BUSINESS
PLAN
NAVANA LINGERIE LTD
Introduction:
In the Garments Industry, Lingerie Project in Bangladesh,
from the side of the Investment as a production organization, there lac behind
from the other production countries of the world. There are very little in
number about the Lingerie item production factory in Bangladesh. Those only in a few
numbers which counts by hand. But in the world market, there is a wide demand
of it. In the world, the large scale of production country about Lingerie in
world is China.
Besides, Vietnam, South Africa, Sreelanka and India, there
are also extended it gradually. But as there is comparatively the labour cost
in Bangladesh is less and as
there is present of the relevance chance facility, extension of this Industry
in Bangladesh
is much hopeful and there could be made investment as a profitable industry.
Although it is an exception production base industry. But as the quality
standard is increased in Bangladesh
and as the labour cost is less, the Buyers are showing their eagerness for the
production of Lingerie Garments and they are making of their influence to the
large scale of Garments Industry entrepreneurs to the Lingerie Project for the investment.
Due to the eagerness and demand of the customers and
after considering the importance of this industry in the world market, Navana
Textile Ltd., as its sister concern
Navana Lingerie, of a new unit of it, there is going to begin and the
production activity of it will be started from the month of June 2007.
According to the standard Layout of this project,
the number of the sewing line will be in total 25, amongst 10 will be Basic Bra
Line and 15 will be Bottom Line. But that may be raised up to the 28 Lines as
the classification of the Order Booking and Style. The man power of this
project will total 1080 person including
the Management and the Worker. The yearly production target will be 9 million
pieces. From it, each year, as the factory CM, there will made of the gross
earn about 1.62 million dollars. Which will base on the Navana Lingerie Sales
and in the 2nd and 3rd year of production, there will be
made of the Sales target.
In the 1st year of the project starting,
for the "Navana Ingerie Factory" set-up, there will be started of its
production running after made of stock order and the garments of this stock
order, in later period as the Fragment pcs, to the different stock order
customer, there will be sold in step to step. Which will be made help for take
to Breakeven to the income-expense for the 1st year of the company.
It is mentionable that for the Factory Operation
Execute duty, there will be the operation incharge and he will be made report
directly from the Factory CEO in any matter related about the factory. The CEO
will be considered for any matter about requirement of the Factory Incharge and
to the interest for the development of the factory, there will be co-operated.
The Corporate Office will be arranged meeting at
least one time in a month with the Factory Management. There will be discussed
here about Factory progress, development, Sales, Production, Factory Plan and
about Income-Expense and after made judgement-analysis in the said meeting,
there will prepared for the next planning.
Sale's : It
is seen in generally that any production factory in our country, in the primary
stage, there remains the basic concept of the Factory owner/Adviser, to make
start of the factory with sub-contract. Their view in it that there is needed
less amount of working capital. In side by side, to make trend-up of the worker,
it makes help. But this sub-contract concept is not fully applicable for the
under garments. Because, there is little number of Lingerie Project in Bangladesh. As
there gets for the sub-contract, it is less than the demand of the factory
needs and in the new stage, such kind of pressure remain for the sub-contract,
for it, the delivery date of the Buyer and to meet Quality, it comes very hard
for a new Factory.
Not only this, for the purpose of sub-contract, the
Mother Factory which kind of CM gives for per piece of Garments, for it, there
is impossible for to maintain production cost for a standard factory.
For the above cause, it remains for the possibility
about that factory to a seek project at the beginning. In side by side of it,
the delivery date of the customer and there does not make the quality fulfil,
it harms the goodwill of the factory at the beginning. For the result, in later
period, from the customer, to get the direct order, it may be much hard for
that factory. Which may be make influence to the working capital of the
factory.
For this, after made of judgement-analysis in all
sides, Navana Lingerie will be started of its production with its own stock
order.
For to make of this stock order, there will be made
about leftover Raw material purchase as the requirement for all the Raw materials from the different
factory of China and Bangladesh. We
will be purchase of these raw materials from different factory through the rate
of per Kg and for which the approximate value will be 61 thousand of dollars.
It is need for mention here that through the raw
material of this price Navana Lingerie
will be made of production near about 2 million Pieces of Basic Bra and
Bottom Production. Which will be made of the production support to the factory
for about (9-11) months and will be made help for the work skillness of the
Factory worker, Quality development and Factory Production Efficiency and to
make of the primary level Factory set-up.
In the normal observation, although this stock order
will be added with the capital as the Extra Investment. But this stock order,
gradually at the end of the production, through
the sale of the different stock
customer, there will be make help to return of the working capital for the year
of the factory. We will be made production of the stock order about 50% Bra and
50% Bottom production of which the per pieces stock Sale (FOB) value as
following :
Basic Bra = per pc 0.20 x 10,000,00 x 66 =
1,32,00,00 (Tk)
Bottom =
per pc 0.18 x 10,000,00 x 66 = 1,18,80,00 (Tk)
------------------------------------------------
Total FOB Sale
Price =
2,50,80,000 (Taka)
For which on year Average in each month Gross Earn
will be = 20,90,000 (Taka).
We will be adopted for the following steps to make
stock order :
×
For to do purchase of the Stock Raw material
purchase, there would be made to come out of the Bond License.
×
Three month before of the production, there will be
appointed for the peoples in the Production Technical Division and the
Merchandising Department who will be made of sample development for the stock
order, will be made consumption check. In side by side of the sample
development and for the stock order, there will be selected 40 to 45 styles,
there will be prepared of the material budget for the production. Over all for
the sale of the stock order, there will be contacted to the different stock
buyer.
As the number of skill technician of this project is
little, for this, after considering the matter of demand of production and
quality, there will be given appointment at least 4(four) numbers of production
Supervisor before two months of the production starts.
At first, for the Registration of the company and
for the Memorandum of Article and Memorandum of Association of the company, we
will be prepared it through a Lawyer or any Chartered Accountant Farm and
through them, for the Company Registration, to the Register of the Joint Stock
Company, for the approval letter of the business start of the company, there
will be submitted of the documents. After received of the approval
letter/certificate for to do business from the Register of the Joint Stock of
Company, we will be collected about the business related and other documents
for to make application for the Bond License.
It is need for mention here that for the smooth
completion of the above mentioned works, there will be appointed of one person
in the Commercial Department of the Navana Lingerie.
For to get Bond License, the documents which will be
collected by us are herewith shown in the following chart:-
×
Those who by their skillness, experience, for making
of quality standard garments, there will be trained in the sample division.
×
Two months before starting of production, for to make
stock order , there will be done of Stock Raw-material Inhouse.
×
After imported of the production Raw material and
there will be made for storage and for this, there will be at first, the place
would be selected. Not only this, to keep the full account of these raw
materials, there will be made a Warehouse Software Implement in the store. Two
months before of the production, there will be appointed man power in the ware
house.
×
Later for the period of three months after of the
stock order production, there will be started to make appointment of the man
power in different department of the factory in gradually. Which is shown in
step by step as the plan chart.
Sales Policy : The Sale's Office Merchandiser will make when the
price Quote of any Buyer order directly, then the sale's office, for a order
and upon the FOB value, for the 15% extra order handling charge, during the
price Quote, there will be added Material budget. For our understand, a copy of
material budget is herewith attached.
Sales Office DP contract or on the basis of CM,
there will be given work to the factory and for the factory of which per piece
garments CM will be fixed. Bra = 0.20 cent and Bottom = 0.12 cent. It is need
for mentioned here that this rate of CM, there will be applicable for the next
three years after begins of the factory production and this rate could be made
change or amendment.
This CM cost of Sales Office Production, while order
price quote, there will be mentioned it in the material budget. Sales Office
Merchandise, in a fixed order, on the basis of style in the Material budget,
there will be mentioned of the production CM cost (per pcs). It will not to be
in any how in below of the 20% to 25% per pcs FOB value. In later period, if be
needed, due the discussion with the Buyer per pcs CM cost, there would be made
increase or decrease.
Sale's Office
Merchandise will be made when the price quote for any direct customer of any
fixed order. Then in the respective merchandise material budget, in the side by
side of the Sewing allowance, the sleeping condition after made 5% Extra
material price charge, there will be made of price quote. But when sale's
Office for to production will be purchase of Material, then the Order Material
Actual Consumption + Sewing Allowance, taking it, for the fixed order, will be
bought of the Raw material. If do so, we would be made save of material cost
upto 3%-5% on the categories of order and style from the Raw Material Purchase.
Which will be make help for keeping Extra Profit Margin in the fixed order up
to 3%-5%.
It is need for mentioned here that a fixed order,
while confirming with buyer, from order confirm to make delivery, there would
fixed of the delivery date taking at least 60 days.
30 days before of the Sale's Office Merchandise Overseas Raw
Material delivery date, there will be arranged in house in the factory and in
the case of local material, 20 days before, there will be arranged for the
goods in house.
If the Sale's
Office, in a fixed order and within the Raw material fixed production lead
time, if not to be reached to the factory. Then all the responsibilities of
this order, there will be borne by the Sale's
Office. It is need to mentioned here that by the Sale's Office and for the production of a
fixed order, there will be given to the factory at least 20 days.
Production
Department :
Three months before of the production start, for the
preparation of Stock Order, there would be made set-up of the sample room.
There will be made style develop there. Pattern, Consumption check, Layout Plan
and Stock Order, for it, there will be made sample. In side by side of it, for
the production, there will be given training to the production supervisor.
We will be bought of the factory machine in four
step for the factory and for the production. We will be bought 15 machines in
different brand for the sample room and for the test basis. By this process, we
could be learnt about the quality and merit-demerit of the machine. In the
later period and of which brand machines are favorable for the production, the
machines of these brand, we will be bought for the production factory.
There will be made in total 25 Sewing Line in the
Navana Lingerie project, of which 10 will be for the Bra and 15 will be for the
Bottom Lines. Keeping the skill and standard quality production and within 16
to 18 months of the factory production, we will be tried for to start of all
the production line of the factory. Those are given in below in the shape of
description :
(1) At the beginning of the factory, will be bought
for the 8 Bottom Line and 2 Bra Line Machine.
(2) Within the next 4-5 months of the factory
starting, we will be bought more 8 Bra Line and 2 Bottom Line Machine.
(3) Within the one year of the production starts, we
will be bought more 5 Bottom Line Machine. In this manner and gradually, there
will be able to buy 25 Lines Machines.
(4) It is need for mention here that the supply machines for sewing, we will be
started to buy at the beginning month of the project and we will be finished to
buy within 5 months from the project starting period.
(5) Keeping the consistency with the machine buying
and after considering for the skill worker and for the standard quality
garments production, in the 5 steps Navana Lingerie Factory, there will be
appointed of the man power for 25 production lines. Those are shown in details
as below in the manner of chart:
(i) To the view of establishing for model factory,
within the six months of production, we will be prepared of the production
Manual and Quality Manual. In this Manual, there will be broadly mentioned
about the procedure and job responsibility. Which will be kept for active role
to pass for the Code of Conduct Audit.
(ii) The procession of the Navana Lingerie Factory
Production will be Quality First.
(iii) As the Navana Lingerie is a production
oriented factory and also the labour related,
hence to make free of different type of labor dis-satisfaction and to
keep free of the factory and in the case of the worker, we will be make prefer
the girls than the boys.
Administration : For to counduct of the factory
administration activities in smoothly, we will be appointed 3 personals in the
administration department before two months begins of the factory production
and their work will be as follows in needs:
(1) To make advertisement for to appoint of the man
power and to make appointment.
(2) To do maintain for the personal file for each
worker/staff.
(3) To do make the attendance/over time to make
record.
(4) To do prepare of Pay Roll.
(5) To do make councelling.
(6) To do make follow-up of the canteen.
(7) To do make follow-up of the transport
management.
(8) To do prepare of the leave policy.
(9) To do pass the leave through the approval of the
production manager/ to make approval of the gate pass.
In the second part, within the four months of the
production starting, there will be made appointment one HRD consultant and one
Administration Manager. Two of these
person with jointly, will be prepared for
the direction sides for the factory administration and will be gradually
implemented into the factory.
It is need for mention here that we will be
appointed to the HRD consultant for contract basis to the period of one year.
In later period, the duration period of the contract could be made extension if
in need.
Factory HRD consultant will be kept for the
principal role to the prepare of the
following directions for the factory and for to pass of the Code of conduct
Audit.
(1) Rules and Regulations of the Factory
Administration.
(2) HRD policy.
(3) Recruitment and dismiss procedure.
(4) Counseling procedure.
(5) Welfare Fund Policy.
(6) Leave procedure.
(7) Provident Fund/Gratuity.
(8) Prepare of Salary scale as per the code of
conduct.
(9) Direction for Fire Extinguisher.
(10) Factory General Principle and Workers Help
matter.
(11) Overall we will try to apply for the Factory
Code of conduct audit and to achieve the
certificate through the work of him.
When the HR consultant will be prepared about the
Directive Manual on the above matters, he must be determined with the
consistency about the Bangladesh Labor Law and Code of conduct for the
principles and which will be acceptable for all.
When will be apply for Factory Code of conduct Audit
within the 5-7 months of the factory opening that means after came some of the
maturity and we will be arrange to make COC certificate of the factory.
There will be given preference of the following
matters to make COC certificate of the factory :-
(1) Child Labor.
(2) Forced Labor.
(3) Health and Safety.
(4) Freedom of Association.
(5) Working HRS.
(6) Compensation.
(7) Management system.
It is need to mention here that we will be stopped
to make appointment to a worker below 18 years in the company.
As per of the Labor Law of Bangladesh and the Factory
Code of Conduct, there will be arranged
for work about 60 hours in a week and there will be fixed for one day as common
leave.
Administration Department will be make appointment
in step to step as per of the Factory Recruitment Plan in side by side of the
above activities.
It is need for mention here that the logistic
department will be started of their work for two months before about the
factory begins. Their first work will all of Electrical Warring,
Production Line tracking in the set-up
and also set-up for Transmeter, voltage Stabilizer and for the production, cutting table, tools
for sitting of the workers, after bought
of chair/table for the management persons and to do set up as the layout plan
of the factory and to do buy different type of stationery item for the factory.
The principal work of the logistic department will
be to make supervise if have rightly supplying the electric power in the
factory.
Medical and Day Care:
Within the 2(two) months of starting for the Factory
Production and considering about the health matter of our workers and as per of
the Labor Law of Bangladesh and Factory Code of Conduct, we shall be provide
about the health services.
For the Medical Aid, we shall be appoint a Nurse to
the beginning period and on the basis of the contract, there will be made
appointment of a doctor. In the later period and increasing of the man power in
different department of the company and as per need of the Medical Section,
there will be appointed of the doctor and nurse.
In this Medical, we shall be provide to the worker
as primary aid and the needed medicines shall be borne by the company to this
medical aid. The company will be maintained a Fund in the Factory Budget for
each month to the needs for buying of these medicines. In side by side, for to
buy of the medicines, we will be taken the assistance from different social
organizations.
Day Care Facility:
As per of the Factory Code of Conduct, the child's
of the labors and those who are within 2-5 years age, we shall be arranged for
nursing aid in the Factory Day Care Centre as per of its capacity.
This Day Care centre shall be conducted under of our
Medical Centre and there will be appointed a maid servant servant for all the
time to the nursing aid of the childs.
This Day Care Centre will be provide nursing with
free of cost and will arranged for feeding to the childs.
This Day Care Centre will be arranged for nursing
for the highest 25-35 number of babies.
To conducting for this Day Care Centre, the company
will be reserved a fund for each month. In side by side, there will be taken
assistance from different social organization.
IT Department:
The activities of the IT Department will be started
two months of beginning of the factory. Their first work will be in the primary
level, to make set-up about the IT related necessary equipment's in the Factory.
In side by side, Warehouse Software, HR Pay Roll and Punch Machine
Installation, they will be done. After this and in gradually and as per of the
factory needs, Network Expansion, Radio Link Installation, Server set-up etc.
work, there will be implemented.
To the interest for the development of the Factory
Communication, they will be informed to the top management about the new idea
of the information technology and will be paid for the principal role to the
work of implementation.
Bonus : Navana Lingerie will be provided to the
Workers and the Management Staffs as per Labour Law and Factory Code of Conduct
for two Festival Bonus which will be equal of the Gross Salary for one month.
To the interest of the production and for to
increase of the Factory Productivity, there will be arranged of the Production
Incentive/Production Bonus for the workers. To this view, the company will be
made a Production Target Fixing for each of the Line. If any line be made for
the Target achieving, then this line will be get the production Bonus. This
production Bonus shall be depended only of the company management and the
decision. Policy shall not be applicable for all the time in the Factory
Production.
The company shall be arranged for some of the
incentive to the Sale's team of the company for
to the view of Sale's
increasing of the company(which will be applicable for the first two years
after begins of the factory production).
For to make more and more influence of the Navana
Lingerie Ltd of its Overseas and Local Sale's Office, there will be provide of
Incentive on 1% rate on the basis of the profit in each year of the Sale's
Office. This Incentive shall be distributed in equally amongst of all. This
bonus will be helpful for the stop ness of adopting of different dis-honest
principles for the Officers of the Sale's
Office.
It is need for mention here that all the above
mentioned Incentive Bonus will be
gradually effected as per of the discussion and taken decision of the company
management after got of the Direct Order.
Increment :
As per of the Labour Law and Factory Code of conduct
in Bangladesh, the Navana Lingerie Ltd. of their worker and management staff
and for the presence in the factory, skill ness of the work, experience,
conduct, behavior etc., on the basis of theses, there will be made evaluation
of each of the employee to the company and for one time in a year, after made
evaluation of his/her work, there will be provided of his/her yearly increment.
It will as in each working year and for the individual working performance of
the workers, there will be provided on the basis of it.
This yearly will increment shall be made effect in
the month of April in each year.
The company will be taken for to activated of the yearly Increment Policy after got
Direct order by the Navana Lingerie Ltd. and as per decision of the Company
Management.
It is more need to mention here that this yearly
Increment would not be exceeded at any stage up of the Factory Gross Salary
about 3%-5%.
Promotion : The company could be given promotion to
its appointed officer and employees in Management Staff and Worker after
considering about their work skill ness, eligibility, duty performed and preparation
of planning capacity. Any proposal in
related to the proposal, there will be made about the proposition through the head of the department for the
relevance department. Any kind of promotion proposal shall be reserved to the
top management of the factory for to considering of it.
This promotion proposal shall be submitted once in a year within a fixed period of the
year.
All kinds of the promotion case shall be made active
from the next year after received of the Direct Order by the company.
Salary Structure : Navana Lingerie Ltd., as per of
the Labour Law and Factory Code of Conduct in Bangladesh, there will be
determined about the salary structure of the Management Staff and the worker.
It is need for mention here that there will be brought
up of the payable salary according to the different department from the near by
production organization of the factory while preparing of the salary structure.
If so applied, there will be difference about the salary for a far/less amount
with the relation of the nearby factories. If in need in later period, there
will be the chance for this salary structure to make re-arrangement according
to the departments.
Confirmation : The company will be provided about
the appointment letter while appointing of its appointed officer and employees
and the workers. They will be at least six months observation under the company
from the dated of employment. Later the period, if his/her activities are
treated satisfactory by the authority, then the company will be made permanent
of his service through the recommendation of the fixed departmental head.
Provident Fund : According to the Labor Law and
Factory Code of conduct, each of the officer and employee and labor, after made permanent of their
service, there could be participated in to the provident fund of the company.
It is need for mention here that to do participate in to the provident fund, it
completely depends on the willing of
the workers and the staffs.
After ended of two year for the deposition for the
money of the Provident Fund, there will be kept of the eligibility to make
withdraw for the deposited part of the company.
As per of the existing rate for the basic salary
(8.33%), there will be deposited in each month to the Provident Fund for the company.
Gratuity : According to the Law and Factory Code of Conduct in Bangladesh,
after considering the future of or the Officer, Employees and the Labors, the
Navana Lingerie will be provided at a time payment as the gratuity while
releasing to the fixed worker/staff
treating the service benefit for an equal amount of money of a salary in
a year.
This service benefit shall be activated after made
of permanent to the officer and employees and the labors of the company.
Income Tax : Under the Taxes rules, all the officers
and the employees of the company, there will made deduction of Tax according to
the Taxes rule from his/her salary and there will be deposited to the Govt.
Treasury Fund. Those who officers and the employees are under the Taxes rules,
this Tax will be made deduction from their each month's salary.
It will be made active according to the decision of
the Navana Lingerie Ltd.
