pvt) Ltd is a company with a great success throughout the years after they established in 1993. They are one of the key garment exporters in Sri Lanka. Chairman/ Managing Director - Da Vinci Computerized Labels K.P.J. Leonard De Silva received the Gold Award for The Most Outstanding Exporter Suppliers/ Service Providers to Exporters Sector at the 15th NCE Export Awards 2007. During the past few years all the companies in the world got affected by the financial crisis. Most of the large scale companies got collapsed. Because of that the medium scale companies which were based on large scale companies failed to perform their operations well. But as an organization based on large scale industries Da Vinci managed to face the recession very well. When all their competitors failed Da Vincis potential made the company survive from the recession. Company affected from the recession but because of the well planned management decisions they planned to minimize the impacts. Because of the recession company is moving towards a new trend, which is moving on to the local market. Since the large scale companies are falling apart it is the best solution to survive in the apparel industry. Further there are some more things that can be done by the company in order to remain in this industry as the best. Start advertising to the local market Using the new technology Acquire some more space for production purposes Strengthen the distributing chain Get a well experienced staff Enhancing the employee capacity with increasing the production

TABLE 1 source: Central Bank

Exports in US$
Industrial Exports of Which Textiles Rubber Petroleum and Based Products Garments Products
628 804 1,214 1,412 1,552 1,853 1902 2,274 2,460 2,425 2,982 2,543 2,424 2,576 2,809 2,895 3,080 3,340 3,469 99 79 63 79 80 85 104 97 73 74 98 68 73 65 100 131 187 169 255 30 30 60 71 102 153 169 178 178 161 196 172 182 231 283 394 428 482 542


1,036 1,226 1,763 2,102 2,399 2,889 3,006 3,436 3,607 3,551 4,283 3,710 3,631 3,977 4,506 4,948 5,383 5,967 6,159

92 68 107 142 146 163 157 125 121 161 179 166 192 216 247 265 311 349 419

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(a)

Da Vinci Computerized Labels (Pvt) Ltd 167/76, Orugodawatte Trade Complex, Avissawella Road. Fax - +94-11-2572442 Tp - +94-11-2572881 Production Manager of Da Vinci Computerized Labels (Pvt) Ltd Mr. Lawrence Central Bank Report 2000, 2008